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Opening Investment Bank Account

Updated: Mar 7


If you are looking to open investment bank account for your trading or your investment portfolio, then keep reading on as we are going to share some tips for you.

There are many options for investment or brokerage account opening, especially with Neo brokers, various investment apps (start-ups) and classical brokerages.

However, there is a huge difference between regular stock broker and investment bank.

Why It Is Important To Have Your Investments With Investment Bank?

There are many reasons why you would be better off having your portfolio with an investment bank rather than a neo-broker.

Custody. It is important to know who is the ultimate custodian of your assets. The majority of brokerages and neo-brokers use custodians and sub-custodians for client asset safeguarding. It is high risk with small brokers that they might be cutting corners to get cheaper custody or earn additional revenue from client assets. An investment bank would be a broker and a custodian. Or be using another top-tier institution to safeguard clients assets.

Asset segregation and good standing. All financial institutions are obliged to segregate their own assets from their clients assets. But how can you be sure it is done properly? With an investment bank or top-tier brokerage firm, you can always check their financial statements or management reports. Not only the listed brokers and banks provide such information. Top-tier private banks are transparent as well.

Deposit guarantees. Investment banks are covered by the EU's deposit guarantee schemeosit guarantee scheme. We can help you open an investment bank account with a top-tier bank in the EU. Reach out to us.

Transparent fees. As investment banks are heavily regulated, they must strictly comply with the regulations. On top of that, an investment bank will protect its reputation and will never charge hidden fees.

Access to global markets Investment banks usually have access to global markets and a variety of instruments that will not be available with local or neo-brokers. If you seek diversification or regional investment opportunities, an investment bank is able to provide more instruments for you.

Investment research. Most investment banks offer free investment research from in-house analysts. Market news and research material can help generate investment or trading ideas and enhance portfolio returns.

Portfolio tools and ready-made investments Investment banks often offer various portfolio tools and ready-made investments. On top of that, many investment banks also give access to mutual funds.

Wealth Management. Investment banks also offer wealth management services next to the brokerage account.

Cost structure. Many consider investment banks a costly alternative to neo-brokers or investment apps. However, everything depends on the portfolio size. Investors that have portfolios above 1 million euros can effectively negotiate investment service costs down. We have helped many clients get cost-competitive accounts with investment banks. Reach out to us to learn more.

Relationship manager. Many experienced investors know that once you make a registration with a regular brokerage, you will receive a salesperson's call promising many things. But once the account is opened, it's really hard to get any help. Sounds familiar?

Investment banks do provide personal relationship managers to assist clients. If you would like to receive such service, reach out to us, and we will introduce you to senior relationship managers at top-tier investment banks.

Account Opening Process With Investment Bank

Investment banks have similar onboarding processes as regular banks. They perform due diligence, AML/KYC checks, etc. Sometimes there is more emphasis on the source of wealth for private individuals than opening a regular bank account, but that depends on the jurisdiction the individual is from.

As the due diligence and account opening process is so similar to that of a traditional bank, you must prepare to wait and respond to the bank's compliance questions for at least a few weeks if you are onboarding as a corporate account and several days if you are onboarding as a private individual. Investment banks are not as quick as FinTechs or neo-brokers.

Conclusion

All in all, there are many advantages to opening an investment bank account rather than using a local brokerage or investment app. This is especially true if you have a sizable investment portfolio.

If you have a portfolio that is below 50.000 EUR, reach out to us for a list of the best neo-brokers or investment apps to kick-start your investment journey!

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