What do you need to know about buying and selling securities?

You can open a securities account either at a bank in your home country or at an online broker. The first tip we would like to give you for trading securities is to open a securities account with a low-cost broker.

Tip 1: Open a securities account to buy shares or trade in securities

To be able to buy and trade shares, you need a securities account. This account can be opened at a bank or an online broker. The shares, certificates and funds you buy are held in your securities account.

Although it may seem unbelievable, many banks charge fees for investors, regardless of whether they trade in securities. It is not uncommon for these management/custody account fees to be up to 30 euros per year. These costs can be avoided! Selected providers and online brokers offer free account/deposit management.

Custody account and order fees at a glance

Depending on the order, you will be charged different fees. For buying or selling shares or other securities. Stock exchange fees vary depending on the trading venue (Frankfurt Stock Exchange, Stuttgart Stock Exchange or ...),). Your custodian bank may also charge fees for each order, the so-called order commission. Investors in securities pay both a volume-dependent and a fixed commission (e.g. 7.95 euros) for each order. A large-volume order, e.g. with more than 10,000 euros, will cost you more than an order of 2,000 euros.

Important: A volume-dependent order commission can quickly add up to 20 to almost 70 euros per order with most banks and brokers for somewhat higher order volumes.

Choose a provider that offers free account management so that you can buy and sell shares, bonds, certificates and funds while avoiding high order commissions. Many brokers offer free accounts for securities. Many custodian banks offer securities trading at a fixed commission of a few euros. There are no volume-based fees. So you can buy securities in any amount, even if it is only 500 euros.

Tip 2: Determine your investment goal - even before buying securities

Are you ready to open your securities account? Then determine your investment goals - even before you buy your first shares!

First answer the following questions:

1. how much money can you invest in securities trading?

Start small and make share purchases as a beginner. You should not invest capital in the stock market that you absolutely need. You should not have to sell your shares if the market moves in the wrong direction. Credit trading in securities is not recommended for beginners.

2. what risk are you willing and able to take?

Decide what risk you are willing and able to accept. If you invest in shares or trade in securities at https://exnessthai.com/, you should expect price losses. Share prices fluctuate so much that 10,000 euros can turn into 12,000 euros and sometimes 8,000 euros within a few weeks or months.

Basically, the greater the chance of the security, the greater the risk. 3.

3. What return do you expect from your investments?

Determine the return you expect from your stock market investments in time period X. Long-term returns are more important than short-term returns. A securities portfolio should have an expected return of five to ten percent per year. Investors often fail in the stock market because they are greedy and buy stocks that are too risky. Warren Buffett, a legendary investor, does not focus on short-term returns when trading securities. Instead, he focuses on the long-term success of good companies. Success usually comes in the long term.

Conclusion

A common mistake that many newcomers to securities trading make: They invest in only one security, which is often a highly speculative stock. This can be a good investment, but is often disastrous. It is a risky stock that can lead to double-digit losses in the event of negative company news or a downturn. Don't put all your eggs in one basket when it comes to the stock market. Spread your risk and bet on several promising stocks.