BUX Review & Rating

Bux user-ratings: £50
  • Asset varierity - 0/10
    0/10
  • Trading platform - 0/10
    0/10
  • Support - 0/10
    0/10
  • Fees - 0/10
    0/10
  • Deposit/Withdrawal - 0/10
    0/10

Facts about the company:

  • Type: Shares and CFD Broker 
  • Regulation: FCA (UK)
  • Minimum deposit: £50 
  • Demo account: Free
  • Markets: CFDs, Shares, Indices, Cryptocurrencies, Futures, Commodities
9/10
Comments Rating 9/10 (1 review)

Pros

  • Easy withdrawal of money
  • FCA regulated
  • No Commission 
  • Trading without any hassle 
  • Intuitive usability of the app

Cons

  • Trading is only possible in the app 

About BUX

BUX is based in the Netherlands and works very closely with Ayondo. Ayondo in turn is based in London and is a public limited company. Ayondo covers a very wide range of shares. Ayondo is also very well known among those interested in trading and is used in over 150 different countries.

Screenshot of the Bux Zero Landing Page

But this is not the only point that gives BUX an advantage, but also the fact that Ayondo’s activities are monitored and regulated by the Financial Supervisory Authority FCA.

In addition, BUX is constantly reviewed and updated by security experts. So all your communications between the server and you are encrypted. In the meantime, BUX has built up a considerable customer base. BUX already has more than 1.9 million members.

Structure of the homepage

Of course, BUX has its own website where they advertise their service and app. The homepage itself is clearly arranged and you can easily navigate between the different menu items. Directly on the homepage, a pop-up window opens, warning you not to trade CFDs if you don’t know what CFDs are and how they work. It further states that more than 70% of retail investor accounts lose money when trading CFDs.

On the start page, you can already read quotes from reports of notable platforms such as “Die Welt”, “Forbes” and “Süddeutsche Zeitung”.

“The BUX app focuses on what also makes social networks successful: the exchange with others.”

Süddeutsche Zeitung

“BUX wants to offer a new access to the financial market.”

Boerse.ARD.de

“With a mobile app, the company enables a playful entry into the world of the stock market.”

Wallstreet

“The app doesn’t resemble the typical “dry” financial charts and tables, but looks like a mixture of Snapchat, Dubsmash, and WhatsApp.”

Die Welt

“Bortot has stayed young – and speaks with honest enthusiasm about his product. Understandably so, because as a smartphone-affine person interested in the financial markets, it’s hard to resist BUX.”

Forbes

The own app is strongly advertised on the own homepage because trading with BUX is only possible via their APP. The APP should be designed as simple as the homepage.

Bux Zero Mobile App

Design of the App

The app is available for free for Andriod and iOS. Once you have downloaded it, you can create an account and start trading. But before you start trading, you will be asked if you have ever traded on the stock exchange. If you answer “no” to this question, BUX will tell you to start with a demo account first so that you don’t risk your real money immediately. After you have dealt with trading more intensively, you can deposit real money and start trading immediately.

BUX’s own newsroom provides you with the latest financial news. This gives you a good overview and allows you to better assess the course of the prices. BUX offers a great trading experience not only for beginners but also for experienced traders.

Procedure of a trade

When you start trading, you must first choose a product and then select it. Once you have done this, you decide whether the price goes up or down. Finally, the stake and the multiplier are determined.

Is your money safe with BUX?

This is probably one of the most important questions you are asking yourself at the moment. Especially when it comes to your own money, you keep your eyes open and inform yourself about it in advance.

According to BUX’s own information, your money is definitely safe. Ayondo markets Limited is approved by the British Financial Conduct Authority (FCA). And at the same time, BUX is subject to the Financial Services Compensation Scheme.

The FCA has very strict regulations when it comes to a company’s customer funds. These strict regulations are intended to provide special protection for private and business customers. This ensures that your money is covered up to a sum of $50,000. So if BUX is no longer legally capable, you will still get your money paid out again.

What is a multiplier?

As mentioned above, you can use a so-called multiplier for your trades. You can increase your profits and losses with the multiplier you choose. It is therefore better to use this function with caution. Always watch your stake so that you don’t incur too many losses.

Example of a multiplier

If you invest $250 in a trade and set the multiplier to x3, then you actually invest $750.

The advantage is that you can make a profit faster. At the same time, a higher multiplier also leads to higher losses. However, you never lose more money than you have in your account. If you top up your account with $250 and set the multiplier to x3, you will trade with $750. In this case, you will borrow 500€ from BUX, but you will not lose more than $250.

As soon as you hold a position overnight, a small “finance fee” is charged.

The percentage that appears next to the product name always includes the chosen multiplier. If you want to see the change in a stock without the multiplier, click on a trade from your portfolio. Under the menu item “Changes” the percentage is displayed without additional information.

What does an up and down arrow mean?

If you have taken a closer look at the BUX app, you will have noticed the different arrows. Directly said you can use the arrows to indicate the direction you expect. With an arrow pointing downwards you indicate that the course is falling. With an arrow pointing upwards, you indicate that the price will rise.

If you expect the price to rise, you choose the up arrow, and if you are right, the investment will increase in value. If you expect the price to fall, select the down arrow and again, if you are right, the investment will increase in value.
It is therefore also possible to earn money when the prices fall.

Example of a Trade

If you invest $100 and consider that the price is falling, but the price is rising by 5%, then you lose $5.If the price follows your expectations and it rises by 5%, then you win $5.

What is the current value of my investment?

In your app under “Cash,” you will find your remaining available balance. In the top-right menu, you will find your total balance. If you subtract your “Cash” from your total balance, you know how much you have already invested in your trades.

What is the reserve?

The reserve protects you from overdrawing your account. BUX automatically retains a certain amount of money in order to pay open fees. This amount is only used as long as open positions exist. If all positions are closed, the full amount is available again.

Example of an investment in a trade:

If you deposit $1000, then your reserve is 5%, so $50. If you have no further open positions, the maximum amount you can trade is $950. If you then invest $600 in a trade, you still have $350 available.

What is a BUX Battle?

The Battle is also possible within BUX. Here, you can take part in battles between BUX users in short-term competitions. You challenge opponents and it’s all about who makes the highest winnings in a given period of time. Either you create a Battle yourself or you join an already created Battle. You can participate in up to five battles at the same time.

If a battle has already started and you join it, you cannot leave before the end. The thin green line below the battles indicates an entry slot. An entry slot is the period of time during which other users can join or leave the battle.

Do I have to pay taxes on my BUX winnings?

Taxes always play a big role when it comes to setting up your own business or making money in other ways. Trading with CFDs is one of the futures transactions and is subject to the so-called flat tax. Even if your broker should be abroad, you are subject to the tax liability.

You yourself must approach the tax office with your earnings in order to pay tax on them. However, it is also possible to obtain this information via the normal tax return. If you do not report your profits to the tax office yourself, you may be liable to prosecution for tax evasion and you could face a severe penalty.

BUX itself does not pay taxes for its users; this will be pointed out separately on its website. If you need a complete overview of your account, you can contact Ayondo and they will send you such an overview.

What fees do I pay with BUX?

BUX is not completely free, and for this very reason, it’s good for you to know what fees may apply and how they are structured. Basically there are three different fees that can be charged to you.

Opening fee
When you open a position, this fee is due. It is based on the total size of your trade at the time you open a position.

Closing fee
These costs will be incurred when you close an open position. It is also based on the total size of the trade to be closed.

Financing fee
The financing fee is usually only due when you hold a position overnight. It is calculated on the total value of your position.

The minimum amount for opening and closing a position is at least $0.25.

Is the financing fee calculated without a multiplier?

BUX states that you don’t have to pay a financing fee if you haven’t used a multiplier either. Until 03.02.2019, it was still the case that fees were also due without a multiplier. This is no longer the case.

How is the financing fee calculated?

It is calculated based on a certain percentage and on the total amount of the trade. It also depends on which product is used.

For all products, except cryptos, the percentage of the fee is calculated based on the respective interbank rate. Then a fixed annual spread of 2.5% is added or subtracted.

Formula for long position
Financing fee = (current total value of the trade) * (local interbank rate + 2.5%) * (1/ day per year)

Formula for short position
Financing fee = (current total value of the trade) * (local interbank rate – 2.5%) * (1/ day per year)

Bux assumes 360 days per year for products in EUR and USD. For products in GBP, Bux assumes 365 days.

Are there also criticisms of BUX?

It is logical that there are never only positive things to write about different products/services. This is also the case with BUX. On the internet, there are many different reports and among them, there are some that do not emphasize BUX in a positive way.

The aim of BUX is to appeal to many young people. The app is supposed to do this. Through playful and modern design, the app should attract young people. At the same time, BUX promises easy and playful trading with CFDs. Even if you should practice with a demo account at the beginning, you will be persuaded quite quickly to trade with real money.

It is simply too easy to lose your valuable money by being tempted to trade with levers. Fees can also skyrocket quickly, the more often positions are opened and closed. All in all, one can say that BUX promises an easy entry into the world of stock exchanges and it is also possible via the app. On the other hand, things like OTC trading are partially intransparent and the fees can accumulate to a higher amount. BUX may leave the impression of simply wanting to attract more customers.

Customer Service

When in doubt or you have any upcoming questions, traders can always ask the BUX X and BUX Zero support center for assistance and help. Bux also offers a FAQ section on its website, where you can search for most asked questions that are already has been asked by many traders in the past. The FAQ section can be translated into 6 languages, while you can contact the support in 9 different languages.

Support available:no information available
Telephone:+31(0)85 888 5505
Adress:info@getbux.com
Languages:+9

Conclusion

To sum up we might say, that Bux is a modern, innovative online Broker with an extra good offer for mobile CFD trading. With the mobile app, traders can trade from wherever they want. Moreover, the online broker offers a new way of trading to customers. Plus, the online broker doesn’t charge commissions for trading transactions. However, it is always possible to lose money, especially when trading CFDs.


Most asked questions:

What Is The Maximum Amount I Can Invest In A Trade?

The maximum amount you can invest in trade is equal to the amount that is listed under “Cash” in “to trade”. This is equal to the value of your account minus the value of your investment and minus the shielded amount.

Financing Fee – What Is The Cost Of A Multiplier?

As you will have read several times by now, there may be a so-called financing fee. It always occurs when a multiplier is used or the position is left open overnight. Then the amount due is calculated at 00:00. To keep it as transparent as possible for you, you can always see the amount due immediately in the app.

What is a star Trader?

Everyone can be a star trader. Star traders are the best performing seriousBUX users. Every week the Star traders are updated for every product.

What order types are available with Bux Zero?

With Bux Zero it is possible to trade three different order types: Market Order, Limit Order, and Zero Orders. Please note, that Zero Orders are free while there is an amount charged for the other two order types.

One Response

  1. Andre Witzel September 8, 2020

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