BUX is currently on everyone's lips. Fintech attracts attention both from experienced traders and from people who are usually not interested in investing. The media also like to take up the topic and there is probably no major newspaper that has not yet reported on BUX. Despite the success of the Dutch, there are also interested parties who are looking for a BUX alternative.
We have put together different alternatives to BUX for all of these. If you don't want to use the Dutch trading app, you will find the right product.
Table of contents
- What is BUX?
- What are the advantages of BUX?
- What are the weaknesses of BUX?
- CFD trading with dangers
- BUX alternative: providers similar to BUX rarely
- Bux alternatives: cheaper trading
- Better chart analysis with BUX alternatives
- BUX alternative: community and social trading
- Other apps as an alternative to BUX
- "Right" investment as a better option
- Conclusion: BUX alternative not easy to find
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What is BUX?
BUX is the offer of a Dutch company Fintechs, which is intended to bring trading with CFDs closer to people who do not usually deal with such financial products. BUX sees itself as an alternative to the CFD and Forex brokers, which are significantly more complex, and sees itself as a playful way of trading. The customer does not invest directly in shares, but in principle bets on price changes. Currency trading is also available to customers in this way.
In addition to trading, the app also offers the opportunity to get in touch with other customers and also focuses on simplicity. The app is not overloaded with functions, but focuses on the essentials. That is why even beginners should get along quickly with it.
At the beginning, all customers of the app start with play money. The customer can practice with the FunBux without having to take any risks. At the beginning it is not yet possible to deposit money. Only when a certain level of experience has been reached can customers transfer amounts from 50 euros and then trade with real money. The level of experience depends on both the trades and the activity in the community.
Various functions are available for interacting with other traders. BUX users can exchange information in forums in different groups. They can also add themselves as friends and then view the extensive statistics that BUX creates for every trader. In addition, they can invite each other to battles, which wins the one who can show the greatest success within a certain period of time.
Bux waives the obligation to make additional payments, which also has the advantage that the provider also in the long term on the German Market may be active. BaFin would like to make this a basic requirement in the future in order to be able to offer services to German customers. Customers can not lose more money than they actually paid in.
BUX is a development by ayondo and enables trading even with small amounts or play money. The offer is made available exclusively via the app and contains numerous social trading elements.
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What are the advantages of BUX?
Traders looking for a BUX alternative will quickly find that there are hardly any providers who combine the strengths of BUX under one roof. The most positive feature of the app is the simplicity with which trading is possible. In this way, even beginners can easily find their way into the program and make their first trades. At the beginning, these are in any case without any kind of risk, since the app only allows play money stakes at the beginning.
Another advantage is the fact that the BUX app can be used very quickly and easily and investors cannot must first prove their identity before they start trading. The low entry hurdles then continue. Investors can trade real money for as little as 50 euros. Many other providers only make trading possible from significantly larger amounts. If you want to test trading without too much risk, you get a very straightforward option here.
Many traders who have tested BUX praise the high fun factor of the BUX app. The app is not only modern and cool, it also comments every trade with a flippant saying. Trading is possible with just four clicks and everything works in a matter of seconds and without complications.
BUX combines various advantages. Customers appreciate the ease of use and the straightforward trading conditions. Trading with BUX is simply fun for many and could hardly be easier.
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What are the weaknesses of BUX?
BUX focuses on simplicity and accordingly does not offer it Opportunities that a professional broker offers. The apps from MetaTrader 4 and Co. also offer much more. Chart analysis tools, customizable displays, more indicators and numerous other improvements ensure that a chart analysis at a high level is possible in the first place. Accordingly, many professional traders would not even consider an app like BUX. Critics complain that, due to its simplicity, the app would be more like a game of chance than a serious investment option.
Another disadvantage of the BUX app is the high trading fees. The broker currently collects 0.15% of the total value of the trade, but at least 0.25 cents. The actual fees of most retailers will therefore be proportionately much higher. Due to the minimum fee, 0.15% can only be used from a total value of the trade above 165 euros. Most customers, however, trade significantly smaller amounts, especially since this does not refer to the trading volume, but actually the amount that customers invest per trade.
The low entry hurdles and the low minimum value of the trades also lead to many traders risking their money unnecessarily due to undercapitalization.
Social trading can also have negative aspects. Beginners in particular often feel more secure with information from the community, although it does not necessarily have to be so that the tipster can base his opinion. Because this is such a speculative investment, a reliable forecast is hardly possible anyway. However, the swarm can mean that investors risk their money more than they are aware of.
With all its strengths, BUX also has some disadvantages. Trading is relatively expensive and chart analysis is only possible at a very basic level. The simplicity of the app could also tempt beginners to underestimate the challenge of trading.
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CFD trading with dangers
Basically, BUX has the strength that customers who are usually unable to show great interest in the financial markets also deal with the investment. Trading with BUX is cool and uncomplicated and thus also attracts investors who otherwise have not even had a call money account. Especially in the younger generation, BUX reaches such a target group, for which it would make sense to deal more intensively with these topics.
On the other hand, it is precisely not CFD trading that is suitable for this target group best suited. CFDs are speculative and extremely risky and have nothing to do with a sound investment that a financial adviser would recommend for the accumulation or maintenance of assets.
Accordingly, the development of this rather inexperienced target group results in an individual risk. BUX customers are dealing with the financial markets for the first time ever. Of course, it can be countered here that investors are slowly being introduced and may only invest real money if they have shown sufficient activity. In addition, BUX also waives the obligation to make additional contributions.
However, for many young investors, BUX engagement is the only form of investment and therefore much too risky. An investor should not risk much more than ten percent of the total capital in such speculative investments. Accordingly, BUX is very attractive, but only suitable to a limited extent for many of the customers.
For many reasons, the BUX app is only suitable for beginners and their trading. The high risk from CFDs ensures that investors should risk a maximum of 10% of the capital invested here.
BUX alternative: Similar providers to BUX rarely
who looking for a BUX alternative will quickly find that alternatives that perform similar functions are very rare on the market. It was not for nothing that FinTech was able to win over 400,000 customers in such a short time. The company combines:
- Trading with virtual money
- Trading with real money
- Use via an app
- Low entry barriers
- Social components through chats, groups and channels
This combination is actually unique at the moment. This means that currently all traders looking for an app similar to BUX are unlikely to find anything at the moment. Instead, you have to be content with the fact that a provider can only fulfill the properties and functions that are most important to them, but may even do them better.
So it makes sense to be clear about which functions at BUX are attractive and then look for a provider that stands out in this area.
BUX offers a combination of social trading, simplicity, app and play money that does not exist on the market Even beginners can have a lot of fun.
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Bux alternatives: cheaper trading
At BUX, trading is relatively expensive. A good BUX alternative should therefore cost significantly less money for many traders. Interested parties don't have to look far for this. On the other hand, things get more complicated when investors want to be able to trade on the go. This significantly limits the selection.
Another factor is the low entry barriers of BUX. Many brokers expect a significantly larger minimum deposit. The following also applies: the higher the paid-up capital or the volume and frequency of the trades, the cheaper it is usually for the customer. But even beginners can trade much cheaper with many BUX alternatives.
There are many cheaper brokers than BUX.
Better chart analysis with BUX alternatives
BUX pursues the principle of simplicity in order to be of interest to target groups who would normally not be enthusiastic about trading or who shy away from the effort. However, users will quickly notice that the BUX app is not necessarily sufficient to carry out complex analyzes. This is also not unusual because many brokers significantly reduce the functionality of their trading software for mobile trading. The smaller screen alone makes this necessary.
However, there are now many brokers who have also implemented their trading software for Android or iOS and which enable chart analysis on smartphones at a very high level. At the same time, they can often be customized and do not overwhelm beginners. In any case, this offer is a sensible BUX alternative for many interested parties who want to dig deeper into the matter.
Traders should of course in the best case ensure that the selected broker is not one of the BUX Has weaknesses. In many cases, it also makes sense if it is as inexpensive as possible.
Of course, things are different when customers only want to play with play money. Here the market is different again. However, many professional brokers offer interested parties the opportunity to use a demo account free of charge for at least a certain period. However, there are also brokers with an unlimited demo account and free app, which are of course also ideal for all FunBUX users as a more complex alternative to BUX with better chart analysis.
Many providers who offer this as an alternative eligible for BUX can offer significantly better conditions in chart analysis. Many of them also make it possible to use a demo account.
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BUX Alternative: Community and Social Trading
One of the central functions of BUX is of course the social trading community. Here investors can exchange ideas, read trends or simply measure themselves against friends. The social trading aspect is rather scarce, especially for brokers who are licensed by BaFin or FCA. However, many offer their customers the opportunity to exchange ideas in forums. Of course, this option is also available outside of brokers. In Germany there are some business and trading forums, whose members can often convince with significantly more competence than is the case with BUX.
Unfortunately, very few offer large communities with many interaction options. Above all, the opportunity to challenge friends and compete with them should be lacking for many BUX customers from other providers. Most established brokers are not interested in these features and are not aimed at the target group. However, there are also specialized providers.
Behind BUX there is also a company with Ayondo, whose social trading offer is well known. However, a problem for many investors is that hardly any provider is allowed to use a BaFin license. If you want to use very extensive social trading functions, you usually have to choose a BUX alternative that is licensed in other EU countries. The social trading brokers for the European market are usually located in Cyprus, only a few are licensed in western Europe.
There are various providers of social trading that could be considered as a BUX alternative, Many brokers also offer forums for exchange.
Other apps as an alternative to BUX
If you only want to trade with play money, you don't need BUX either. Just like Apple's AppStore, there are lots of free apps in Google PlayStore that allow trading with play money. These apps are also a BUX alternative because they partially cover significantly more different financial products and are significantly more versatile. They are also often structured much more professionally and equipped with more functions. This makes it a little more difficult to use than the very simple BUX app. In the long run, however, this often pays off through a better understanding.
However, with these apps, which are similar to BUX, many players lack the opportunity to interact with their friends. Apart from leaderboards, the apps often no longer offer interactions with other players. Accordingly, the motivation is lost faster in most. In addition, the apps usually see themselves as a game and do not make it possible to deposit real money and thus actually win money. For a first introduction, however, they are often a much better alternative to BUX due to the greater complexity for those interested.
Many apps that simulate trading and work with play money also represent a BUX alternative.
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"Right" investment as a better option
The BUX app is only suitable for investing to a very limited extent, CFD trading is very risky and also extremely speculative. Some investors rightly perceive the BUX app as a game rather than an investment with a real chance of actually increasing the capital. Accordingly, brokers and banks that enable less risky investments may be the better alternative to BUX for all investors.
Investors can often invest in widely spread ETFs or funds with low savings rates and low costs and so on achieve good diversification. In this way, they can put their financial investments on a healthy footing before they take on as great a risk as is the case with the BUX-APP. For those who like to use the BUX app, we would particularly recommend robo-advisors with an app for Android or iOS. Many providers prepare their investments in a modern way and allow control over their cell phones. The social trading factor is missing, but investors can be sure that they will receive a well-diversified investment and do not necessarily have to share it with others.
Recommended for many investors broker or robo-advisor as an investment due to the lower risk than BUX alternative.
Conclusion: BUX alternative not easy to find
Anyone looking for a BUX alternative will quickly find out that it is not easy to find. The Dutch have achieved a great success. However, there are many other providers who have at least some of BUX's strengths even more clearly. Investors interested in an alternative should first consider what interests them in BUX and then try to find providers who also have these strengths. Our advice can help.