Smartphone broker or bank?
These securities accounts recommend “Finanztest” for buying shares
You can now buy stocks easily with your smartphone
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Anyone who wants to buy shares needs a securities account. But where should you open that? “Finanztest” has compared classic banks and smartphone brokers such as Trade Republic and names the cheapest.
While the interest rates for traditional savings investments remain pathetic, the stock market is experiencing a gigantic boom. The German share index Dax and other indices have climbed to record highs, which is what drives even the security-conscious Germans to the stock exchange. In 2020, 2.7 million more people invested in shares than in the previous year, reports the Deutsche Aktieninstitut.
In addition, new smartphone brokers are making it easier than ever for even beginners. They offer free securities accounts and let their users buy and sell stocks with just a few clicks. But how recommendable are smartphone providers – or should I open my securities account with a traditional bank?
For an up-to-date comparison, the experts from “Finanztest” examined both smartphone brokers and the depots of branch and direct banks. Their conclusion: Both worlds offer advantages and disadvantages. Which securities account is best for you personally also depends on your investment strategy and type. In any case, investors should keep an eye on the costs: if just keeping a custody account devours a hefty fee every month, it reduces potential price gains.
Convince smartphone brokers
Low costs and ease of use are the main arguments with which smartphone brokers, often also called neobrokers, attract customers. The financial experts from Stiftung Warentest looked at the providers Trade Republic, Scalable Capital, Justtrade and Finanz.net Zero.
In principle, all four offer free custody accounts, Justtrade charges 0.5 percent minus interest on credit balances. An order at Trade Republic costs 1 euro, there is no minimum amount. Scalable takes 0 to 3.99 euros, depending on the order volume. With the other two, the purchase of shares is free, but you have to order for at least 500 euros. You can buy individual stocks, derivatives and ETFs from all providers. In addition to Justtrade, ETF savings plans are also possible.
The bottom line is that “Finanztest” can recommend all four providers. The testers did not discover any serious defects. The greatest danger: Because the apps make trading stocks so easy, users are easily tempted to gamble for a short time. For beginners in particular, “Finanztest” recommends a long-term strategy – buy and hold, preferably using an ETF – instead of constant back and forth.
A disadvantage of neobrokers can be that they sometimes only work with one stock exchange trading venue and not, like banks, with many different ones. Anyone who buys exotic stocks or trades at off-peak times may therefore achieve poorer prices. When trading well-known stocks and common ETFs on weekdays between 9 a.m. and 5:30 p.m., users don’t have to fear excessive price ranges, the test showed.
Big price differences between banks
If you prefer to fall back on the full range and service of a real bank, you should look carefully at the costs. Because they can differ by several hundred euros per year for a model depot, reports “Finanztest”. Basically, online depots are cheaper than the depots of branch banks. And if you trade a lot, you pay extra because the order fees are higher than with smartphone brokers.
Of all branch and direct banks, the testers paid the least at the online provider Smartbroker. The all-in order price is between 0 and 4 euros, depending on the trading venue. The online providers Onvista and Flatex were also cheap. In the case of branch banks, on the other hand, custody account management usually costs fees – up to several hundred euros per year.
And if you do not place your securities order online yourself, but in a branch, you can get advice on site, but often pay around 1 percent of the investment amount for the order. With some banks, even small share purchases cost at least 20 or 30 euros order fee. A five-digit order can cost several hundred euros.
You can find the complete securities account comparison for a fee on www.test.de