Stock trading is becoming increasingly cheaper for private investors. This is made possible on the one hand by the simpler and cheaper implementation via the Internet, and on the other hand by the great price war of the brokers. Every provider wants to attract attention with the cheapest deposit fees and thus win customers. This has the advantage for investors that they can save a lot of money. The cheapest stock portfolio can vary in cost depending on the trading volume and frequency by a few hundreds to even thousands of euros.
The cheapest custody account fees can only be used by investors who compare the different offers in advance and so on Depot determines which causes the lowest costs for him and his investment behavior. Because, of course, not every investor has the same requirements for an online broker.
Table of contents
- Three different models among online brokers
- Cheapest stock portfolio: costs often crucial for transactions
- Investors have to pay attention to various fees
- Individual investment behavior decides on deposit fees
- Why are the cheapest deposit fees so important?
- Bonuses and bonuses?
- Cheapest custody account fees - how to find the right provider
- Conclusion: Find the cheapest custody account fees
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Three different models among online brokers
There are currently three different types of online brokers that differ significantly in their cost structure.
- Conventional offers from established house banks u nd Big banks
- Online brokers with low costs and no or few branches
- Discount brokers
Even today, many investors make the mistake of not finding the cheapest To inform the stock depot of costs, but instead go to your bank advisor and open a depot there. House banks and large banks still have a different cost model. The employees and infrastructure have to be financed and accordingly they are also paid through the custody account fees. As a result, the custody account fees are significantly higher than with other providers who do not have to bear these costs.
However, many large banks have already reacted to this and are offering their own cheaper broker. At the Sparkassengruppe, this is sbroker, at Deutsche Bank Maxblue or at Commerzbank comdirect. They can often be found at roughly the same price as the online brokers who work without a branch network and could therefore offer the cheapest stock portfolio costs for a long time. Due to the significantly lower costs for infrastructure and co., They can also offer their services at a significantly lower price. They have also put the big banks under so much pressure in terms of price that they have designed a more attractively priced brand - although without being able to offer the advisory services here as well.
After the online brokers put the fee structure of most banks under considerable pressure they had to endure increased price pressure from the discount brokers themselves. From now on, providers such as flatex, degiro or OnVista offered the cheapest custody account fees and also made a name for themselves thanks to their particularly cheap flat fees, which were significantly below the prices of most other brokers. They made sure that the conventional online brokers had to go down again with the prices. So currently, investors can ever benefit from the cheapest stock portfolio costs and thus trade equities and other securities more easily.
There are currently still three different broker business models: conventional house and large banks with their brokerage offer, online brokers and so-called discount brokers. The boundaries between all three are, however, blurred.
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Cheapest stock depot: Transaction costs are often decisive
For most investors, however, the most important item is the order fee. They are now calculated in different forms. Investors must always use their average order volume for a meaningful comparison of custody account costs. This is due to the fact that the order fees at least traditionally have the following characteristics:
- Minimum fee: This is how much the order always costs at least
- Maximum fee: This is the maximum amount the order costs
- Basic fee: This is the base amount of the order commission
- Commission: In addition to the basic fee, the percentage of the trading volume charged by the broker
The costs therefore often differ for different orders in individual cases clear. With a base amount of 5 euros plus 0.25 percent of the order volume, there are, for example, the following order fees:
- 1,000 euros trading volume: 7.50 euros - this amount lies with many Brokers under the required minimum fee, so that 10 euros are more likely here
- 5,000 euros trading volume: 17.50 euros
- 7,500 euros trading volume: 23, 75 euros
- 10,000 euros trading volume: 30 euros - from 30 euros, many cheaper brokers already cover the maximum amount
- 15,000 euros trading volume: 37.50 euros
This also makes it clear that stock trading is becoming increasingly cheaper for most brokers in relation to the trading volume. While investors often have to accept a full percent trading volume with a trading volume of 1,000 euros, it is only 0.3 percent with a trading volume of 10,000 euros. Ultimately, it is therefore even more important for small investors to find a cheap broker that offers the cheapest stock portfolio costs, especially in the area of orders with low trading volume. In relation to this, the cost burden is proportionately greater.
In addition, however, the so-called flat fee is becoming increasingly popular among investors. And not without reason: For providers with a flat fee, this is often below the minimum fee that other brokers demand and the amount does not increase. Accordingly, a flat fee is often attractive for all traders. Small investors with a low trading volume often only pay half in comparison to other providers. Investors with large trading volumes can save even more. You benefit from the fact that the order fees do not increase with increasing trading volume. Flat fees are usually offered for less than 10 euros. A comparison with the fees mentioned above shows the clear savings potential.
However, there may be additional costs. For example, investors must also consider trading venue fees and settlement fees. Brokers also sometimes charge fees for the use of foreign trading venues, in any case orders abroad are common - but not always significantly more expensive. So if you also want to buy shares abroad, you should consider the costs for foreign trading venues.
Order fees are one of the most important factors in share deposit costs. Investors should therefore always compare the costs based on the transaction costs in order to be able to save as much money as possible.
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Investors have to consider various fees
Investors who only want to accept the cheapest deposit fees have to keep an eye on various costs when looking for the cheapest online broker. The online custody account fee is usually not applicable. However, this is one of the smallest items in stock trading and is completely eliminated by most providers. However, they are an indication that investors have come across one of the more expensive brokers. At least most brokers who still charge custody account fees today are more expensive than usual when it comes to transaction costs and other fees.
The transaction costs or order fees that a provider demands are also significantly more important for most investors. Securities account management costs are only more important if the investor does not plan to carry out any transactions at all. In the everyday life of most investors, this is rather unlikely and only occurs with very long-term oriented and conservative investors. Accordingly, order fees are critical for most investors.
However, other fees may also be important. In any case, interested parties should note which services they want or want to use with a broker and which products they want to trade. For example, fees for order changes and deletions may occur. Ordering by phone is also particularly expensive for most brokers. Many certificates also have to be paid by investors if they are requested by post or are not among the typical receipts. Some brokers even get the custody transfer quite high, while others even reward them. However, if you want to switch to the cheapest depot, you do not have to fear any costs. The BGH already decided in 2004 that the old bank should not charge any fees for this.
Many shareholders also want to be able to attend general meetings. Depending on the broker, the voting cards, which usually have to be requested through the broker, either cost nothing or up to 25 euros each. Of course, such use is not very common. However, if you already know that you want to attend one or more shareholder meetings, you must pay attention to these fees. It does not help much if investors save smaller amounts on custody account fees and have to dig deeper into their pockets for services.
Large differences in costs can also arise with the different products. So custody account fees are of course not only of great importance for stock traders. The transaction costs can also differ for bonds. Some offer favorable conditions for savings plans or enable the purchase of thousands of products with discounted front-end loads. Others offer unnecessarily expensive first issues. Accordingly, investors who want to focus their investment not only on stocks must also keep an eye on other costs and fees so that the cheapest stock portfolio is also suitable for their entire investment.
There are many Different fees that are not necessarily due in the course of share trading, but can significantly increase the deposit costs. Accordingly, the cheapest stock portfolio at first glance is not always the cheapest.
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Individual investment behavior decides about portfolio fees
Investors who try to find the cheapest online broker have to make sure that the broker suits them. Therefore, when comparing custody fees, different groups are usually defined, which can look like this, for example:
- “conservative manager”: Investor who stays invested in the securities for a long time and - if at all - an average of three transactions with 7,000 euros per year.
- "Normal user": Investor who carries out the 8 orders per year and trades around 5,000 euros per transaction.
- "Active retail investor": Investors with more than 15 orders per year, volume per order below EUR 2,500
- "wealthy investor": Investors with around 10 orders per year, volume per order EUR 10,000.
- "Trader": Average 250 orders with a trading volume of 2,000 euros
Different types of investors have a major impact on whether a broker can offer the cheapest stock portfolio costs or is even disproportionately expensive.
However: Se The transaction costs for the depot costs are particularly significant, especially for very active traders. The differences between direct banks and discount brokers can quickly go into the four-digit range. For all other groups, the difference between discount and cheap online brokers can be found in a very low three-digit range. Here it is primarily conventional offers from house banks that can significantly increase the cost of custody accounts.
A comparison of different custody account fees only makes sense if they are carried out for certain types of investors.
Why are the cheapest custody account fees so important?
Investors who plan to invest often only pay attention to the performance of the products and only consider the costs of investing secondarily. It can be crucial for the success of the investment to act as inexpensively as possible.
For example, suppose the active small investor carries out 10 orders for € 2,500 each. With an order commission of 5 euros plus 0.25 percent, he would pay 11.25 euros for each purchase. After half a year, he sells the shares, which have now risen by five percent and are now worth 2,625 euros. The order fees are 11.65 euros. With a profit of 125 euros, he has to pay an order fee of 22.90 euros and his return drops significantly. He had to pay 18 percent of the return for the order fees alone. With the cheapest provider, on the other hand, he would have had to pay less than 10 euros and thus have to pay less than 10 percent of the return to his broker.
In a trade, this difference may not yet be too significant. The active small investor, however, steadily reduces his return and this also has a lasting negative impact on his profit. The compound interest effect also takes effect here if the investor continuously reinvests the full amount of money. For example, if you invest 2,500 over 10 years with a 5 percent profit, you can achieve a total profit of 1,572 euros, with 4.5 percent it is only 1,382 euros. Accordingly, investors should make sure to keep the costs as low as possible, as an expensive broker, especially in the long term, costs significantly more than “the few euros” in a transaction.
Favorable custody account fees are particularly interesting for small investors with low trading volumes. However, they also help you to achieve a better return in the long term.
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Lowest deposit fees through promotions, bonuses and premiums?
Many brokers offer exceptional bonuses as part of certain promotions. New customers in particular are often attracted to discounts. These can consist, for example, of the following premiums:
- A certain number of trades without order fees
- A certain number of trades at fixed prices
- Waiver of the custody account fee for the first year
In addition, other providers also offer bonuses such as particularly high overnight rates or even non-cash bonuses. However, it is often noticeable that the brokers are not necessarily the providers with the cheapest stock portfolio costs are the order of the day, but rather brokers that are reasonably priced in the middle. Accordingly, it is often not worth opening a deposit with these banks. On the other hand, it makes more sense to go directly to the cheapest broker and not have to switch later because the order costs reduce the return.
However, it can of course be worthwhile under certain conditions to take advantage of such offers. For example, investors who are just starting to build their portfolios can of course benefit greatly if they do not have to pay the first order fee. In this way you can build up a free portfolio. If the provider then waives further custody account fees, investors who do not want to switch frequently can of course benefit extremely cheaply from the new customer premiums. However, there is the catch that these offers are of course not always valid and are often only offered in connection with a change of custody account in which a minimum volume is transferred. In most cases, it is therefore entirely sufficient for investors to ask themselves from the start which provider can offer the cheapest deposit fees at any time and use this broker directly. The chance of missing out on a good offer through bonuses is slim.
However, this is somewhat different with savings plans or discounts on the initial charge for funds. In the past, it was shown here that the offers of course do not always remain the same, but providers with many promotions in this area often remain just as good. Investors who rely on funds or savings plans often do well to choose the providers who offer more discounts than other online brokers.
Special offers for new customers are worthwhile for investors many cases not.
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Cheapest custody account fees - how to find the right provider
Prospective customers must search for the cheapest stock portfolio compare costs as comprehensively as possible and above all use your own trading behavior as a benchmark. Each investor has different requirements for a deposit and the supposedly cheapest stock deposit is not always the one that costs the investor the least money. Many of the very cheap brokers forego many additional services or only offer them at extra cost. In this way, a very cheap broker can quickly become significantly more expensive. On the other hand, the differences in savings are often only very relevant if an investor trades relatively frequently or works with low trading volumes. Then the additional fees will become increasingly important and even small differences will have a greater impact.
Investors should therefore ask themselves how often and how much they actually trade and use these values as a basis for a comparison of custody account costs. In addition, you should also consider other requirements such as voting cards, custody transfer, order placement and the costs of other securities in order to keep the costs in the share account as low as possible.
The cheapest broker is an individual decision, which must be based on your own behavior and your own requirements.
Conclusion: Finding the cheapest deposit fees
The cheapest stock deposit costs are a question of own investment behavior, but there are some providers on the market that offer the cheapest fees for almost all investor groups. Investors should nevertheless compare the fees that investors would incur through their prospective transactions with which broker and also consider other services they use.