Water as an asset class: Why now?

Water is the only resource without a substitute. While oil can be replaced by renewable energy and industrial metals can be partially compensated through recycling, there is no alternative to drinking water. This fundamental scarcity makes the sector structurally attractive — regardless of short-term economic cycles.

The drivers of the water market

• Demographics: By 2050, about 9.7 billion people will live on Earth — water demand will rise by approximately 55%.
• Urbanization: 68% of the world’s population will live in cities — huge infrastructure investment needs.
• Climate change: Droughts in Southern Europe, California, Australia — demand for desalination and water reprocessing explodes.
• Backlog of renovations: According to the EPA, the US alone must invest over 600 billion USD in deteriorating water infrastructure.
• Regulation: Stricter limits (PFAS, microplastics) force suppliers to make billion-dollar investments.

UN Water Conference: What Investors Need to Know

The UN Water Conference in New York — the first of its kind in almost 50 years — marked a political turning point. UN Secretary-General António Guterres called for a “bold water agenda” and the achievement of Sustainable Development Goal SDG 6 (clean water for all). For investors, crucially important: The conference resulted in over 700 voluntary commitments (“Water Action Agenda”) with a pledged investment volume exceeding 300 billion US dollars — a direct tailwind for listed water players.

Political momentum + structural investment backlog + climate pressure = multi-year tailwind for the water sector.

The five sub-sectors of the water market

Before you invest, you need to understand: “Water” is not a sector, but five. Each has a different risk-return profile.

Investing in Water: 4 Stocks in Profile

Veolia Environnement (FR0000124141)

French global leader in water, waste and energy management. After the acquisition of Suez one of the largest water companies worldwide. Strong in concession agreements with municipalities — stable, long-term cash flows.

• Market capitalization: approx. 20 billion EUR
• Dividend yield: typically 4–5 %
• Strength: Geographic diversification, water reprocessing technology
• Risk: Political interference, loss of concessions

American Water Works (US0304201033)

Largest publicly traded US water utility, serving over 14 million people in 24 states. Classic regulated utility with predictable returns.

• Market capitalization: approx. 25 billion USD
• Dividend growth: continuously for over 15 years
• Strength: Regulated monopoly structure, inflation pass-through
• Risk: Interest rate sensitivity (like all utilities)

Xylem Inc. (US98419M1009)

US technology group for water pumps, filters, measuring devices and smart water solutions. Beneficiary of the digitalization of the water industry. Acquired Evoqua Water Technologies in 2023 — thus, Evoqua as a standalone stock is history.

• Market capitalization: approx. 30 billion USD
• Growth: Revenue CAGR ~10 %
• Strength: Broad product portfolio, Smart-metering
• Risk: Higher rating, industry cyclicity

Geberit AG (CH0030170408)

Swiss sanitary technology world market leader (pipe systems, flushing systems). Benefits from renovation waves and construction investments — often underestimated in the water context as a European premium player.

• Market capitalization: approx. 18 billion CHF
• Operating margin: regularly > 25 %
• Strength: Pricing power, market share DACH 60 %+
• Risk: Construction cycle in Europe

Investing in water: 3 ETFs in detailed comparison

For most private investors, an ETF is a more pragmatic approach — it eliminates individual stock risks and captures the entire sector.

IShares Global Water UCITS ETF

The classic with the longest history among water ETFs. Tracks the S&P Global Water Index — 50 international water stocks, 25 each from utilities and technology. Top holdings typically include Xylem, American Water Works and Veolia.

L&G Clean Water UCITS ETF

Younger, broader ETF with a focus on “Clean Water” — purification, recycling, testing & measurement. Accumulating, making it tax-efficient for wealth building in a portfolio.

Lyxor World Water UCITS ETF (Amundi)

Concentrated index with only ~30 titles — resulting in higher volatility, but also higher performance leverage. Suitable for investors who consciously focus on quality concentration.

Rule of thumb: A water ETF should make up 3–7% of the equity portfolio — as a sector addition, not as a core investment.

Strategy Matrix: What Type of Water Investor Are You?

Risks: What Investors Often Overlook

• Regulatory Risk: Water supply is state or municipal regulated in many countries. Tariff increases must be approved — political interventions can squeeze margins.
• Concessions Risk: Veolia & Co. operate under long-term contracts. Losing a major city concession can be painful.
• Interest Rate Sensitivity: Water utilities are capital intensive — rising interest rates pressure valuations, similar to real estate companies.
• Valuation Risk: The “ESG Premium” has made water stocks temporarily more expensive than the broad market — P/E ratios > 25 are not uncommon.
• Greenwashing: Not every company in the water index is “pure” water — some generate only 20–30 % of their revenue from the sector.
• Currency Risk: US-focused ETFs carry dollar exposure.

Water Source vs. Stock vs. ETF: The Direct Comparison

FAQ: Frequently Asked Questions About Water Investments

Is a water ETF profitable in the long term?

Yes — structurally. The global water market has been growing steadily by 6–8 % p.a. for over 20 years and is further driven by climate change, urbanization, and backlog of renovations. Water ETFs have outperformed the MSCI World in the last 10 years, although with higher volatility in certain phases.

• Structural growth through demographics & climate
• Defensive character due to utility share
• Sensible as 3–7 % addition

What is the difference between iShares Global Water and L&G Clean Water?

The iShares is broader (utilities + technology each at 50 %) and pays dividends. The L&G is more technology and treatment focused, younger, accumulating, and cheaper in the TER. Those wanting cash flow choose iShares; those building wealth choose L&G.

Can private investors buy a water source?

Yes, but only with considerable capital (typically starting at 500,000 EUR) and specialist knowledge of water rights, extraction concessions, and country-specific regulations. More on this in the Lukinski special on water source purchases in Europe and the USA.

Which water stock pays the highest dividend?

Classic utilities like Veolia (4–5 %) and Severn Trent (UK, 4–5 %) are ahead. Pure technology players like Xylem pay under 1.5 % — but with higher growth potential.

Are water investments inflation-proof?

Partially. Regulated utilities can often adjust their tariffs with a delay to inflation (“Pass-Through”). Direct investments in water sources are better protected against inflation as tangible assets than stocks.

Which water stocks are overweighted in the major ETFs?

Xylem, American Water Works, Veolia, Pentair and Ecolab are among the top 10 holdings in almost all water ETFs. Buying an ETF therefore mainly buys these core players.

Conclusion: Water belongs in every serious portfolio

Water is the structural investment story of the next few decades — not because it is a trend, but because the fundamental drivers (demographics, climate, backlog of renovations) are irreversible. For most private investors, a broadly diversified water ETF with a 3–7 % portfolio share is the rational solution. Those who want more risk can complement this with individual investments.

1. find out about investment options that suit you (goals, risk)

Tip 1 is to thoroughly research the different investment options and choose the ones that best fit your goals and risk tolerance.

This means that you should inform yourself about the various options in which you can invest your inherited money. These include, for example, stocks, bonds, funds, ETFs, real estate as an investment or alternative forms of investment. You should consider which investment options best fit your financial goals and risk tolerance. A financial advisor or expert can help you choose the investment options that are right for you.

Here is a bullet point list with a short summary of the content of tip 1:

• Find out about the different investment options
• Choose the ones that best fit your goals and risk tolerance
• Consider your financial goals and your risk tolerance
• Seek advice from a financial advisor or expert if you are unsure

2. talk to a financial advisor or an expert

Tip 2 is to talk to a financial advisor or an expert who can help you decide.

This means that it can be helpful to seek advice from a financial advisor or an expert if you are unsure how to invest your inherited money wisely. A financial advisor is knowledgeable about different investment options and can help you develop an investment strategy that fits your goals and risk tolerance. An expert in a particular investment area, such as real estate or art, can also give you valuable advice.

Here is a bullet point list with a short summary of the content of tip 2:

• Talk to a financial advisor or expert
• Get advice if you are unsure how to invest your inherited money wisely
• A financial advisor is knowledgeable about the different investment options and can help you develop an investment strategy
• An expert in a particular investment area can give you valuable tips

3. realistic goals and financial plan

Tip 3 is to set realistic goals and create a financial plan to ensure you are investing your money wisely.

This means that it is important to set clear goals and create a financial plan to ensure that you invest your inherited money wisely. For example, your goals may be to save a certain amount of money to buy a property in the future (Tip 8), or to create financial security for your retirement. A financial plan helps you keep track of your goals, expenses and income.

Here is a bullet point list with a short summary of the content of tip 3:

• Set realistic goals
• Create a financial plan
• Helps you track your goals and keep track of your expenses and income

4. diversify your portfolio

Tip 4 is to diversify your portfolio to minimize risk.

This means it’s important to diversify your portfolio to minimize risk. Diversification means that you invest your money in different investment options and industries, rather than putting everything into a single option. By doing this, you can reduce the risk of suffering big losses if one investment performs poorly. It is important to have a balanced portfolio that consists of different investment options.

Here is a bullet point list with a short summary of the content of tip 4:

• Diversify your portfolio
• Invest in different investment options and industries
• Reduce the risk of losses
• Hold a balanced portfolio of different investment options

5. shares with long-term appreciation / less risk

Tip 5 is: Consider investing in stocks to benefit from long-term appreciation.

This means that it may be an option to invest in shares in order to benefit from long-term increases in value. Stocks are shares in companies that are traded on the stock exchange. They can give you an attractive return if the company is successful and increases its value. However, it is also important to note that stocks are speculative and there is a risk of loss. You should therefore carefully consider whether stocks fit your goals and risk tolerance.

Here is a bullet point list with a short summary of the content of tip 5:

• Consider investing in stocks
• Profit from long-term value increases
• Shares are interests in companies that are traded on the stock exchange
• Take into account that shares are speculative and there is a risk of losses

6. think about ETFs (funds and bonds)

Tip 6 is: Also consider investment options such as bonds, funds, ETFs and other securities.

This means it’s important to consider other investment options such as bonds, mutual funds, ETFs and other securities if you want to invest your inherited money wisely. Bonds are debt instruments issued by companies or governments to raise money.

They can be a good way to earn a fixed return. Funds are investment vehicles that pool the money of many investors and invest in a variety of securities. ETFs are exchange-traded funds that track a specific index. There are many different investment options you can consider, and you should think carefully about which ones best fit your goals and risk tolerance.

Here is a bullet point list with a short summary of the content of tip 6:

• Consider investment options such as bonds, funds, ETFs and other securities
• Bonds are debt instruments that are issued by companies or governments
• Funds pool the money of many investors and invest in a variety of securities
• ETFs are exchange-traded funds that track a specific index
• Choose the investment options that best fit your goals and risk tolerance

7. robo advisor instead of asset manager

Tip 7: Consider using a robo advisor as an automated financial tool.

A Robo Advisor is a digital tool that serves as an automated wealth management tool. It uses algorithmic models to develop investment strategies and invest your money automatically. All you have to do is specify your investment goals and risk tolerance, and the robo advisor will create a customized portfolio for you.

You can use the Robo Advisor online at any time and thus have access to your portfolio around the clock. Robo advisors are usually cheaper than traditional asset managers and are therefore particularly suitable for investors who opt for a long-term investment strategy. However, you should keep in mind that robo advisors also have risks and you should therefore carefully consider whether they fit your goals and risk tolerance.

Here is a bullet point list with a short summary of the content of tip 7:

• Consider using a robo advisor as an automated financial tool
• Use algorithmic models to develop investment strategies and invest your money automatically
• Specify your investment goals and risk tolerance and get a customized portfolio
• Use the Robo Advisor online around the clock
• Robo advisors are usually cheaper than traditional asset managers
• Consider that robo advisors also have risks

More about automated trading:

• Robo Advisor: Provider
• Robo Advisor: 20 tips

8. invest in real estate as a capital investment

Tip 8 is: Consider investing in real estate to benefit from appreciation and rental income.

This means that investing in real estate to benefit from appreciation and rental income can be an option. Real estate can be a good way to achieve a stable return.

For example, you can invest in a property and rent it out to tenants to generate regular income. However, it is also important to note that real estate investments require a lot of capital and there is a risk of losses. You should therefore carefully consider whether real estate investments fit your goals and risk tolerance.

Depending on the inherited assets, you could also think about a family foundation with tax benefits.

Here is a bullet point list with a short summary of the content of tip 8:

• Consider investing in real estate
• Profit from appreciation and rental income
• Real estate investments can provide a stable return
• Take into account that real estate investments require a lot of capital and there is a risk of losses
• Choose the investment options that best fit your goals and risk tolerance

More on the topic:

• Real estate as an investment
• Buy first property

9. sustainable, green investments with a future – idea

Tip 9 is to consider investing your inherited money in sustainable investments to have a positive impact and benefit financially.

This means that investing your inherited money in sustainable investment vehicles can be an option to have a positive impact and benefit financially. Sustainable investment vehicles are investments that are guided by social, environmental and governance (ESG) criteria and help create a more sustainable future. For example, you can invest in companies that are committed to climate protection or in funds that invest in sustainable projects.

It is important to note that sustainable investments are not without risk and you should consider whether they fit your goals and risk tolerance. You should also make sure that the sustainable investments you invest in are actually sustainable and not just so-called “green washing” products that only pretend to be sustainable.

Here is a bullet point list with a short summary of the content of tip 9:

• Consider investing your inherited money in sustainable investments
• Invest in a more sustainable future and benefit financially
• Sustainable forms of investment are based on ESG criteria (social, environmental and governance criteria)
• Consider that sustainable forms of investment have risks
• Make sure the sustainable investment vehicles you invest in are actually sustainable

Read more about here:

• Green investments

Conclusion: Investing inheritance wisely

There are many ways in which you can invest your inherited money. It is important that you weigh up the different options and choose the most suitable form of investment for you. You should also consider your goals and how much risk you are willing to take. If you are unsure, you can also hire a financial advisor or a financial planner to help you decide.

How Robo Advisors work

Robo advisors are digital platforms that act as asset managers. They use algorithms and machine learning to make investment decisions for the user without the involvement of a human advisor.

Robo Advisor users specify their investment objectives, risk profile and financial resources, and the Robo Advisor then develops an investment strategy for them. This may, for example, consist of ETFs (exchange-traded funds) that offer broad diversification across different asset classes. The user can then decide whether or not to implement the Robo Advisor’s recommendations.

• Algorithms determine trading processes
• Split-second decision as a tactical advantage
• AI (artificial intelligence) is on the rise

Are more cost effective than traditional asset management

One advantage of robo advisors is that they are typically less expensive than traditional wealth management services because there are no human advisors involved and the cost of running the platform is lower. However, they may not provide the same personalized advice and guidance as a human advisor.

You can find good providers here:

Algorithm of a financial tool

What is an algorithm?

In financial planning, algorithms are computer-based computational methods used to develop investment strategies, predict outcomes, or make decisions. They can be used, for example, in robo-advisors or other financial planning tools.

Algorithms can be used in a variety of ways, depending on the task they are intended to perform. Some examples are:

1. Portfolio optimization
2. Risk Management
3. Trading

Portfolio optimization

Algorithms can be used to develop the ideal portfolio for a user based on their investment goals, risk profile, and financial resources. They can also be used to monitor and adjust the portfolio over time.

Risk Management

Algorithms can be used to analyze market data and predict risk to minimize the risk of investment decisions.

Trading

Algorithms can be used in trading platforms to automatically execute trades based on predetermined rules or on the analysis of market data.

Algorithms can help automate and optimize processes and provide new insights from large amounts of data. However, they can also contain errors or be influenced by human bias, which is why it is important to monitor and verify them carefully.

Machine learning (AI) of financial tools

What is machine learning (AI)?

Machine learning is a subfield of artificial intelligence (AI) that deals with the development of algorithms that can learn and improve on their own. This is done by training the algorithm on large amounts of data to solve specific tasks.

In machine learning, the algorithm is not explicitly programmed to perform a specific task, but learns on its own by recognizing patterns in the data and reacting to them. The more data the algorithm has available, the better it can learn and the more accurate its predictions become.

Machine learning is used in many areas, such as speech and image recognition, prediction of results, personalization of services, and decision making. It can help automate and optimize processes and provide new insights from large amounts of data. However, there are also ethical issues and challenges that need to be considered in the context of machine learning.

How useful are robo advisors?

Using a robo advisor may make sense for some people, while it may be less appropriate for others. Some factors that should be considered are:

1. Investment Objectives
2. Risk profile
3. Financial means
4. Personal preferences

Your investment goals: Return on investment or low-risk retirement provision

Robo Advisors can be suitable for different investment objectives, such as wealth accumulation, income optimization or risk diversification. If the user has clearly defined investment goals, a Robo Advisor can be a good way to pursue them.

Your risk profile: currency, share, ETF, bonds & Co.

Robo advisors usually take the user’s risk profile into account when developing the investment strategy. However, if the user has a high risk appetite or special investment needs that require individualized advice, a human advisor might be a better choice.

Your financial means: Equity capital

Robo advisors tend to be less expensive than traditional wealth management services because there are no human advisors involved and the cost of running the platform is lower. They may therefore be more suitable for people with smaller assets or for those who do not want to pay high fees for wealth management services.

Your personal preferences

Some people prefer to have a human advisor who can personally assist them and give them personalized advice. Other people may prefer to invest on their own and rely on the recommendations of a robo advisor.

It is important to note that no investment option is suitable for everyone and that it is important to understand one’s investment needs and goals before making a decision. It can be helpful to seek advice from a financial advisor or other expert to find the solution that best suits your needs.

More about the functions and possibilities: 20 Robo Advisor Expert Tips

Classic asset management: tasks

What does a classic asset management company do?

A traditional wealth management service is one in which a financial advisor or team of financial advisors makes investment decisions for a client and manages the client’s assets accordingly. The advisor or team selects the investment products in which the client should invest and adapts the investment strategy to changing market conditions.

Private investors, institutions or companies

Asset management can be offered to different types of investors, such as private investors, institutions or companies. It can be tailored to different investment objectives, such as asset accumulation, income optimization or risk diversification.

Individual consulting vs. higher costs

One advantage of traditional asset management is that the client has an individual advisor who looks after their investment needs and can give them personalized advice. However, the costs of asset management are usually higher than those of robo advisors because human advisors are involved.

Development of investment strategies through robo advisors

The development of investment strategies by Robo Advisors is usually based on the use of algorithms and machine learning. The Robo Advisor collects information about the user, such as their investment objectives, risk profile and financial resources, and then uses this information to develop a suitable investment strategy.

1. Selection of investment products
2. Diversification of your portfolio
3. Rebalancing strategies

Selection of investment products

An important part of the investment strategy is the selection of investment products in which the user should invest. These can be, for example, shares, bonds, funds or ETFs. The robo advisor can then select appropriate products that meet the user’s investment objectives and take into account his risk profile.

Diversification of your portfolio

Another component of the investment strategy can be diversification, i.e. spreading the assets across different asset classes and products. This can help to minimize risk and increase the chances of return.

Rebalancing strategies

The Robo Advisor can also develop appropriate rebalancing strategies to ensure that the user’s portfolio remains in line with their investment objectives and that no asset class is overweighted.

Overall, Robo Advisors offer a convenient and cost-effective way to develop and implement an investment strategy without relying on the assistance of a human advisor. However, they may not provide the same individualized advice and guidance as a human advisor.

Conclusion: Automated Trading with Robo Advisor

Using a robo advisor may make sense for some people, while it may be less appropriate for others. It’s important to understand your own investment needs and goals before making a decision, and to seek advice from a financial advisor or other expert if necessary. Robo advisors may be better suited for people with clear investment goals and smaller assets who do not want to pay high fees for wealth management services. However, they may not provide the same personalized advice and guidance as a human advisor.

Not investment advice or a recommendation to buy.

All information provided here does not constitute investment advice or a recommendation to buy. All statements are my general published opinion. I have obtained the information from my experience as a private investor. This experience report cannot and is not intended to replace personal investment advice from professionals.

Robo Advisor – what is it?

Robo advisors are digital investment assistants designed to help private savers invest. In recent years, many of these programs have become established and are available to users as free help. The great advantage of Robo Advisors is their independence from product providers.

Analysis methods such as machine learning or big data

So they don’t advise you on a specific investment product, they just help you set up a strategy for your money. To do this, they use various analytical methods such as machine learning or big data and can thus make excellent estimates of where the markets will develop.

However, there are also disadvantages: For one thing, robo advisors cannot provide personal advice and therefore have to do without functions such as chat. For another, it is possible that they will make mistakes – after all, these are computer programs and not humans. Nevertheless, many private investors hope for the help of robots and already trust them in many areas of life.

Advantages of a Robo Advisor

A Robo Advisor is a type of digital asset manager that assists investors by managing their capital. By using a Robo Advisor, investors can benefit from many advantages:

No issue surcharges: Most Robo Advisors can be used free of charge and do not charge any front-end load. Thus, the investor’s capital remains largely untouched and can be invested immediately in shares, funds or other investment products.

Quick decisions: A Robo Advisor enables the investor to make decisions quickly and easily. By using clearly structured forms, the investor can easily specify his wishes and needs and immediately receives a recommendation for a suitable investment.

Individual advice: Some robo advisors also offer individual advice. This is particularly ideal for newcomers to the field of investments, as it gives them the opportunity to bring their questions directly to an expert.

Advantages at a glance: 3 aspects for your plant

Robo Advisors, the essentials for beginners.

• Robo advisors enable more efficient asset management through the automated implementation of investment decisions.
• Robo advisors offer a more transparent cost structure than traditional asset managers, allowing for more accurate cost control.
• Robo advisors, due to their technical capabilities, are able to consider a broader range of investment options and thus implement more customized investment strategies.

Disadvantages: Weighing for your facility

Robo advisors are a relatively new invention and not yet perfect. Their disadvantages are:

• The costs: Robo Advisor services can be expensive. The fees per year can amount to several hundred euros.
• The risk: As with any investment, there is some risk with Robo Advisors. However, this risk is relatively low as most Robo Advisor services offer diversified portfolios.
• Complexity: Robo advisor services are often more complex than traditional wealth management services. Therefore, it is important to inform yourself thoroughly before using them and to read the operating instructions carefully.

How does a Robo Advisor work?

A Robo Advisor is a wealth-building tool that works without human intervention. It uses machine learning and artificial intelligence to identify and manage financial products tailored to your risk tolerance and financial goals.

More than just passive investments in ETF

Robo advisors offer more than just passive investments in ETFs. They can also include stocks, bonds, derivatives and real estate investments. These options allow users to create a portfolio that meets their investment needs.

Algorithms decide instead of people

Robo advisors differ from traditional asset managers in that they are based on algorithms. This means that they make investment decisions automatically and without human intervention. This approach eliminates emotional factors in the selection of financial products. However, there are drawbacks: Robo advisors have no understanding of clients’ personal preferences or their individual needs. Therefore, you should be careful when dealing with Robo Advisors and keep an eye on your exposure.

Robo advisors can be purchased through online brokers or financial institutions. No matter which route you choose, the same applies: Always carefully review all features and costs of each product.

Remember: a Robo Advisor is an automation solution for your personal wealth management – so always make sure it’s a good fit for you!

What are the different types of robo advisors?

There are two types of Robo Advisors: active and passive. Active Robo Advisors follow an active investment strategy where asset management is constantly monitored. They select a specific portfolio of stocks, bonds and other investment products and change it regularly to achieve maximum returns. Passively oriented robo advisors follow a passive investment strategy using highly diversified ETFs (exchange-traded funds). These are not monitored or adjusted and the focus is on achieving a long-term goal.

Robo advisors also differ in the services they offer. Some focus on portfolio management, while others offer more advisory and financial planning services. Many also offer tax planning and tax preparation services to help you save more for your money.

Costs for automated asset management

Another important aspect is the cost structure of the different Robo Advisors. Since the costs affect the overall return, you should examine them carefully before choosing one. Some have a fixed fee model with annual fees per year or per trade; others charge a percentage fee based on your total assets or a combination of these models. It is therefore advisable to compare different options to find the best one for your individual needs.

Overall, using Robo Advisors offers many advantages: you can get professional advice without high costs; you can achieve your investment goals more effectively; and you can save yourself time by using automated processes. If you are looking for a reliable partner to help you invest, it is advisable to think about using Robo Advisors – especially if you are new to investing or need more support.

Conclusion: Robo Advisor – worthwhile investment in the future

A robo advisor is a digital asset management service that uses algorithms to make your investment decisions. This type of investment is a worthwhile investment for many people. Robo advisors offer a number of advantages over traditional banks and wealth managers. For example, they are able to offer you a broader range of investment options based on your risk tolerance and financial goals. In addition, Robo Advisors are typically less expensive than traditional banks and wealth managers.

If you’re not ready to entrust all of your assets to a robo advisor, you can still put some of your money in one. This is a good way to find out if this type of investment is right for you. However, if you decide to use a Robo Advisor, you should be aware that you are still taking on some risk. Therefore, before you start investing, make sure you understand the risks involved and do your research.

Compare providers now

Compare Robo Advisor providers for free now, it’s that easy:

• Robo Advisor Comparison

No investment advice or purchase recommendation

All information provided here does not constitute investment advice or a recommendation to buy. All statements are my general published opinion. I have obtained the information from my experience as a private investor. This experience report cannot and is not intended to replace personal investment advice from professionals.

Trading: Which app is useful?

All of them have been test winners in renowned compare, depending on which aspects were more or less in the focus of the test.

The A&O for trading is the quick and easy (also free of charge) deposit opening. Usually 3-5 minutes with the ID card for identification and you’re ready to go. There should be no costs for the depot, but also for trading. Tip: Place 1 + 2 are 100% free, as far as depot and trades are concerned.

In addition, of course, there is the large product selection. Starting with shares from different countries, ETFs (i.e. “bundled shares”), cryptocurrencies, commodities such as gold, oil, etc. At eToro (2nd place), you can “follow” other traders as an extra feature. This automatically copies their trades, all purchases and sales. With a look back at their investment history, an interesting tool for investors.

The most important services from experience:

• Availability via app (smartphone) and browser (notebook)
• Quick and easy deposit opening
• No account and custody fees
• Fair fixed prices
• Favorable conditions
• Large product selection (stock, ETF, crypto, commodities, etc.)

Caution. 3 simple golden trading tips

Before we get to my app recommendations and experiences, here are 3 important ground rules for beginners:

1. Don’t put all your eggs in one basket – diversifyyour investments
2. Trading only with “play money” – money that is not needed
3. “All time high” – values always rise in the long run (safe ETF and funds [like DAX or DOW), think long term

Short / medium and long term: trading differences

Here again, very, very generally set up, which types of investments take place in which time periods:

• Long-term / quiet “trading” – Tip: Buy first property
• Long / medium term trading – ETF (“bundle of shares” of one industry)
• Medium-term trading – shares
• Medium / Short Term Trading – Cryptocurrency
• Short term trading – currencies

Long term: > 1 year
Medium term: ~ 1 – 12 months
Short term: ~ 1 week – 1 month

Tip. If cryptocurrency (like BitCoin, Ethereum, etc.) is held for more than 1 year, the gains are tax-free. Otherwise, capital gains tax (25% on gains) will apply.

Trade Republic: Rank 1 / Rating 8.9 out of 10

Trade Republic is Made in Germany and one of the success models and “Unicorns” (startup worth over 1 billion) in Germany. “Despite” being located in Germany, the app for iOS and Android offers the finest trading experience, from home and on the go.

All major stock market securities can be traded in the app: Stock, ETF, Crypto, Commodities, etc. Registration and login is done in less than 5 minutes.

Trade Republic does not cost money, the app is free, account management and custody, there are also no order fees. Therefore, deservedly, according to all experience in the first place.

Advantages / Disadvantages: No fees, operated + Made in Germany

My rating for the eToro app:

8.9 / 10 *

Trade Republic Disadvantages:

• Fast online registration (with ID card)
• No order fees
• No custody fees
• Developed and operated in Germany

Trade Republic Disadvantages:

• None

Trade Republic App Download: Free

Open a Trade Republic account now:

• Trade Republic

EToro: Rank 2 / Rating 8.8 out of 10

eToro is, next to Trade Republic, my favorite app for trading on the go, in the office and at home. eToro is probably already known to many from TV commercials. As a US company, the startup naturally has much more capital than Trade Republic, for example.

After all my eToro experience, I can guarantee that the app is stable. Simple and fast registration via the app, deposit money, and you’re ready to go.

eToro has no custody fees, no account fees, no order fees. By the way, this is only the case with #1 and #2, the other apps always charge at some point. More about that in a moment!

Advantages / Disadvantages: No fees, traders copy, …

My rating for the eToro app:

8.8 / 10 *

Advantages of eToro:

• Fast online registration (with ID card)
• No order fees
• No custody fees
• Copy other traders (their trades)

Disadvantages of eToro:

• Caution: Only private people are allowed to trade (business will be terminated immediately; even in minus)

EToro App Download: Free

Open an eToro account now:

• EToro

Here are two extra guides from me, for eToro Trading:

• EToro App: Experiences
• Copy trader

Scalable Capital: Rank 3 / Rating 7.4 out of 10

Scalable Capital ‘s app runs flawlessly, almost everything can be traded, but the securities account costs 2.99 euros per month. Okay, it’s only 3 euros, but custody account fees are no longer state of the art. Therefore, in line with the 3 euros per month, only in 3rd place in the ranking and test, the app from Scalable Capital.

Advantages / Disadvantages: Custody fees, …

My rating for the Scalable Capital app:

7.4 / 10 *

Advantages of Scalable Capital:

• Fast online registration (with ID card)
• No order fees

Disadvantage of Scalable Capital:

• Deposit fees: 2.99 euros per month

Trade now with Scalable Capital:

• Scalable Capital

Flatex: Rank 4 / Rating 7.1 out of 10

Solid app, solid trading, but: What is even “worse” than custody fees of 2.99 euros per month, as in 3rd place? Order fees. Because for each trade at flatex, is paid extra. If you don’t trade in 1,000 euro or dollar increments, but with only 50 euros per trade or 100 euros per trade, you lose money that you don’t have to lose (see 1st, 2nd and maybe 3rd place).

That’s why it’s only 4th in the ranking of the best trading apps.

Advantages / Disadvantages: Order fees for stock trading, …

My rating for the eToro app:

7.1 / 10 *

Advantages of flatex:

• Fast online registration (with ID card)
• No custody fees

Disadvantages of flatex:

• Order fees

Flatex App Download: Free of charge

Open a flatex securities account now:

• Flatex

More trading knowledge for beginners

Here’s a little bonus and digression about trading with apps:

Share, ETF, Crypto & Co. – My experience

Stocks, ETF, Forex, Cryptocurrency, Social Trading – Here’s a little list of a few learnings that cost me money but are so simple you should know them! Want to buy stocks, index funds, cryptocurrency like Bitcoin or Ethereum, foreign exchange (currencies)?

• Trade and experience

Currencies – Trading with “classic” FIAT currency

Learn currency trading – How can you trade with Euro, Dollar & Co. How does currency trading (Forex/FOREX) work? ETFs are speculative, stocks are more speculative, currency trading is mostly trading in real time: Constantly stay in between financial / political / economic news and price development. For beginners, this means building understanding step by step. What is it about?

• Currency trading

Cryptocurrencies – Trade BitCoin, Ethereum & Co.

Crypto Trading – Make quick money with cryptocurrencies! The world is not that simple! Or is it? With the important trading strategies, can be achieved with cryptocurrencies, as strong returns, as with shares, of course, with higher risk. But how does crypto trading work? Are there differences in trading and risk?

• Trade cryptocurrencies