At comdirect Bank, customers regularly receive attractive investment offers, including so-called reverse convertibles. Some of these are offered by comdirect Bank itself or by so-called partner banks. In concrete terms, this means that comdirect Bank customers can, for example, subscribe to a reverse convertible bond issued by Commerzbank. The corresponding reverse convertible bond is currently being offered as UBS Reverse Convertible Bond Plus and, with a final interest rate of 7.5% p.a., has an attractive interest rate. Beyond that there are however still some other performance characteristics, which must be considered with this product.
Which options and offers does the reverse convertible plus offer to the Commerzbank?
The share Commerzbank is applied at present with the UBS reverse convertible with 7,5% interest p.a.. It can be subscribed at a fixed price of 100% from EUR 1,000 per bond. Thus it is possible that with a term of 12 months an attractive yield can be achieved by the interest rate alone.
The barrier, which should ensure that the loss potential of this bond is to be limited, is 80%. The barrier will be observed on 20 September 2019.
What risks does the reverse convertible offer?
In principle, it should be noted that the reverse convertible can always be described as a risk. The investment capital is not protected, which means that if the share price touches or falls below the barrier, shares are paid out instead of the capital. It is possible that in extreme cases a total loss of the investment is possible.
Throughout the term it is possible that market influences can influence the share price. The interest rate level can also change during the term and have a corresponding influence on the share price. Investors also bear the so-called issuer risk and the redemption risk.
What do I need to subscribe for reverse convertibles at comdirect Bank?
If you want to subscribe for reverse convertibles at comdirect Bank, you need a corresponding stock portfolio. The securities account can be opened and managed via the Internet. In practice it is to be paid attention to the fact that the conditions are considered. Depending on whether the depot is led alone or in addition, together with the free current account of the comdirect bank, different conditions can be noticed here.
In practice the depot can be led free of charge with the comdirect bank, if one decides to lead the free on-line current account with the bank. Both products are to be led considered together without account maintenance fees, which is naturally from advantage. It is worth checking in advance via the Internet how to open the account accordingly. The settlement account, which is necessary for the purchase and sale of securities, can also be managed completely free of charge and without fees at comdirect Bank.
What does the trading offer of comdirect Bank offer?
The trading offer of comdirect Bank is very extensive. It is worth taking a look at it, because more can be traded here than is the case with many other brokers. Basically, it should be mentioned that comdirect Bank makes national as well as international trading possible. In concrete terms, this means that trading is possible at numerous domestic and foreign trading centres. All in all, it should be noted that so-called over-the-counter trading can also be taken into account when it comes to the options of comdirect Bank.
In the area of fund trading, comdirect Bank offers very extensive options. In total, customers can choose from more than 10,000 different funds in which to invest their money. There is with many funds a discount at a value of 50 or even 100% on the issue surcharge. Of course, ETF trading is also available from comdirect Bank. If you decide to trade in this way, you will quickly notice that several hundred different trading options can also be exercised here. It is therefore worthwhile to make sure that the corresponding trading options are really carefully screened.
Use funds and ETFs as a savings plan at comdirect Bank
Both the funds and the ETFs can be perceived without problems in order to enter into trading with savings plans. Anyone who decides to set up a savings plan via comdirect Bank will quickly notice that these can be taken up with different savings intervals and also with different savings rates. The intervals are e.g. 1 month, 2 months or 3 months. This means that the savings plan can be saved every 1, 2 or 3 months. It should also be noted that there are different rate levels. These begin usually with 25 euro in the month, whereby it is possible that the height of the rate can be increased also upwardly.
Not only the fund and ETF trading are advertised at comdirect Bank, but also trading in CFDs. However, this requires the opening of a trading account, a so-called CFD trading account. Trading CFDs is characterised by a high level of risk, which customers should be aware of. In practice, it is important to ensure that the offers in trading are understood as a whole before they are used.