๐ช๐ถ๐ฒ ๐๐ฒ๐ถ ๐ฆ๐ฝ๐ฎ๐ฟ๐ฝ๐นรค๐ป๐ฒ๐ป ๐ฎ๐ป ๐ฒ๐๐ฐ๐ต ๐๐ฒ๐น๐ฑ ๐๐ฒ๐ฟ๐ฑ๐ถ๐ฒ๐ป๐ ๐๐ถ๐ฟ๐ฑ:
I noticed that there have already been some posts on savings plans in recent days, but I am only highlighting the investor-remote side here, to my knowledge there was rather less to see in recent days.
Ps: this post is not meant to bash anyone or criticize in any way, but to explain business models.
๐ญ. ๐๐ฒ๐ฟ ๐ฆ๐ฝ๐ฟ๐ฒ๐ฎ๐ฑ
๐ฎ. ๐๐๐๐ณรผ๐ต๐ฟ๐๐ป๐ด๐๐ธ๐ผ๐๐๐ฒ๐ป
๐ฏ. ๐๐ถ๐ฒ ๐รถ๐ฟ๐๐ฒ.
๐ฐ. ๐๐ฒ๐ฟ ๐๐ฎ๐๐ณ๐๐ฒ๐ถ๐๐ฝ๐๐ป๐ธ๐
๐ฑ. ๐ค๐๐ฒ๐น๐น๐ฒ๐ป
๐ญ. ๐๐ฒ๐ฟ ๐ฆ๐ฝ๐ฟ๐ฒ๐ฎ๐ฑ.
The spread... a term that comes to mind when you first buy a stock....
To break it down simply: With stocks there is a buy price and a sell price (ask/bid or bid/ask price) the buy price will most likely be above the price you can sell the stock back above (otherwise you have nen money glitch lol).
So you pay a little bit more than you get for the stock when you sell it. This spread gets bigger especially with smaller companies and closed exchanges. So you lose money directly with the purchase. Partly this spread goes to exchanges and brokers, but this differs depending on the concept, buying time and exchange.
๐ฎ. ๐๐๐๐ณรผ๐ต๐ฟ๐๐ป๐ด๐๐ธ๐ผ๐๐๐ฒ๐ป
Now the actually most obvious part:
Depending on the broker, you will pay a certain fee for stock purchases but also savings plan executions. The following brokers with free savings plan execution stand out positively here: Trade Republic, Flatex, Ing, Scalable Capital and finanzenntzero .
(Comparative values on https://www.finanzfluss.de/vergleich/etf-sparplan/ viewable)
So you will pay with these brokers at least in the savings plan execution no direct costs for the pure purchase.
๐ฏ. ๐๐ถ๐ฒ ๐รถ๐ฟ๐๐ฒ
However, there are now other ways in which money is earned on your purchases:
To keep it short now I only use Trade Republic (is my broker) as an example, however this system can be present with other brokers as well:
Trade Republic lets you buy shares exclusively through the private exchange Lang und Schwarz. Lang und Schwarz profits greatly from this, and the broker (i.e. Trade Republic) gets paid for this. Trade Republic gets paid for the exclusivity of Lang und Schwarz on its own platform. Here you can take a look at the cost information of any purchase, commissions are given there and are sometimes quite high in percentage terms (in my case I have seen values of over 5% p.a. over a 5-year savings plan term).
๐ฐ. ๐๐ฒ๐ฟ ๐๐ฎ๐๐ณ๐๐ฒ๐ถ๐๐ฝ๐๐ป๐ธ๐
When I joined the Getquin community about a year ago, there were frequent complaints on the days of savings plan executions that one's own savings plan would always be executed at the highest price of the day. I am very pleased that this phenomenon is now less frequent, but there was indeed a bit of truth behind these complaints.
Let me quote Trade Republic here:
"๐จ๐๐๐ ๐๐๐๐ ๐๐ ๐๐๐๐๐ ๐ฎ๐๐๐๐๐๐๐ ๐ ๐๐รผ๐ ๐๐๐๐, ๐ ๐๐ ๐รผ๐๐๐๐๐๐๐๐๐ ๐ฒ๐๐๐๐ ๐๐๐๐๐ ๐จ๐๐๐รผ๐๐๐๐๐๐๐๐๐๐๐ ๐๐ ๐๐๐๐๐๐, ๐๐๐๐๐๐๐๐๐ ๐๐๐ ๐ ๐๐ ๐๐๐๐๐๐๐๐๐๐๐ ๐๐๐๐๐๐๐๐๐๐ ๐จ๐๐๐รผ๐๐๐๐๐ ๐๐ ๐๐๐รค๐๐๐๐๐๐๐๐๐"
The following also stands out:
if the price suddenly falls sharply in the middle of the day on the day of execution, the order is often executed immediately without waiting for a bottom or another fall. The shares are bought before it comes to the savings plan execution and then it is tried to issue the share for as high a price as possible to the buyer. If the share price suddenly falls, there is a risk of high costs, which is why the savings plan is often executed in the event of strong downward price movements. However, if the share rises comfortably, it may be a little later before the actual purchase is executed.
The statement "long-term optimal execution" does not mean "we try to buy shares for you as cheaply as possible".
If you look at the security statements, you will read the following:
"๐บ๐๐๐๐๐๐๐๐๐๐๐รผ๐๐๐๐๐ ๐๐ ๐ฟ๐ฟ.๐ฟ๐ฟ.๐ฟ๐ฟ๐ฟ๐ฟ ๐๐ ๐ ๐๐ ๐ณ๐๐๐ & ๐บ๐๐๐๐๐๐ ๐ฌ๐๐๐๐๐๐๐. ๐ซ๐๐ ๐ฒ๐๐๐๐๐๐๐๐๐ ๐ ๐๐ ๐ป๐๐๐๐๐๐๐๐๐๐ ๐๐๐ ๐ณ๐๐๐ & ๐บ๐๐๐๐๐๐ ๐ป๐๐๐ ๐๐ช๐๐๐๐๐ ๐จ๐ฎ & ๐ช๐. ๐ฒ๐ฎ."
However, this is actually normal for a private trading venue, which is exactly why it is not a public trading venue, but a private one. You buy and sell your shares at L&S and not at anyone else. And this is the main business of those exchanges, you "tell" them which shares you want to buy, they sell them to you, and try to get a bit more out of it than the fees.
I read all this out of annual reports, self-portrayals etc., if I find a source that summarizes this well, I add it separately.
๐ฑ. ๐ค๐๐ฒ๐น๐น๐ฒ๐ป
https://www.moneyland.ch/de/spread-definition+
https://www.finanzfluss.de/vergleich/etf-sparplan/
https://www.4investors.de/nachrichten/boerse.php?sektion=stock&ID=155480
https://support.traderepublic.com/de-de/168-Wann-erfolgt-die-Sparplan_Ausf%C3%BChrung
https://www.ls-d.de/media/finanzberichte/gesch%C3%A4ftsberichte/2021/Geschaeftsbericht%202021c.pdf
still briefly to the kausa Thelen: by the yt videos of, for example, abundance and prince, the topic is pretty well rehashed, I doubt that I can offer much added value there and cancel the post
