Stocks and bonds used to be a business of the experts. To buy them you either had to be a banker – then you got the securities at the bank – or a computer scientist. Only specialists were familiar with the access tools. It’s different today. Thanks to the apps from numerous online brokers, three clicks on the smartphone are all it takes to make a purchase. What used to take a few days can now be done in a few seconds – and it’s even cheaper. Familiarity with stocks will therefore increase, emphasizes Oswald Salcher, Austria’s head of the online broker Trade Republic since August, in a TV talk with eXXpress publisher Eva Schütz.
“With the app, we have created a new type of access to the capital market that was previously only available to experienced people,” says Salcher. Trade Republic has also become significantly cheaper in the past five years: You pay a flat rate of one euro per trade.
Austria and Germany are traditionally countries of savers – and they are among the victims in times of increased inflation. Only about 10 to 12 percent of people are concerned with securities and actually buy them. In the USA it is between 30 to 40 percent, reports Salcher. In Europe, buying shares is only much more popular among citizens in the Scandinavian countries. But Oswald Salcher is certain: “With easier access and low costs, the number is now increasing.”
This is particularly evident with young people, and that is also a big difference to the past. “I used to have older men as customers,” recalls Salcher. Apart from easier access, awareness of the current economic situation also plays a role: “Young people understand the subject of inflation.” 18- to 35-year-olds are therefore strongly represented with customers.
At Trade Republic there are a lot of stock market beginners – “half of our customers”. What also plays a role, besides better access to the stock exchange, is the faster availability of information. “You used to need a Bloomberg terminal. Today everyone has it on their mobile phones, including on Twitter. Anyone can query company information. ” Many people also dealt with what they are buying. That should please investor legend Warren Buffet, who always recommended exactly that: Instead of just looking at risks and probabilities, you should primarily know the companies from which you buy shares. “Many know how Netflix, Amazon or Liferando work. It’s a service that they use every day. “
Trade Republik offers the full range of products: derivatives for the really bold, stocks for the really brave, and ETFs for the conservatives. An ETF is an investment fund, i.e. a portfolio that contains various stocks, be it from an industry, a country, a continent, etc. Trusting the ATX in Austria would have been very good in the past six months, because it has grown significantly. With funds, you don’t have to commit to individual companies. Basically, it shows that a broad, international diversification is good for reducing the risk.
Watch the full interview today at 8:15 p.m.!
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