The monthly service fee: enhancing retail investment services at BUX

In April 2023 BUX announced the implementation of a monthly service fee. In the ever-evolving world of retail investing, the topic of fees is often met with scrutiny and scepticism. Investors are right to be discerning about where their hard-earned money goes.

After almost 6 months we have now seen the results from charging the monthly service fee, not just in unit economics, or financial results, but also in the behaviour and loyalty of our clients. At BUX, we see that charging a monthly service fee is also beneficial for our clients as this fee structure has not only enhanced our client positioning, but has also fostered greater loyalty and commitment among our investors. Let's delve into why we consider this monthly fee a fair and valuable aspect of our retail investment offering.

?

Transparency and trust

One of the key principles underlying our decision to implement a monthly service fee is transparency. We are committed to building trust with our clients, and transparent fee structures are a fundamental part of this trust-building process. By clearly outlining what the fee covers and ensuring that it remains fixed at €2.99, we provide our clients with a clear understanding of the costs associated with our services. This level of transparency helps investors make informed decisions and fosters trust, knowing that there are no hidden charges or unexpected costs lurking in the background.

This is especially important in an environment known for kickbacks and inducements. Many investment firms in the past have faced backlash for hidden fees and complex pricing structures that left investors feeling misled. This lack of transparency eroded trust in the industry. As mentioned, many times by us in the past, BUX doesn’t receive any inducements as there is a complete ban on inducements in the Netherlands. And rightfully so. For example, we believe that Payment for Order Flow (PFOF) is detrimental to the client, and the European policy makers have finally agreed, hence the upcoming ban on PFOF in June 2026.

The fixed monthly service fee at BUX ensures complete transparency. Clients know exactly what they are paying, eliminating the fear of hidden costs or surprise charges. This transparency builds trust because clients can rely on us to be straightforward and honest about our fees and keep things affordable at the same time.

?

Client positioning and commitment

Since introducing the monthly service fee, we have observed significant improvements in our client positioning, loyalty, and commitment. This fee model aligns our interests with those of our clients. When clients pay a nominal monthly fee, they are more likely to stay actively engaged with their investments, which can lead to better long-term results. This fee creates a sense of commitment, encouraging clients to view their investments as an ongoing partnership rather than a one-time transaction. In essence, it reinforces the idea that we are in this together for the long haul.

The monthly service fee encourages clients to adopt a more committed approach to investing. They stay closer attached to their investments and are more inclined to view their investments as a long-term partnership.

?

Enhanced services

The revenue generated from the monthly service fee enables us to continually enhance our services. It allows us to invest in cutting-edge technology and offer a wider range of investment products. This, in turn, benefits our clients by providing them with a more robust and responsive platform for their investment needs. In an industry as competitive as retail investing, staying at the forefront of innovation is crucial, and the monthly fee helps us achieve that.

Firms that rely solely on transaction-based fees may struggle to invest in technology and customer support in times where markets are less favourable. This can lead to outdated platforms and a reduction in innovation. The steady revenue stream generated from the monthly service fee is predictable and consistent, and therefore enables BUX to continually invest in improving its services. This includes more sophisticated features, in-depth educational resources, or a wider international offering. These enhancements directly benefit clients by providing them with a more comprehensive and user-friendly investment experience.

?

Flexibility and value

By charging a fixed monthly fee, we provide our clients with flexibility. They have more freedom to make the necessary decisions to optimise their portfolios. This ensures that our clients can tailor their investment strategy to their individual needs, ultimately optimizing their investment outcomes. Especially because BUX has made their investment plans commission free, clients can now invest for the mid to long term in a very flexible and affordable way, while only paying a monthly service fee. We believe this is the best of two worlds: keep things affordable, while providing the necessary tools and flexibility for clients to optimise their investments.

?

Our learning

In short, the monthly service fee at BUX is not merely a fee; it's an investment in transparency, trust, and the long-term success of our clients. We have seen tangible improvements in client positioning, loyalty, and commitment since its implementation. This fee enables us to continually enhance our services, manage risks effectively, and offer flexibility to our clients. In the dynamic world of retail investing, we believe that charging a fair and transparent monthly fee is not just a good thing; it's the right thing for our clients.

We are committed to providing value, transparency, and partnership to our clients, and the monthly service fee reflects that commitment. We look forward to continuing this journey with our clients, empowering them to achieve their financial goals while building a strong and lasting partnership.

?

Final word

It's important to reiterate that this opinion piece is intended to provide insight into why BUX has chosen to implement a monthly service fee and why we believe it benefits our clients. We hope this can provide inspiration across the industry and help other business leaders make the right decisions on what works for their respective businesses.

?

Disclaimer

This opinion piece is not intended as financial advice. Investment decisions should always be made with careful consideration of individual financial goals, risk tolerance, and professional guidance where necessary. We encourage all investors to conduct thorough research and seek personalized advice before making any investment decisions. Ultimately, the choice of whether a monthly service fee aligns with one's investment strategy is a decision each investor must make based on their unique circumstances and objectives.