Scalable Capital Savings Plan Stocks

How to create a Scalable Capital savings plan? What are the benefits of a Scalable Capital savings plan? Eulerpool has the answers, showcases strategies, and provides a list of all stocks in the free savings plan offered by Scalable Capital.

Scalable Capital Savings Plan Stocks

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Automated Investing. For several years, many brokers have offered the option to set up a savings plan for stocks or ETFs. This involves regularly purchasing securities at a pre-determined price. The advantage of savings plans is a low or even no order fee.

Even today, individual purchases of stocks can still be very expensive with some brokers, which often makes it worthwhile to place an order only from 1,000$ onwards. With the new Neo brokers, the whole situation has changed somewhat. Many offer very low trading fees and the execution of savings plans is even free of charge.

To explain this with an example, let's assume that we want to set up a Scalable Capital savings plan for Apple stock. First, we determine when the Scalable Capital savings plan should be executed. Here, we are somewhat limited because most brokers only offer the beginning or middle of the month. If you want to invest in larger intervals, you can also select quarterly.

Then you select the Scalable Capital savings plan amount. Usually, it starts at 25$, but this is also gradually reduced by many. This amount is now invested in Apple stocks, with the broker placing a fraction of a whole share in the portfolio. This means that at a price of 150$, you will receive 0.166 shares worth 25$.

Simple way for retail investors. For many beginners, it is a big problem to know when to enter. Is the stock now too expensive or worth buying? This question is answered by a Scalable Capital savings plan, as the same amount is invested monthly, regardless of where the stock is at that time. Therefore, one invests in both good and bad times and ultimately receives an average entry price over time.

For many private investors, a Scalable Capital savings plan serves as a psychological support, as it takes away the risk of entering at a very bad time. Many private investors put pressure on themselves and stress when prices fall. Many also become very nervous when they see a loss in their portfolio shortly after a large purchase.

The Scalable Capital savings plan ensures that one does not become too nervous during bad times, but also benefits from regular investing opportunities without having to determine whether the lowest point will be reached now or in a few weeks.

Positive aspects prevail when investing for the long term. When it comes to the advantages and disadvantages, one must differentiate whether one wants to invest a monthly amount from their income or a large one-time sum. If one wants to invest a monthly amount from their income, they can either save over several months to make a large individual purchase in possible crashes. Alternatively, they can invest it directly through the Scalable Capital savings plan.

Statistically speaking, now is always the best time to invest if one assumes that stock prices will rise in the long term. Many individual investors often wait for a crash before making a purchase, but miss out on all the price gains and dividends beforehand. For one, they often end up buying at much higher prices because it is nearly impossible to time the absolute bottom, and moreover, mindset plays a big role in investing during declining prices.

So the Scalable Capital savings plan not only provides psychological support but also significantly more time, as one does not have to deal with when the right time is for an individual purchase.

Now let's move on to the disadvantages. These are mainly related to the options available for savings plans. Not every stock is eligible for a savings plan with the broker Scalable Capital, usually because the company is not big enough. However, the selection is still very extensive, and all large and medium-sized companies can be included in savings plans with Scalable Capital without any issues. Additionally, the offering is constantly being expanded.

As mentioned above, a certain point in time is given. Therefore, you cannot invest at any arbitrary point in time when using a Scalable Capital savings plan. Additionally, the entire strategy is only worthwhile if you invest long-term.

Scalable Capital ETF savings plan: Investing in an ETF on broad-based indices and thus benefitting from overall market performance. It offers a wide diversification across many countries and sectors. This is a long-term investment approach for investors who want to regularly invest in the capital market.

Long-term Scalable Capital savings plan: Regularly and long-term saving in a specific selection of stocks. No changes are made over longer periods of time, allowing for the benefit of an average entry price.

Alternate Scalable Capital savings plan: You can rotate the selection monthly or quarterly if you want to invest in more companies but the amount saved is not sufficient. For example, you could invest in one list of stocks every even month and in the other list every odd month.

Use Scalable Capital savings plan as a single purchase: This point is interesting for many private investors who would like to buy individual stocks but do not have enough capital to, for example, buy a whole Amazon share (2,800$). In this case, one could set the Scalable Capital savings plan to 1,000$ and terminate it after execution. This way, you have Amazon as an individual position in the portfolio, but it is not overweighted if all other positions are also approximately 1,000$ in size.

Automated Investing. For several years, many brokers have offered the option to set up a savings plan for stocks or ETFs. This involves regularly purchasing securities at a predetermined price. The advantage of savings plans is a low or even no order fee.

Savings Plan Provider Comparison

Provider
Fees
Min. Amount
Stocks / ETFs
Comdirect
Execution on:
1. / 7. / 15. / 23.
1,5 % /
25 EUR
400 / 900
TradeRepublic
Execution on:
2. / 16.
Stocks / ETFs /
10 EUR
2.500 / 1.500
ScalableCapital
Execution on:
1. / 4. / 7. / 10. / 13. / 16. / 19. / 22. / 25.
Stocks / ETFs /
1 EUR
6.000 / 1.902
Consorsbank
Execution on:
1. / 15.
1,5 % /
10 EUR
580 / 794
ING
Execution on:
1. / 15.
1,75 % /
1 EUR
560 / 817

Start. Once you have opened an account, you can start setting up savings plans right away. To do this, select the "Search" option in the toolbar at the bottom of the screen.

Search securities. You search for the respective stock or ETF that you want to invest in. When you are on the stock page, scroll down a bit and find the "Set up savings plan now" button.

Set parameters. Once the stock or ETF has been selected, the first step is to choose the savings rate or amount.

Complete Scalable Capital savings plan. Then you come to the summary. Here you can select the frequency or interval. You can choose between monthly, every 2 months, or quarterly. With the execution date, Scalable is very flexible. You can select the 1st, 4th, 7th, 10th, 13th, 16th, 19th, 22nd, and 25th. Finally, click on "Activate savings plan" and it's done.