Transaction costs: Spoilt for choice

With a current score of 72.23 points, the Transaction Cost Indexwhich summarizes the order fees of the most important online brokers in Germany in an index, was at its highest level for three years. The lowest level in its history was reached in August 2008, when the transaction cost index stood at 69.02 points.

Even though the order fees have not changed since last month, investors are always faced with the question: Which broker best suits my investment behavior?

Besides the Range of serviceswhich should be the main criterion for choosing one's own broker, the price certainly also plays a decisive role. Fixed price models (flat fee), as offered by flatex or even Netbank are increasingly disappearing from the market.

The majority of online brokers offer volume-based order fees. Investors pay e.g. 0.20% order commission on the order volume, usually limited by a minimum and maximum fee. In addition, many brokers charge exchange fees. Either these are charged at a flat rate or simply passed on to the customer.

Thus, it is again up to the investor himself to decide on a suitable broker. It is therefore advisable to see which broker covers most or perhaps even all of the desired services. Furthermore, investors should pay attention to whether they need advice when trading or act independently and of course compare prices.

About the Transaction Cost Index

The Broker-Test.de Transaction Cost Index represents the ongoing development of average transaction costs since July 2000 on a monthly basis. The starting point is July 2000 with an index value of 100. The transaction cost index includes the transaction costs incurred for ten different order volumes with the online brokers relevant in Germany. Thus, it also includes fluctuations due to the market entry of new brokers or the market exit of brokers.

The transaction cost index is updated at the beginning of each month at:
www.broker-test.de/transaktionskosten-index/tools

You can find the transaction cost calculator at:
www.broker-test.de/transaktionskosten-rechner/tools

About Broker-Test.com:

Broker-Test.de compares online brokers, forex brokers, day trading brokers and CFD brokers comprehensively and neutrally.

In addition, Broker-Test.de regularly publishes the sentiment among corporate decision makers (Director Dealings) as part of the "Insider Analysis" and provides an outlook on the most liquid market in the world every Friday with the Forex Weekly Outlook.

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