The following calculation example: An investor wants to invest 10,000 euros. He can e.g. Buy 96 Apple shares (currently approx. 103 euros), but with this he exposes himself to price fluctuations, whereby losses cannot be compensated by increases in other companies. The investor can also acquire the securities of different companies – for example from different industries and regions. However, you often need a small fortune for a reasonable diversification. In this context, one should not underestimate the costs involved in buying shares – many (small) orders can quickly turn into money.
So if you are currently a little short of cash or do not want to invest half your annual salary in one fell swoop, you should deal extensively with stock savings plans. Stock savings plans are considered a gentle entry into securities trading. They combine the best features of buying a share with the benefits of an ETF savings plan.
In plain language: Investors invest (for example) a fixed amount each month in one (or more) companies of their choice. Depending on the purchase price and savings rate, you receive whole shares or units. In this way, you can build your own portfolio step by step. Many savers appreciate the great freedom of choice that ETFs do not offer. With a stock savings plan, you choose specific companies whose development can be monitored and evaluated better than is possible with an index fund.
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If you want to set up a share savings plan, you need a deposit. There are big differences in costs here. In contrast to many “classic” house banks, providers such as the Smartbroker require this basically no custody fees. In this way, you can save several hundred euros per year, as the magazine “Finanztest” recently calculated. The Smartbroker offers share savings plans for all DAX and MDax companies. There are new savings plans on world-famous US brands, including Netflix, Apple, Visa and McDonald’s. A total of 102 shares eligible for savings plans are being offered.
Shares can be purchased with a savings rate of 125 euros or more. Execution is possible monthly, bi-monthly, quarterly and half-yearly. The costs are only 0.20 percent each time (at least 0.80 euros) – that’s the smart broker extremely cheap. The only downer: a fraction purchase is not yet possible. However, this does not automatically mean a disadvantage for your own financial planning, after all, there are countless papers that are traded for less than 125 euros.