Summary for those in a rush: Shares should be bought by small investors exclusively via the stock exchange using a cheap online broker. There are many brokers on the market – we recommend OnVista’s Online Broker to small investors!
Where can I buy shares?
In a modern financial economy, there are companies that simplify dealing in shares of all kinds – the stock exchanges.
Usually, stock exchanges are regulated by state authorities (BaFin in Germany, FMA in Austria, SEC in the USA). This allows transparent and fair trading for all investors. We therefore recommend small investors to buy and sell shares and other securities via a stock exchange.
How can I buy shares on the stock exchange?
However, you cannot simply walk up to the reception of a stock exchange with a suitcase full of money and place an order – only stockbrokers are authorised to trade directly on the stock exchange. Direct access to the stock exchange is therefore not possible for small investors (and also for most large investors).
In order to deal with this problem, there are companies that specialise in the acceptance and execution of securities orders (buy or sell orders) – the so-called brokers.
Brokers charge a fee for their services, which is often referred to as brokerage or simply as order charges.
How do I find the perfect broker?
First of all: the right broker is not your house bank.
A broker should only implement your wishes, namely buying or selling securities. A conversation with your bank advisor only leads to you implementing his or her wishes and not your own.
For your perfect online broker, you should have three requirements:
- No ongoing fees / portfolio management costs: There are enough brokers that do not charge a “service fee” – simply stay away from those that do.
- Minimal order charges: Every Euro you save in trading increases your return drastically! A broker that offers its services for more than 5 Euros is never your perfect broker!
- Free support. But do not mistake support for consulting! Your broker should offer you free help on using the platform and handling trades – but absolutely no advice on buying or selling (if you need advice, we recommend that you spend some money on a fee-based advisor. Such an advisor does not earn commissions but is paid directly by you and therefore generally represents your interests best.)
Which broker do we recommend?
We use and recommend the broker of OnVista Bank!
Of course, OnVista does not charge any ongoing fees and offers minimal order fees. Currently, you can trade for 6 months for 3.99 Euro + stock exchange fees (approx. 1-2 Euro, depending on the order volume).
In addition, OnVista grants you monthly “FreeBuys” with the “FreeBuy-System” through a deposit on the clearing account – you can therefore even buy shares free of charge.
With an average deposit of 3,000 euros on the clearing account, OnVista credits you with 5 Free-Buys per month – 95 % of small investors will probably get along with that on a regular basis. However, you should see for yourself – test the broker yourself, of course completely free of charge!
The portfolio is quickly and easily created and you can place your first order in about 1-2 weeks!
For further broker offers, we would like to refer you to our comparison calculator.