A securities account is a special account in which your investments are held and recorded. It is the place where your shares, bonds, ETFs and other financial instruments are administratively kept. Without a securities account, you cannot buy or own securities through a broker or bank.
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A securities account ensures that your investments legally remain yours, even though they are managed by a financial institution.
When you buy a share through a broker, you do not receive a physical certificate. Ownership is digitally recorded in your securities account. The provider usually holds these securities through a separate custody structure, so they remain segregated from the broker’s own assets. This is important for investor protection. If the broker encounters financial difficulties, the securities in principle remain the property of the client. In the securities account, you can also see the current value of your investments, your transactions and any dividend or interest received. Sometimes fees are charged for maintaining or managing this account.
Short example:
Suppose you deposit €10,000 with a broker and open a securities account. You buy shares of various companies for €6,000 and an ETF for €2,000. The remaining €2,000 stays as a cash balance.
In your securities account, you now see three components: shares worth €6,000, the ETF worth €2,000 and the cash balance of €2,000.
After several months, the shares rise to €6,500 and the ETF to €2,200. Your securities account then shows a total value of €10,700. If you decide to sell the shares, the proceeds are credited as cash to the same account.
Disclaimer: Investing brings risks. Our analysts are not financial advisors. Always consult an advisor when making financial decisions. The information and tips provided on this website are based on our analysts' own insights and experiences. Therefore, they are for educational purposes only.