Why our fractional ETF launch marks a significant step forward in the European investment revolution

The news is out: BUX is the first mobile broker in Europe to launch fractional European ETFs outside of a savings plan!

In collaboration with ABN Amro Clearing Bank we have built the technology that enables investors to access pricier ETFs at a lower price point by simply buying a portion of the entire product. This way they can invest in ETFs that match their goals, values and beliefs, regardless of the price.

This isn’t just any other launch. Today marks a significant step forward in the European investment revolution. Let me tell you why.?

The principles for building wealth are changing

Before we look ahead, let’s look at the massive shift in the way people are managing their money. The global investing app boom is here: an app-driven world of investing is on the rise, together with a new generation of investors who look at the world in a? fundamentally different way compared to the generations that came before them.?

Even though these developments are now starting to ramp up in Europe, following the U.S. who is leading the worldwide boom, in the Netherlands there is still a lot of room for growth. Research has shown that nearly half (!) of the Dutch population has sufficient disposable income to invest, but simply doesn’t get started.??

The investors that do get started are faced with a changing economic atmosphere; a higher cost of living, stagnating incomes, global disasters such as pandemics or wars and inflation reaching its highest point in 40 years.

Thus, it should come as no surprise that this new generation of investors is demanding more control and is taking a more active role in investing. These self-directed investors, also known as do-it-yourself (DIY) investors, decide which investment products they want to buy and sell, and when they wish to do so. All they need is their phone.

With investors no longer dependent on personal wealth managers or financial advisors, it is up to self-directed platforms to build products that specifically cater to their needs and rethink how to engage with clients that manage their finances digitally.?

Fractional investing: the next step in the democratization of stock markets

Most new investors don’t start with thousands of euros in disposable income,?making building a diverse portfolio of various stocks, ETFs and digital assets a challenge.

The arrival of fractional shares has completely changed that outlook. Earlier this year BUX introduced fractional investing to clients across Europe. With this introduction, instead of buying a certain number of whole shares, investors are now able to own a piece of some of the world’s most popular shares, that are now no longer out of reach, such as Amazon, Google and Tesla.

BUX clients welcomed fractional shares with open arms: currently one in seven orders placed through our platform is a fractional order. And we couldn’t be happier to see these developments, because even with a small budget investing is the best way to reach long-term wealth.

In order to provide our users with even more control and to further tailor our services to all the wishes, demands and needs of the modern investor we are now the first to add fractional ETFs on top of that - European ETFs to start with and will be followed by more.?

This way people can add ETFs, for many the ideal asset to diversify, to their portfolio, making it easier for anyone to invest in high-priced products. Low-cost, low-risk, long-term.?

Self-directed, properly guided

The modern investor has chosen digital solutions over conventional methods of securing financial independence for later. The window for the next generation to secure their financial well-being is, however, closing fast. Younger generations must begin to form healthy, knowledge-based investment habits early on in order to get ahead quicker.?

At BUX we provide clients with the resources needed to help educate themselves on safe and sustainable investments. Knowledge is power and we will continue to share tools that enable investors to make financial decisions with more confidence.??

But it doesn’t just stop there. Providing information isn’t enough. Investors don’t just need the knowledge and the skills, but they are also in need of products that allow them to make decisions that both fit their financial situation as well as their financial goals.?

The introduction of fractional ETFs is a prime example of enabling users to make long-term investment decisions, regardless of their budget. So they can start investing for their future, today.

At BUX we believe that guidance comes in many forms and that fintech product development plays a vital role in empowering the modern investor to take control of their financial future. If we want to continue to lead the European investment revolution, we need to ditch outdated concepts and truly offer a next-generation investment solution.

We’re on it and we’re incredibly excited to show you what’s next. Stick around for more!