Costs that you need to consider when trading securities
There are costs in securities trading that are not always apparent at first glance. These can arise both at your house bank and at a direct bank:
If you want to buy or sell a security, you have to do something called a Order fee numbers. The depository provider requires this for the execution of your buy or sell order.
The Exchange fee is made up of various costs, for example brokerage fees and the fee for the stock exchange. Sometimes the exchange fee accounts for up to 40 percent of the total fees. You should note that each depository provider calculates the exchange fee differently. With the online broker Flatex, for example, you only pay 5.90 euros for a Xetra order according to the price-performance directory. A look at the section on third-party fees shows, however, that there are additional fees, because a Xetra order costs at least 8.27 euros. At Forex-news.com.net brokerage An order costs a flat rate of EUR 5.00 plus EUR 2.00 trading venue fee. In addition, there is a Xetra fee of 0.00739% (at least EUR 0.75), which results in a total fee of EUR 7.75 for a EUR 10,000 order. Both brokers are way ahead, as you can see from our portfolio comparison.
Give Limit orders then costs may be incurred. Especially if the buy or sell order is not executed on the same day. When buying a security whose stock market turnover is low and whose prices can therefore fluctuate strongly, it is still useful to place a limit order. For example, you specify a course (price) that you are at most willing to pay.
Some brokers and online banks offer an over the counter Direct trade for example via the Tradegate or Lang & Schwarz trading centers. In this case, the exchange fee does not apply. In direct trading, investors do not trade through an exchange, but with a bank or a securities firm. The bank or broker buy the securities and sell them again. As a rule, direct trading investors know exactly what an order will cost in advance.
Bid-ask spread is the difference between the bid price and the ask price, which is comparable to a brokerage fee. For stocks and ETFs that are traded a lot and on a large scale, the bid-ask spread is less than 0.1 percent. In the case of rarely traded securities, this “brokerage fee” can often amount to several percent. The difference between the bid price and the ask price is significantly larger outside of trading hours; the opening times of the home exchange of a security are always decisive for the amount of the fee.
Important: You should compare offers and costs that are also important to you in the long term and ideally ensure long-term benefits for you. Do not change your portfolio just because of a time-limited promotion, so do not change providers just because of a current premium offer.