Costs of buying stocks
Many investors purchase shares through their regular bank, where they can seek guidance from investment professionals and receive personalised advice. When buying stocks, in addition to the actual purchase price – which is based on the current market value of the desired stock – investors should also be aware of transaction fees. These charges typically vary depending on the size and value of the order. After the purchase, the acquired shares are credited to a securities account, which is comparable to a checking account. Financial institutions generally charge a custody fee for the administration and safekeeping of the shares, which can vary depending on the bank.
Trading stocks from your desk: Online/discount brokers
Buying and selling stocks online offers both advantages and disadvantages. Transactions can usually be executed more quickly and often at lower cost, as online brokers typically do not provide personal investment advice. However, this is also the biggest drawback. Buying stocks through online brokers is therefore best suited to investors who already have relevant experience.
Compare before investing
Whether choosing a traditional bank or an online broker, it pays to compare several providers before opening an account. Reviewing fees, available services, investment options and support offerings can help investors find a solution that best matches their needs and investment objectives.
