Vivid Money Review

Company Background & Regulation

Vivid Money was established in 2020 as a modern financial service provider aiming to integrate banking and investment services seamlessly. The company is headquartered in Berlin, Germany, and represents a new wave of fintech companies challenging traditional banking paradigms. It was founded with the vision of offering a more user-friendly and cost-effective platform for managing finances, making it accessible to a broad audience.

Vivid Money is backed by Solarisbank, a renowned Banking-as-a-Service platform, which provides the necessary banking infrastructure. Solarisbank is a fully licensed bank, giving Vivid Money access to a range of banking services without needing to secure its own banking licence. This partnership allows Vivid Money to focus on developing its fintech offerings while ensuring regulatory compliance and operational reliability.

In terms of regulation, Vivid Money operates under the supervision of the Federal Financial Supervisory Authority (BaFin), through its partnership with Solarisbank. BaFin is one of Europe’s most respected financial regulatory bodies, known for its stringent requirements and comprehensive oversight. The relationship with Solarisbank ensures that Vivid Money adheres to these high regulatory standards, maintaining the integrity and safety of its financial operations.

Client fund protection is a critical aspect of Vivid Money’s offering. Through its association with Solarisbank, Vivid Money ensures that client funds are held in segregated accounts, providing a layer of security and safeguarding against potential insolvency. In addition, clients are covered by the German Deposit Protection Scheme, which guarantees deposits up to €100,000 per customer. This protection offers peace of mind to clients, knowing their funds are secure in a regulated financial environment.

Trading Fees & Spreads

Vivid Money offers a competitive fee structure designed to attract both novice and experienced investors. A significant highlight is the zero-commission trading on stocks and ETFs, a feature that distinguishes it from many traditional brokers. Clients can trade over 500 stocks, ETFs, and cryptocurrencies without incurring commission costs, which is particularly advantageous for frequent traders seeking to minimise transaction costs.

The broker’s spread structure is also noteworthy. Vivid Money offers spreads starting from 0 pips on its trading platform, which is facilitated through its proprietary Vivid App. This zero-spread opportunity applies to certain assets, making it an attractive option for cost-conscious traders. However, it is essential to note that spreads may vary based on market conditions and the type of asset traded. While spreads for stocks and ETFs are minimal, cryptocurrency trades incur a spread-based fee, the specifics of which depend on the market dynamics at the time of the transaction.

Regarding other fees, Vivid Money imposes an inactivity fee, which is relatively common among brokers but still a point of consideration for potential clients. This fee applies if an account remains inactive for a specified period, although the exact duration and fee amount are variable and should be confirmed directly with the broker. Additionally, Vivid Money charges for its premium plan, which is priced at €9.90 per month, allowing for unlimited trades and additional features. This cost might appear as a downside for some users, particularly those who do not trade frequently enough to justify the expense.

When compared to competitors, Vivid Money’s fee structure is generally favourable. The zero-commission on stocks and ETFs places it ahead of many traditional brokers who typically charge higher transaction fees. However, the necessity to subscribe to a premium plan for unlimited trading may offset these savings for less active traders. In terms of deposit and withdrawal fees, Vivid Money maintains a transparent approach, with no fees charged on these transactions, further enhancing its competitive edge. Traders should, however, be mindful of potential currency conversion fees if trading in a currency other than the euro.

Trading Platforms & Tools

Vivid App: Web Platform

Vivid Money operates primarily through its Vivid App, designed for both web and mobile users. The web interface is intuitive, offering an efficient user experience for trading and portfolio management. Users can access a streamlined dashboard that provides an overview of their investment portfolio, recent transactions, and market insights. The web platform allows investors to trade in a range of markets, including stocks, ETFs, and cryptocurrencies, without incurring commission costs. However, it should be noted that the web version might lack some of the advanced features typically found in standalone desktop platforms, such as customisable workspaces.

Vivid App: Mobile Platform

The cornerstone of Vivid Money's trading infrastructure is its mobile platform, which is optimised for both iOS and Android devices. The Vivid App is praised for its sleek design and ease of use. Investors can execute trades, monitor real-time market data, and manage their accounts on the go. The mobile platform supports features such as price alerts and watchlists, allowing users to stay updated with market movements. While the app does not support advanced algorithmic trading or custom APIs, it caters well to retail investors seeking a straightforward and user-friendly trading experience.

Charting Capabilities and Order Types

Charting capabilities on the Vivid App are relatively basic compared to specialised trading platforms. The app provides essential charting tools that include line and bar charts but lacks more complex analytical tools such as technical indicators or drawing tools. This limitation might not satisfy professional traders who rely heavily on technical analysis. In terms of order types, the Vivid App offers basic order functionalities, such as market and limit orders. However, it does not support more complex order types like stop-loss or trailing stops, limiting risk management strategies for advanced users.

Alerts, API/Algo Trading, and Third-Party Integrations

The Vivid App includes a basic alert system that notifies users of significant market movements or changes in their portfolio value. However, the platform does not support API access or algorithmic trading, which may be a drawback for users interested in developing automated trading strategies. As a fintech offering integrated banking and investing, Vivid Money does not integrate with third-party trading tools or platforms, focusing instead on providing a cohesive, all-in-one financial solution. This approach may appeal to novice investors but could be less attractive to those who prefer a more versatile trading ecosystem.

Account Types & Minimum Deposit

Account Tiers

Vivid Money offers a tiered account structure that includes a Standard plan and a Premium plan. The Standard plan requires no monthly fee and permits a limited number of commission-free trades per month. In contrast, the Premium plan, priced at €9.90 per month, offers users unlimited commission-free trades. It also provides additional benefits such as higher cashback rates on spending, making it an attractive option for active traders and frequent spenders. Both account types allow trading in stocks, ETFs, and cryptocurrencies, but only the Premium plan maximises the potential benefits of the Vivid ecosystem.

Demo Account and Islamic Account

Currently, Vivid Money does not offer a demo account, which might be a disadvantage for new investors looking to practice trading without financial risk. Additionally, there is no specific Islamic account available, which may limit accessibility for users who require Sharia-compliant financial services. Potential users should consider these factors when choosing Vivid Money as their investment platform, especially if these features are critical to their trading strategy or financial needs.

Minimum Deposit and Supported Deposit Methods

One of the appealing aspects of Vivid Money is its zero minimum deposit requirement, allowing investors to start trading without significant financial commitment. This feature is particularly advantageous for newcomers to the trading world or those with limited capital. Deposits can be made via bank transfers, facilitated through Vivid's integration with Solarisbank, offering a seamless and secure process for funding accounts. However, it is important to note that the platform does not support deposits via credit or debit cards, which might be a limitation for users accustomed to such methods.

Markets & Instruments

Vivid Money provides a streamlined offering focusing on three main asset classes: stocks, ETFs, and cryptocurrencies. The broker offers access to over 500 individual stocks and ETFs, allowing investors to build a diversified portfolio. This selection covers major global markets and includes a variety of sectors, ensuring investors can tailor their investments according to their financial goals and risk appetite. The ability to trade fractional shares starting from as little as €0.01 makes Vivid Money particularly appealing to novice investors and those with limited capital.

For cryptocurrency enthusiasts, Vivid Money offers a select range of digital currencies. While the exact number of available cryptocurrencies fluctuates due to market dynamics, the platform typically supports major coins such as Bitcoin, Ethereum, and Litecoin. Vivid Money operates with a spread-based fee structure for cryptocurrencies, which is important for traders to consider given that transaction costs can vary significantly with market volatility. Despite the limited range, the inclusion of cryptocurrencies adds a modern and dynamic dimension to Vivid Money's investment platform.

One of the unique aspects of Vivid Money is its integrated approach to banking and investment services. Users can seamlessly switch between spending and investing within the Vivid app, and benefit from up to 4% cashback on spending, which can be an attractive feature for those looking to maximise financial efficiency. This integration, coupled with zero commission on stock and ETF trades, positions Vivid Money as a compelling option for users seeking a combination of convenience and cost-effectiveness in their financial activities.

Safety & Security

Vivid Money operates under the regulatory oversight of BaFin, via its partnership with Solarisbank. This ensures that client funds are held in segregated accounts, maintaining a clear distinction between client assets and the company’s own funds. This segregation provides an essential layer of protection, ensuring that client assets remain secure and are not used to cover any financial obligations of Vivid Money.

The platform also incorporates robust cybersecurity measures to safeguard user data and transactions. While specific details on these measures are not publicly disclosed, typical industry practices include encryption protocols, two-factor authentication, and continuous monitoring for suspicious activities. Although Vivid Money offers a straightforward investment service with a relatively low maximum leverage of 1:1, it does not explicitly provide negative balance protection. Therefore, users should be mindful of market risks, particularly when investing in volatile markets such as cryptocurrencies.

Who Is Vivid Money Best For?

Vivid Money is ideally suited for beginner to intermediate investors who prefer a simple, integrated financial platform. Its user-friendly app appeals to those who appreciate the ability to manage both banking and investments from one interface. This is particularly useful for individuals who prioritise efficiency and ease of use in managing their financial tasks.

The platform is especially attractive to budget-conscious investors due to its zero-commission trading on stocks and ETFs. This cost-saving feature, combined with the ability to purchase fractional shares, makes it suitable for individuals who want to start investing with small amounts of capital. However, the limited range of asset classes and the need for a premium plan to access unlimited trades suggest that Vivid Money may not meet the needs of more advanced traders or those looking for a comprehensive suite of investment products.

Vivid Money's geographic availability is currently limited to Germany, France, Spain, and Italy, which may restrict its appeal to users outside these countries. Additionally, the platform’s crypto offerings, while a modern inclusion, are subject to spread-based fees, which could deter frequent cryptocurrency traders who prefer fixed transaction costs. Despite these limitations, Vivid Money remains a valuable tool for those who align with its features and geographic reach.

• Ideal for: Beginners seeking an integrated banking and investing platform.
• Ideal for: Investors looking for zero-commission stock and ETF trading.
• Ideal for: Users in Germany, France, Spain, and Italy.
• Not ideal for: Advanced traders requiring a wide range of investment products.
• Not ideal for: Investors outside the supported countries.
• Not ideal for: Cryptocurrency traders who prefer fixed transaction fees.