Online Broker
What are the advantages and disadvantage of online brokers who is engaged in the purchase of shares, will encounter the concept of file in repository quickly and often. “Custody account account” is the “official” name for a depot. But who says so. Such a deposit is required in order to trade with securities. It is the point on which the securities are managed at the same time. A kind of “Depositary” basically,. Of course, a custody account in the Bank or a bank branch can be set up.
In this case, is the investor to a local bank consultant and can learn about the relevant products of this bank. The custody account at a bank or Onlline banking, why? Typically, all direct banks offer the ability to set up a securities account. This happens so you landed this with a so-called online broker. This has its advantages. Especially when you look at a more detailed and personal consulting service not as a primary criterion. That also doesn’t mean that a bank does not constitute advice offers. But it appears there is not personal. There is usually information by telephone or E-Mail.
Speak for a custody account at an online bank, inter alia: the costs associated with the opening of the depot and its management are proving to be generally cheaper. Trading in shares is always carried out from home. The investors remains anonymous in the sense that he is not personally known the Bank and its employees. It is more possible that the Bank Manager in the neighborhood resides or is the husband of the teacher of the own son at the local bank. And that not everybody likes so much. If the account is set up, there is also the shares are kept. But that is not such, as you sometimes see them in movies, with huge black letters or colorful designs. New shares are issued, this is done by issuers (editor). Often appropriate companies will be. The issue of shares is referred to as emissions. Even if the shares are not physically acted and issued the securities yet not as anonymous. There is a strict labelling, regulated by law. Last but not least fiscal are reasons significantly. Also for money laundering, which should have a braking effect. And all this is required overall for the right-hand traffic. A securities account with a direct bank does exist it is possible to participate directly in trading through the broker. So the investors experienced virtually “Pure stock”. As I said, the investors of equity portfolios of direct bank remains foreign in his person. However, the opening of the repository requires authentication. This is done by via the Internet with a direct bank, the documents are requested, are necessary for the custody. Easier and faster that is however feasible through the portal of the Bank or the online broker prints the documents themselves, fills, signs and posts about the post-Identverfahren to the Bank. To do this, it is necessary that the investors with his documents and his identity card or passport personally to a post office is. There are no costs the investor for the return.
Tags: finances, stock exchange & stock markets