Before you start trading in shares, you should answer a few basic questions for yourself. Because: Not everyone is suitable for share trading. As a rule, shares only come into question as an investment if you:
- Do not need the money you want to invest for a longer period of time - at least ten years. The longer you hold the investment, the safer it is.
- Are free of debt.
- Have an easy-going personality. After all, the ups and downs of the stock market can be stressful; if you sell in a panic at the first drop in the value of your shares, you will hardly achieve any returns with shares. You must be able to withstand price fluctuations.
What type of investor am I?
In financial counselling, a distinction is made between different types of investors. Mostly, these are classified into four risk classes; possible, but less common, are models with three or six classifications. The names of the individual risk classes vary to some extent, but ultimately the difference lies only in the name. The investor type reflects an investor's basic willingness to take risks in mt4 terminal. This results in certain investment recommendations. Not every form of investment is suitable for every type. For example, very safety-oriented investors are usually advised against exchange-traded securities such as shares.
For safety-oriented and conservative investors, it is not advisable to buy shares. Profit-oriented investors should also consider more long-term equity investments in their investment strategy.
For opportunity-oriented investors there are hardly any restrictions. For them, occasional trading, i.e. buying and reselling securities within a relatively narrow time window, may be an option. You can find out more about this speculative and therefore very risky form of investment in the Trading guide.
How and where to buy shares?
To be able to buy shares, you need a securities account in which your shares are stored. This is basically another account that you keep in addition to your current account, for example. You can open a securities account at direct banks and sometimes also at branch banks. Online brokers, who unlike banks concentrate exclusively on securities trading, also offer securities accounts.
Both opening and managing a securities account can be done conveniently over the internet, for example at a direct bank or at an online broker. Due to stricter legal requirements and the resulting high advisory costs, many branch banks have withdrawn from the equity business for private clients. Your house bank may therefore not offer a custody account. Providers of securities accounts usually also act as brokers, i.e. they buy and sell shares according to your order. As a private individual, you cannot trade on the stock exchange yourself, neither online nor directly from a location such as Frankfurt.
Usually there are fees for these so-called orders, which can vary from provider to provider. Generally, the fee per order is higher for branch banks than for online providers. Some online brokers offer a kind of flat rate that includes a certain number of orders. Most branch banks also charge for the securities account, whereas this is often available free of charge online. In one respect, however, branch banks are usually superior to their online competitors: they can offer individual advice, which can be particularly important for share beginners.