Key takeaways
- Your securities account is the account in which your securities (e.g. stocks, ETFs, funds and bonds) are held.
- The securities account is opened with a broker - a financial services provider, which can be your own bank. There are also many independent providers.
- Which securities account is right depends on your needs - look above all at custody and order fees, the range of investments and the savings plan terms.
What is a securities account?
A securities account is the account in which your securities are kept. While your current account holds money, your securities account holds stocks, ETFs, funds and bonds. You can open one with a financial services provider such as your own bank or with one of the many independent providers. This provider is called a broker and also passes your buy and sell orders on to the exchange.
Almost every securities account comes with a linked clearing account. This account is meant for real money: its balance is used for transactions and fees, and it is also where income from dividends or interest lands.
What types of securities account are there?
In principle every securities account is the same - you can buy and sell securities with all of them. Still, there are differences, for example in the fees, the number of exchanges available or the range of features. By provider, there are three main types:
Neobroker
- No custody fee
- Low order fees
- ETF savings plans often free
- But: few trading venues, weaker support, limited product range
Direct bank
- Wide choice of products and trading venues
- Securities account and bank account from one provider
- Established, good support
- But: higher fees than neobrokers
High-street bank
- Good selection
- Personal advice in the branch
- But: very high fees, custody fee, opaque total costs
Which securities account suits me?
There is no such thing as the "best" securities account - the choice depends on your circumstances. The following overview gives a rough guide:
| Investor type | Suitable type | What matters |
|---|---|---|
| Beginner | Neobroker / direct bank | Free ETF savings plans, low order fees |
| Active trader | Direct bank | Many exchanges, low-cost orders, fast execution |
| Long-term investor | Direct bank | No custody fees, solid selection, reliability |
What to look out for on costs
Fees are a big lever that can noticeably reduce your long-term return. Even small percentages have a huge effect over the years. Look above all at:
- Custody fee - €0 at good providers.
- Order fees - the cost per buy or sell.
- Savings plan fees - free at more and more providers.
- Third-party costs - exchange and trading venue fees per transaction.
Tip
When comparing securities accounts, look not only at the order commission but also at flat third-party fees, savings plan fees and any custody charges - over the years they often make the bigger difference.
Conclusion
A securities account is the key to investing on the stock market - you cannot do without one. The good news: opening one takes only a few minutes today, and fees are falling year after year. Don't worry about making the perfect choice - starting with any reputable provider is better than not starting at all. You can switch at any time later and simply transfer your securities without selling them.