Nowadays, anyone who wants to set up a securities account has several options that are not limited to the existing banks. In the past, a share deposit account was available at the bank next door. The banks still offer these services. However, this quite solid solution for opening a share deposit account is comparatively expensive. The banks’ offers are lined with rather high fees for the safekeeping of securities and also for each individual transaction. The banks virtually earn money from the customer’s securities account. Due to the high costs, however, the return on the investor’s securities is reduced. To avoid having to pass on these costs, an online custody account is recommended. Many branch banks also offer an online option. Direct banks also have corresponding online custody account offers in their portfolio. However, the banks’ offers cannot compete with the favourable cost structure of online brokers. For the most part, there are really only very low costs. Look at betting.co.uk/us/ to find the best offers on the market.
New generation: online brokers
The offers of the neo-brokers are unbeatable because they involve extremely low costs. However, you cannot do any other banking business with these brokers. An online broker specialises exclusively in managing online custody accounts. With almost all brokers, ETF shares can be bought at a desired date for a single investment. Alternatively, brokers also offer a regular and predetermined savings plan that is completely automated. The savings plan is continued on a monthly basis. In this case, the system automatically acquires additional ETF units. Such a savings plan is possible from a monthly deposit of 50 euros on average. Ongoing fees for securities custody are usually not charged. This Borgata Review helps to find a good solution.
The advantage of the broker offers is obvious. Many well-known ETFs can be selected and saved without fees or costs taking up most of the profit. In addition, large online brokers also offer hundreds of discounted ETFs, from which small investors can also profit very well. The securities accounts at the online brokers can often be managed via apps, which can be used completely free of charge. The transactions of the online brokers are carried out via different trading venues.
More expensive alternatives at direct banks
Direct banks also offer an online custody account. However, the costs and fees charged by direct banks for the securities account are somewhat higher when compared with online brokers. However, direct banks offer benefits that online brokers do not have in their portfolio. These include current accounts and children’s securities accounts. If you want to manage your current account in parallel, you are better off with a direct bank. If the securities account is to be maintained over a longer period of time, direct banks also offer very good and favourable conditions for the securities account, so that a comparison may well be worthwhile here. In addition, many direct banks also offer savings plans completely free of charge. However, individual orders are then subject to costs and fees. Time and again there are also offers where certain ETFs are offered free of charge with regard to the fee.
Depending on the amount of the individual order, different fees may be charged by the direct banks. If you order for less than 2000 euros, you have to compare the individual offers and promotions of the respective direct banks. In low volume, the fees differ greatly. Some direct banks charge a flat fee for savings plans. At other direct banks, the savings plans are free of charge. In this case, a comparison must also be made with regard to the savings rates in order to find the individually suitable offer.
Conclusion
Overall, the online brokers perform very well with their offers. A very good neobroker comparison of the current offers can be found at aktiendepotvergleich.de. at The many free options and offers of the online brokers are already competitive. Certainly, there is no permanent contact person for the securities account, as one is used to in a bank branch. But there is a lot of profit left over from the custody account because the costs and fees do not reduce it again. Another advantage of online brokers is the uncomplicated management of securities accounts, which is possible individually online and also via apps.