Amsterdam, January 3, 2022 – Starting today, BUX has introduced fractional investing to clients across Europe. Via investing app, BUX Zero, the company is the first broker in the Netherlands to offer fractional investing to retail clients and is continuing to lower the barriers of entry for those who are looking to build wealth in an affordable, accessible way. For investors with smaller amounts to invest, big companies with share prices in the thousands have long been out of reach. Fractional investing now allows these clients to buy a fraction of these shares, allowing them to further diversify their portfolios and build wealth for the future.
Fractional investing further democratizes investing for all
With the introduction of fractional investing at BUX, instead of buying a certain number of whole shares, investors can decide how much to invest in a stock, starting as low as €10. BUX Zero clients will now be able to own a piece of some of the world’s most popular, but pricey, shares including Amazon, Google and Tesla. By lowering the barrier of entry, fractional ownership now allows clients to further diversify their portfolios, while also allowing them to put their money behind the companies that they believe in.
At BUX, our mission has always been to make investing both accessible and affordable. We began this journey by making it possible to invest with zero commissions, something which was previously not offered in the European market. Today, we are making it even more affordable for Europeans to benefit from investing, not just the wealthy. With the launch of fractional investing, investors with smaller budgets, especially younger generations, can now build a diversified investment portfolio with fractions of stocks from some of the biggest names in global tech, retail and auto, said Yorick Naeff, CEO of BUX.
The continued Americanization of neobrokerage in Europe
The race to offer zero-commission investing in the American market was a harbinger of things to come in Europe. What has been referred to as the ‘Americanization’ of brokerage in Europe is in a second phase. Fractional investing is standard in the U.S. and has been fueling a sharp rise in trades in the U.S. According to U.S.-based embedded investing platform, DriveWealth, 92% of all trades on their platform had a fractional component in 2020. BUX anticipates that the next phase of democratization in brokerage in Europe will be fractional investing.
According to DriveWealth’s Retail Trends report, 82% of their survey respondents “believe a modern investment platform should offer fractional trading, equities investing, and ETFs to achieve long-term investing goals.’’
Starting today, BUX customers can invest in 100 of the most popular US stocks. Other US stocks will become available in the period after the launch. In the future, fractional investing in ETFs and European stocks will also be possible in the BUX Zero app.
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