Hi all,
We all love to invest and make money but investment comes with the risk. One of these risks is, of course, the nature of investing and that the price of your stocks can go up and down which is usually reflected in ROI we get. Another risk to consider is the quality of the broker you use. Yes in Europe we got investors protection up to 20k euro (not a lot comparing to USA and SEC protection of $250k) but at least it is something.
BUT
Be aware that if you use some online brokers - in this case, BUX this protection doesn't apply due to the simple fact that the assets you bought via them are lend. Which means if something goes wrong you won't be able to recover them and they don't fall under the European investors' protection act.
ALWAYS READ T&C's - below is from BUX Zero T&C's which you have to accept if you want to open account.
Lending Financial Instruments
12.1 You hereby give consent to BUX to Lend the Financial Instruments held in Your Account. At all
times BUX will be the counterparty in this respect to You and as such will have the obligation to
redeliver the Financial Instruments that are Lent. For more detailed information about the
Lending, please see Appendix I BUX Securities Lending Agreement to this Client Agreement.
12.2 If BUX Lends Your Financial Instruments, then no asset segregation will apply in relation to such
Financial Instruments. Instead, You will have a right of redelivery against BUX. In order to
mitigate the risk that BUX will not be able to redeliver the Securities that are Lent,
Not sure if you want to take extra risk just to get a fancy new app with fancy UX/UI to buy your shares.
That's it!
M.
We all love to invest and make money but investment comes with the risk. One of these risks is, of course, the nature of investing and that the price of your stocks can go up and down which is usually reflected in ROI we get. Another risk to consider is the quality of the broker you use. Yes in Europe we got investors protection up to 20k euro (not a lot comparing to USA and SEC protection of $250k) but at least it is something.
BUT
Be aware that if you use some online brokers - in this case, BUX this protection doesn't apply due to the simple fact that the assets you bought via them are lend. Which means if something goes wrong you won't be able to recover them and they don't fall under the European investors' protection act.
ALWAYS READ T&C's - below is from BUX Zero T&C's which you have to accept if you want to open account.
Lending Financial Instruments
12.1 You hereby give consent to BUX to Lend the Financial Instruments held in Your Account. At all
times BUX will be the counterparty in this respect to You and as such will have the obligation to
redeliver the Financial Instruments that are Lent. For more detailed information about the
Lending, please see Appendix I BUX Securities Lending Agreement to this Client Agreement.
12.2 If BUX Lends Your Financial Instruments, then no asset segregation will apply in relation to such
Financial Instruments. Instead, You will have a right of redelivery against BUX. In order to
mitigate the risk that BUX will not be able to redeliver the Securities that are Lent,
Not sure if you want to take extra risk just to get a fancy new app with fancy UX/UI to buy your shares.
That's it!
M.