Fast-growing European neobroker BUX today announced it has introduced fractional investing in Europe via investing app, BUX Zero.
Based in Amsterdam, the broker is the first to offer fractional investing to retail clients in the Netherlands. Big companies have been our reach to small investors for a long time. Fractional investing helps those with smaller amounts to invest to buy a fraction of these shares, allowing them to further diversify their portfolios.
Fractional ownership
Instead of buying whole shares, BUX offers investors to decide how much they invest in a stock, starting at €10. The investing app’s clients can now own a piece of some of the world’s most popular shares such as Amazon, Google and Tesla. Fractional ownership lowers the entry barrier and thus allows clients to further diversify their portfolios, allowing them to invest in companies they believe in, BUX explained.
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.
Fractional investing – the future
Zero-commission trading is already popular in the American market and has outlined what is to come in Europe. Fractional investing is standard in the US and has been driving surge in trades there.
US-based embedded investing platform DriveWealth states that in 2020, 92% of all trades on their platform had a fractional component. BUX expressed its belief that the next phase for European brokerages is namely fractional investing.
BUX customers can now invest in 100 of the most popular US stocks with more to follow in the future, the company said. It also noted that fractional investing in ETFs and European stocks will also be available in the BUX Zero app.
Experienced writer and journalist, working in the global online trading sector, Steffy is the Editor of LeapRate. She has previous experience as a copywriter and has been with the company since January 2020. Steffy has a British and American Studies degree from St. Kliment Ochridski University in Sofia.
