The high long-term profitability and the flexibility of stock market investments encourage you to acquire financial securities. To help you in this process, there are several financial players who can serve as qualified intermediaries.
Summary
The role of banks
Through their investment organizations, banks, traditional or online, can serve as intermediaries to buy or sell, on behalf of their clients, various financial securities.
To carry out stock market transactions through a bank, it is first necessary to open up certain financial supports, which will make it possible to constitute a portfolio of shares.
This is particularly the case with the equity savings plan. The ceiling of possible deposits is quite high and, after five years, the dividends and capital gains realized are not subject to tax.
You can also hold securities through a securities account. Overall, brokerage fees charged by banks are quite high.
Invest in the stock market with an online broker
A broker, or broker, can also serve as an intermediary for your stock market investments. Specialized brokerage platforms are now numerous on the Internet.
But how to invest in the stock market online? To do this in the best conditions, you have to choose the broker or the platform that suits you best. For this, several selection criteria must be considered.
The prices charged are the first element to take into account. However, in this very competitive market, online brokers limit their operating expenses and therefore offer brokerage fees that are sometimes very low. Some even offer welcome bonuses. On other brokerage platforms, you can spend a certain amount of deals for free, and transfer fees are sometimes refunded.
Transaction security is also an essential criterion in making your choice. This is why it is advisable to choose an online broker controlled, like Ava Trade, by the various regulatory authorities and appreciated, for its skills, by the main financial markets.
The online broker will also be chosen according to the diversity of the financial products offered. Ease of use is another strength of online stock investing. In this regard, some brokerage platforms allow you an even faster connection.
Regardless of the country where you are, you are thus able, in a few moments, to place your stock market orders. And you can do it very simply, from the smartphone or tablet. The availability and responsiveness of customer service can also make the difference. If they can be contacted 24/7 by phone, email or chat, your online broker’s help desk can be of great help to you. This is particularly the case if your stock market knowledge is limited.
Finally, if you have a modest budget, it will be easier for you to invest in the stock market through an online broker than through a bank. Even modest, this investment can be very profitable. Indeed, certain techniques make it possible to make it bear fruit very quickly.
Read also: Online savings: how to choose the best securities account
Investment funds
Investment in the stock market can still be done through them. One of the organizations most suited to stock market transactions is the Organization for Collective Investment in Transferable Securities or UCITS.
Created by management companies, these investment funds issue shares, acquired by individuals. The latter, having become unitholders, remain the owners.
The management of the UCITS is entrusted to a professional manager, who takes care of the stock market transactions requested by his clients. In exchange for his services and his expertise in the field of stock market investment, the manager charges a number of fees. Their amount must be taken into account when choosing the investment fund.
Each unitholder may, depending on the assets of the fund, receive dividends. There are several categories of UCITS, including SICAVs, which allow you to acquire shares. Similarly, the management of the investment fund can be free or follow the evolution of a financial index.
Undertakings for collective investment in transferable securities receive approval from the authority responsible for regulating the financial markets. This element enhances the security of stock market transactions.
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