How do monthly contributions work?
Through the Curvo app, you can easily set up monthly contributions through SEPA Direct Debit. The money is debited the first business day of the month. You can edit or pause the contributions as you wish through the app.
It can take up to 8 business days as there are two factors at play:
Under SEPA Direct Debit, funds are debited even if the customer does not have sufficient funds on his bank account. For example, if you set up a direct debit of €300 but you only have €200 on your bank account, the full amount of €300 would still be debited and transferred to the account. What happens though is that your bank will come to us a few days later and automatically take the money back.
This is a risk if for instance the funds have been invested by then. That's why we provide a window of 4 business days as a safety net before we invest the money.
The funds in the Curvo portfolios are index funds, not ETFs. This means the funds are purchased directly from the fund providers (Vanguard, BlackRock, and Amundi) rather than on an exchange.
For index funds, the execution takes a few days because of the settlement period. This is the time it takes to confirm a trade. On a stock exchange, there's a clearinghouse that facilitates trades between buyers and sellers. Even though trades take multiple days to settle, the clearinghouse can guarantee the trade, which is why you can see those trades directly in your broker account. Part of the broker fee goes towards paying the clearinghouse for this service.
There's no clearinghouse when you purchase the funds directly from the fund provider. For the funds in the Curvo portfolios, the settlement period is T+2 and T+1, so respectively two business days and one day after the order execution. That's the period you need to wait to get confirmation of the order.
This way of investing is more suited for the long term. You don't get immediate trades, but there's no bid/ask spread and also no need to work with middlemen like a stock exchange or a clearinghouse.
How long does it take for the money to be invested?
It can take up to 8 business days as there are two factors at play:
1) SEPA Direct Debit
Under SEPA Direct Debit, funds are debited even if the customer does not have sufficient funds on his bank account. For example, if you set up a direct debit of €300 but you only have €200 on your bank account, the full amount of €300 would still be debited and transferred to the account. What happens though is that your bank will come to us a few days later and automatically take the money back.
This is a risk if for instance the funds have been invested by then. That's why we provide a window of 4 business days as a safety net before we invest the money.
2) Executing the investment orders
The funds in the Curvo portfolios are index funds, not ETFs. This means the funds are purchased directly from the fund providers (Vanguard, BlackRock, and Amundi) rather than on an exchange.
For index funds, the execution takes a few days because of the settlement period. This is the time it takes to confirm a trade. On a stock exchange, there's a clearinghouse that facilitates trades between buyers and sellers. Even though trades take multiple days to settle, the clearinghouse can guarantee the trade, which is why you can see those trades directly in your broker account. Part of the broker fee goes towards paying the clearinghouse for this service.
There's no clearinghouse when you purchase the funds directly from the fund provider. For the funds in the Curvo portfolios, the settlement period is T+2 and T+1, so respectively two business days and one day after the order execution. That's the period you need to wait to get confirmation of the order.
This way of investing is more suited for the long term. You don't get immediate trades, but there's no bid/ask spread and also no need to work with middlemen like a stock exchange or a clearinghouse.
Updated on: 14/03/2025
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