Investors can save a lot of money if they choose a cheap securities account. Our depot comparison highlights the costs of different providers as well as their strengths and weaknesses. In the wood class, investors shouldn’t expect too much convenience – and expect technical failures. The securities account is required for someone who wants to invest in stocks, bonds or funds. This is a special account in which banks hold securities for their customers. Private and most institutional investors do not have direct access to the stock exchanges on which securities are traded. Buy and sell orders, so-called orders , must be placed on the stock exchanges via banks or so-called brokers. In the past, paper documents were deposited with the custodian bank. For example , if an investor sold shares , the seller’s bank had to post the relevant documents to the buyer’s bank. Things are different today. As a rule, securities are no longer moved – they are kept in a central collection point. The banks only post their customers’ transactions on the deposit accounts.
A depot comparison shows large price differences
Branch and direct banks also differ significantly in terms of the prices for a securities account and service. Branch banks are expensive because they relieve their customers of the work and process the purchase of securities. With direct banks, customers have to take care of it themselves. In return, these institutes are much cheaper. Anyone who is willing to place their stock market orders on their own computer can save up to 800 dollars a year, as a depot comparison shows.
The larger the order, the higher the price is usually
The total costs for a custody account consist of a fee for the safekeeping of the securities and the costs for securities orders. The custody fee is generally higher at the branch banks, the larger the investment amount managed. With some direct banks, the deposit is free. Others only refuse to pay for the safekeeping of securities if various conditions are met on which banks make money. The differences in the costs of a securities order are also considerable, as our portfolio comparison shows. With almost all providers, the price depends on the size of the order. However, they usually also require a minimum price, so that very small securities orders of just a few hundred dollars are disproportionately expensive.
Favorable conditions in direct trade
In so-called direct trading with the Stock Exchange Tradegate or over-the-counter securities trading houses, neither brokerage nor exchange fees are charged. However, investors must make sure that they are not given any worse prices than other trading venues. So what exactly an order costs on the bottom line depends on the fee for the broker and on other factors that can only be calculated precisely for the individual case.
Portfolio comparison: overview of prices for securities orders
The following table lists the price models for securities orders from financial service providers who offer free custody accounts without additional conditions and also have savings plans on exchange-traded index funds (ETF) in their program. Providers who do not meet these two criteria are not shortlisted in the Fairvalue portfolio comparison . The new free and smartphone brokers such as Trade Republic are also excluded . These companies are not fully-fledged brokers because they only offer access to a few trading partners and not to all foreign stock exchanges. The basic function of a real broker, however, is that customers can choose the cheapest from a large number of trading venues for a securities order . This is not the case with the new super cheap providers. Users must therefore expect worse terms in retail. Nevertheless, we do not intend to hide from you the terms and conditions of these providers. They can be found at the end of this guide in our depot compare calculator.
Low cost of ETF savings plans Most direct banks and online brokers advertise free ETF savings plans . First, check who have free savings plans on the ETF you have in mind before you decide on a provider. However, it is questionable whether these offers are permanen