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Become a member
Once you have found your best securities account through the securities account comparison, you then have several options for earning money with it. How exactly you can earn money with a securities account depends, among other things, on the type of securities it contains. Basically, you earn money with your securities account in this way: You secure a share in an established or young company. If the price of this company rises on the stock exchange, you can sell the shares at a profit. Furthermore, it is possible to earn money via
- the profit of the respective company or
- an annual dividend payment
dividend payment. It should be noted, however, that the companies are not obliged to make such payments. There is no limit to the number of shares that investors may hold in their securities account. If you want to be on the safe side and earn money with your shares, you should have as wide a variety of different stocks as possible in your portfolio. If you concentrate too much on the shares of one or a few companies, you can expect them to suddenly lose a lot of value - and thus a lot of money. If instead you concentrate on different shares from different regions, sectors and company sizes, you spread the risk and thus minimise the possible losses.
What types of securities accounts are there?
The different types of custody accounts can generally be divided into the categories A, B, C and D. The letter "A" stands for "A". The letter "A" stands for own custody account, "B" for third-party custody account, "C" for pledged custody account and the category "D" describes the special pledged custody account.
Category A: Own custody account
The own custody account is held by banks and brokers in mt4 Exness. Their main feature is that they allow securities to be rehypothecated. This custody account usually contains securities of a bank's proprietary trading. These are speculative transactions that are carried out by a financial institution for its own account, in its own name. In technical jargon, proprietary accounts are also described as nostro trading. In individual cases, such a custody account may also contain securities of third parties. In advance, the holder must agree to the possible further use by the financial institution. In terms of liability, there are no differences to proprietary securities.
Category B: Third-party securities account
Securities of brokers or banks are held in a third-party custody account. These are commission transactions. The portfolio always remains the property of the investor. In the event of insolvency of the bank or broker, creditors cannot access the securities held in third-party custody accounts.
Category C: Pledged securities account
In such a custody account, pledged securities of bank clients are held in safe custody, which were handed over by the holder to secure loans.
Category D: Special pledged securities account
In this custody account, securities pledged to a limited extent by bank customers are held in safe custody and used as collateral for current loans.
General custody account or pure fund custody account?
Within the four categories you can distinguish between further variants. In your search for a custody account, you will come across the following terms in particular: Share deposit, Online deposit, Fund deposit and Securities deposit. However, these differ only slightly from each other.
1. online custody account
An online custody account is not a separate type of custody account. The designation is merely intended to make clear that this custody account can be opened and managed online. This is usually done via an online broker or a direct bank. Online custody accounts have the advantage that they usually have significantly lower fees than custody accounts at branch banks.
2. pure fund custody account
A fund custody account is held directly with a fund provider and not with a bank. Therefore, only funds of the respective company can be held in such a custody account.
3. securities account
The securities account is the counterpart to the fund custody account. Investors can open this custody account with various brokers and banks. There are no restrictions on the securities managed in this custody account. It is therefore particularly suitable for beginners who want to build up a mixed securities account consisting of various securities.
4. share deposit
Although the term "share deposit" is often used, it is not in principle a special type of deposit, but merely another name for the securities deposit. In addition to shares, other securities such as funds or bonds can also be held in such a custody account. Share deposits are offered by numerous online brokers and banks. Our tip: Find your best custody account with our share custody account comparison.
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