Amsterdam-based BUX, a neobroker that specialises in the fields of fintech, mobile apps, investments, stocks, and zero-commission, announced on Monday that its clients will be the first in Europe to invest in fractional European ETFs outside of an investment plan. BUX will enable the feature in partnership with ABN AMRO Clearing Bank.
Jan Bart de Boer, CCO of ABN AMRO Clearing, says, “Fractional trading is trading made accessible for everyone. With our unique fractional trading service, we are supporting our clients to offer embedded investment solutions in capital markets, so all their clients can profit. Expanding this fractional trading service offering with European products will open up the EU capital markets for our clients and their investors to create embedded and efficient investment solutions as well.”
With the introduction of fractional European ETFs, BUX’s clients can now invest with as little as €10. European ETFs with a higher price tag, such as the S&P 500 Index which typically costs €80, will thus become more accessible to investors with a smaller budget.
This will also allow all investors, regardless of budget, to invest in different ETFs on a monthly basis and minimise the investment risk by offering room to diversify portfolios further. This new feature follows shortly after BUX introduced fractional investing for its clients in January, 2022.
What is fractional investing?
Many investors with smaller wallets are unable to invest in a company, for example, Amazon with a share price above $3,000, while building a diversified portfolio. Fractional investing will allow such investors to buy a piece of stock with a small amount of money.
Fractional shares are partial shares of a company’s stock. Instead of owning one or more full shares of the stock, the investor owns a portion, or fraction, of one. In the past, investors generally would end up with fractional shares only after a stock split, since brokers allowed the purchase of full shares only.
Introduction of 20 fractional European ETFs
Fractional investing is gaining popularity among clients at BUX. According to the company’s research, since the launch of fractional investing in January, 2022, nearly 1 in 7 orders has been a purchase of a fractional share. The favourite among fractional US stocks is Tesla. Among all age groups, the electric carmaker is the most purchased fractional stock since the beginning of the year.
BUX, which currently offers fractional European ETFs, claims to have added an additional 95 new fractional US stocks to its existing offering. Well-known names among US stocks that are now available to invest in fractionally include Mastercard, PepsiCo and IBM. In the future, fractional investing in European stocks will also become available.
Yorick Naeff, CEO of BUX, says, “With the introduction of fractional European ETFs, we can offer more ways for our clients to build a portfolio that fits their needs and goals. Since introducing fractional investing to our clients at the beginning of the year, we have seen a great deal of interest and this demonstrates that the modern investor is embracing diverse investment options. As the economic climate continues to swing in uncertain directions, we want to offer Europeans a solution that allows them to put their money to work in an accessible way.”
“Do more with your money”
Founded in 2014 by Egbert Pronk, Joost van de Wijgerd, Nick Bortot, and Robbert Bos, BUX is a neobroker that claims to make it easy and affordable for Europeans to do more with their money. The platform helps new generations of investors and traders discover the world of the financial markets. Currently, it has over 650,000 clients.
BUX offers three apps to explore the financial markets, including BUX Zero, its flagship platform that makes commission-free trading possible, allowing users to invest in the brands and companies they care about. BUX Zero is currently available in the Netherlands, Germany, Austria, France, Belgium, Ireland, and Spain.
The full range of BUX products, including BUX Crypto, which allows users to invest in real cryptocurrencies, and BUX X, where users can trade in contracts for difference (CFDs), are available across Europe.
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