The desire of all investors is it to be able to register at the end of the year a tidy net yield with the transacted financial investment depot. It is not decisive whether the investment is built up and managed by the investor himself or whether an expert is in charge of it. It is only important that the invested funds do not lose value, but increase in an attractive framework.
Now, we are not necessarily known for liking to take a big risk when it comes to investing money. Until a few years ago, therefore, it was conservative forms of investment such as fixed-term deposits that had us in raptures and were seen as a guarantee of a solid return. But those days are unfortunately over.
Traditional investments are no longer attractive due to the ECB's interest rate policy and no longer yield any significant returns. The few euros that can still be earned with them are not worth the effort that comes with the investment or deposit. If you want to earn a good return today, you have to dare to invest in speculative investments.
A depot paves the way
Speculative investments are usually securities that are traded with the help of a broker. Shares, indices, currency pairs or even cryptocurrencies and commodities could be mentioned in this context, among others. However, these investments are not traded in paper form, but in digital form. Via a securities account, which must be opened for trading.
There are many different providers of custody accounts. Whether the house bank around the corner or the independent broker from a distant country - whoever deals with the topic of securities accounts will be able to find many different approaches.
To make the selection easier, it is therefore advisable to carry out a comparison. After all, the right broker and securities account lay the foundation for successful trading and a good return.
Our tip: Under Share Depository.com a suitable broker and securities account can be selected.
5 simple steps
The first important step is taken with the selection of a suitable custody account. However, this is not enough to set up the custody account in such a way that it presents itself with high returns. For this, these additional steps must be carried out:
1. put together tradable assets - a good mix of risky and less risky securities always proves to be favourable and serves to build up a high-yield portfolio
Mix long and short maturities - it is not only the risk that should be broadly diversified. A broad positioning is also worthwhile in terms of the maturity of the securities
3. use demo account - no master has fallen from the sky. Therefore, the free demo account should always be used to develop a sound trading strategy.
Learning, learning and learning again - the securities market is in constant motion. Those who rest on their skills will quickly make losses. Therefore, the broker's training opportunities should always be accepted. In addition, the market must remain permanently under observation.
5. patience - not everyone sees patience from outstanding virtue. But in securities trading, it is of the utmost importance. A portfolio must be able to develop in order to yield a decent return. This does not happen overnight.
The tax - an unpleasant topic
Who likes to talk about taxes when it's all about optimizing income? But returns on securities must be taxed. This is where the final withholding tax comes into play, which currently provides for an interest rate of 25 percent. However, there are some things that can be deducted.
Thus, only the adjusted return must be taxed. Not only can all losses be deducted from the profits. The tax allowance also applies and may be claimed. What then remains must be taxed.
In the case of foreign brokers, the investor must pay the tax to the tax office independently. If the securities account is provided by a broker domiciled in Germany, the broker can take over the payment of the taxes. The investor then does not have to worry about anything.