Let's go: Open a depository

Speculating on the stock market - that may sound a little uncomfortable to some. No wonder, given all the myths surrounding investments on the stock market. We provide you with clarity, summarise all the advantages for you and give you important tips for opening your securities account.

Anyone can open a securities custody account 

Anyone can open a custody account.  The stock exchange is not an exclusive venue for a few wealthy people. Opening a securities account does not require any assets. The deposit is similar to a regular bank account, with the difference that it is not used for money, but for securities - i.e. shares, bonds, or funds. These securities are then booked into the securities account and booked out again.

Online or branch bank? You have the choice

Once you have decided to open a securities custody account, the bank at which you wish to open your custody account is selected. You can choose between a pure online bank and a branch or advisor bank. 

Investors who feel secure in dealing with securities and want to trade them on their own responsibility are well advised to use an online bank. Online banks can often offer custody accounts and trading on the stock exchange at lower fees because they have lower costs. They are often referred to as discount brokers. However, the advisory service is usually not as extensive.

A branch bank, on the other hand, is suitable for investors who do not want to do without thorough and personal advice. Since 2010, banks have had to draw up a legally prescribed advisory protocol, which is intended to serve as insurance in the event of incorrect advice. When customers order securities online, they are responsible for all their own actions. 

Prices vary depending on the type of bank you choose and the way in which you place your order, e.g. online or by telephone. We therefore recommend that you compare prices. There are numerous online comparison portals and financial journals that offer assistance in this regard. You may also decide to open a securities account with your bank. 

An important aspect for you: As an investor, you always remain the owner of the securities, your custodian bank only holds them in safe custody. This means that the securities are protected in the event of insolvency and are never part of the insolvency estate. 

Opening a custody account: as simple as a multiplication table

At your online bank, you can either conveniently complete all the details on your computer and then print out the application form, or have the papers sent to you at home. The next step is to just confirm your identity, for example with the Post-Ident procedure, or with a Video-Ident procedure via Skype. As soon as you have received your access data for online banking, you can get started and place your first order. If you decide to make a deposit with a branch bank, you can get advice on the spot. 

• Chapter 10: Buy your first order