Buying shares without a securities account – this is how it works! Instructions for beginners

The purchase of shares is a Optimal entry into asset accumulation. Unfortunately, buying shares through a broker often involves high commissions and fees. Potential investors who are trying to reduce their investment costs may wonder whether the Buying shares without a securities account is possible.

In fact, there is the possibility to buy shares without a deposit account. This is possible either through an So-called "Tafelgeschaft" possible or about a direct share plan (direct stock plan = DSP) of a company possible. However, it is important to know what you are actually getting into this exactly, the Conditions to understand and make sure you are prepared for losses. How to buy shares without a deposit and why it works might not be such a good idea, we explain in this article. We also provide an overview of the best commission free broker.

Buying shares without a securities account? Better to use one of these brokers

Our recommendation: The free share deposit account from eToro

Buying shares without a custody account has many disadvantages. We recommend using the free broker eToro instead. This does not charge fees for trading stocks or ETFs.

What are the alternatives to buying shares without a deposit account?

What are the dangers and risks of buying shares without a deposit account? Are there also advantages or do the disadvantages outweigh them? Are there possibly alternatives to buying shares without a securities account?

The most important facts about "buying shares without a securities account" in brief

  • Meanwhile, there are many ways to buy stocks. However, most include a deposit.
  • A custody account is an account with a broker, which is the Trading securities such as stocks or other financial instruments is possible.
  • The purchase of shares without a securities account is via a Blackboard trade or one DSP (direct stock plan) is possible. A table trade is a direct cash purchase of shares at the bank counter.
  • However, table trades and DSPs are a Relic from past times and are hardly offered.
  • Apart from this, the purchase of shares without a securities account offers many disadvantages and risks and is therefore no longer recommended. It is better to buy shares through a free securities account with an online broker.
  • The best custody account to buy stocks for free is from eToro. The broker eToro Is a licensed and regulated provider for the purchase of shares, which offers commission-free trading and a wide range of financial instruments.

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Where to buy shares without a deposit?

In the meantime, there are many ways to buy stocks or other securities. However, most of them involve a securities account. Whether you want to buy shares with or without a custody account, as an investor you should consider which Criteria such as quality, advice or fees are important to one when buying shares.

In the following we want to present all the ways how to buy shares. The purchase of shares with a securities account is subject to Financial advisor, Online Broker and Robo-Advisor possible and the purchase of shares without a deposit via Blackboard business or DSP (direct stock plan).

Without securities account: DSP

If one the shares of a single company so directly as possible would like to acquire, then a DSP (direct stock plan) can help with this.

Buying stocks without a custody account or broker is possible through a company’s direct stock plan (DSP). These plans were created several decades ago to enable companies to, smaller investors equity to sell directly. Investors buy into a DSP by Transfer money from their checking or savings account to the company.

The company sets minimum investment amounts for both initial and subsequent purchases. Sometimes these minimum amounts are lower than the price of a single share, which allows investors to buy small parts of a company without much capital.

Plan administrators collect the Cash from those of the direct share plan and use it to perform to buy shares of the company at the average market price. Just as one receives a statement from the bank, the direct stock purchase plan gives Account statements with important financial information from, for example listing of the number of shares, dividends received and purchases or sales made. However, especially in Germany and Europe, there are hardly any companies that offer direct stock plans.

Without a custody account: table deal

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Table trades are another way to buy stocks without a securities account. They belong to the so-called "train-by-train banking transactions". A train-and-pull banking transaction is one in which the Performance and consideration occur simultaneously. With a table deal, an investor receives against the payment of cash securities such as stocks or other financial instruments such as gold or precious metals.

This physical shares in paper form (the table papers) the customer must keep afterwards in own responsibility, for example in a safe or a numbered safe-deposit box. Today, table trades are more common for gold or precious metals than for stocks. With a table transaction, the investor must pay in the bank and gets the Shares immediately handed over. However, such board trades have a bad reputation because they use often used for tax evasion as the Buyer remains anonymous.

With deposit: Online Broker

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Online brokers are now the primary way to buy stocks. An online broker offers its clients a independently managed securities account and largely leave it up to investors to figure out for themselves which investments are best.

Online brokers allow investors to build their own and fully customized portfolio through the provider’s website or mobile app. Often these platforms own favorable fees and commissions between 4.95 and 9.95 euros per share trade. However, more and more online brokers now offer the Commission-free trading at.

The features of the individual online brokers sometimes differ greatly. Some offer a greater convenience, a wider choice of financial instruments and possibly even professional functions such as interactive charting tools and charge a higher fee for it, while others offer fewer features but allow you to buy even cheaper or even to buy shares and securities free of charge.

With deposit: financial advisor

Financial advisors are another way to buy shares. Financial advisors provide the traditional access to the stock exchange there. However, they do not allow you to buy stocks without a custody account and are usually more geared toward wealthier investors, so investors with 100.000 euros or more to invest.

A financial advisor Builds and monitors investment portfolios for its customers and usually offers other financial advice in other areas of life. Common services provided by financial advisors include insurance, estate planning, accounting services, and loans.

Typically cost financial advisors annually at least 1% of the assets under management or from 50 euros per trade. Many financial advisors claim that these costs are worth the added value. However, the final return can be significantly reduced by the cost of the financial advisor. Advice is usually given by telephone or e-mail. However, there are also financial advisors who make a point of meeting in person.

With depot: Robo advisor

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Robo advisors are a new development in the securities market, and automate investing through the use of modern technology. Especially since 2010 this type of "algorithmic trading service" has become more and more popular and is seen by many experts as the future of investing.

Classic trading algorithms, which have been used since the 1990s, are often used by large hedge funds and banks and operate the High frequency trading desks (HFT). Robo advisors, on the other hand, are aimed at private investors and invest investors’ money largely in low-cost ETFs. In fact, the convergence of ETFs with low fees and technological development made robo advisors possible in the first place.

Robo advisors usually cost a low fee of approx. 0.15% of assets under management per year. However, there are also significantly more expensive robo advisors who manage portfolios with advanced trading strategies like Tax Loss Harvesting optimize. This type of investing is ideally suited for a efficient and diversified passive portfolio and for long-term investors who are too busy or unmotivated to do their own research.

What is a portfolio

First of all, let’s start with what a "broker" is. a broker is an intermediary. A broker is the Middle man between investor and stock exchange. A broker provides access to the stock market and the Execution of customer orders to the stock exchange. In the past, these were individual agents or persons. Today, on the other hand, it is mostly large companies in the form of Online Deposits.

How does a broker work

A deposit is the account that a customer has with the broker. Over this the trade of securities can be transacted such as shares and ETFs. It is basically the warehouse for the securities and consists essentially of two parts:

  • In order to be able to trade in securities at all, it is first necessary to deposit money on the "clearing account" to transfer. The clearing account is the first part of the securities account. On the clearing account money available for trading is parked. In addition Dividends, Interest and others Payouts transferred to the clearing account.
  • The second component of the securities account are the Securities and financial products such as derivatives, funds and ETFs in which one has invested money. Securities and other financial products are so-called special assets and are clearly arranged in a depot illustrated and summarized.

A broker is are only responsible for processing trades on the stock exchange and the to reflect the development of the invested assets in the portfolio. Owner of the securities is and remains thereby however always the investor. An investor can therefore also transfer the securities to another securities account relatively easily.

What is an online brokerage

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In the past, often only wealthy people could afford a securities account and access to the stock market, and even until a few years ago it was only possible for private investors to open an expensive securities account at their local bank. The Internet and online brokers solved this problem.

Initially, so-called "Full Service Online Broker". These are brokers that offer personalized advice online in order to reduce costs. However, these online brokers are still relatively expensive and offer deposits that are managed by an expert.

Today, so-called Discount Online Broker or also "Do-it-Yourself Broker" is much more popular with many investors. They enable private investors to trade on the stock exchange at lower costs or sometimes even completely free of charge (but without personal advice). These cheap online depots leave all decisions to the investor himself.

Why do you need a securities account to buy shares?

But why is it not possible for private investors, buy shares directly on the stock exchange? This is because stock exchanges only accept orders from individuals or companies, which are members of the stock exchange and are licensed to trade in.

Investors therefore need the Services of stock exchange members. A broker is a member of the stock exchange and offers this service to private investors and of course wants to be compensated for it. Usually either through commissions on the purchase of shares or through other fees. Today, however, more and more brokers make their money through Payments from the exchange itself, which allows them to offer the purchase of shares without fees.

How to buy stocks without a securities account?

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Although there are many advantages to using a broker and a securities account to buy stocks, you don’t necessarily need a securities account to invest. There are several, Buy shares without a broker.

As a rule, all financial transactions today are booked digitally. No matter whether shares, bonds, precious metals or other securities. Even though there are, as there already are, ways to buy stocks without a securities account, there are Serious obstacles, which discourage the average person or small investor from doing so.

Buy shares without a securities account via a "Direckt Stock Purchase Plan

Direct Stock Purchase Plans (DSPPs) allow investors to purchase shares in a company directly from the company itself to buy. Trades are instead completed through a transfer agent. This means that you can buy shares without a broker. DSPPs can be offered by companies that are publicly traded on a stock exchange, although not all publicly traded companies offer DSPPs. Each company can determine which minimum investment is required for the initial and subsequent purchase of shares.

Advantages of buying DSPPs

  • Passive investing: Many DSPPs plans allow an investor to invest a certain amount on a to invest on a recurring basis. A kind of "set it and forget it" strategy.
  • Lower fees: DSPPs often charge no or only low commissions or fees.
  • Discounts: Depending on the company an individual invests in, a small discount ranging from 1% to 10% may be offered for direct investments.

Disadvantages of buying DSPPs

  • High upfront costs: Usually, with the opening of a DSPP account, there are high costs associated, and DSPPs usually require an initial investment of $250 to $500, without the ability to buy fractional shares.
  • Each DSPP is a different accountDSPP accounts are held with individual companies. So if an investor has DSPP holdings in several companies, he needs an account for each one on the company’s individual platform.
  • Only long-term investments: DSPPs do not offer the same flexibility and speed as an online broker. For this reason, they are usually considered more suitable for long-term investment.

Buy shares without a securities account via a "Tafelgeschaft

As mentioned above, a over-the-counter transaction or "counter transaction" is a direct purchase of securities at a bank counter. In a table transaction, the buyer receives the securities in physical form in exchange for a cash payment. It is thus no deposit required and it is also no account touched and is therefore difficult to difficult to follow.

However, the reality of over-the-counter transactions in Germany looks different. Anonymous board transactions at the bank counter are in Germany Actually no longer possible. For example, Commerzbank accepts coupons but no longer pays interest in cash but only to one account. Deutsche Bank does a similar thing and so do most other banks. Even if money can possibly be disbursed without an account, all banks are now at least Personal data of customers noted.

Buying securities anonymously for cash is therefore no longer possible in Germany. These transactions are only conducted via a share deposit account. The reason for this is the frequent tax evasion with table transactions.

What is a table trade

/>A board transaction is the direct purchase of securities at the bank counter, whereby one receives the "Tafelpapiere" against payment of cash. The table securities are physical securities. it is a printed paper, which certifies a "demand.

As with a bank bill, the amount of the claim can be seen on the table paper. In addition, there is often a "dividend sheet" with coupons, which investors can use to Entitle to payment of profit distributions. Tafelpapiere often contain pictures and graphics, which is one of the reasons why enthusiasts and collectors still buy Tafelpapiere today.

However, since only a handful of companies still issue such cash paper at all, cash transactions are hardly possible any more. Often, you can only find table papers on special platforms like or collector There are historical papers (which serve only as a decorative piece with collector’s value) but also Tafelpapiere with securities identification number (which are still traded on the stock exchange) are offered.

However, today, table securities cost much more than the normal purchase of shares. An example: The German soccer share of Borussia Dortmund is traded on the stock exchange for approx. be quoted at € 5, the board paper, on the other hand, costs 129 .

What risks do blackboard transactions entail?

Buying shares without a securities account - this is how it works! Instructions for beginners

In fact, most banks today no longer engage in blackboard transactions for quite some time. The reason for this is Federal Fiscal Court ruling from 2000. According to this, board transactions involving cash payments are still "legal," but they give cause for investigation by the tax office.

Since this ruling, the days are actually over when you could buy shares for cash without a deposit to put them anonymously in the safe deposit box and collect dividends in cash when needed. This is only possible in very few cases and the Anonymity has its limits. Since banks are not subject to the would like to be exposed to suspicion of aiding and abetting money laundering, the data of customers is usually recorded and deposited.

In addition, Tafel transactions are significantly more complex than the purchase of shares with deposit. If one owns Tafelpapiere, then one must be independently take care of the safe custody and be quoted at Respect deadlines for dividends. You have to cut out the coupons from the table paper, for example, and present them to the bank in order to receive your money. After that, one must also independently settle income tax with the tax office.

What alternatives are there to the Tafelgeschaft?

The best alternative to table trading is to buy stocks from an online broker. Because buying shares without a securities account is hardly possible today and for good reason. A modern online broker simply offers too many advantages:

Many different available trading instruments

Most brokers have a wide range of different financial instruments and assets to choose from.

The assets offered by brokers include:

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