Buy shares – shares, especially real estate shares, are an alternative to the capital investment real estate. If you have never bought a share or a security, we have the most important tips for you today. How to proceed step by step when buying a share? The most important thing is to get acquainted with the basics of finance. For this first step there are many good books but also videos, for example on Youtube. There are many questions about shares: What do we mean by shares? What kind of shares are there? What is the DAX on the stock exchange? Are shares foreign or equity? Who has already dealt a little with the trade, which we are at some point before the first purchase of a share.
The first decision is:
- What do I want to invest in? Stock or ETF
- Where do I want to invest through? House bank, direct bank or app?
Passive (ETF) or active investor (stock)?
Rather than passive investor in an ETF portfolio (stands for English: “Exchange Traded Fund” and is an exchange-traded index fund that tracks the performance of an index, such as the DAX. In essence, ETFs combine the advantages of stocks and funds in one product, so you can invest money directly in entire markets through ETFs. A real advantage. Or do you want to be a more active investor, in individual stocks. Now it’s a matter of analyzing individual companies to determine which paper you want to buy. In the next step, you need to contact your bank to buy a paper.
House bank or direct bank – what is the difference?
With the bank you have two options, either you go through the classic house bank, such as Volksbank and Sparkasse. Here you can have the purchase processed directly through the banker or online. An alternative is the direct bank as well as comdirekt or degiro, which are usually much cheaper than in a classic branch bank.
The difference between a classic branch bank and a direct bank is that you get in the branch bank, with a contact person, advice. This direct contact person you do not have in the direct bank.
Which banks have the most branches?
- Deutsche Bank AG (2,984 branches)
- Commerzbank AG (1,530 branches)
- Postbank AG (1,092 branches)
- Unicredit Bank AG (933 branches)
- Wüstenrot Bausparkasse AG (500 branches)
- Targobank AG (351 branches)
- Santander Consumer Bank AG (324 branches)
Source: Banking Association (figures, data, facts of the banking industry).
Trading place, price and KDV (price-earnings ratio)
Buying shares online is easy. After logging in, for example at a direct bank like comdirekt, stock values can be found directly via main menu. The search gives directly a result. Here one can select now, on which stock exchange one wants to buy the share. For example, you could select “Xetra” and conclude the transaction via the Frankfurt Stock Exchange.
If you take the Lufthansa share as an example for today, the daily price is 26.915 Eur (+1.64%). But here you can also see the KDV, the price-earnings ratio, currently at 6.3306. The dividend yield based on this price of 2.6
Price: 26.915 euros
Development and performance on long term
Further down in the search results one then finds charts, mostly of the last 3, 6 and 12 months. In addition to the overview, one also has financial ratios. Here one finds the performance of the share in the last months and years. So you can see the development of the share at a glance. You can also find comparative figures.
The purchase can be completed online simply by clicking on the “Buy” and “Sell” buttons. In the so-called “domestic order” one can then determine the amount of shares to be bought or sold.
Check transaction fees and price-performance list
Tip. Transaction fees are incurred for every purchase. At comdirekt, it is exemplary currently around the 9 euros + 0.25% of the purchase. However, this information can change. E is therefore important to regularly check the price performance list of the bank to know how expensive the share purchase will be.
Again, you can now see all the trading venues through which the paper can be purchased. For example, the stock exchange “Xetra” would be closed on the weekend. During the week, one should therefore trade around 4 p.m., because here is the most volume in the market and so it is certain that one can also buy the share. Between the stock exchanges, of course, there are differences, we will discuss them later in another article.
In the order details, a few more additional information can be entered. Important would be here, the execution you want to limit. That is, they want to pay only a certain price for a share, no more.
If the price of the exemplary share is trading at 26.915 euros, we can say that we will buy the share at a maximum of 27.30 euros. The strict limits are important to be sure to buy at the best possible price. Otherwise the order will be executed in any case and it can be very expensive.
Trading validity determines the length of time. If it is 1 day, the purchase is targeted only for 24 hours. If it can not be executed, at the desired price, the order simply expires.
Summary of the trading order
- Trading type: buy
- Designation: exemplary share AG vink.Namens-Aktien o.N.
- Securities: DE123456789 / 123456
- Piece: 1
- Exchange: Telegate
- Execution: Limit: 27.30 Euro
- Validity: daily
- Provisional amount to be made out: 27.30 euros before tax
The last thing to do is to enter the tan. This will be sent to you by the bank. Now the domestic order is placed. Must be paid in successful trading the purchase price plus trading fee of the bank.
The placed purchases can then be seen at all regular banks in the main menu. The purchase can then take a few minutes to a few hours.
Order document after the purchase
After that, the stock is in the depot and a maximum of 1, 2 days later comes the order document.
Trading: Stocks, currencies and apps
If you want to read more tips, in the blog you can find many more articles, like: