Update July 27, 2022. Brand New Day is an online bank for savings, investments and retirement investing. At Brand New Day, you invest through your chosen risk profile in index funds that spread your money across the global economy. Peaks does the same thing, but the difference is that Peaks is an app and Brand New Day does not have an app. There is something to be said for both. No app, not that modern. But on the other hand, this can provide peace of mind because you are investing automatically without looking at your account all the time. In this article, a review investing at Brand New Day.
Want to compare Brand New Day to other brokers, such as Peaks and Degiro? Then check out this article.
Review investing at Brand New Day
You can have retirement savings, retirement investing and “just” investing at Brand New Day. We already wrote many articles about retirement investing in partnership with Brand New Day.
Model investing
If we look at just investing, at Brand New Day you can easily invest through one of the 5 model portfolios created by Brand New Day. You choose your risk profile, thus a portfolio, set up a direct debit and they do the rest. Automatically, your money is invested across thousands of stocks and bonds worldwide, through their index funds.
Cost model investing
The costs for model investing are:
- Termination fee: €0
- Transaction costs: 0%
- Service charges: 0.34%. These charges are calculated daily and amortized quarterly.
- Fund fees: 0.15%-0.17%. These are the fees you pay when you do model investing. The amount depends on the portfolio you choose.
Free investment
With free investing, you choose the funds yourself. You can choose between 8 stock and 6 bond funds. With model investing, you delegate as much work as possible: you invest in a fixed model portfolio with fixed fund allocation. If you choose free investing, you decide entirely which funds you invest in. So you are freer and can adjust your risk appetite accordingly.
Cost free investing
The charges for free investing are:
- Termination fee: €0
- Transaction costs: 0%
- Service charge: 0.44%. These charges are calculated daily and amortized quarterly.
- Fund fees: 0.15%-0.26%. The actual cost depends on the funds you choose. Fund fees are always offset against the price of the funds you invest in.
Difference between model investing and free investing?
Model investing is apple pie. You open an account, choose a model portfolio based on your risk appetite, set it up, and Brand New Day does the rest. Free investing is also simple, and the choices are also limited (14 funds in total) but still requires a bit more figuring out. What funds do you want to invest in? And in what proportion? Maybe you want to put on a certain emphasis or a certain ratio of funds because you believe in it.
With model investing, you choose a model portfolio (from very offensive – 100% stocks – to very defensive – 10% stocks), set an amount you want to invest with periodically, and time (and Brand New Day) does the rest.
Funds from Brand New Day
Brand New Day has 14 funds (8 equity – and 6 bond funds). See more about Brand New Day’s funds here. In particular, the index funds are from Vanguard and Northern Trust, proven parties when it comes to index tracker development. Want to know exactly what index trackers are? Read all about an ETF here.
Advantages of investing Brand New Day
Brand New day can be a fine investment player if you want to build long-term wealth without having to worry about it too much. The benefits of Brand New Day at a glance:
Service
Within a split second you have someone on the phone, with whom you can then email, and again later, helping you and explaining everything calmly. That gives confidence, and you want that feeling when you’re funneling money into something. Customer service is good, which is nice.
The low cost.
When it comes to investing, every percent you pay extra to any service is a return dud. The fees at Brand New Day for their investment account are as follows:
Opening an ordinary investment account: 0 euros. If you want to open a retirement investment account you will pay €45 at a minimum. In addition, you have to deal with service fees and fund fees. We find this cost low for the service they provide. You can find the costs in the section above.
Freely withdrawable
Your money is freely withdrawable any time of the day, at no extra charge.
Dividend leak is covered
Brand New Day covers the dividend leakage. What that is? Check it out in this article.
Direct debit
Via direct debit, you transfer money to your investment account every month (or quarter, whatever you want) and they do the rest. In this way, you will make investing a habit. Kind of easy.
Automatic risk reduction
It would be sour if just before you need the money the investments went up in smoke due to a crash in the stock market. That’s why Brand New Day does automatic risk reduction. Your money is then invested more and more securely. In other words: fewer stocks, more bonds. They do so starting 15 years before the end date. Don’t you want this? Then you can turn off automatic risk mitigation.
Review investing at Brand New Day
We think Brand New Day can be an option for easy, low-cost, long-term investing. You open an account, choose a portfolio model with a risk profile of your choice if you wish, set up a direct debit, and you have little to worry about. Now it’s a matter of having a little money invested each month, letting time do its work, and that way, in 20, 30, maybe 40 years or so, you’ll have managed to build up quite a wealth.
