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Choosing a digital bank to invest in the stock market : What is the interest?


12th Feb 2021 Down to Business

Choosing a digital bank to invest in the stock market : What is the interest?

With high-tech and the Internet, the world continues to evolve at an incredible rate. All sectors, in particular the financial sector, tend more and more towards the dematerialization of all their components. This is how digital banking was born.

Long before its birth, stock market investments existed and were done through traditional banks. Are you wondering what digital banking brings you in such an investment? Find out without further ado.

Online stock market investment: Cheaper prices

Compared to those of traditional banks, online couriers offer very advantageous stock prices. With a digital bank, the costs of buying or selling generally do not exceed 0,6 % for an order of 1000 euros (on a security listed in Paris) and 0,3 % for an order of 5000 euros.

Also, most online brokers do not charge custody fees on your account. Custody fees represent the costs associated with the conservation of your administrative titles (shares), which in the process are compulsory in traditional banks. The same goes for closing costs. But again, with online brokers, these fees are usually non-existent.

In addition, many traditional banks charge you a fee when you do not perform any transaction for the duration of a month: these are the inactivity fees. With a digital bank, you won't have to worry about this since online brokers don't impose this type of limit.

There are many digital banks that offer stock market investing. But you can imagine that all these banks are not created equal. To benefit from a good stock market investment experience, you can choose flowbank, a Swiss bank that gives you access to new investment opportunities through a wide range of financial products and market research.

Online stock market investment: More practical and efficient services

Investing in the stock market in a digital bank offers more performance and convenience in the execution of your orders. Through online banking, you can have real-time market access. Thus, with the Internet and the platforms offered by successful developers, you can place your orders instantly. You can operate in any market, anytime, anywhere.

To learn a little more about market research and about many other aspects of stock market investing in a digital bank, you should check out this financial blog.

With online banking, you can take advantage of value-added information, particularly on agency feeds, securities reports, financial studies, press reviews, discussion forums and more. Finally, online brokers provide you with several monitoring tools that help you put more precision in your decision-making.

Online stock market investment: A very large price difference

In general, the prices offered by traditional banks are very high. As a result, depending on the Autorité des marchés financiers, the price differential between digital and traditional banks can vary from one to three.

This difference is mainly explained by the channel and the support used by brokers. Indeed, if an order is placed by phone or at a branch, it is charged three times more than an order made by an online CFD (Contract for Difference) broker.

Ultimately, online banking offers advantages that should not be missed. Digital banks are not only more economical, but much more efficient.

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