How to Buy Stocks with N26

Can I Buy Stocks with N26 Bank?

Yes, N26 recently expanded its services to allow users to invest in stocks and ETFs, but investors must be aware of the cost implications of using N26 Bank for stock trading. Despite the advertised trading fee of 0.9 EUR per transaction, there's an additional hidden spread of 2-3%. 

To get started, we recommend signing up with a regulated European stock trading platform that accepts deposits from N26 accounts in Euros. Make sure the platform is regulated by a trusted financial authority, such as the FCA or a European equivalent, to protect your investments.

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How to Buy Stocks with N26 Bank

‍To buy stocks using your N26 account, choose a regulated brokerage that supports Euro deposits. eToro is a popular option, offering access to over 4,500 assets, including stocks, ETFs, and commodities. It facilitates free EUR deposits through several payment methods, including bank and SEPA transfer, Sofort, Apple Pay, credit card and debit card.

Here’s a simple guide to buying stocks with N26 Bank through eToro:

1. Choose Broker: Register on eToro’s platform and complete the identity verification process.
2. Set Up Account: Navigate to the 'Deposit Funds' section on the dashboard.
3. Deposit Funds: Select your preferred currency and transfer method to move funds from your N26 Bank account.‍
4. Start Investing: Once your eToro account is funded, you can begin investing in your chosen stocks or ETFs.

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What are the Fees?

When trading stocks through N26 Bank's new investment feature, users encounter a straightforward fee of 0.90 EUR per trade. However, it's important to note the presence of a hidden spread, typically ranging between 2-3%, which can add to the overall cost of investment.‍

The costs of transferring funds from an N26 bank account to a stock brokerage can vary depending on the chosen platform. USD deposits to eToro usually come with no fees. However, deposits in EUR or GBP may involve a small forex charge.

When using your N26 debit card, stock purchases or deposits might incur fees from Mastercard. For example, eToro charges a flat $5 withdrawal fee and typically applies a spread averaging around 1% when you trade stocks. Always check with your platform for precise fee details.

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Can I Invest in N26?

Directly investing in N26 is not possible for individual investors as it operates as a private neobank and has not listed its shares on public stock exchanges. This means that its shares are not accessible for open market purchase. 

The ownership of N26 is held by a select group of private entities comprising notable venture capital firms such as Insight Partners, GIC, Tencent, Allianz X, and Valar Ventures. These investors contribute to the strategic and financial backing of N26, supporting its growth and operations.

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Bottom Line

In summary, N26 offers an affordable way to invest in stocks and ETFs through regulated brokerages like eToro, which supports quick and secure Euro deposits and competitive fees. While N26 provides easy integration for investments, it's important to understand the associated fees, including a 0.90 EUR trading fee and potential hidden spreads.