If you want to buy securities or shares, you need a deposit. The securities account is used to manage the shares and is held by a bank. However, the shares are not owned by the bank, but are only managed there.
Regardless of the financial situation of the bank, you always have access to your shares. An example of a stock portfolio, which is opened and managed very frequently in Austria, is the DirektDepot of Erste Bank. This deposit can easily be managed online and thanks to the George function sales can be viewed quickly and easily.
Erste Bank DirektDepot – advantages at a glance
- Securities trading via George Wertpapier
- Ordering 24/7 possible
- Ordering also possible via telephone
- Real-time courses at the Vienna Stock Exchange
- Extensive trading offer (equities, ETFs, certificates, funds, bonds …)
- Action: until 31.12.2019: 50% cost reduction in the management of securities
- To the provider
Why is buying more and more popular?
In times of low interest rates, traditional investments such as savings accounts or money market accounts hardly offer an attractive return. As a result, many people rely on securities in their search for alternative investments.
These may yield high returns due to dividends and price increases.
Stocks and funds as well as ETFs have become much more popular and socially acceptable in recent years. Nevertheless, it is important to know and be able to assess the risk before buying securities.
What are the terms and benefits of DirektDepot at Erste Bank?
The ErsteBank DirektDepot can be managed completely online. The George Securities feature allows trading to be done online. Orders can be submitted here 24 hours a day, 7 days a week. In addition, a recording of the orders is also possible via telephone.
ErsteBank’s trading offering covers equities, ETFs as well as certificates, funds and bonds. Real-time prices are shown for the stock exchange in Vienna, which is popular in Austria, including market depth.
The minimum fee for the deposit at ErsteBank is 3.84 euros. The other fees depend on the percentage of use of the depot.
Free webinars at ErsteBank – buy stocks for beginners
If you want to get to know trading in securities and, for example, assess the risks that exist and which types of options can be exercised, you can learn a lot from Erste Bank with the help of George.
Free webinars help you to identify which options are available and, of course, what are the risks.
How can I buy stocks?
In order to buy shares and securities, it is generally necessary that a securities account is available. In this can then be searched for individual stocks, securities or funds. The securities are found via an ID or an abbreviation and a unique identifier and can then be easily drawn. There is a possibility that shares can be bought in different markets.
This is possible in Austria, but also in other countries. It should be noted that every purchase must be covered in advance. This means that the amount to be used to buy shares must be available on the clearing account parallel to the securities account.
Basically, an order can be set in the system with and without limit. A limit means that shares are to be acquired at a certain price per title, for example.
If the purchase price has been reached, this automatically means that the purchase is triggered and the previously stated amount of shares is acquired. Limits can be submitted on a daily basis or over a longer period of time.
- 1. Open a securities account with a broker
- 2. Deposit money into the clearing account
- 3. Search for desired stock and state purchase price / amount / amount
- 4. Complete orders and manage stocks in the custody account
They can be submitted for the purchase, but also for the sale of shares and securities. The trade can be increasingly automated and better controlled by the targeted use of limits.
How does fund-saving work with s Fonds Plan Mix of Erste Bank?
In Austria, Erste Bank also offers all DirektDepot customers the option of investing in equity funds. This means, for example, that you regularly invest money in a specific product through a monthly savings plan.
The benefits of such an investment are that you regularly acquire shares in a fund. This means that each month you can buy shares in a fund for eg € 50. In times of low prices, this leads to a very favorable purchase of many shares.
If the price of the fund is high, you will earn only a few shares for the 50 euros. Basically, you can thus enjoy the fact that you can use the cost-averaging effect and profit from it, in any case not to be surprised by strong price fluctuations and long-term shares in a fund not too expensive to buy.
Funds are usually composed of different products and also of different product classes. This means that when investing in funds, you can invest in securities, for example, but also in real estate. In principle, a certain degree of diversification can thus be achieved. This means that you spread the risk and are not as affected by price falls as when investing in individual securities.
It should be noted that with a depot a diversification is to be recommended in principle. Even when investing in funds, it is recommended to make sure that you invest in different products, such as funds that deal with different topics.
As a result, the risk can also be spread. In the long term, for example, funds can be supplemented and expanded by investing in real estate, which is a classic disconnect from the stock market and can provide even more opportunities.
Which stocks buy? – Tips and Guides?
The fact is that the decision about which shares to buy must be made by each one. There is no possibility that the purchase of shares is proposed, or that a consultation takes place, which also has a guarantee of success.
Everyone has to know for themselves which stocks he buys and how much money he wants to invest in stocks. In advance, however, it is essential to know what risk is taken and which loss opportunities arise when deciding to buy and trade shares.
Basically, there are different strategies according to which shares are bought often and often. There are traders who focus on companies that have good prospects for the future, and traders who insist on earning high-dividend stocks.
2 strategies: companies with potential and the dividend strategy 2019
Identifying companies with potential is particularly difficult and no easy task. It can be achieved very much by own analysis. The aim is to discover sectors and fields of activity that will enable very high returns in the future, or that will bring significant benefits in the future.
A good example of areas that are in demand in the future, for example, is everything that counts on the topic of electromobility.
Not only the car makers are meant, but also suppliers, battery producers or even utilities providing the necessary power. Also interesting is the telecommunications industry. The 5G standard and eg the mobile service providers, but also companies, which provide for the development of the nets, could be interesting.
- Identify future technologies (eg 5G, artificial intelligence, electromobility etc.)
- Invest appropriate companies and stocks
- Benefit from the development of companies
In the field of artificial intelligence, new technologies and digitization, companies may also be breaking new ground in the future or pushing completely new companies onto the market, which may be of interest to investors.
Anyone who manages to identify so-called “rising stars” will certainly have the opportunity to participate in the long-term increase in sales and share prices.
An alternative strategy is investing in dividend stocks. This strategy is pursued by a large number of shareholders, because they hope for long-term rising returns and, of course, regular dividend payments.
While companies in Germany and Austria generally pay their dividends on an annual basis, it is customary in the US for the dividends to be distributed to shareholders on a quarterly basis.
That’s one of the reasons why US dividend stocks are in great demand here, too.
- Identification of dividend aristocrats
- Dividend titles from the US with quarterly dividend in great demand
- UK dividend stocks in high demand due to non-existent withholding tax
There are many so-called dividend aristocrats. These are companies that, in the long term, pay attractive dividends and have been able to significantly increase their dividends in recent years.
Numerous securities from various sectors have in some cases no longer lowered the dividend for more than 20 years and either keep it at the same level from year to year, or increase it further.
It should be noted that the dividend is of course a voluntary benefit of the company. This means that it can be shortened at any time, or even completely deleted. It is possible that the dividend may be temporarily suspended or distributed on other dates. In addition to the regular dividend, some companies also distribute a special dividend, which is paid, for example, in successful financial years.
Many investors rely on dividend stocks from various industries. This means that in the long run, the dividend will generate attractive returns, but the shares of companies will come from different industries. In the case of economically strained times should thus be ensured a certain stability and security.
When do I buy shares?
Who wants to buy shares, of course, should also define when he wants to buy them. Often it is worthwhile to consider the historical development of a stock, in order to be able to estimate whether the price of the stock is currently very high or very low.
There are numerous cyclical values that can be bought at different times and that should, of course, be bought just when the price is favorable.
It should be noted that one should not go directly “all-in”. Anyone who buys shares should always invest cautiously with a first position before, for example, when buying another share price, he or she wants to buy more shares from a company.
In the long term, this can lead to a further decline in the average purchase price and one can benefit more from an increase in the price of the share.
- Cyclical values should be monitored in the long term
- Long-term investors can buy negative news mostly after price deductions
- Price-alert watchlists can help identify the right time
It should also be taken into account that one does not only stiffen one paper, but has several companies in view. Many brokers offer a watchlist, in which one stores stock prices of different companies and companies.
The courses can then be monitored regularly. In some cases even a price alert can be set, so that one receives eg an email or an SMS, if a certain price value has been reached. Many traders use price alerts to buy or sell shares at the right time from their point of view.
What is the ETF trade and why is it so popular?
Trading in ETFs is also made possible by ErsteBank’s direct depository. ETFs have become much more interesting in recent years and demand has risen sharply.
The word ETF is an abbreviation and stands for Exchange Traded Funds. These are therefore index funds that are traded on the stock exchange. The ETF can, for example, represent the development of an index – eg the ATX or the DAX.
- ETF tracks index in the ratio 1: 1
- ETF offers a high degree of transparency
- ETFs can also be subscribed to eg real estate or commodities
An ETF is the combination of the benefits of a stock and a fund in an interesting product. There is a possibility that ETFs can invest in different asset classes and not just in equities.
They track a market index 1: 1 and can be traded on the stock exchange at any time. ETFs are characterized by the fact that they are offered at low cost and are very transparent. There is a possibility that with the help of ETFs one can build a portfolio that is very broadly diversified, which significantly reduces the risk.
In addition to ETFs that reflect equities, there are also ETFs that map, for example, commodities or real estate. If you want to invest in gold, in silver or even in copper, it is not very rare for you to invest in an ETF.
What does it cost to buy stocks?
The cost of buying stock depends on the particular custody fee and the fees per trade with your chosen online broker. In doing so, you should first carry out an online broker comparison for Austria and also pay attention to current promotions (such as the Erste Bank DirektDepot).
How do I invest my money the best?
In addition to investing in stocks or buying stocks for beginners as an investment strategy, it is important to invest in different stocks / companies to diversify the risk. Which investment makes sense depends on their risk behavior in addition to their capital. In order to be able to answer the question “How to invest my money the best?” Seriously, you should inform yourself about the opportunities and risks of different financial investments (call money, time deposits, stocks, crowdinvesting, funds, P2P loans, …). In a good investment mix, however, stocks should definitely be considered.