Generally
With this broker nearly all runs online, even the registration gets completed without paper stuff (what is not the use in Germany by german brokers). Also subscribing and/or logging out different information service happens by mouse-clicks. More comfortably and fast is not possible! ... Read review
Advantages: Cheap and reliable discount-broker for engaged investors Disadvantages: Features the independant investor who knows how to do it
Generally
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With this broker nearly all runs online, even the registration gets completed without paper stuff (what is not the use in Germany by german brokers). Also subscribing and/or logging out different information service happens by mouse-clicks. More comfortably and fast is not possible!
When the application procedure seems to function badly don't be discouraged and don't get out of it. If something goes wrong ... ...accounts are deleted automatically later!).
Order execution
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Order execution in the internet with different stockbrokers happens comparably fast and is negligible for the small investor. Thus it plays above all only a small role whether an extra program for acting is downloaded (IB Trader workstation with Interactivebrokers possible) or whether the trade is completed over the menu of the on-line broker ... more
Generally
== With this broker nearly all runs online, even the registration gets completed without paper stuff (what is not the use in Germany by german brokers). Also subscribing and/or logging out different information service happens by mouse-clicks. More comfortably and fast is not possible! When the application procedure seems to function badly don't be discouraged and don't get out of it. If something goes wrong - start simply new attempt (redundant and not used multiple accounts are deleted automatically later!). Order execution ========= Order execution in the internet with different stockbrokers happens comparably fast and is negligible for the small investor. Thus it plays above all only a small role whether an extra program for acting is downloaded (IB Trader workstation with Interactivebrokers possible) or whether the trade is completed over the menu of the on-line broker integrated in the Web Browser. This estimate results from own experiences both from the domestic DSL connection as well as via mobile trading by mobile phone/Notebook (Motorola Timeport 260/IPC Mininote) on travelling by train for example.
Lowest order fees
========== Interactivebrokers is probably at present one of the lowest-priced Discountbroker for XETRA Orders (in Germany). As order fee one pays 0.1% of the amount of order, minimum 4, Maximum 29 One will look for a simpler and favourable price-structure probably in vain. Intelligent investment thus is at least 4000 in order to use the price model on the lowest level fully. Or still better: the further the amount of order over 29000 goes out, the more is reduced then according to the order fee per share. But small investors they are than no anymore... No partial execution fees ======================= With Interactivebrokers there are no partial- execution fees, which for the small investor must be regarded as a greater advantage than low order fees. That means if Your executions of an order is only partly fulfilled You have to pay the execution fee twice ore even more.
No account or depot fees ================================ It is pleasant that IB like its very good competitors (french Fimatex, norwegian Stocknet) did not have to follow the trend to penalty charges (if one in one quarter did not order) but establish in opposition unbeated low fees.
No transaction fees for transfers ================================= Although Interactivebrokers do have their account in UK, there are no fees for international credit transfers for German customers, since the international operating City Bank in Frankfurt receives the transfers. Also the return transfers on the own account in Germany are free of charge.
Fees for the supply of market informations ============================================ For investors it is necessary, to get a realtime view of the concrete market situation provided. The indicated course only of an individual share often places itself as a chicken-game - it only suggests a virtual-created market situation, but does not reflect real market conditions. To be able to take this it is important therefore to get insight to several offers both on the purchase (bid) and sales side (ask) to the knowledge (i.e. market-deepth), before a final commercial decision is made. One calls this the view of the (open) order book of the stock exchange. The view of the open order book of Xetra (computer stock exchange of the German stock exchange), the so-called level II, is now probably likewise most favorable with Interactivebrokers: it costs here only 12 per month for those 5 best purchase and sales offers in real time. This is cheap (always compared to other online stock brokers).
Minimum beginning-investment 2000 (in Germany) ============================================= After so much positive features it is not surprising that there are to overcome barrier nevertheless. There is a minimum investment of 2000 -but only in the beginning. You can reduce or even return it later (if You should need the money suddenly). During the transfer procedure You have to pay attention to Formalia. For all this there is fortunately an excellent internet community, which meets in the forum with www.aktienboard.com. (in German) and which does great help for problems. Particularly for the trades with Interactivebrokers in this forum many tipps are obtained, there even an index exist so You can find the articles You are looking for easyly.
To read, to watch, to listen
===================== The often quoted informed investor is more an ideal fiction, which can be watched in practice rarely because information procurement requires time, money, energy. And even then one is not perfectly protected, how Bernd Niquet in his novel "The world of the stock exchange" (Campus) impressively illustrates. In the exciting stock exchange novel, that in the design of its framework action is comparabel to "Sophies world" (combining narrative with informative subjects) the juveniles' new shareholders total loss suffer like the history of some enterprises of the new market by fraud and failure.Media: Commercial news ================ Fast and selective reading is an advantage with the multiplicity of the numerous economically events which are relevant here. The best stock exchange and commercial news in the TV Bloomberg is tought in a more entertainable way, although sometimes also in a dry offer form around the clock, it broadcasts in different languages so it is very good to brush up ny business english... N24, n-tv (in German only I suppose) follow with some distance, likewise CNBC and CNN. All these tv-stations can be received both analog and digital (in Germany). The stock exchange radio is rather in the internet represented, as recordings of interviews etc. In addition, Bloomberg- TV serves itself good due to its packing density as stock-radio-use, because there is less to see than more to listen to. Besides pure listening at the PC has the advantage that one can fade out the very numerous commercials more easily...
Characteristic parameters/variables for the evaluation of shares ================================================== In former times was the most important characteristic parameter/variable the earning which was paid on a share. By global growth and innovative developments the situation changed. It may be still somewhat surprising to see the fact that many companies did not pay ever an earning on their shares nor will pay (and some probably never intend to pay or...). Microsoft is the often quoted and most famous example. Why does one buy in the hell however then at all that shares? Now, simply and obvious (however not always applicable) hoping that companies/industry grows (growing enterprise/growing branch) and consequently the share quotation (continuous number of shares) must to rise (better: should). According to the growth criterion economics news (new orders, economic situation) build a large and often surprisingly fast - negative or positive - influence on the share quotation out, as already a view of the course proves after reading out the news. Despite these mostly short-term oszillatory course movements also fundamental characteristic parameters/variables are further interesting, so e.g., the KGV (profit on exchange relationship), KUV (course turnover relationship) and the course growth relationship, the so-called PG Ratio for long-term commitments (Price Earnings ton of Growth Ratio). The latter sets the KGV (profit on exchange relationship) of one financial year in relation to expected profit growth in the coming financial year. A PEG Ratio of 1 points 1 on a fair evaluation of the share, is the value more largely is rather overestimated the share, is it against it smaller 1, then the share is rather underestimated.
Notes This report should not to be understood as request to begin with the stock trading... As well known a majority particularly the small shareholders in the last recent years rather lost money at the stock exchange than won, which should make thoughtful. Who doesn't not believe, may take the overview in the appropriate communities and the related forums... Particularly before the trade with so-called derivatives, e.g. options or "turbos" beginners are not enough to be warned: here threatens possibel total loss (or even more). If already speculative oriented then You should do (Andrι Kostolany following) instead of investing in derivatives investing in penny stocks very underestimated, but innovative and solid enterprises, very best into such (Warren Buffett following) whose good products You understand or know and which carry a good management out.
Last but not least... ============ As it is sometimes read in the papers or media on "capital destruction" at the stock exchange somebody claims, this is at least misleading: the money is not away - it only with someone else... the enterprises to have by the issue of shares and so got their money already(to have their capital thus still and be able to work with it), only the investors are located "in the rain" (as it is said in Germany). Sometimes strangenesses happen then in such a way that enterprises buy back their own shares due to the favourable price - or they are bought up in this way by another company (possibly secretly). The stock exchange forms a gigantic rearrangement machinery, whereby that seems to run periodically in cycles and above all the uninformed, the stock exchange propaganda of analysts and media on the glue going. Further dark chapters, which I cannot open here, are the fact that shares can be sold, which one does not possess at all ("to short") or that analysts praise their own shares or those, which their bank bought... in this regard resemble the stock exchange ever more a gaming house, whereby above all reality proximity and complexity of the play as well as the large, anonymous player community seem to constitute the attraction ("suffering on high level").
