The best depots for your ETFs

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This article is out of date. the updated one depot comparison you can find here.

In January and February 2020, a lot has changed in the free securities accounts. That's why I've analyzed the offers for you again in the past few weeks. Two well-known custody account providers have worsened their conditions in 2020: ING and the broker Flatex. Two newcomers offer particularly attractive conditions for this: smart broker and Trade Republic. So what are the best portfolios for your ETFs?

by the way: The ING bases its adaptation on the procedure of the DKB at. Also the DKB only offers its particularly good conditions to customers with a monthly incoming payment of over 700 euros. However, the DKB is much more customer-friendly if the amount is less than 700 euros: the account remains free in any case, but it costs money Pay and withdraw money outside the euro zone fees. The overdraft interest is also slightly worse. However, since the DKB account can still be used free of charge, it remains a recommendation. What I particularly like about the DKB account network is that you can set up savings plans on Vanguard ETFs for EUR 0.49 at DKB. This is a worthwhile plus, especially for long-term ETF savers!

The DKB securities account belongs to the category the best securities accounts for your ETFs

For newcomers to the subject of securities, a brief explanation first: A very good and simple way to make provisions for old age is to invest money in cheap funds, i.e. ETFs, over the long term. These funds must be kept in a custody account. A custody account is to securities what a checking account is to money. In reality, things are a bit more complicated, but that should suffice as an explanation for now. Such depots are offered by banks or pure depot providers. These depot providers are also called brokers.

Flatex and ING increase fees

Unfortunately, Flatex announced "penalty interest" for deposits shortly before the turn of the year. I find this a no-go for a broker that used to be so cheap!

Flatex: Investors should look around for alternatives as soon as possible

An annual fee of 0.1 % percent will be charged on the custody account assets from March 2020.

This fee is likely to account for the majority of all costs for many investors and especially passive ETF savers. With a deposit of more than 100,000 euros, that's 100 euros in additional costs that were introduced through the back door, no matter what. It is then also irrelevant whether a trade costs 3.80 or 5.90 euros if the majority of the fees are incurred somewhere else. With this fee lies Flatex* about the same price as the local savings banks and has permanently damaged its image as a cheap online broker (even if it always looks different in the tables that the broker lists on its website).

Full transparency ING:

The provider ING is particularly suitable for people who want everything from a single source. Unfortunately they change ING current account conditions to May 01, 2020.
In future, the current account will only be free if it is used as a salary account with at least 700 euros in monthly cash receipts.
Current accounts with less than 700 euros in cash will cost 4.90 euros per month from May 1st, 2020.

Accordingly, the ING falls out of the recommendation list "The best portfolios for your ETFs" out. Then: Everything from a single source with depot, checking account and credit card there are better ones in 2020: DKB*, Comdirect* or consor bank* continue to offer this service free of charge. Even without a minimum deposit on the current account. Let's take a closer look at the two new providers Smartbroker and Trade Republic. Make it into the category too the best depots for your ETFs?

smart broker*: The rescue for bruised Flatex customers

The gap left by Flatex – a low-cost broker specializing in securities – was quickly filled. With smart broker* At the end of 2019, one appeared on the scene that offers better conditions than Flatex. The purchase fee for one-off purchases is a flat rate of 4 euros. Many savings plans are completely free. The provider provides additional savings plans for €0.80 per savings rate (up to €400, then 0.2 % of the savings rate).

smart broker* is therefore a very useful alternative for previous Flatex customers If you want to change, you should do so as soon as possible. From my own experience I can report that Flatex is being overwhelmed with inquiries (original sound from the service hotline). It can therefore take a while for Flatex to process your application. So that it does not get lost, it is also advisable to send the form to the bank by registered mail with a viewing window. You can find the forms on the Flatex homepage at service.

Those who prefer to entrust their money to a provider who has been tried and tested for years can also go to Onvista Bank* switch. The depot is also free here. Savings plans cost 1 euro and one-time purchases 7 euros. The price difference between Onvista and the Smartbroker is therefore rather small.

Onvista versus Smartbroker for ETF savers

Onvista

➕ Proven provider for many years

➕ no bait offers that subsequently become much more expensive

➕ Zero euro deposit fee, no penalty interest on the clearing account

➕ Possibility to trade with PC

➕ Direct trading on a real exchange

 

➖ One-time purchases: 7 euros (minimum more expensive)

➖ Execution fee for savings plan: 1 euro (minimum more expensive)

➖ Small bandwidth for savings plans: €50 to €500 per execution

 

 

smart broker

➕ No custody fees

➕ 4 EUR per order (thus cheaper)

➕ 295 ETFs eligible for savings plans completely free  This includes ETFs from providers Amundi, XTrackers, Lyxor and iShare

➕ Possibility to trade with PC

➕ Direct trading on a real exchange

 

➖ Penalty interest of 0.5 % on cash deposits - However, only if the cash quota is more than 15 % in relation to the deposit value

Smartphone brokers: Trade Republic*

The provider is aimed at the smartphone-savvy generation. The motto is: Tap, tap, trade. So tip, tip, act. Everything runs via the app, which runs on smartphones or tablets. Trading via a browser on the desktop PC is not possible.

Buying and selling fees are included 1 €. Savings plans are from 25 euros for free. This means that Trade Repulic has the cheapest depot!

Disadvantage: Currently, almost only ETFs of the iShares brand (from Blackrock) are tradable. If you want to switch to Trade Republic, you cannot take other ETFs with you and have to sell them before switching or leave them in the old depot.

Overall, the broker with its smartphone-based approach is probably not the best solution for ETF savers: the temptation to constantly look at the cell phone and make (unplanned) purchases or sales is too great. This is probably not entirely unintentional on the part of TR: somehow the provider has to earn something, and active traders are the revenue generators for depot providers.

Another disadvantage is that trading on a real stock exchange is not possible. You can only trade through Lang & Schwarz. You can find out what you should bear in mind in the info box.

My current conclusion about Trade Republic is: Inexpensive provider, but due to the great temptation to constantly trade with the smartphone, it does not rank unreservedly with the other brokers in the category The best depots for your ETFs a.

In this article I introduce you Alternatives to Trade Republic in front.

Spreads at Lang & Schwarz

There are always rumors about trading at Lang & Schwarz on the Internet. The fact is: During stock exchange opening hours, you have no disadvantages when trading via Lang & Schwarz. The courses are almost the same as on XETRA. However, if you trade late at night when the markets are closed and Lang & Schwarz are still open, the spread will increase. As a smart investor, you simply shouldn't do that. Although the temptation with the smartphone app is of course great.

trading hours

Trading times affect the spread, i.e. the difference between the buy and sell price of the security. Regular executions in bad trading venues and at awkward times can cost long-term ETF investors money. In general, the more money there is in circulation, the smaller the spread. The markets are then liquid. However, some brokers carry out their savings plans when large exchanges are still closed. This is to the detriment of investors.

on vista bank

Onvista generally executes savings plans on the Xetra electronic stock exchange at around 9:00 a.m.

comdirect

comdirect also executes savings plans on the Xetra electronic stock exchange at around 3:30 p.m. This is absolutely exemplary, as the major US stock exchanges in New York, Philadelphia and Chicago open at 3:30 p.m. There are more favorable courses here, especially for savers on US stocks or the MSCI World

Consors

The Consorsbank has so far carried out savings plans before the market via Munich. Since February 2020, the bank has changed the procedure for the benefit of its customers and is now executing savings plans via Tradegate at 9:30 a.m.

DKB

At DKB, savings plans are executed at 9:30 a.m. via the Düsseldorf Stock Exchange Quotrix. Quotrix is an over-the-counter, electronic trading place whose prices, however, largely match Xetra.

Trade Republic & Smartbroker

Trade Republic & Smartbroker execute savings plans via the off-exchange trading venue LS-Exchange throughout the day. According to Trade Republic, savings plans are only bought during Xetra opening times. I could not find any time information on Smartbroker.

Wrap-up: So what are the best portfolios for your ETFs?

I recommend the depots of DKB*, Onvista* and smart broker* and Comdirect*. If you don't need a desktop application, you can also use the cheap one Trade Republic* Try how smartphone banking feels.

  • I recommend this for lovers (❤️) of the cooperative Vanguard funds DKB depot*. Here you can trade Vanguard ETFs for only 0.49 euros. From a savings plan of 50 euros it starts. The upper limit is 100,000 euros per execution.
  • That Onvista Depot* is particularly suitable for people who were previously with Flatex and would like to have a cheap, well-established broker at fair prices. There are smaller deductions for the savings plan rate, which is limited to 500 euros, and the generally somewhat higher fees compared to Smartbroker.
  • Of the smart broker* also offers a fully-fledged and also very cheap depot. It is the first choice for providers who would like to trade on the PC. The provider is still new, so it remains to be seen whether the prices will remain stable in the future. However, wallstreet:online is not an unknown industry newcomer behind it. Unfortunately, there is no information on when the savings plans will be implemented.
  • Comdirect* is worth a look for ETF savers on American stocks. There are numerous action ETF (135 pieces) that you can save for free. Among them are some Vanguard ETFs. Unfortunately, the Vanguard FTSE World is not an action ETF at Comdirect. If you want to buy this cheap, go to DKB.

*Affiliate link: If you get to a provider via one of these links from my website, I may receive a commission. This does not result in any additional costs for you. ❤️ THANK YOU for using these links! ❤️

Disclaimer: This is well researched but non-binding information.

Cover photo of Arek Socha From Pixabay

The DKB securities account belongs to the category the best securities accounts for your ETFs

Trade Republic: Cheap but great seduction with the smartphone

The OnVista securities account also belongs to the category of the best securities accounts for your ETFs

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