A STEP BY STEP GUIDE ON HOW TO START YOUR SAVINGS PLAN ON SCALABLE CAPITAL IN ENGLISH
Investing is a healthy habit that seems to be growing among today’s youth. Students have realised the benefits of starting to invest earlier. As a result, they are starting to sort out their investment plans right after they earn their first few bucks! One of the best ways to start with that is by learning how to set up savings plan on brokers like Scalable Capital in Germany.
Especially if you are an expat who is studying/working, you have to hop on the investment train. This is why in this article you will be learning how to create a savings plan on Scalable Capital! If you haven’t yet opened your depot, you can read our guide on how to open your account at Scalable Capital (and yes, the guide is extremely simple and we made it keeping Expats in mind!)
Now as a student you are already going to be busy with classes, study work and part time jobs, if you take up any. On top of this, you cannot be refreshing Yahoo Finance every 10 minutes! In this case, the Savings Plan feature on Scalable Capital is a blessing in disguise for you.
- What is a Savings Plan?
- What can I Invest in with the Savings Plan?
- How much can I Invest?
- What are the costs involved in opening a Savings Plan?
- Step 1: Open the Scalable Capital App on your Mobile and Go to the Search Bar
- Step 2: Select the Stock and ETF of your choice
- Step 3: Setting up your Savings Plan
- Step 4: Selecting the Amount
- Step 5: Check the details
What is a Savings Plan?
A Savings Plan (sparplan) is an automated investment plan on Scalable Capital that allows you to follow a pre-determined investment strategy where you invest a fixed amount of money on a monthly basis. As we mentioned early, a savings plan is an awesome tool for expats who wish to invest regularly but cannot set aside the time for it everyday.
What can I Invest in with the Savings Plan?
The Scalable Capital Savings Plan enables you to invest in Exchange Traded Funds (ETFs) and Stocks. What is the difference you ask?
The difference between ETFs and Stocks is like the difference between a cup of tea and an entire grocery store! When you buy a stock, you are investing directly in a single company. Whereas when you buy an ETF, you are investing in a collection of different stocks. In fact, ETFs are not just collections of stocks! You can even buy bonds and commodities.
There is a direct advantage of investing in an ETF. One company’s value on the market may go down, but it’s less likely that the value of lots of companies will be quite as volatile. This makes it safer to invest in ETFs over individual stocks.
How much can I Invest?
That is totally upto you! The minimum amount for starting a Savings Plan is just 25 Euros per month. This transaction will execute at the beginning of every month, so make sure to always transfer sufficient funds from your Current Account (Girokonto) to the Scalable Capital account.
(And here is a Pro tip: If you are a new investor, start off small! Once you get the grip, you can gradually change your strategy)
What are the costs involved in opening a Savings Plan?
With Scalable Capital, you can create a Savings Plan with ZERO costs involved!
Scalable Capital has 3 different brokerage plans. Let us take a look at how you can start a savings plan with ZERO transaction cost involved in all these plans
- FREE Broker Plan : As the name suggests, FREE Broker Plan allows you to open a Depot for free. Along with this, you also get to open a Savings Plan and invest in 1 ETF for free. For other additional ETFs you will have to pay 0.99 Euros per transaction. However, this cost only applies for Non-PRIME Partners. You can always invest in the PRIME Partner ETFs free of charge and eligible for savings plans. INVESCO, iSHARES and DWS XTRACKERS are PRIME PARTNERS of Scalable Capital. Find out more about ETFs on Scalable Capital by clicking here.
- PRIME Broker Plan and PRIME Broker Flex Plan: With both these PRIME membership plans, the transaction cost is exactly ZERO, regardless of the ETF or the stock!
Besides this, remember that every ETF has a TER which is ‘Total Expense Ratio’ which you have to know when you are starting a savings plan on any broker. You can easily find details about the TER of a specific ETF one websites like justetf.com. You can read more about this in our article here.
Another feature that I find so convenient on Scalable Capital is the flexibility. You can easily switch between plans or fully exit the plan anytime you wish!
Now that we have covered all the basics about a Savings Plan on Scalable Capital lets get started with how to open your Savings Plan step by step!
Step 1: Open the Scalable Capital App on your Mobile and Go to the Search Bar
Firstly, you have to open the Scalable Capital Mobile App. Upon doing so, navigate to the search bar.
Step 2: Select the Stock and ETF of your choice
In the following step, you have to make a choice on which stock / ETF you are going to invest in. This is an important choice to make and you need to take all relevant factors into consideration.
Step 3: Setting up your Savings Plan
Upon seleting the stock / ETF you want to invest every month in, you will now have to finalize the setting up of your plan. Simply click the ‘Jetzt Einrichten’ button. Refer to the image for clarity:
Step 4: Selecting the Amount
The most crucial step. Deciding on how much you wish to invest every month. The minimum amount to start a savings plan is 25 Euros. That is really convenient for new investors because it allows them to get the grips of how the plan works by trying out with a relatively low amount.
Step 5: Check the details
Before you finish setting up your plan, you just have to check if you have entered all details correctly. Information such as amount invested, frequency of investment, choice of ETF/stock should all be thoroughly checked before clicking on ‘SPARPLAN ENRICHTEN’, which means ‘set up savings plan’ in English.
And just like that, you have finished setting up your Savings Plan on Scalable Capital ! At the beginning of every month the chosen amount will be deduted from your account and be invested into the stock/etf chosen by you!
How easy was that!? Best of luck on your investing journey, with consistency and discipline you will see great benefits.
Do you prefer to watch a more detailed video instead? You can watch this video I posted on my Youtube Channel Brandevise