BUX Investing App Review: Now Paying 2.75% Interest, But There's a Cost | Sumlad (2024)

Here’s what’s required when signing up for an investment account.

You’ll need to:

1. Download the BUX app
2. Read the necessary disclosures, input your personal details, etc.
3. Verify your identity

You’ll need a copy of your ID to verify your details — passports are recommended.

You can add funds to your BUX investment account by completing a bank transfer

You can make bank transfers from Irish banks such as Bank of Ireland, AIB, and PTSB, as well as fintech banks such as Revolut. On average, deposits only take about 15 minutes.

If doing a bank transfer, you can follow these steps:

1. Select ‘Add money’ in the BUX app and choose bank transfer
2. Copy and paste the IBAN, BIC, and any other necessary details
3. Go to your banking app and select international transfer
4. Confirm the details of the transaction on your banking app or using a card reader

You also have the choice to set up recurring deposits if you’re planning to dollar-cost average into stocks or ETFs or commit to a long-term investment plan.

The process of withdrawing money from BUX is extremely simple. You can withdraw directly to the card or bank account you have been using to make deposits. Funds are said to arrive within five business days, but in our experience, it has usually been faster than that.

When you’re withdrawing from BUX, complete the following steps:

1. Click on the profile icon in the top right corner
2. Choose withdraw
3. Select and confirm the amount of money you wish to withdraw

Irish users on BUX can invest in stocks from the US exchanges like the NYSE and NASDAQ. You are also able to buy European stocks from exchanges in Austria, Belgium, Germany, Spain, France, Italy, and the Netherlands.

You can’t currently buy Irish or UK-listed stocks from Euronext Dublin or the London stock exchange.

There are 242 ETFs available in total and 89 European ETFs that Irish investors can buy on BUX. One of the features that is extremely helpful is a clear description of whether an ETF is distributing or accumulating — quite important from a tax perspective for some Irish investors.

Where BUX stands out, is in terms of its excellent range of Irish-domiciled ETFs, especially the ETFs found in ‘Plans.’ All of these ETFs are provided by Blackrock’s iShares ETF range.

Here are some of the categories of Irish-domiciled ETFs you’ll find on BUX:

• iShares Core ETF selection: You can track the S&P 500, the FTSE, Europe, and emerging markets, or choose a world index.
• Thematic ETFs: Follow trends such as automation & robotics, healthcare innovation, semiconductors, clean energy, and more.
• Sustainable ETFs: If you prefer to invest in ESG-friendly companies, there is an option to do so.

From these choices, we’ll dive a little deeper into the top ETF picks on BUX in the fees section. Skip ahead now if you like.

Of all of the services offered by BUX, its ETF investment plans are the differentiating product. It simplifies the investing process for someone who’s brand new to the world of financial markets, without exerting too much energy.

There are 56 cryptocurrencies that you can trade on BUX. Included, are many of the most popular cryptocurrency assets such as:

• Bitcoin (BTC)
• Ethereum (ETH)
• Cardano (ADA)
• XRP (XRP)
• Dogecoin (DOGE)
• Polygon (MATIC)
• Polkadot (DOT)
• Solana (SOL)
• Tezos (XTZ)

There is an option to invest in commodities and precious metals through what’s called exchange-trade commodities (ETCs). These financial products track the price of underlying assets such as gold, silver, oil, and natural gas. You don’t own the physical product, it just mirrors the change in price.

Here’s how much it costs to invest €100, €1,000, and €10,000 in EU stocks and ETFs with BUX:

And here’s how much it is to invest in US stocks with BUX:

And crypto:

Commission-free trading of stocks and ETFs is available — which may make up for the monthly account fee. To buy stocks or ETFs with zero commissions, you set what’s known as a Zero Order.

With Zero Orders, your trade will be executed near the end of the trading day, but you can still decide a maximum price you’re willing to pay (like with a normal limit order). The only stipulation is for US stocks, where you will always have to pay a 0.25% currency conversion fee. Note that currency conversion fees do also apply to dividend payouts.

Normal market orders and limit orders also have fees. Here’s the quick BUX fee breakdown for stocks and ETFs:

Be aware, that in addition to any ETF fees, management fees are also charged. These are fees charged by the ETF provider, however, not BUX. An ETF management fee, sometimes referred to as the expense ratio, is the cost an ETF issuer levies on anyone who buys one of their ETFs.

High expense ratios can have a significant impact on investment returns over time, not what you want as an investor! So, to help out, here’s our list of ETFs on BUX with reasonable management fees for both the core selection, thematics, and sustainable investing ETFs.

They are all Irish-domiciled ETFs with an option to invest fractionally. You can use up to three zero orders per month to invest in any of the below ETFs.

There are no currency conversion fees for stocks priced in Euros. US stocks that are priced in dollars carry a 0.25% currency conversion fee.

BUX has a simple product offering — stocks, ETFs, crypto, commodities, and long-term investment plans. For each of these products, it’s incredibly easy to find what you’re looking to invest in.

The filter option allows you to find investments by country or industry in a very user-friendly manner.

You’ll find a number of stock lists on BUX including:

• Top 10 Assets
• Fractional Shares
• Fractional ETFs
• One to Watch This Week
• Newly Added Assets
• Biggest Movers

BUX clients from Ireland are covered up to €20,000 under the EU Investor Compensation Scheme.

Learn more about Investor Compensation Schemes.

BUX is not profitable. The most recent data available that delves into the financial accounts of BUX is from 2021, published with the UK government. In that period, performance was underwhelming.

• Revenue declined 49% from 2020 to 2021, from £18 million to £9.2 million
• BUX reported a net loss of just £55,000 in 2020, but a whopping £4.2 million loss was reported in 2021
• Assets held in cash went from £42.7 million to just £13.4 million from 2020 to 2021

These figures are surprising given the influx of retail investors to capital markets during the same period. Since then, BUX has had a much-needed capital injection from venture capital firms and is likely in better financial standing with replenished cash balances.

BUX also continues to grow its customer count and the number of products available to its customers. From 2020 to 2021, BUX reportedly tripled its assets under management (AUM) according to a source from AltFi, reported by Insider Intelligence.

Given the growth in its customer base, it’s likely that the figure has increased again. However, it’s tough to know as a small number of accounts can have a noticeable effect on AUM.

The only other indicator we can look towards is the introduction of the monthly fee for BUX clients. For those who are unaware, this is a new development. Up until the start of 2023, there were no account fees. In our view, it appears to be a method to speed up the monetisation process at BUX so it can turn a profit.

The contact email for the BUX investment app is [emailprotected].

Founder / CEO at Sumlad

Yes, BUX is available in Ireland. Irish investors have been able to sign up since June 2021.

It’s also available in the Netherlands, Germany, Austria, France, and Belgium.

Yes. When you consent to the client agreement, you give BUX permission to lend out your assets. Shares are lent out from BUX custody to third parties and when this occurs, you have what’s called a right to redelivery.

Basically, BUX has an obligation to return your shares. You lose your voting rights when shares are lent out, as technically, you no longer own the assets — but you are the “beneficial owner” who must be repaid the value of the assets.You are entitled to the value of any dividends when your shares are lent out — BUX calls this a manufactured dividend. Withholding tax will still apply to any dividends you receive.