How to Buy Stocks with N26

Can I Buy Stocks with N26 Bank?

N26 Bank has recently expanded its services to include stock and ETF trading, marking a significant advancement in its digital banking portfolio. This move allows users to tap into a broad spectrum of investment opportunities in major global equity markets.

However, potential investors must be aware of the cost implications of using N26 Bank for stock trading. Despite the advertised trading fee of 0.90 EUR per transaction, there's an additional hidden spread of 1-2%. This spread can make investing through N26 Bank a more expensive option compared to other stock platforms in Europe. Investors should carefully evaluate how this cost structure might affect the overall profitability of their investments.

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How to Buy Stocks with N26 Bank

N26 Bank users seeking to invest in stocks can do so efficiently through a well-regulated brokerage platform. eToro, an internationally regulated platform by top-tier authorities, seamlessly integrates with N26 Bank. This integration ensures a secure and straightforward process for transferring funds, and eToro offers an extensive selection of over 4,500 stocks, ETFs, and commodities for investment.

Here's a step-by-step guide to begin investing with N26 Bank:

1. Choose a Broker: Register on eToro’s platform and complete the identity verification process.
2. Set Up Your Account: Navigate to the 'Deposit Funds' section within the eToro dashboard.
3. Fund Your Account: Select your preferred currency and transfer method, such as a Bank Transfer, 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 1-2%, which can add to the overall cost of investment.

In contrast, using a platform like eToro alongside N26 can offer a more economical approach. eToro, renowned for its transparent fee structure, does not charge an up-front trading fee. Instead, they operate on a variable spread model. This spread, the difference between the buy and sell prices, generally averages around 1% across various tradable assets, including sought-after stock market ETFs.

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Can I Invest in N26?

As of now, investing in N26 directly is not feasible for individual investors. N26 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, among others. These investors contribute to the strategic and financial backing of N26, supporting its growth and operations in the digital banking sector.

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Bottom Line

In conclusion, N26 Bank's entry into stock and ETF trading signifies a notable expansion in digital banking services, offering users a gateway to global equity markets. However, the combined trading fees and hidden spreads may elevate the investment costs, making it a less favorable option for those seeking cost efficiency. In contrast, eToro stands out as a more economical and secure alternative, offering a vast selection of over 4,500 assets with lower fees and competitive spreads.