Whats Best

Personal preference.

If you are just doing it for nutrient removal, then it would make sense to just use algae - especially in a smaller size.

I like "clean" refugia without substrate, but again, I really feel it's a personal preference thing.
 
Another vote for no sand. You'll be surprised at how much detritus will build up on the bottom of the fuge. Without sand, it will be very easy to siphon off the gunk when needed.
 
many people use their fuge to add to a deep sand bed. I have sand in mine and like Sugar Magnolia said I do get some settling on the sand but nothing I can't deal with. I have a nano powerhead in there to keep things turning because the flow comes in so slow from my display to the fuge. Hope this helps.
 
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