Deutsche Börse is now offering a free execution service for ETF savings plan orders on Xetra. This will be of particular benefit to those who wish to save assets regularly, and over the long term, via ETFs.
"By abolishing transaction fees, we want to further increase the attractiveness of ETFs as a long-term investment product and also draw new investors to the capital markets," says Hauke Stars, member of Deutsche Börse's Executive Board responsible for Cash Market, Pre-IPO and Growth Financing.
"It is against the backdrop of steadily falling pension levels that many will have to become more active in the financial markets. German employees currently have two options for closing the pension gap if contributions are not to rise immeasurably: either they will have to work for much longer or they will have to invest their savings for the long term, and widely spread, in the capital markets," adds Stars.
The abolition of transaction fees for ETF savings plans is regulated by a contract between the stock exchange and the broker, and is only one of several measures taken by Deutsche Börse to inform consumers about the advantages of long-term savings via the capital markets. In addition to a broad range of information for beginners and a digital learning platform, a new interactive visitor center is currently being built in the Frankfurt Stock Exchange building. This will open in the first quarter of 2020.
ETFs have been a growth market since the introduction of the products in Europe in 2000. The managed assets of the ETFs listed on the Frankfurt Stock Exchange exceeded the EUR 645 billion mark at the end of September, 15 per cent higher than in the same month last year. With over 1,500 tradable products and a current monthly average trading volume of 11 billion euros, Xetra is Europe's leading stock exchange.
