Why should I choose Discount Brokerage?
Display: Share portfolio with a discount broker? There is one thing to watch out for
If you want to start trading securities, you have to open a special account or a custody account. This is usually referred to as a securities account. As an investor, you apply for a deposit at your house bank, or you can open a cheap deposit on the Internet with one of the numerous providers. These are also known as online brokers. But how do you find the right custodian bank and what should you watch out for with a discount broker?
Open an online depot - the most important points in brief
Anyone who wants to trade in securities (stocks and funds) needs an online portfolio. Almost all banks now have special conditions for online custody accounts. In this way, investors can access the Internet and buy and sell securities at their own risk. If you do not want to make your own decisions or need advice on the choice of securities, you should consider a deposit with your house bank or an online broker. As a rule, it turns out that the costs at house banks are significantly higher, which is why online custody accounts can look forward to growing popularity.
The online broker market is growing all the time and is constantly changing. Every provider tries to bring this topic closer to new customers. At this point try to use discount brokers and leave the competition behind. If you are looking for the right provider, you should consider a few points.
What questions should you ask yourself at a discount broker?
Anyone who opts for a discount broker should find out more about the provider, otherwise a big surprise awaits at the end. Aktien.net has also dedicated itself to the topic and examined a few of the best-known discount brokers.
How attractive is the cost of trading stocks?
The cost of trading stocks is always an important criterion, and in two situations it is absolutely crucial about its use. When the portfolio is low or when you regularly want to trade very small positions in stocks. In these cases, a discount broker should convince with very low transaction costs or a flat rate model.
Is the customer service professional and easy to reach?
Even the particularly cost-conscious stock traders want to be able to fall back on the broker's good and reliable customer service if they have any questions or problems. It should be obvious that a particularly inexpensive discount broker cannot work miracles in most cases when it comes to quality. Nonetheless, customer service has to be professional and easy to reach, at least during the opening hours of the German stock exchange.
Do new customers receive serious information on returns and risks?
In order to be able to offer low prices, a broker must save on the quality of the services. Under no circumstances should the secure data transmission and the protection of customer data be neglected. With a broker that can only be used on the Internet, security on the World Wide Web is crucial. SSL encryption, secure TAN connections and hazard reports are an absolute must here.
Is there objective information about the products and different strategies?
Discount brokers appeal to beginners and inexperienced stock traders in particular with their low-priced offers, so the online broker has to live up to its responsibility. It starts with transparent information about the securities and should extend to webinars.
What about user friendliness?
Since many discount brokers use a very simple composition of costs and some providers use flat-rate models, the website must also be simple and user-friendly. A test of the website and trading software must be possible and without obligation, but also free of charge.
Are the offers available for mobile commerce?
An offer for mobile trading in stocks is a must for normal stock brokers. Lower standards are applied to a discount broker, since inexperienced beginners are in most cases not yet interested in mobile trading in stocks.
Is there enough room for maneuver through order types and additions?
The reduced services of the low-cost discount provider must not restrict the customer's room for maneuver in any way. Order types and order supplements are therefore the wrong place to save costs.
Are there any additional offers for active stock traders?
If you really want to be successful with a discount broker, in most cases you will think about changing your portfolio soon. This does not happen because the customers are disappointed with the inexpensive savings offer from the online broker, but because the services offered are insufficient. Accordingly, a discount broker should reward active stock traders with further options and additional services.
How is the website doing, is it correct in terms of content and law?
Trading stocks through an online broker is both about the money and trust. A reputable provider must therefore be immediately recognizable. You don't have to be an experienced trader or lawyer to do this. In many cases, a look at the website texts and the contractual conditions is sufficient.
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