Apart from an intelligent investment strategy, minimising the costs incurred is the most important point in order to optimally increase the return. An online securities account without fees for management and custody is a logical step - supposedly! Who really benefits from a free securities account and who should rather optimise other cost factors?
Private small investors in particular are forced to reduce all cost items as much as possible. After all, they hardly benefit from fixed order costs or variable trading fees depending on the order volume. The former are particularly hard to bear in percentage terms for very small investment sums, while the latter always demand a minimum sum that is considerably higher in relation to the order volume than the advertised percentage.
For private investors with small investment sums, free securities accounts are an absolute necessity so that the return is not completely eaten up by the fees incurred.
Frequent traders with at least 2 executions a week also benefit from free custody account management. The shorter a security is held, the lower the potential profit. This deficit can be absorbed well with a free securities account.
Advantage for frequent traders: With some banks and online brokers like sg-exness.com, many trades not only guarantee cheaper order costs, but also the elimination of otherwise incurred securities account management costs.
Investors with high investment volumes are less likely to need free custody account management. For them, an upwardly limited order fee and VIP services ranging from personal advisors to club memberships are more important.
If you primarily want to trade sustainably, it is difficult to find a custody account provider with free account management. One option, for example, is the GLS Bank custody account, but here several basic fees apply - from the GLS fee to securities custody to the price per inventory item in the custody account.
Conditional vs. unconditional free of charge
A free custody account is not always free of charge. comdirect, for example, offers its share deposit account free of charge for the first 3 years, but after that the freedom from fees is subject to conditions. The online broker flatex, on the other hand, only waives the otherwise obligatory custody account management fee for a savings plan.
Although the securities account is guaranteed free of charge with most providers, with others certain conditions must be met. These can be:
- Minimum number of trades per month or quarter
- Regular execution of a savings plan (e.g. ETF savings plan)
- Use of the bank's own current account
- Credit balance on clearing account exceeds minimum amount
- Trainee or student status
Tip: The conditions for a free share account are usually easily met. In almost all cases, setting up a monthly savings plan is sufficient to save on custody account costs. If you are a regular trader, you are generally not at risk.
Securities account vs. trading account: Are there differences?
A securities account is used to store, manage and trade securities such as shares, ETFs or certificates.
A trading account, on the other hand, specialises in trading contracts for differences (see CFD brokers and forex brokers), which enables fast and leveraged trading in underlying assets without having to physically hold them in a securities account. The fees for both account models differ accordingly.
Nowadays, classic securities accounts are increasingly applied for online. No costs are incurred for this. As a rule, with a few exceptions, there are also no fees for managing the securities account. On the other hand, order costs and other administrative fees are more significant.
In contrast, trading accounts with online brokers such as Plus500 or IG offer a much simpler fee structure. Account opening and management are always free of charge and the order costs - realised via the difference between buying and selling price - are also very manageable. There are no administration fees, for example, for depository changes or telephone banking.
