If you want to invest in stocks with small amounts, you should definitely look for a broker that only charges low order fees. Otherwise, smaller profits can just ensure that the costs incurred are covered. The order fees vary between the individual providers and can be quite different. While individual brokers allow a trade to be concluded for as little as two euros per transaction, it may be that you as a trader have to pay many times that amount with other providers. To get an overview of this is therefore more than advisable in any case.
In addition, in the vast majority of cases, there are also the fees that are charged directly by the respective exchange. The stock exchange in Frankfurt, for example, lists the costs incurred directly on its own website and thus creates a great deal of transparency. Thus, at least 2.52 euros in fees are incurred per order for shares. These costs are to be added to the order commission as well as to the order fee at the broker, so that the cost factor for stock trading increases once again. As a trader, you should definitely take all these factors into account when calculating costs - if only to avoid unpleasant surprises when settling the accounts.
Trading shares for free - how does it work?
In a few years it should be possible to trade shares even free of charge. This promises at least so-called Discount brokers, which mix up the markets with favorable conditions and provide for lucrative trade possibilities with the Trader. This is to become possible, in which the brokers generate their costs instead of by commissions by advertising incomes. To what extent this will actually be possible and when this development will ultimately prevail, however, cannot yet be predicted. One thing is already more than clear, however: providers who only offer stock trading in the branch and charge significantly higher fees are already having a very hard time.
The favorable trade with shares is possible over the Internet with a reliable and safe online broker in any case. As a trader, you not only have the enormous cost savings as an advantage, but you can also benefit from the fact that the offer is more extensive in many cases and that you are in no way restricted by the opening hours of a branch. Nevertheless, branch providers certainly also have their raison d'être. Those who have always participated in stock trading locally up to now may not want to change over so quickly. The costs often play only a subordinate role in such a case.
At a glance: Possible costs when trading with shares
In the following, you will find once again clearly presented all possible costs and fees that trading with shares at an online broker can entail. This gives you the ideal opportunity to calculate all costs incurred and to participate successfully in stock trading accordingly.
- Costs for securities account management
Many brokers charge monthly fees for maintaining and using a trading account. Other providers make the securities account available free of charge for regular use. Here it is worthwhile to take a look at the account conditions of the respective broker.
- Commission for order placement
In most cases, a fee is due for the placement of an order in the form of a commission charged by the participating bank. The commission is based on the investment amount, but often there are minimum with Exness swap and maximum limits.
- The broker's order fees
If no free trading is offered, the broker usually also charges a fee for order placement. This can be even higher over the phone than when placing the order online.
- The fees at the stock exchange
The exchange involved also usually charges fees for placing an order. This fee can vary from exchange to exchange, in Frankfurt at least 2.52 euros per transaction are due.