Review BUX Zero investment app
You would like to start investing in an accessible way. Preferably as simple as possible, without too many costs and with the help of a plan. Then BUX Zero is an option for you. Investing at no or low commission costs and easily transferring money. In this article we will share review of the BUX Zero investment app, so you can consciously consider wether BUX Zero is an option for your investment plan too.
Psst: not sure what brokerage account could work for you? ELFIN wrote down what to take into consideration.
Investing with BUX Zero investment app
BUX’s motto is “Do more with your money”. They give shape to this by offering 3 types of accounts: BUX Zero, BUX X (focused on CFD investing) & BUX C (stands for Crypto). BUX X & BUX C are more for the advanced investor. ELFIN strives to ensure that as many women as possible get a good picture of their finances and feel empowered to start building up their own capital. Investing at BUX Zero is a great opportunity to get acquainted with the world of investing.
How does investing with BUX Zero work?
BUX Zero has been around since September 2019 and entered the market as the “first app that lets you invest for free”. This means that they don’t charge any commission fees. So you only pay the cost of the stock itself. This is an advantage for first-time investors because when you start, you usually don’t invest such high amounts yet and then the commission can take a big bite out of that and eat away returns. At BUX you invest protected by a deposit guarantee scheme. This means you get an account at ABN Amro (Dutch bank) where your money is guaranteed up to EUR 100,000.
A disadvantage of BUX Zero is that you can only trade in a selection of stocks from the European (including Dutch, Belgian, German & Austrian stocks) and American stock exchanges. These do include the big players, such as Apple, Shell, Facebook, Ahold or Tesla. For a starting investor, this is probably enough.
BUX is expanding its stock selection and you can make suggestions which stocks or ETFs you would like to see in the app in the future.
You can also invest in cryptos through BUX these days. This makes BUX almost the one-stop-shop for the investor. Stocks, ETFs and crypto: you will find the big names in all these categories.
When it comes to ETFs, BUX has quite a profound list of products to invest in. From Vanguard, to iShares to VanEck: the biggest index names are there.
Thee BUX Zero-app
BUX does not have a web version of their application, you only manage your investments from a mobile app. This app is super easy to use. You transfer money to your account and then you can buy a share with one button. The app contains little fuss and is really focused on ease of use.
On the other hand, there are few, if any, tools in the app to make extensive analyses. What can you find there? Your own portfolio. And you can put your shares on your watch list. You can also view the current highs and lows, search for stocks based on categories, e.g. Automotive, Communication, Energy, Finance, and you have an inbox where you can find your notifications.
In addition, BUX offers many extras to help investors with their investment knowledge, such as informative blogs and videos and a glossary to help you understand investment terms.
Through BUX Zero you can now set up an investment plan. This allows you to invest automatically every month, and save time. Choose the (fractional) shares and ETFs you want to invest in, choose the amount you want to invest, and BUX Zero does the rest. You can set up a monthly investment plan, containing up to ten ETFs and/or stocks of your choice, that will run every month on a predetermined day. Investment plans cost €1 per month, regardless of how many shares and ETFs are included in the investment plan. If the investment plan is not executed, no costs will be charged that month.
Nowadays, you can also invest in fractional shares. This means that you can buy part of a share. Would you like to include Amazon in your portfolio, but a whole share is too pricey? You can buy a fraction of a share every month.
Did you know that when you open a free account at BUX Zero, you get a stock for free? Check it out!
Costs of BUX Zero?
You can currently trade at BUX Zero commission free. However, you need to be careful about which order you place.
Three types of orders have been introduced:
- Market order: your order is executed immediately at the current price. On the European market, you pay €1.50 commission for this on shares and ETFs.
- Limit order: your order is executed at a price determined by you. Again you pay a €1.50 commission fee on the European market for equities and ETFs.
- Zero Order: BUX will execute your order at the end of the trading day. There is no commission charge for this.
Trading ETFs according to an investment plan costs €1 per trade.
The first two types of orders are also known from other parties such as DEGIRO. The Zero Order is unique to BUX Zero. A consequence of the Zero Order can be that the price of the stock at the end of the day is different than at the moment you decide you want to buy it. This can be both positive and negative for you.
Conclusion on investing with BUX Zero investment app
If you’re looking for a simple way to invest, with no fuss and no complicated information, BUX Zero is the way to go. But beware, you don’t always get commission free and you can’t choose every share.
If you want a bit more support and guidance, be it from an expert or through figures, articles and charts, BUX Zero is not your cookie. You can’t let BUX invest your money and they won’t help you decide what’s good or bad for you, so if you screw it up, you screw it up. So a bit of composure is required. If you like to try things out for yourself and you believe in learning by doing, then BUX Zero is totally OK. After all, we all know: you get the furthest when you dare to step out of your comfort zone.