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 choose the appropriate provider that best suits you.
Minimum investment
One criterion that can help with the choice is the minimum investment. The range here ranges from 10 euros to around 500 euros. The comparatively small investment amounts offer two main advantages: flexibility and diversity when investing. Private investors have the opportunity to invest their money in several properties at the same time and can therefore build a diversified portfolio. In addition, investors can react flexibly to market changes and adjust their portfolio accordingly. So if you value investing your assets in a broad 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 investment products on offer. What does the platform have to offer? Only qualified subordinated loans with little investor protection? Or, for example, secured investment products, such as classic bank loans or bonds, where investors are properly protected even if the worst comes to the worst? Because at the latest when a project gets into trouble, what matters is what “safety net” the respective type of loan or investment has in store for the investor. That’s why you should know the terms of your contract exactly.
trading place
If a platform has a trading venue, it allows investors to invest their money regardless of the term. You can offer your investment for sale at any time and also have the chance to sell it at a higher price than the purchase price and thus increase your return. The trading venue enables investors to organize their assets individually and allows them to respond flexibly to changes or deviations.
Interest payment
On some portals you receive your interest at a fixed rate, while elsewhere you receive it every six months. 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 pay capital gains tax plus Solidarity surcharge and if necessary Church tax for investors. This represents a major plus in terms of convenience and security: investors do not have to worry about taxation themselves and are on the safe side when filing their tax returns.