If you want to implement exchange trading online, you need a custody account with a direct bank or an online broker. Since not only the product range can differ from provider to provider, but also the fees, investors should consult a meaningful provider comparison. In this way, exactly the provider can be found who is characterized by favorable conditions and who can also meet their own requirements. Especially for newcomers to the stock exchange, a user-friendly trading platform and also a helpful learning and educational offer is a clear advantage. Not every investor wants to start trading on the stock market with high investment amounts. Therefore, the aspect of the minimum deposit is also relevant.
Table of contents
- German stock exchanges and trading venues
- Exchange trading online with which investment products?
- Select an online broker or direct bank
- Open a custody account online
- Do not trade without an investment strategy
- Educational offers, demo account and sample portfolio
- Mobile trading via an app
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German stock exchanges and trading venues
Whoever is looking for a securities account with an online broker or one Direct bank has decided, can easily log into the personal area to place an order. This is usually possible around the clock. Investors should keep in mind that orders are executed during trading hours. If an investor places an order on the weekend, it will only be executed on the next trading day. Trading on German stock exchanges is not possible on weekends. The stock exchange is also closed on public holidays. There are a few exceptions here.
When trading online on German stock exchanges, the trading times for shares, pensions, ETFs, warrants and other financial products sometimes vary. Share trading can be carried out on the following German stock exchanges from 8:00 a.m. to 8:00 p.m.
On the Stuttgart Stock Exchange and Tradegate, shares can be traded from 8:00 a.m. to 10:00 p.m. become. Trading in warrants is also possible at the Stuttgart stock exchange. The start of trading for this financial product is 9:00 am and the end of trading is 8:00 pm. Investors who want to trade online on international stock exchanges should find out about trading hours here. Obtaining information is easy. However, care should be taken to ensure that trading hours are in local time. In this case, the time difference must be taken into account.
Investors can also trade securities using electronic trading systems. The following trading systems are among the options:
XETRA: XETRA is an electronic trading system of the German stock exchange. The abbreviation stands for Exchange Electronic Trading (XETRA). Trading hours are somewhat shorter than on other German stock exchanges. You can trade on XETRA from Monday to Friday from 9:00 a.m. to 5:30 p.m.. Here, too, trade-free days must be observed. Trading in shares and warrants can be realized.
QUOTRIX: Private investors will also find an electronic trading system in QUOTRIX. This belongs to the Düsseldorf Stock Exchange and offers not only the option of order trading, but also direct trading. Trading times are from Monday to Friday between 8:00 a.m. and 10:00 p.m..
Investors can use a trading calendar to conveniently find out about the opening times of the stock exchanges. In addition, the trading hours on public holidays should also be observed. It turns out that not only the trading hours of the different German stock exchanges can differ from one another, but also the trading hours of different financial products on the same stock exchange. When trading on international stock exchanges, the time difference has to be taken into account.
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Online trading with which investment products?
Classic investment products include stocks, bonds, warrants, certificates and funds. In addition, the market still offers many investment opportunities so that every type of trader can get his money's worth. When choosing the right investment product, it also depends on the investor's experience. In addition, the investment objective is also a decisive factor. When trading stocks, spreading risk can reduce risk. For this purpose, shares from different companies can be bought, which in turn operate in different industries. If you pursue a conservative investment strategy, you should tend to invest in bonds rather than investing in individual shares.
In addition to the financial products mentioned, ETFs are currently in demand among investors. ETFs are exchange-traded index funds that track the performance of an index. The comparatively low cost structure and the transparency are just two advantages of ETFs. An investment in this financial product can be made through a one-time investment, but often also through long-term savings in a savings plan.
For experienced investors who have been active in stock exchange trading for a long time, CFD trading represent another investment opportunity. CFDs are derivatives in which the investor participates in the price development. Investments can be made in equity, index, commodity and real estate CFDs. Even CFDs on ETFs are possible. The way CFDs work is characterized by the leverage effect, which brings attractive returns for investors, but also risks because the leverage works in both directions.
Before trading on the stock exchange With a particular investment product, investors should not only look at how the investment product works, but also what is happening on the market. It is important that investors are equally aware of the opportunities and risks.
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Select an online broker or direct bank
The Internet opens up numerous opportunities for as far as exchange trading is concerned. If you want to implement the investment in shares & Co. online, you must first choose an online broker or a direct bank. Various banks with a branch network also offer a brokerage area that can be reached via online banking, so that stock exchange trading can also be carried out online here. The selection of providers is extensive, so that investors first have to get an overview. A provider comparison can be used for this, which not only presents the test winner of the category, but also test reports on the respective provider. Detailed test reports can be used to obtain information on services and conditions in a time-saving manner.
Investors should take a close look, especially when it comes to costs and fees. A depot is required. Fees may sometimes apply for the safekeeping. Many providers consider the deposit to be a free service for active traders. It should also be ensured that issuing, deleting and changing limits is free. Regarding the order fees, it is striking that some brokers calculate a base price plus a percentage fee of the order volume. Minimum and maximum fees per order are also not uncommon. The cheapest provider can be found by comparing prices. In addition to the order fees, exchange fees are also charged.
So that the return is not painfully diminished by expensive order fees, a provider comparison is advisable. The best offer should not be selected straight away. Not only can fees vary from broker to broker, the product range can also be more or less extensive. The custody account fees show another aspect that can play a role in the decision-making process.
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Open a custody account online
If the decision for a provider has been made, the depository is due to be opened. In most cases, the process is not very complicated, so that the custody account can be used promptly to process securities transactions. Purchased securities can be safely stored in the custody account. The application form is usually available on the provider's website. Even before the online form is filled in, investors should consider whether a single or shared account should be opened. A shared custody account is characterized by the fact that there are usually two account holders.
It may also be necessary to open a clearing account. Various banks offer a free overnight deposit account that can serve as a clearing account. It is also necessary to enter a reference account . It is often the checking account. The requirements for applicants include that it must be a German bank account. In addition, applicants still have to legitimize themselves. The Post-Ident procedure can be used for verification of identity, but the video-Ident procedure is also available from some providers.
For online stock exchange trading a deposit is required. The depot can be opened online with little effort. In the course of opening the depository, legitimation is also required, which not only contributes to the security of the applicant. In Germany, all banks and credit institutions are even legally obliged to review them.
Don't trade without an investment strategy
Investors should not dive into online exchange trading unprepared. Exactly how the investment strategy looks depends on the respective investor. It depends on the type of investment this has chosen. The runtime also proves to be a relevant factor. Should the investment be of a short-term nature or should it build up assets in the long term? The willingness to take risks is another criterion when developing an effective investment strategy.
Especially when trading on the stock exchange, emotions cannot be completely hidden. In this way, emotions such as greed or fear can influence actions. So that these emotions do not stand in the way of successful stock exchange trading, investors should stick to the investment strategy. A strategy comparison can prove to be useful in order to find the right investment strategy. For example, there are various equity strategies, including Trend-following and dividend strategy, so that investors should deal with the different strategies.
Tip: If you don't want to invest large amounts of money, you can also build up long-term assets with smaller monthly savings rates. A ETF savings plan can be set up for this. The minimum savings rate for many providers is between 25 euros and 50 euros. The saving rate can usually be changed at any time. The minimum and maximum savings rate must be observed at this point.
There are different investment strategies for stock exchange trading in shares and other securities. The purchase and sale of an investment product can take into account the respective investment strategy. The right timing certainly plays an important role in this. Depending on the investor, the strategy can be security-conscious or opportunity-oriented. The risk appetite of the investor is a decisive factor here.
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Education offers, demo account and sample account
For the successful Online stock exchange trading also requires a certain level of specialist knowledge of how stock exchange trading works. Therefore, it turns out to be customer-oriented if brokers or banks provide learning and educational offers for this area. These can be webinars, guides or videos that prove helpful and informative. The educational offers of the providers are particularly advantageous for beginners. But some providers also offer advanced training courses for advanced investors. Investors can also look for specialist literature that deals extensively with stock exchange trading.
The trading platform forms the basis on which settlement takes place. Therefore, investors should be familiar with the functions required to place an order. A user-friendly trading platform should be clearly structured so that even beginners can find their way around easily. Some brokers offer a free demo account, which can be used to test trading with virtual credit and without risk. An insight into the stock exchange business can also be implemented via a sample depot before the stock exchange trading with real capital investment. A watchlist makes it easy to get an overview of the development of the securities in the portfolio.
Depending on the scope of services that a provider provides, investors can benefit from a demo account or a model portfolio. First experiences can be gained from these possibilities before real money is used in trading. Various learning and educational offers also offer useful information on stock exchange trading.
Mobile trading via an app
Not only stock trading can be done with a corresponding trading app via smartphone or tablet will be realized. Exchange trading on a mobile device has several advantages. First and foremost, it is a clear advantage that trading can also be carried out on the go via a trading app. The buying and selling of securities can be done from almost any location. Real-time courses can also often be viewed using such an app. In addition to course queries, charts and news are also worth knowing. The scope of services can differ here.
The different apps for online trading are mostly available for mobile devices with iOS or Android operating system. The selection is often not very extensive for smartphones that have the Windows Phone operating system. In order to be able to implement mobile trading via an app, compatibility must also be taken into account.
Exchange trading online via a mobile app shows useful advantages. Especially for investors who travel a lot, using the app can pay off. Lucrative opportunities no longer have to be missed, as the app can be used to buy and sell securities regardless of location. Of course, a good internet connection is required.
Online trading on the stock exchange is used by many investors. If you want to start trading, you first have to choose a provider. The various online brokers, direct banks and banks with online brokerage show different offers. These can sometimes differ significantly in the offered investment products and the order fees. Already when it comes to the securities account, you should pay attention to whether there are any fees for managing the securities account.
Tools such as demo accounts and educational offers can make it easier to start trading. The use of a trading app also enables securities trading to be carried out conveniently on the go. The developments on the market can also often be observed using such an app. The German stock exchanges sometimes have different trading hours, which should be noted.