ABN AMRO launches fractional investing infrastrucutre, BUX is first broker client

Rick Steves

“The launch of fractional investing marks an important new chapter in the normalization of investing in Europe.”

ABN AMRO Clearing has built a new infrastructure for brokers to allow fractional investing by their end clients as this novel method – investing in part of a share, instead of needing to buy a full share – gains prominence within the trading industry.

Dutch neobroker BUX, which has announced the addition of fractional trading capabilities on its platform earlier this month, is ABN AMRO Clearing’s first client to start using this new feature.

Normalization of investing in Europe

The new infrastructure has been an immediate hit, and BUX’s clients have already made over ten thousand fractional investments during the first nine days of the new feature being available on BUX Zero, according to the official statement.

Rutger Schellens, Chief Executive Officer of ABN AMRO Clearing, said: Smart and reliable technologies are creating more and more opportunities for customized investor services. We are active in the business-to-business segment and offer services to retail brokers such as BUX. These innovations help us to retain clients and further boost our impact and income.”

Yorick Naeff, Chief Executive Officer at BUX, added: “The launch of fractional investing marks an important new chapter in the normalization of investing in Europe. As the first Dutch broker to offer fractional investing in individual stocks to retail investors, BUX continues to lead the evolution of neobrokerage in Europe.

Fractional investing has its roots in the United States

Fractional investing is hugely popular in the United States, the jurisdiction that saw the rise of this novel method with DriveWealth being probably the largest provider of this infrastructure.

A few European brokers have already joined the phenomenon and selected a US-based vendor in order to add the technology, but the legal and supervisory hurdles that this involves has led ABN AMRO Clearing to develop its own infrastructure to offer in Europe.

ABN AMRO Clearing’s fractional investing offering covers US equities for now, but the new service will soon make fractional trade possible in European shares too.

BUX has also partnered with ABN AMRO Clearing for its banking as a service product, so the broker’s clients can handle their investments from a bank account.

The addition of fractional investing has expanded its banking as a service to allow investors to use their accounts to buy and sell both full shares and fractional shares.

Each fractional purchase made by an investor is meticulously tracked by a cloud-based administration system, without ABN AMRO needing to buy more than one additional full share per fund.

Read this next

Digital Assets

Sam Bankman-Fried might see his 25-year sentence halved

Sam Bankman-Fried, the founder of the failed cryptocurrency exchange FTX, was sentenced to 25 years in federal prison by a Manhattan court on Thursday. This comes after he was convicted of defrauding customers and investors, with Judge Lewis Kaplan highlighting the potential future risks posed by Bankman-Fried.

Technical Analysis

EURJPY Technical Analysis Report 28 March, 2024

EURJPY currency pair under the bearish pressure after the pair reversed down from the major resistance level 164.25, which also stopped the sharp weekly uptrend at the end of last year,

Digital Assets

BlockDAG’s Presale Hits $9.9M, MultiversX & MINA Price Predictions Show Green

Read about BlockDAG’s promising $10 prediction and insights on MultiversX Price Prediction as MINA’s potential unfolds.

Digital Assets

Rockstar Co-Founder and All-star Line Up Join Advisory Board to Take Metacade into Post Beta Orbit

Metacade, the revolutionary Web3 gaming platform, prepares to streak out of beta with a slew of ground-breaking initiatives that will redefine the way blockchain games are developed.

Retail FX

Prop firm The Funded Trader shuts down, claims relaunch in April

Prop trading firm The Funded Trader has ceased all operations, with claims for a relaunch in the near future.

Digital Assets

Ethereum-Based Tokenized Real Estate Platform USP Launches On Republic

How This Californian Startup Is Revolutionizing Real Estate Investment through Ethereum-Based Tokenization.

Digital Assets

Sui Spikes in Weekly DEX Volume, Joins Top 10 of All Blockchains

March DEX volume on Sui stands at over $2.88B – up more than 49% from February – with decentralized exchange Cetus and wholesale liquidity layer DeepBook leading.

Digital Assets

Prisma Finance suffers $10 million crypto exploit, attack ongoing

Liquid staking protocol Prisma Finance fell victim to a security exploit on March 28, resulting in nearly $10 million in Prisma mkUSD and wrapped stETH being stolen by hackers.

Digital Assets

Masa and LayerZero: Bridging Blockchains for Data Sovereignty

Masa Network is poised to revolutionize the personal data landscape with its upcoming launch as a cross-chain platform, making it accessible on a variety of blockchains right from the start.

<