What are the costs at BUX Zero?
Many people sign up to BUX Zero because of the promise of free trading. In this article we examine whether investing with BUX is really free and we list all the costs in a clear manner.
Don’t have an account at BUX Zero yet? In that case you can receive a free a stock with a value of up to €200. Use the button below to open an account right away:
How much does investing at BUX Zero cost?
In the table below, we have listed the investment costs at BUX Zero for you.
|Transaction costs||ETF's||European stocks||American stocks|
In the rest of the article, we will discuss in more detail how much you pay for the different services.
Zero Order: real free investing
At BUX, you can choose between different types of orders. If you want to avoid paying any commission on your order, you can use the Zero Order. No commission will be charged on the Zero Order.
With a Zero Order, all orders from BUX clients are combined and executed at once. This often happens at the end of the trading day. In Amsterdam, this is around 16:00.
The period for executing the order is called the execution window and starts 90 minutes before market close. Execution of the order takes 60 minutes in total.
When you place an order, it has to be received before the Cut-Off Time of that day. Before this time, you can still cancel the order, but after that, you are stuck with it.
Since your order is executed at a fixed moment, the price for the share can be lower or higher than expected. BUX reserves an extra amount of money for this potential difference. If the order could not be executed, you will receive a message.
Market orders & limit orders on US stocks
You can also place free market or limit orders on US stocks. This allows you to determine at what moment you want to buy the shares without paying a fixed commission.
Market orders & limit orders on European stocks
If you want to have more control over your investments in European shares, you will have to pay a commission of €1. This is still cheaper than what you pay at other well-known stockbrokers.
You pay €1 for placing a market order or limit order on an ETF. At DEGIRO, you sometimes pay no buying and selling costs at all, but only if the ETF is part of the core selection. Compared to other brokers, BUX is very cheap when it comes to investing in ETFs.
What’s even more interesting is that, for just €1, you can automatically invest a fixed amount every month in multiple ETFs. You can then open positions in dozens of ETFs and only pay transaction costs once.
It is also possible to open a zero order on ETFs. You then pay no transaction costs, but you have no control over the exact moment of purchase.
If you invest in American shares, you will still have to pay foreign exchange charges. Your euros must first be converted into dollars. The costs for this amount to 0.25% of the order value. These costs are a bit higher than with some other brokers. When you trade with small amounts, BUX Zero is still cheaper, but when you trade with large amounts, another broker could be a better choice for trading American stocks.
There is always a small difference between the price at which you can buy and sell a stock. This difference is called the spread. According to BUX’s website, the average spread for EU shares was 0.08% and for US shares 0.06%. You normally pay a spread at every broker: this is because there is never a perfect balance between supply and demand on the stock markets.
You can also trade crypto at BUX: BUX charges 0.5% for this. You can reduce this to 0% for market orders and 0.25% for limit orders when you buy 1000 BUX tokens. The minimum amount for which you can trade crypto is €30. If you don’t want to buy BUX tokens, it is better to trade with Bitvavo, as the transaction fee there is 0.25%. Click here for more information!
We’ve read the fine print carefully and haven’t come across any hidden charges. BUX doesn’t charge a custody fee or any fees for real-time quotes. Depositing and withdrawing money is also completely free.
Is BUX free?
BUX often advertises with the slogan that they are free. It is true that BUX is very cheap, but they are not completely free. Compared to other brokers, however, BUX is very cheap. Just be aware of the fact that only with Zero orders you won’t pay any transaction costs and that BUX charges a fairly high surcharge for the exchange of euros into dollars.