You would like to become a shareholder, but you have not yet had any experience on the stock exchange and you are wondering which shares to buy and how to buy shares in Austria? Here you will find the most important answers and tips on buying shares.
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Stock Tips: Your first steps into the world of the stock exchange
Before you invest your money in shares and thus participate in companies, you should familiarize yourself a little with the stock market. Especially as a stock beginner who has never traded on the stock exchange before, there are some things to keep in mind to ensure that your investment in stocks and other securities is a success.
We have listed some Tips compiled how to find out if shares are suitable for you, which shares are interesting and where you can Buy shares easily and cheaply online and can trade.
What are shares?
Shares are, so to speak your share in a company of your choice. With a share in a company you acquire quasi a small part of the company. Thus a share is a financial instrument, which certifies you a part in the capital of the corporation. By purchasing a share, you thus receive a property right and, depending on the share, even a voting right.
If you want to invest in stocks, you have to decide: Which shares to buy? Because there are namely two different types of shares:
Bearer shares& Registered shares
In the case of bearer shares and registered shares, a distinction is made in the type oftransferability. bearer shares the most common form of shares. Here the shareholder not named and these shares are accordingly also traded on the stock exchange. Registered shares hardly ever occur nowadays, as they are issued only to one person.
Common stock and preferred stock
Ordinary shares are shares where you- depending on the size of the shareholding receives a right to vote at the general meeting of the company. However, if you are in possession Preferred share If you are a shareholder in the company, you usually have no voting rights, but are preferred over ordinary shares in terms of dividends therefore also the name preferred share.
How much money does a future shareholder need?
From an investment sum of approx. 2.000 Euro shares can become profitable. Individual purchases of shares below this value spend proportionally otherwise too much money for fees and commissions that are charged when buying shares for the stock exchange or. the securities broker will incur. These fixed costs become proportionally lower the more shares are bought.
Many financial advisors also advise the following rule of thumb:
- One third of the money is parked for a short time (savings book, call money…).
- Another third will be able to fixed-income products invested (fixed deposit account, bonds…)
- The remaining third for the purchase of shares& ETFs uses.
This division is ideal if you already have real estate. More than 15 % of the total assets (incl. House, land, jewelry, etc.) should not be invested in shares on average. For younger people, however, this percentage can also be higher- with older ones rather lower. This has to do with how long one has time to "ride out" fluctuations in the share price.
What is the right strategy when buying securities?
There are several strategies to decide which stocks to buy or sell. z.B. Fundamental analysis, chart technique, etc. Each method has its advantages and disadvantages. Which shares you buy is ultimately up to you and 100% certain none of the strategies. It is best if you are familiar with the industry or topic in which the company you are buying is active. Then you can also better assess the future opportunities of a company. Also, whether a stock pays dividends (profit-sharing) or not can make a big difference. A Siemens AG distributes z.B. Annual approx. 3 % in dividend yield, but increases ev. not as good as a Facebook share, which, however, does not pay dividends.
How to make money with shares?
Probably the most important question you will probably ask yourself is how to make money with shares now. There are different possibilities here, but it is important that you are aware in advance that a share not a savings book is. A share is a Financial instrument, with which one trades. Although they are riskier than savings accounts, they are also more profitable.
Generally one earns at shares by Dividends, Price growth and compound interest – or also through active investment opportunities such as stock trading.
Many companies from the ATX pay out a high dividend, such as OMV. A dividend is a Profit distribution, which is determined at the annual general meeting of the stock corporation. Those who own preferred shares are given preference when it comes to profit distribution.
If the price of a stock rises, so does your profit. This price is based on Supply and demand. If there is a high demand for a company or its shares, the price will also rise. Here it is worthwhile to consider shares with steady price growth in the long term
compound interest or. Retention
You know this for sure: On savings plans you often find an interest rate, which annually leads to the fact that the saved money increases, because you get compound interest on it. Ähnlich it behaves of course also with the shares, since these are very yield. Partly lure some shares and also share funds with high interest rates.
Which shares to buy?
Which stocks to buy now? This is of course a good question, which cannot be answered in a general way.
You have to decide what risk you want to take. There are also different risk classes for stocks:
Shares of large, proven companies also "Blue Chips called- promise a higher level in security and a relatively dynamic increase in value. High profits are not to be expected. This class includes on the stock exchangeAustria (the Vienna Stock Exchange) z.B. OMV, Voestalpine, Andritz AG and many more.
You take a higher risk with companies that have not been on the market for so long.
Generally one can invest shares in Individual shares, by sector, by country, by dividend and according to Index funds categorize. This can also be used as a guide when deciding which share to buy.
In short, individual shares are all those shares that you can only a company acquires. Generally, these shares are purchased by investors who have previously studied the company and its shares in depth. In addition, one should have a long-term strategy in mind for individual stocks in advance.
Individual shares are often Quality stocks designated, which are issued by market-leading companies. These are high quality shares. So you put your capital on a company- this is often a worthwhile strategy, especially for advanced investors.
Stocks by sector
Shares can also be differentiated by sector, i.e., in which industry the company falls. Here there are countless sectors and it is also important to find out which sector is best suited for your own risk management. For example, the shares of OMV from the sector oil and Gas, while the shares of Erste Bank Group AG are categorized under the sector banks falls.
Which stock to bring into the portfolio from which sector is, again, up to your own ideas, preferences and knowledge that you bring. Have you been interested in sustainable energy? Or are you, for example, interested in the pharmaceuticals interested? Then you should look at companies from this sector and determine for yourself whether there are stocks there that are compatible with your strategies and ideas.
Shares by country
You may be wondering: From which country which share now buy? Here, too, there are differences when it comes to the shares. If you are country oriented, you obviously have a wide range of stocks to choose from, as a great many countries offer interesting opportunities when it comes to investing in stocks.
Did you know that Russia’s shares, for example, are often ignored by investors, but it has quite a few commodity shares to offer? Or Turkish shares are often worthwhile, since Turkey is considered a Emerging market applies, and there are profitable companies? Again, it depends on your strategy and what you are interested in.
When categorizing stocks by country, also be aware that you are investing in countries that may not be in line with your ethics or morals. Here applies: You must decide for yourself which shares from which country are particularly attractive for you.
Value a long-term investment with high dividend payouts? Or are you more interested in price gains? Generally speaking, dividend shares in each depot belong. This means that you should own shares of companies that distribute regular profits to their shareholders. Even studies have shown that these are the companies that increase in value in the long term.
In the case of dividend stocks, the Risk is reduced, because if things get a bit turbulent on the stock market, you can at least still rely on the profit distribution through the dividend. Dividend stocks are usually distributed by slow to moderate growth companies, but which have been established for years and can present stable figures. Also some ATX shares are considered as dividend shares which convince.
Of course, you also have the option of investing in index funds. An index fund is a fund that replicates a certain stock exchange index. The funds invest in the stocks underlying the index in the same proportion as the index itself. A good investment here would be the ATX Index fromAustria or the DAX from Germany.
The abbreviation ATX refers to the most important stock index inAustria, the Austrian Traded Index. It is made up of the 20 largest Austrian listed companies and is quoted on the Vienna Stock Exchange calculated. Twice a year, in March and September, the ATX index is checked and if necessary z.B. adjusted in the weighting of the companies.
With the help of the price development of the ATX, statements about the economic development are taken in the country. In addition, the ATX shares serve as basis for financial instruments like warrants, futures and certificates. The ATX differs from the German share index (DAX) primarily in that no dividend or. capital distributions can be taken into account. Instead ATX calculations will exclusively on the basis of the share prices which is why they also charge an Price index is spoken.
What to consider before investing?
Whether you’re a beginner or an advanced trader, there are a few things to consider when trading stocks before jumping in at the deep end. If you already have shares in your custody account? Or would you now like to enter the financial market as a beginner? Either way, you should keep the following things in mind:
Spread your assets over several investment objects, i.e. several shares. A single share will not lead to profit in the long run. A good portfolio is composed of several shares from different sectors and countries. So you can also achieve higher returns with less risk.
Buying shares for beginners Tip: Do not bet your entire savings on shares. Start with little. If you decide to use an online broker, you can enter the world of shares with a minimum deposit of 200 euros.
Learn how to value stocks
Get to grips with buying stocks: what are stock ratios? What is a stock index? What does stop loss mean? Which stock exchanges are available? You should deal with these and many more questions in advance in detail. Many online platforms like eToro offer training materials that explain everything about stocks. A basic knowledge should therefore be absolutely present before the first share purchase.
Make use of Copy Trading (also called social trading). Especially beginners benefit from this. On beginner-friendly platforms such as eToro you can copy successful traders and include their portfolio 1:1 in your own portfolio quite legitimately. In addition, you have the opportunity to learn from the strategies of others. This is often very helpful, especially for beginners, because you can create a successful portfolio within a very short time without doing a lot of research work.
What does the share purchase cost?
Besides the actual purchase price of the shares, there are also fees, depending on the order size and price. Some financial institutions charge a custody fee for the administration and safekeeping of the shares. With some on-line brokers there are however also security depots without custody fee. Here a comparison is worthwhile!
What fees are incurred when buying shares?
Whether through the stock exchange, the house bank or an online broker: Before you buy shares, you should be aware of the fees that will be charged. Because when you buy stocks, fees can naturally reduce your profit. Because when you trade assets, this can usually be quite expensive if you look at the "hidden" Do not take fees to heart. Often the fees are within a small range, however, additional fees such as Custody fees, order feesOvernight fees, inactivity fees, etc. accrue.
When choosing the right broker, you need to consider the following fees in particular:
With most online brokers the deposit fee is very favorable and with our test winner eToro even free of charge. Also the providers based in Austria such as Hello Bank! and DADAT offer in 1. year offer their customers a free custody account management. After that, however, a deposit fee will be charged. Here you have to decide for yourself, but it is important to consider a low deposit fee when choosing a share deposit account.
There is an order fee when you buy stocks. Thus, these are just as important in the decision of the right share depot, as the deposit fees. Here, of course, there are differences in the respective online brokers. While some stock accounts charge a flat fee, others charge a fee per order. Here you must also pay attention to how high the Fixed fee Is.
In addition, the order fee can also differently high regarding the Stock exchanges Fail. So is an order fee on the Vienna Stock Exchange mostly cheaper than at a foreign stock exchange.
As already mentioned, there are some brokers who Flat fee demand for a share deposit, while others charge a so-called Order commission together with a Fixed fee demand. This varies from provider to provider and is measured by the total volume of the order.
Also Foreign fees should be taken into account when choosing the right share depot. Some banks charge additionally to the order fee foreign fees. Especially with large orders, these can ultimately reduce the yield quite.
Fund fees arise when you decide to buy a stock fund. If one would like to acquire shares in a fund, one must pay usually an issue surcharge, which also Agio is called. This is usually one time fee, that you have to pay when you buy the fund.
Other fees (limit fees, order cancellation Eurex and CFD trading)
In general, when you set up a share deposit account, it is important to note what fees are to be paid. So it can also be that certain providers charge additional fees like Limit fees, Fees at the Order cancellation and CFD trading fees charge. In the end, these fees reduce the actual return that one has by buying shares.
Where to buy shares in Austria? Can you buy shares online?
In the past, the purchase of shares was a lot more cumbersome. Nowadays you can place an order online via the Internet. This has the advantage that one can react quickly to market situations. We have for you Online securities accounts and their fees compared, so that you can buy and hold shares online cheaply.
With which on-line broker one should open its share depot?
You can buy shares at your local bank or directly on the Internet at usually lower costs. With so-called online/discount broker resp. Direct banks it is also usually cheaper to have a Share deposit than at the house bank.
Make sure that the custody fees are low or even free of charge. Another sticking point are the order fees. Mostly a fixed amount is charged per purchase and sale of securities. With some share depots one pays however also a mix from fixed order fee and percentage fee on the basis the order value.