Switching brokers: This is how investors save more than 130 euros a year

More than 130 euros a year, voluntarily given away: This is the result of many investors who simply keep their old broker. Securities trading has long been free for many providers, but they continue to pay – usually without noticing, because the fees are quietly debited in the background, order by order. A depot change ends this in just a few minutes.

This is how much the classic model costs

Classic direct banks often charge a basic price of around 4.95 euros per security order and take an additional 0.25 percent of the market value. With six orders of 3,500 euros each per year, this adds up to 82.20 euros. If an ETF savings plan for 300 euros per month is added, for which 1.5 percent of the rate is due, it is another around 54 euros. The bottom line is around 136 euros per year – not including stock exchange fees (see table below).

Direct bank and neobroker in comparison

*Six individual orders plus monthly savings plan

On your own behalf

Some of the large neobrokers charge one euro per order or offer a flat rate for a monthly fee of a few euros. Savings plans are generally free with all major neobrokers. The savings compared to the example above can quickly amount to more than 100 euros per year. However, if investors mainly trade small amounts, they should check the order size above which a provider is really free of charge – surcharges for small quantities can partially offset the advantage for small orders.

On your own behalf

What “free” really means

Free does not always mean free. Costs can lie in the spread – the range between the buying and selling price of a security. This difference can have a noticeable impact on returns, especially when the market is tight or outside of peak trading hours. An order price of zero euros is only half the story: Anyone who regularly buys larger amounts or less traded securities should also pay attention to the price at which the order is actually executed.

What investors should pay attention to when switching

Favorable conditions are often accompanied by a limited offering: not every provider offers all funds, some tie trading to a specific stock exchange. If investors have credit left in their clearing account, it is also worth taking a look at the interest rate – it fluctuates greatly and is completely missing from individual providers. The good news: A securities account transfer to a new provider is usually tax-neutral as long as the beneficial owner of the securities does not change.

Conclusion

Free trading remains a clear advantage for most private investors – the savings compared to a classic direct bank can be over 130 euros per year. It is crucial not only to look at the order fee of zero euros, but also at spreads, the tradable offer and the interest rate. Anyone who calculates their own portfolio with this perspective will quickly see whether a change is worth it. The effort is limited: today, a securities account change can usually be completed in just a few steps, and many providers take over the complete transfer of securities if desired.