Stock market investing in Germany for dummies

41 posts in this topic

Hi folks,

 

Just curious if anyone invests in the stock market on their own over an internet platform based here in Germany.  If so, how satisfied have you been, not necessarily with the performance of your stocks, basically a crap shoot anyways, but on the platform itself.  Things like ease of use, fees and the like.   There are so many options available when you do a Google search, it's hard to know where to begin.

 

Thanks!

 

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I have been meaning to look in to this far ages... Will check out those links..

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Be careful with IB. US company means tax reporting to US. If privacy means anything to you, then don't.

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After much googling and research on the internet, I can't convince myself of the value, security, or honesty of any of the online investment brokers.  My bank is WAY too expensive to invest with too, so I've essentially abandoned the idea of investing in ETF's altogether for the time being. 

 

New plan:  stash money away in my savings account that gets 0.4% interest until I've got enough to leverage a rental property back home.

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@IchBinJack

 

There will be US tax reporting regardless of the nationality of the financial institution with which a US citizen does business - unless the account falls below the $50K threshold.

 

FATCA requires every foreign financial institution on Earth to report the income and account balances of US citizens to the IRS.  Failure of a financial institution to comply with FATCA will cause a 30% withholding tax to be levied on all the US source income accruing to all of the institution's customers - both US and non-US citizen alike.

 

If the account holder has German tax residency it is usually more convenient for them to have a Germany-based brokerage account. But, regardless which country the brokerage is located in, US citizens resident abroad will have to comply with two sets of tax laws.

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6 hours ago, Straightpoop said:

@IchBinJack

 

There will be US tax reporting regardless of the nationality of the financial institution with which a US citizen does business - unless the account falls below the $50K threshold.

 

FATCA requires every foreign financial institution on Earth to report the income and account balances of US citizens to the IRS.  Failure of a financial institution to comply with FATCA will cause a 30% withholding tax to be levied on all the US source income accruing to all of the institution's customers - both US and non-US citizen alike.

 

If the account holder has German tax residency it is usually more convenient for them to have a Germany-based brokerage account. But, regardless which country the brokerage is located in, US citizens resident abroad will have to comply with two sets of tax laws.

 

Not relevant much to the discussion. The author of the thread is Canadian (according to profile).

 

For non-US citizens/residents, it is good practice to chose broker that does not accept US nationals as this limits risk of information leak to the US.

 

Of course if even if you are not citizen but resident of US you are exposed because of CRS. But that's different story.

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23 hours ago, kapokanadensis said:

After much googling and research on the internet, I can't convince myself of the value, security, or honesty of any of the online investment brokers.  My bank is WAY too expensive to invest with too, so I've essentially abandoned the idea of investing in ETF's altogether for the time being. 

 

New plan:  stash money away in my savings account that gets 0.4% interest until I've got enough to leverage a rental property back home.

 

Don't be!

 

IB is a big platform for what I would call active investors. Platform is powerful but can be overwhelming.

 

If you are looking for long term/passive investment in ETFs there is loads to chose from. They differ in prices, currencies they support, etc.

 

Yes, they will have negative reviews on the Internet. All of them. But that's the issue with Internet (and the news). You only hear the bad stuff.

 

Do your research based on prices,commissions, currencies, language they provide support in and where they are regulated. And this is not contract for life, you can always change.

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has anyone got any more thoughts or recommendations on simple to use and relatively cheap ways to invest. I've been using Hargreaves Lansdown in the UK for Sterling investments and want something where I can saftely invest in Euros without paying a fortune in fees. Thanks

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open a depot (comdirect/ing diba, etc) and buy a load of world ETFs with your euros. Cheap at the mo!

Then leave the depot running for 20y and begin selling. Return based on history ~4-7%. As everyone will tell you, historical analysis no guarantee of the future ;-)

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On 1/3/2019, 1:44:55, dom said:

open a depot (comdirect/ing diba, etc) and buy a load of world ETFs with your euros. Cheap at the mo!

Then leave the depot running for 20y and begin selling. Return based on history ~4-7%. As everyone will tell you, historical analysis no guarantee of the future ;-)

 

In this scenario LYNX would be cheaper as it does not have maintenance costs

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2 minutes ago, kenky said:

 

In this scenario LYNX would be cheaper as it does not have maintenance costs

Tell more!!

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1 minute ago, dom said:

Tell more!!

 

IDK, if this was sarcastic, however as far as I understand if you want to buy and hold them long, one must care about the service/maintenance fees, which with Lynx are 0. check yourself for more info: 

https://www.lynxbroker.com

 

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No sarcasm! I dont know lynx, but if they are a broker, you still have to pay ETF fees... or is lynx special?

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3 hours ago, dom said:

No sarcasm! I dont know lynx, but if they are a broker, you still have to pay ETF fees... or is lynx special?

 

Do you mean ETF specific fees, like the fees of ETF-s itself? I think this is always going to be there, see more:

https://www.investopedia.com/terms/t/ter.asp

I am not 100% sure, is that what you meant?... The long and short time equities and comparision of trading platforms should deserve its own subject actually. AFAIK, IB is best for traderst (lowest fees in long run if trade often) and LYNX is using IB backbone and is aiming for buy and hold types.

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On 1/6/2019, 6:25:18, kenky said:

LYNX is using IB backbone and is aiming for buy and hold types

I had a look at their website, but don't see that they aim for B+H. Their charges for ETF transactions are nothing special...

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Hi All,
I am quite new to stock trading at-least in Germany. I asked a colleague and he asked me to open a Depot account. I looked at Check24 website and the first 3 looks good (flatEx, Comdirect and Consonrs) 

 

https://finanzen.check24.de/accounts/d/depot/result?b2bid=50&cpid=checkbank

 

Does anyone know which one is the best and not expensive to use. Comdirect says 3.90€ per order. So that means I pay 3.90 when I buy or sell. Do they charge anything else apart from that?


What if I dont use my Depot Account for 1 year. Will they charge? Is there any Annual fee also, as on the right column it says Total Cost Per year - 39.00€ . Is this some additional yearly cost?

THANKS

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