By favoring online financial intermediaries, it is possible to limit the costs associated with your stock market transactions. All our advice to help you reduce the bill.
Fees charged by financial intermediaries can add up significantly over time, particularly if you are an active investor. However, there are some tips for reducing these fees which gradually eat away at the gains accumulated in your portfolio.
Choose an online broker
First of all, you should choose an online broker, approved by the Financial Markets Authority (AMF), to carry out your stock market transactions. Indeed, financial intermediaries, such as BforBank, BoursoBank, EasyBourse or even Fortuneo, belonging to French banking establishments, make it possible to divide by two or even more the amount of fees linked to the management of a direct portfolio, as noted in AMF Savings Observatory.
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Thus, for an order of 5,000 euros, placed with an online broker, on a security listed on the Paris Stock Exchange, the average amount of fees is 10.2 euros, or 0.20% of the amount of the order on average. And the cherry on the cake, very often, there are also even more competitive prices, intended for active investors, offered by certain brokers, adds Dorian Abadie, UCITS & Stock Market analyst at Meilleurtaux.
In addition, with these online financial intermediaries, the saver is no longer charged fees for the custody of his securities (shares and funds), also called custody fees, which the majority of traditional establishments continue to collect from their clients. . This makes it possible to achieve a saving of several hundred euros per year, for a portfolio made up of five securities, displaying an overall valuation of 10,000 euros according to the study carried out by the AMF.
Without forgetting the costs linked to the SRD
Another point to watch out for: fees linked to operations carried out on the Paris Stock Exchange via the SRD (Deferred Settlement Service) mechanism used by certain seasoned investors. This service allows you to buy securities on credit, and therefore to bet on a fall in the stock market.
Concretely, in the case of a purchase of securities, this is a capital advance. To benefit from this, the saver must pay a deferred settlement commission (CRD), including daily financing costs, each day that delivery of the securities purchased is postponed.
However, with the recent increase in the cost of borrowing, some financial intermediaries do not hesitate to charge a daily interest rate close to 0.025% per day on the amounts invested, the equivalent of an annual interest rate of about 9%.
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Given the current level of this cost, it is therefore recommended to use the SRD mechanism sparingly, otherwise the net gains from financing costs will disappear like snow in the sun.
The different types of stock market orders
how to make a choice?
As you have understood, whether you are a beginner or an informed investor, it is important to control the costs in terms of brokerage, custody fees and other miscellaneous fees. Knowing that price scales vary from one financial institution to another, it can be interesting, to save time, to avoid tedious selection work, by turning to price comparators, available free of charge on the internet, specifies Dorian Abadie.
You will thus be able to make substantial savings by finding the most competitive financial intermediary but also the one best suited to your investor profile.
Online stock market: 2024 comparison of brokers and banks
Measuring the impact of fees on performance
According to calculations carried out by the AMF, based on the average costs observed on January 1, 2024 for PEA (equity savings plan) with network banks, the total costs for an investor placing 12 orders per year of an amount of 5,000 euros via the internet, and holding a portfolio of 60,000 euros spread over 10 lines, represent 0.83% of the amount of his portfolio (498 euros).
On the other hand, by carrying out these operations, via the services of an online broker, the average total cost would have represented 0.10% of the amount of this same portfolio (58 euros per year).