Open a share deposit account: The guide for Austria
Opening a share portfolio is easier than ever before in the age of the internet. Just a few clicks are all it takes to start your own securities account for shares, ETFs and the like. There are now also a growing number of online brokers in Austria that enable every online user to open their own securities account.
If you want to trade on the stock exchange, you need a securities account. This custody account (also known as an account) is used to store all the securities you have purchased. In most cases, opening such an account is simple and straightforward.
In our guide, we explain what a share deposit account is in detail, how to open a share deposit account and what types of online brokers there are.
Content
What is a Share deposit?
In simple terms, a custody account is a storage facility for securities.
Shares, ETFs, bonds and other securities are deposited in the securities account.
All trading movements - purchases and sales - are then carried out via the securities account.
Custody accounts can be opened online or at your bank, for example. We at Tarifgigant.at generally recommend opening an online custody account, as traditional bank custody accounts often incur significantly higher costs (e.g. for account management).
In addition, online custody accounts generally offer more modern web interfaces than banks, which in some cases have no online interface at all.
Which share portfolio you choose depends on your own preferences.
However, when choosing one, one should look at the account fees, the web interface and any additional offers.
We recommend the use of our Share deposit comparison calculator. This is updated automatically and offers the best overview of Austrian securities accounts.
To the share deposit comparison calculator
How to open a Share deposit?
Opening a share deposit account is not that difficult in the age of the Internet.
All you need for the opening is an ID document and a little patience. But let's go through the individual actions step by step:
Comparison of the Share deposits: First of all, the different depots should be compared with each other to find the best offer. For this we recommend our Share deposit comparison calculator. Brokers based in Austria or Germany are particularly recommended, as they usually have German-speaking customer support available quickly. As an alternative to the classic share deposit is also the CFD trading.
Registration with the broker: Once you have decided on a provider, it's time to get down to business. When registering, you first have to enter personal details such as your address, date of birth and current place of residence. You also have to upload a current ID photo during the registration process.
Carry out a risk assessment: It is a legal requirement that new traders must complete a so-called "risk profile" with brokers. This is nothing more than a kind of questionnaire in which various questions about your own experience on the stock exchange have to be answered. For example, how much knowledge you already have about trading, whether you have traded securities in the past or similar. You also have to answer seemingly banal questions about your own character (keyword: risk affinity).
Identification: Since trading is a financially sensitive matter, it is necessary to identify oneself to the broker. There are various procedures for this. In Austria, most brokers offer the so-called "Post-Ident" procedure. You get a letter, which you have to pick up at the post office. In the post office, you must then show your ID / passport and sign some papers. You will then receive your access data.
First log-in: Once you have done all these things, you can register with the broker and start trading. To transfer money to the trading account, it is usually enough to make a transfer from your checking account. It is faster to do it by instant bank transfer.
Where should I have a share deposit open?
We recommend opening a custody account online. In contrast to bank custody accounts, with online custody accounts everything is carried out via a web interface.
This means you always have an overview of your own securities - even via smartphone with the right app.
Which broker you choose in detail depends on your own preferences.
For example, some people want to day trade (buy and sell shares on the same day), while others think about a much longer period. There are important differences between providers here.
Social trading brokers are also becoming increasingly popular. These are providers who, in addition to traditional share trading, allow you to get in touch with other traders and copy or mirror their trades.
To the share deposit comparison calculator
Classic Online stock broker
The "classic" online brokers are providers that enable normal share trading (buying and selling securities).
The providers in our comparison are renowned and based in Austria.
Go to Comparison of classic share deposits.
We recommend Flatex. Flatex was named "Best Online Broker" by Handelsblatt in 2018 and "Top Online Broker" by Trend Magazine (also in 2018).
CFD-Broker
CFDs are extremely speculative derivatives. In contrast to share trading, CFD trading does not make you the owner of a real share, but the owner of a claim. However, the price of CFDs is derived from the underlying value of the share trade.
Sounds complicated - but basically you are betting on rising or falling share prices. Trading CFDs is suitable for extremely short-term day trading.
Since all stakes are leveraged, a lot of money can be moved with a small initial capital. This means: big opportunities & even bigger risks.
For comparison of the best CFD provider.
We recommend Plus500. Plus500 has been on the market since 2008 and is one of the most popular CFD brokers in the world. The company has offices in many countries around the world and is a sponsor of Atletico Madrid, among others. We have reviewed the provider among several others in the CFD Broker Comparison tested.
Risk warning: 72% of CFD retail investor accounts lose money.
Social Trading-Broker
Social trading is a phenomenon that first emerged with the internet. It is based on CFD trading, but is linked to a social component.
If you are registered with a social trading broker, you have the opportunity to talk to other traders about shares, indices and the like. But that's not all: with most providers, entire portfolios and trades of other users can be viewed and copied.
For example, if you trust a user's skills, you can copy their portfolio - and don't have to do much yourself. On the platforms, it is possible to copy the trades of professionals even as a novice.
Social trading brokers are few and far between. Moreover, not all providers are reputable and trustworthy.
We recommend eToro. The provider is the largest and best-known social trading broker. According to its own information, more than 9 million users use the platform to trade securities and other assets. Thanks to the mobile app, you always have your own securities account in your pocket.
CopyTrader is a product that can contain CFDs.
68 % of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
FAQ: Open a share deposit account
What is the cheapest way to travel?
The custody accounts naturally also differ in terms of fees.
If you want to spend particularly little money, you should opt for a broker with low fees. Some custody accounts are even available without account management fees.
However, all providers charge a fixed amount per order.
Although there are already very inexpensive providers with costs of around €4 per order, you should consider whether you want to register with a discount broker and can perhaps do without one or two functions before registering.
Do CFD brokers also charge fees?
Although CFD providers do not charge account management fees (normally), there is a minimum deposit amount. This is somewhere in the three-digit range.
There are also no costs for orders with most brokers.
These companies are financed by the so-called "spread": if you place an order, you are always in the red at the beginning. It takes a while before you move into profit (if the price moves in the desired direction).
Is my money protected?
Fortunately, there is deposit protection in Austria.
All amounts up to €100,000 are protected.
This means that you will get your money back if the broker becomes insolvent.
What is the best way to start trading?
Every stock newcomer should consider some points in order not to lose the joy of stock trading too quickly.
First of all, you should be clear about your own investment strategy: Do I want to invest for the longer term or should it be day trading? What are my priorities?
While day trading certainly has its advantages for the risk-averse part of the population and offers great opportunities, long-term and risk-averse investors should definitely turn to traditional share trading.
Also important: knowledge of the securities purchased!
Big and well-known investors such as Warren Buffet swear by taking a very close look at the company behind a share before buying it. The more you know about a company, the easier it is to predict how it will develop in the future.
Last but not least: Always invest only money that you can also lose. You should never put money into shares that is reserved for other purposes. Especially with CFD trading, even a total loss is possible.
