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Brokerage: Obtain investment funds through online fund brokers
For informed investors, buying investment funds through independent fund brokers on the Internet is a cheap alternative. The discount on the front-end load is often up to 100%. With these prices, the fund brokers are superior to the established online brokers, because they usually only reduce the front-end load by 50%.
Good, active fund management diversifies and minimizes risks. But it is primarily the sales fees that make such an investment in managed funds expensive; the fund companies provide them for the sales partners. In order to understand exactly what the online fund brokers offer here, let's first take a look at where sales fees normally have to be paid - for purchases and administration. A one-time issue surcharge is payable on purchase. For managed funds, this can be 5.00% or more. A positive return arises when the fund achieves a corresponding increase in value, i.e. usually only after the investment has been held for a certain period of time. Many online brokers offer a discount on the regular issue surcharge, and selected funds are even available without them during promotional periods. With fund brokers, the discount on the front-end load is regularly higher than directly with online brokers, because they primarily rely on the current portfolio commission as a source of income. The portfolio commission is part of the management fee, which is 0.1 to 0.8 percent per year depending on the fund product and is taken from the fund's assets on a monthly basis, which is included in the price development. Fund brokers can make good money from this, but banks, online brokers or other financial service providers would also get this share. The business model is viable if fund brokers have been in business for a long time and have built up a large portfolio. New providers, on the other hand, can expect a dry spell, especially if they even give the customer a share of the inventory commission in order to enter the market.
The fund companies are happy to take the additional business with them through the fund brokers, but they prefer to keep their prices secret. Because these offer funds much cheaper than the group's own bank, to which the fund company may belong. The fund brokers are therefore pressured not to peddle their dumping prices. Industry insiders report that fund companies have repeatedly threatened to terminate distribution agreements in this context. In practice, it usually comes down to the fact that the fund brokers only state the specific conditions at the customer's request and only for the individual fund.
There are now several dozen online fund brokers. The investment funds are held in custody by a fund bank and the intermediary is noted as the account manager. According to the law, the money that is in fund units is a special fund. Investors are thus protected in the event of bankruptcy by the intermediary or custodian bank. The brokers often use the fund sale as a door opener and also send offers for other investments from which they earn more. You should also be careful if the broker wants to conclude an asset management contract or fee advice, but you only want to buy funds.
The maximum savings for fund investors are possible with Rentablo Cashback: Because a direct discount of 100% on the front-end load is no longer a unique selling proposition, Rentablo pours out Cashback in addition, half of the current portfolio commission ("Cashback-50") or full ("Cashback-100") to customers. In contrast, the fund's internal costs, such as the remuneration of the fund manager or the other expenses incurred in operating a fund (balance sheet preparation, auditing, transaction costs), are never distributable. Cashback-50 is free for the customer and is therefore also worthwhile for smaller deposits from the first euro in fund volume. Rentablo draws its income in this model from half the commission that remains with them as an agent. Cashback-100, on the other hand, provides for the full distribution of the inventory commission to the customer, Rentablo thus waives any income from purchases and inventory, but charges the customer a fixed monthly service fee of EUR 15.00. This model pays off for fund investors with large fund volumes from around EUR 75,000. A calculator is available on the Rentablo website with which the savings can be calculated either as a flat rate or specifically for certain funds. The distributions are determined and paid quarterly by Rentablo, two months after the end of the quarter. Rentablo selects the best cashback model for the customer for each of the quarterly settlements, so that the customer does not even have to decide on one and has to pay a maximum of EUR 15.00 per month in the form of half the portfolio commission, otherwise the EUR 15.00 per month in Form of service fee to be applied.
There are eight custodian banks to choose from at Rentablo. Anyone who is already a custodian of one of the banks can simply have Rentablo encoded as a new broker and thus benefit from cashback with funds. Otherwise, it is important to choose a suitable custodian bank, as different custody fees and transaction costs may apply; these costs are to be paid separately and are charged directly by the custodian bank. In addition, not all custodian banks offer the option to set up fund savings plans or to trade individual stocks and ETFs with the same custody account. Rentablo himself recommends comdirect, among other things because they manage the depot free of charge. With comdirect as the custodian bank for broker customers, it is the case that deviations from the price list for "normal" customers are agreed upon. As already mentioned, the custody account is free of charge, without the otherwise applicable conditions. But with one-off investments in funds, there are transaction costs, up to an order size of EUR 10,000 it is EUR 17.50. For larger order sizes, they are even higher. Transaction costs can be avoided here if the fund is purchased as part of a savings plan.
At FondsSuperMarkt, Augsburger Aktienbank, comdirect, DWS Fondsplattform, ebase, FIL Fondsbank GmbH (FFB) and Fondsdepot Bank are possible custodian banks. Fund offer, custody fees and minimum investment amounts for the fund orders depend on the custodian. With the comdirect custody account, for example, the special conditions through FondsSuperMarkt mean that custody accounts are free of charge without the otherwise applicable conditions, but transaction costs are incurred for one-off investments in funds. There are four price levels according to the order volume, in which up to EUR 10,000 there is a flat fee of EUR 17.50. Comdirect carries out fund sales without transaction costs. Around 13,000 funds can be traded there and savings plans can be created from a monthly rate of EUR 25.00. FondsSuperMarkt highlights the ebase depot as being cheap. With the ebase custody account, custody account management is free of charge from a custody account value of EUR 1,500 and for minors regardless of the minimum custody account value; There are no transaction costs. Generally speaking, almost all of the funds available come with a direct 100% discount on the front-end load offered. Direct discount means that the front-end load is not reimbursed retrospectively, but does not have to be paid in the first place.
With a current promotion in the period October 1st, 2020 to June 30th, 21st, the switch with actively managed funds to FondsSuperMarkt brings a high cash bonus:
From EUR 20,000 fund volume transferred, the cash bonus is EUR 100.00, from EUR 50,000 fund volume EUR 250.00, from EUR 100,000 fund volume EUR 500.00, from EUR 200,000 fund volume EUR 1,000, from EUR 400,000 fund volume EUR 2,000 and from EUR 800,000 fund volume EUR 4,000.
The participation coupon for the campaign should be submitted together with the transfer form and the opening documents; subsequent participation is not possible. Anyone who already has a custody account with the custodian bank only needs to have the agent key entered in their custody account for the change; He submits the participation coupon and the form to change the agent to FondsSuperMarkt. Funds from Deka, Union Investment, funds exclusively sold by other banks or capital management companies, open-ended real estate funds and all funds for which no portfolio commission is distributed to FondsSuperMarkt are not awarded. Transfers from already assigned securities accounts at FondsSuperMarkt or affiliated companies (Fonds Laden GmbH, INFOS AG, WK Vermögensverwaltung AG) are also excluded. It is positive that as part of the campaign, you can be awarded the additional or new purchase of fund units via FondsSuperMarkt. The purchase order as part of the promotion can be entered when opening the securities account or in online banking. In order for it to be assigned, it is only necessary to announce in the designated area in the participation coupon that fund units will be purchased. There is no specific date by which the purchase must be made. The entire fund volume received through transfer and / or purchase must remain with FondsSuperMarkt for 24 months in order to receive the full premium, 50% of the premium is paid out after 12 months, the remaining 50% after 24 months. Exchange rate fluctuations and reallocations can also affect the amount of the premium if the required deposit volume is not reached for more than two weeks.
FondsdiscountBroker is a division of the DWPT German Securities Trust GmbH, Nuremberg. Today, most online fund brokers offer fund trading with no sales charges. FondsdiscountBroker goes one step further and also passes on the current portfolio commission in full to the investor. For this, however, FondsdiscountBroker charges 0.1% p. a. of the deposit volume as a service fee. The custody account can be opened in funds with a total volume of EUR 10,000 or more. It is managed by DAB BNP Paribas, where around 16,000 funds are available. There are two depot models for this: a depot model with a flat-rate transaction fee, again 0.1% p. a. of the deposit volume, but without an additional deposit fee, and a deposit model with transaction costs of EUR 15.00 when buying a fund (sale free of charge) and a deposit fee of 0.04% p. a. of the deposit volume, maximum EUR 250.00. Savings plans can be saved from EUR 50.00 / month, however, FondsdiscountBroker charges a fee of EUR 1.00 for execution. One-off investments are also possible from EUR 50.00.
ebase4you is an offer from Klingenberg & Cie. Investment KG, Leipzig. The name is based on the cooperation partner, namely the depot is managed by ebase. Around 10,000 funds are available through ebase. The annual custody fee for the ebase "flex Select" custody account is EUR 30.00 (maximum two fund positions, settlement online) and EUR 45.00 for the "flex Standard" custody account (maximum 99 fund positions, settlement online). The deposit fee will not be reimbursed. But ebase4you passes - unlike usual - the current portfolio commission in full to the investor. For this, however, ebase4you charges an annual flat rate of EUR 119.00, which is offset against the portfolio commission. Any surplus is credited once a year in March of the following year. If the portfolio commissions do not cover the flat fee, the balance is initially carried forward to the coming years. If the balance is still open at the time of termination, it will be billed to the customer. The funds are offered with a direct discount of up to 100% on the front-end load. Savings plans can be saved from EUR 10.00 / month, one-off investments are possible from EUR 500.00.
At AVL Finanzdienstleistungs the offer is very extensive, the following custodian banks are available: Augsburger Aktienbank, bank zweiplus, comdirect, DAB, ebase, FIL Fondsbank GmbH (FFB) and the Fondsdepot Bank. Fund offer, custody fees and minimum investment amounts for the fund orders depend on the custodian. Almost all of the around 23,300 available investment funds and around 10,500 fund savings plans, according to the company, have a direct one 100% discount on the front-end load. The discount is displayed using the fund search on the website.
At Fondsvermittlung24.de, Augsburger Aktienbank, comdirect, DAB BNP Paribas, ebase or FIL Fondsbank GmbH (FFB) are custodians. Fund offer, custody fees and minimum investment amounts for the fund orders are therefore different, VL contracts in equity funds are only offered by ebase and FBB, for example. The five depository locations are clearly compared via Fondsvermittlung24.de. From a volume of EUR 50,000 per custody account, any custody account fees incurred will be reimbursed by Fondsvermittlung24.de. Almost all of the approximately 9,500 available funds come with a direct 100% discount on the front-end load offered.
Wallstreet: online capital AG operates the brokerage business under the FondsDISCOUNT.de brand. comdirect, DAB BNP Paribas, ebase, FIL Fondsbank GmbH (FFB) and the in-house smart broker are possible custodian banks. Fund offer, custody fees and minimum investment amounts for the fund orders depend on the custodian. According to the company's own information, around 22,900 funds are available with a direct Discount of up to 100% on the front-end load offered.
FondsClever is a brand of DTW GmbH, a broker for investment funds and online mortgage lending. The company works with ebase as a fund broker. Around 10,000 funds are available through ebase. From a volume of EUR 25,000 per custody account (reference date: January 1st of the following year), any custody account fees (EUR 30.00 for a maximum of two securities account positions or EUR 45.00 for up to 99 securities account positions, each processed online) will be reimbursed by FondsClever. The funds come with a direct Discount of up to 100% on the front-end load offered. Savings plans can be saved from EUR 10.00 / month, one-off investments are possible from EUR 500.00.
4free AG is an agent for open and closed funds and certificates. The custody account is optionally managed with comdirect, DAB BNP Paribas, DWS Fondsplattform, ebase or FIL Fondsbank GmbH (FFB). Fund offer, custody fees and minimum investment amounts for the fund orders depend on the custodian. 4free AG has negotiated different condition models, which it compares on its website. Any deposit fees incurred will be reimbursed by 4free AG from an average annual deposit volume of EUR 50,000. The more than 8,500 available funds are with a direct Discount of up to 100% on the front-end load offered, although transaction costs are charged for one-off investments and in some cases also for savings plans.
Fondspower.de went online in 2003 and mediates to ebase with the usual prices there for custody account management, EUR 30.00 for a maximum of two securities account positions and EUR 45.00 for up to 99 securities account positions, processing online in each case. Almost all of the funds available come with a direct 100% discount on the front-end load offered.
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