There are big differences between the various crowd investing portals. It is important to know your own requirements for a form of investment and then to select the appropriate provider that best suits you.
minimum investment
A criterion that can help with the choice is the minimum investment. The bandwidth ranges from 10 euros to around 500 euros. The comparatively low investment amounts offer two main advantages: flexibility and diversity when investing. Private investors thus have the opportunity to invest their money in several properties at the same time and can thus build up a diversified portfolio. In addition, investors can react flexibly to market changes and adjust their portfolio accordingly. So if you value investing your wealth across a wide range, you should make sure to find a platform with the lowest possible minimum investment.
investment products
It is essential to look at the form of the investment products on offer. What does the platform offer? Exclusively qualified subordinated loans with little investor protection? Or, for example, secured investment products, such as classic bank loans or bonds, where investors are reasonably protected even if the worst comes to the worst? Because at the latest when a project gets into trouble, it depends on which “safety net” the respective loan or investment form has in store for the investor. Therefore, you should know the conditions of your contract exactly.
trading place
If a platform has a trading venue, it enables investors to invest their money regardless of the term. You can offer your investment for sale at any time and also have the opportunity to sell at a higher price than the purchase price and thus increase your return. The trading place enables investors to organize their assets individually and allows them to react flexibly to changes or deviations.
interest payment
On some portals you get your interest on the final due date, while on others it is semi-annually. This can also be an important criterion when choosing a provider.
Are the taxes due paid?
Pay attention to whether the issuers on the respective platform add capital gains tax solidarity surcharge and possibly church tax paid for the investors. This represents a major advantage in terms of convenience and security: Investors do not have to worry about taxation themselves and are on the safe side with their tax returns.