Stock Trading Accounts – Comparison of Portfolios & Brokers

There are also black sheep in the field of stockbrokers. Day-traders.net has made it it’s business to find them and pillory them so that readers do not fall for the machinations of these companies. In our comparison, only reputable brokers are listed.

In our extensive test flatex could convince as a serious and inexpensive provider.

The table below for the stock portfolio comparison shows the different providers with our evaluation and link to the respective experience report of each portfolio.

Our background check for stock brokers

Day-traders.net has made it it’s business to check the seriousness of stock portfolio brokers and to find out where customers are at the safe address. For this purpose, however, it is necessary to critically examine the background of a provider. Thanks to many years of experience, we know where to look for information on the companies. After all, a broker or bank usually has its own name and is only part of the overall offer that a company makes in the financial sector.

In our background check we mainly check the company that is responsible for the broker’s daily business. We look at which other offers are still coming from the side of this provider and how these are to be assessed in terms of their seriousness. In addition, we examine the history of the company’s origins as well as its corporate connections. Basically we are very pleased when we see an owner-managed company. There we can almost be sure that customer friendliness and reliability are one of the first commandments. Many companies also have a charter that shows which principles the employees want to adhere to in their work. Transparency should be listed there as well as the customer satisfaction already mentioned.

The background check also includes a check of the license. Not all providers of trading opportunities in shares may have a licence valid for the EU. In general, the situation is a little more difficult with licenses in the European Union. Some states do not allow companies that do not have a license from that country. At the same time, brokers claim that they have a licence from another EU country and are therefore allowed to operate anywhere in the EU. There are still few decisions by European forces on this.

A licence to regulate brokers is therefore important, as an official financial supervisory authority should have control and insight into the transactions that a bank carries out on a daily basis. With official regulation, certain programmes and mechanisms are installed on the broker’s side to determine whether the business conduct is correct. For example, share prices are compared in real time with the original prices. The regulatory authorities can thereby determine whether the prices on the broker’s side are possibly manipulated in order to make profits from the customers’ deposits.

Another important legal restriction is deposit insurance. For example, since the financial crisis of 2012, all business assets must be kept separate from customer deposits. Should insolvency then occur, customers can be sure that they will receive their money back at least up to a certain value.

8 points to identify professional equity portfolio brokers

In our test reports and evaluations on day-traders.net, in addition to the concrete offers and the background check, it is always about whether a stockbroker is interesting and attractive for an individual reader. But since all traders have different preferences it is important to know what is actually expected from a provider. When deciding for or against a particular broker, the following selection of 8 important points should be considered by each trader individually in his decision.

Transparency of deposit fees

A truly first-class broker displays a high degree of transparency. This also applies to the custody account fees incurred. On an extra page, interested customers can follow and read up on how much they have to pay for maintaining a custody account with the broker and what they receive in return. If there is nothing more on the page of a stock portfolio broker than windy advertising promises and opaque or lower-case conditions, interested private investors should possibly avoid the provider. Also mentioned are costs that arise for possible partial executions of orders.

Stock exchanges and over-the-counter trading

With one provider, customers should be able to trade on a variety of different stock exchanges. These should not only extend to the well-known US locations such as New York and Chicago but should be located worldwide. This gives stock traders the opportunity to sell their securities on supra-regional markets, possibly for higher prices. Off-exchange trading should also be offered. There, shares can also be traded during non-trading hours of the usual stock exchanges. Often it is also possible to get slightly higher prices there.

Sample portfolio

If a broker also offers a sample portfolio, this is the best opportunity for beginners and newcomers in particular to gain experience of the real market completely risk-free and without investing any capital. Investors should not miss this opportunity under any circumstances. Also for professional traders who have been active in the market for several years, free demo accounts and sample portfolios are available. They can practice new strategies and tactics without any risk. If a stockbroker offers the possibility of a sample account, we would strongly advise you to use it.

Investment recommendations from the broker

Professional and larger brokers usually offer their clients access to a larger area that can be used for training. There, interesting news and novelties are published, which arise due to the market situation. Important key data such as a stock market calendar are usually also part of this area. How extensive the investment recommendations are varies greatly from broker to broker. Seminars and webinars are also offered in some cases. However, all investment recommendations should be carefully considered by traders. They are not tips that must always be correct. You also need your own expertise to be able to actually generate profit from investment recommendations.

Website and language

The website of a broker should be available in different languages if possible. This makes it easier for native speakers to find their way around and is also a sign of quality. This is a signal that a provider is actively engaged in the international market and also makes its support services available in more than 10 languages for example. This in turn can be very helpful when problems occur or questions arise.

Regarding the website, it should also be mentioned that it should be clearly structured. Intuitive operation is just as important as finding the necessary information quickly. Transparency is also a keyword here.

Call money account as a clearing account

Most brokers not only offer to trade in shares and securities but also provide a clearing account directly. If possible, this should not be a normal current account or bank account. Instead, the broker or bank should offer a call money account. This allows investors to benefit from higher interest rates and thus still earn profits with the clearing account.

This clearing account must also be quick and easy to set up. In most cases, this is done by opening a securities account. With some brokers, it is possible (or sometimes necessary) to specify an external account as a settlement account. The connection to this should also be possible without problems.

Funds with low premiums

Shares and securities are not the optimal investment opportunity for everyone. Funds offer more security, but also some smaller profit opportunities. Anyone who wants to specialise in funds when trading or at least wants the chance to invest his money there should carefully consider whether investing in funds is possible when choosing a broker. The greater the choice, the better the broker.

Usually the investment in funds is connected with further expenses and costs. Consequently, it is important for traders to know how large the premiums they will have to pay when trading in funds. Interested parties can obtain an overview of the costs in the sheets on the overview of fees directly from the broker.

Custody account termination and custody account transfer

If a broker and a new stock portfolio has been found, which offers significantly better conditions than the current provider, a portfolio transfer may be worthwhile. Usually this is no problem at all with most brokers. With only a few clicks and steps, portfolios can be transferred from one provider to another.

Also the termination of a stock portfolio is basically possible with little effort. Tips and hints can usually be found on the broker’s website.

Who should trade with a stock portfolio?

Investing in shares and securities may not be the best alternative for all private investors. Securities often involve a certain amount of risk. Anyone who puts all his eggs in one basket, i.e. his entire capital in one or two companies in the same industry, runs the risk of losing large parts of his savings in the event of a negative market trend. It is immensely important to have already built up a basic knowledge before the first investment in stocks and to know exactly what stock trading is all about.

We recommend that you select at least ten different stocks to invest in in the end. As a minimum investment amount we would like to mention 5,000 euros, so that at least 500 euros are invested per company. The stock portfolio should be very balanced. Selecting only one or two related sectors is a difficult and very risky investment strategy. Should a shock go through the industry, which leads to falling prices for each of the companies, it is possible to make significant losses in the double-digit percentage range within one day.

In our opinion, therefore, only people who are familiar with the fundamental economic situation and are willing to make a long-term effort to follow the developments on the markets should invest in equities. Students in economic fields, for example, often continue their education in private life alongside their studies and usually know exactly what the markets are all about. They have a balanced overview that enables them to trade successfully in stocks.

As already mentioned, the perfect foundation is provided by all those who regularly deal with the stock exchanges and markets as well as the industries. When they start their careers, most of them look for investment opportunities. Here would be the perfect ground to start directly with stock trading.

Tips for a successful start in stock trading

After choosing the right broker, the aim is to trade successfully in the long term directly with the first purchase. There are some basic rules of conduct that should be followed by traders and private investors. This includes the above mentioned spreading of money. A sensible distribution of the companies in which investments are made is particularly important. The following rules should also be considered. This applies from the very first trade!

Only those who understand should act

If an investor has no idea about the shares he is investing in, he is giving money away. There must be sufficient knowledge about each company and all companies within a fund, which includes the financial situation of the company. Without this basic requirement, one should not trade.

Always act attentively

It can easily happen that a trade quickly turns out to be a mistake. Within a short period of time, the share price falls significantly in value. In the end, this leads to the fact that the loss generated should be recovered by the private investor. However, attention can easily be lost in the process. Blind trades in risky investments can be the consequence. In the end, however, they usually turn out to be an even bigger mistake. Keeping a cool head is therefore also very important.

Investment strategies find stay

There are many different investment strategies on the Internet and in literature. Which one is the best for the individual must of course be decided by yourself. However, once the private investor has agreed on a strategy and begins to actively pursue it, it must not be changed. Even in the event of minor setbacks, it is important to continue to act in this way. This criterion goes hand in hand with the second point.

Only use own money

Depending on their personal financial planning, investors have to agree whether they want to use stock trading for fun or to make their main investment. For example, if the money is also to be used for retirement provisions, it is unwise to speculate in risky assets. Then safe shares and perhaps funds must be selected. Another important rule is that you should never invest with borrowed money. It may not be justifiable to pay it back if you suffer the slightest loss. High debts can be the negative consequence.

An own opinion

Blindly following advice and hints regarding the installation is also not a good idea. You need to build up your own opinion on the security, not one influenced from outside, which will be the deciding factor in deciding whether to make an investment.


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