Tip 6: where can you buy stocks? The choice of the right trading venue
Once you have defined your investment strategy and decided in favor of the share of a company or the purchase of another security, you must enter and select the securities identification number (WKN or ISIN) in the trading mask of your broker, Which exchange you use to buy your security want. In Germany you have the choice between the Frankfurt Stock Exchange, the XETRA system of the Frankfurt Stock Exchange and some regional stock exchanges (Stuttgart, Berlin, Düsseldorf, Hamburg …).
You can now also use the over-the-counter direct trading buy and sell. As an investor, you save the exchange fees and brokerage fees. In addition, you don’t have to wait for your order to be executed on the exchange. Our recommendation is therefore: Buy common stocks through direct traders such as Tradegate or Lang & Schwarz.
Nowadays you can trade stocks directly at various trading venues. The principle is simple: you make a price request for, for example, 20 BASF shares in the order mask of your online broker. The trading partner of your custodian bank will then inform you of a non-binding purchase or sale price. Since the stock exchange prices change quickly, you only have a few seconds to decide on the offer. If you do not do this, you can then submit a new binding price request. You can also trade certificates and warrants conveniently and directly with the issuing bank, the so-called issuer. Provided that your custodian offers direct over-the-counter trading with this issuer, i.e. with the relevant direct trader. It is best to check this before opening your securities account!
Which trading venue is the cheapest depends on many factors: The most relevant are your planned volume for securities trading, the brokerage fee (broker’s commission) and the spread, i.e. the difference between the buying and selling price. In the case of standard stocks such as DAX stocks, the differences are usually negligible. In the case of small caps with a low trading volume, however, you should ensure that your security is actively traded on the trading venue you have chosen so that you can buy or sell at a market price. You should also exercise caution in over-the-counter direct trading outside of regular exchange hours. Since the direct trading partners bear a higher risk here, the spreads in securities trading are regularly higher than during regular stock exchange hours.
Tip: Take advantage of the comprehensive range of information on Forex-news.com.net. Here you will find the current prices and trading volumes for each security on the various trading venues (example: Siemens stock exchanges). Select a trading venue where your share is actively traded (stock exchanges and stock exchange turnover for Siemens shares). Also important when buying and selling shares: Always place your order with a limit (a price limit). In this way you ensure that you do not pay an inflated price when you buy and that you do not get a price that is too bad for your shares when you sell. With brokers with top conditions such as the Forex-news.com.net brokerage depot, you do not pay any fees for setting, changing or canceling a limit.