If you want to invest in ETFs, you first need a portfolio. This works similarly to an account – only it does not store any amounts of money, but rather securities such as stocks or ETFs.
• A securities account is required to purchase an ETF
• ETFs in the custody account are considered special funds and are protected in the event of bank insolvency
• Robo-advisors like OSKAR take over ETF selection and management automatically
This is how a depot works
A depot is the basic requirement for buying an ETF. Investors can think of it as a special account that is used exclusively for holding securities. The depot usually includes a clearing account from which the required money is debited when purchasing an ETF. In return, the purchased ETF shares are booked into the securities account.
When a sale is made, the process works the other way around: the proceeds are automatically credited to the clearing account. Distributions such as dividends also end up in this account and are then freely available. Depending on the provider, the clearing account can be your own current account or a separate account that the broker provides. For each transaction, investors receive a receipt showing the price at which the purchase or sale was made and what costs were incurred.
Advantages of having your own depot
A securities account offers several advantages over other forms of investment. Firstly, transparency: As with a checking account, investors have access to all transactions at any time and can track the performance of their investments. Secondly, security: The ETFs held in the custody account are considered special funds and legally belong to the investor, not the bank. Even if the custodian bank goes bankrupt, they will not be included in the insolvency estate and can be transferred to another provider. However, the statutory deposit insurance of 100,000 euros per person and institution applies to the balance in the clearing account.
Added to this is the cost efficiency: Many online brokers do not charge any monthly or annual custody fees. As a rule, costs only arise when you actually buy or sell securities. Some neobrokers even offer almost completely free trading. Finally, a custody account offers flexibility: Investors have unrestricted access to their holdings at any time and can sell securities if necessary to create liquidity.
What to pay attention to when selecting a depot
Several factors play a role when choosing the right depot. In addition to the costs of portfolio management and order fees, investors should also consider the range of tradable ETFs and the available ones Savings plans check. As an article by justETF shows, online brokers usually offer the most favorable conditions: no custody fees, low or no order fees and free ETF savings plans. Branch banks, on the other hand, typically charge higher fees.
Another aspect is tax processing. German custodian banks relieve investors of many administrative tasks – for example, they automatically transfer taxes to be paid to the tax authorities and take into account the savings allowance if an exemption order has been deposited. With foreign brokers, however, the tax documentation can be more complex, as investors may have to declare their income themselves in the tax return. The type of authentication when opening a portfolio also differs: Most providers enable VideoIdent, some also enable electronic identification or the classic PostIdent procedure.
Opening a depot and alternatives
A securities account can be opened at a bank or an online broker. The opening usually lasts no longer than 15 minutes. After entering your personal data and asking a few questions about your previous knowledge of the stock market, you will be authenticated. The portfolio is then activated and investors can start investing – either through a one-off investment or through a regular savings plan.
If you don’t want to take care of the ETF selection and portfolio management yourself, you can also rely on digital asset managers. One example is OSKAR, a robo-advisor that invests in a broadly diversified ETF portfolio with a monthly savings rate of just 25 euros. The provider takes over the complete selection and management of the ETFs, carries out automatic rebalancing and handles the tax aspects. Such solutions are particularly suitable for beginners or investors who want to spend little time actively managing their portfolio.
D. Maier / editorial team finanzen.net