Overview of the Russian market on April 20: VTB Bank will hold Investor Day

VTB Investments
Over the past few decades, the Russian investment sphere has ceased to be accessible only to a select few and today offers the opportunity to earn income from transactions with financial assets to almost everyone. This happened due to the desire of large brokers to attract as many clients as possible by simplifying access to investment instruments.

One of them was the VTB Investments service, which today allows you to register a brokerage account online and trade using a mobile application with a convenient and intuitive interface, a robotic advisor and investment ideas from VTB Capital experts.

In this article we will analyze in detail what VTB Investments are, how to register in this service, what tariffs are included in it and how you can earn money with it.

• What is VTB Investments
• How to use the VTB Investments service Register a brokerage account
• Getting to know the VTB My Investments application
• Replenishment and withdrawal of funds
• Tariffs VTB Investments

What ETFs does VTB offer?

Each fund is always backed by one or another management company. It is she who issues shares, forms a portfolio, monitors its current quotes, and so on. One of such companies - ETF operators is VTB.

VTB has launched a number of exchange-traded products on the market. The main ones are as follows.

Exchange-traded fund of Russian bonds

The official name of the RFI BPIF is “VTB – Russian Corporate Bonds”. The fund is linked to the corresponding Moscow Exchange index, but the final composition of the portfolio is determined by VTB managers.

The fund's assets are denominated in rubles. It contains bonds of various organizations, such as VEB, Moscow Credit Bank, Russian Post, and so on.

Russian Eurobond Fund

Or officially BPIF RFI “VTB ‒ Corporate Russian Eurobonds Smart Beta”.

Money is invested in Eurobonds of Russian companies such as Gazpromneft, Lukoil, Norilsk Nickel, Sberbank, and so on.

American Bond Fund

The full name of the RFI BPIF is “VTB – American Corporate Debt”. As part of this strategy, VTB simply buys the ETF of another American ETF iShares High Yield Corp. Bond, whose portfolio includes bonds of 900 American enterprises.

What is VTB Investments

VTB Investments

is a brokerage service through which the Russian banking giant VTB provides its private clients with investment services in various financial markets. In terms of the number of clients and turnover of funds, it is in the TOP 5 of the Russian broker market. The license to conduct brokerage activities was obtained in 2003.

Through VTB Investments, Russians can independently conduct trading transactions with stocks and bonds (including foreign ones), currencies, futures and funds.

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Operations are carried out through the Moscow and St. Petersburg exchanges. There is also access to the over-the-counter (OTC) market.

VTB clients have the opportunity to invest in financial assets by opening a regular brokerage account or an IIS (individual investment account), which gives the right to receive tax deductions from the state with a maximum investment of 1 million rubles per year.

For trading, you can use a web terminal connected to the OnlineBroker system, which is available in your Personal Account on the website lk.broker.vtb.ru, or the QUIK investment and trading platform, but currently most investors prefer the VTB My Investments mobile application.

Official website of VTB Investments

How much does fund management cost?

For managing the funds, the manager charges a certain percentage of the net asset value. The amount of payment varies: the smallest cost is for the Liquidity fund, 0.4%. The highest cost is for “Rental income”, 1.5 until November 2023, then 2%.

For example, for managing an American stock fund, VTB charges 0.81% of the net asset value per year, although the management company itself does not buy any foreign securities; its portfolio consists of securities of an ETF fund in the United States. Just for fun, we looked at how much it costs to service the S&P500 stock fund directly: 0.03% per year. But this is for those who are ready to work directly with an American company.

How to use the VTB Investments service

Using VTB Investments
How to use VTB Investments:

1. Open a brokerage account.
2. Top up your balance.
3. Select a category of exchange assets for investment.
4. Buy and sell available assets, including those based on investment ideas from the service.

At each of the listed stages of interaction with VTB Investments there are quite a lot of nuances, so it is worth considering them in more detail.

Registration of a brokerage account

How to register with VTB Investments
You can always open a brokerage account for trading through VTB Investments through the bank office, providing the necessary documents. You can also do this through the Investments section in your account on the website.

Opening a brokerage account on the VTB website

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True, it is much more convenient and easier to do this through mobile applications. For example, such an opportunity is present in VTB Online on the Showcase tab.

In this case, you don’t even have to fill out the application manually, since most of the personal data will be pulled up automatically from the VTB client profile.

Registering an account through the VTB-online application

If we are talking about opening an account of the IIS type, which provides for receiving tax deductions, you need to confirm that you have not previously opened it through another broker. Processing the submitted application usually takes no more than a few minutes, after which the open account can be topped up directly in the VTB Online application using the balances of bank cards linked to it.

Opening an IIS through VTB Online

The last, but in fact the most frequently used option for registering a brokerage account is through the VTB My Investments mobile application. After installing it from the App Store (depending on the OS of your gadget), during the first launch you will be asked to log into an existing brokerage account or open a new one. An option is also available to enter demo mode to familiarize yourself with the functionality of the application and acquire trading skills using virtual funds (access is issued for 30 days).

When you start opening a new brokerage account, you need to clarify how you would like to carry out this operation - through VTB online (described above) or directly in the VTB My Investments application. When you select the last option, you will see what documents are required to successfully complete this procedure.

Login and create an account in VTB My Investments

Filling out an application to open a brokerage account in the VTB My Investments application is carried out in the form of communication with a chat bot. He needs to tell him your full name, gender, date and place of birth, email address and phone number, which will be used as a login. You will also need to indicate your passport number, registration information as a citizen of the Russian Federation, as well as your TIN or SNILS.

Data for opening an account in VTB My Investments

After entering all the necessary data, you will only have to agree to conduct electronic document management using a code from an SMS, which the application will send to the phone number you specified. When an application to open a brokerage account with VTB Investments is processed, a notification about this will appear in the chat (usually within a few minutes).

You can then log into the application using your phone number and password, which you will receive via SMS. The first time you sign in, you will be required to set a PIN for future access to the app. You will also be asked to enable the option of authorization in VTB My Investments via Touch ID - using a fingerprint (if such a function is supported by the device). After this, you will have access to your brokerage or IIS account (depending on which one was opened) with the ability to replenish it and begin investing in exchange-traded assets.

Login to the VTB My Investments application

In fact, this option for opening a brokerage account is the most convenient, since all actions for registering, replenishing an account and conducting transactions with exchange assets are performed within the same mobile application.

Getting to know the VTB My Investments application

VTB Investments mobile application
Before you start trading through VTB Investments, you should familiarize yourself with the main interface elements and functions of the mobile application. The sections presented in it are grouped on several tabs located on a horizontal panel at the bottom of the screen:

• The main one
  - here the estimated value of the client’s entire investment portfolio, quotes of the main market assets and a list of all open brokerage and IIS accounts are displayed. At the top corners of the screen there are buttons for accessing recent notifications and transaction history. If you scroll down a little, you can see a feed of the latest news and analytics.

Under the total value of assets there are two buttons - actions (financial transactions) and a currency switch. To view details of individual accounts, you can select them from a list, or simply swipe to the right to move between them one by one.

Main screen of the VTB My Investments application

• Showcase
  - a section with investment ideas that can be used to select assets to purchase and calculate the expected return on them. Ideas are divided into categories Funds, Currency Exchange, Stocks, Bonds (the TOP of the best ideas is displayed).

Investment ideas in VTB My Investments
If you go to the “All ideas” tab, you will see a complete list, which, for convenience, can be sorted by profitability or by date. By clicking on any of the ideas, you can familiarize yourself with its contents, a chart of the asset proposed for investment, and go directly to its purchase.

Example of investment idea content

• Chatbot
  is a robotic support that will give answers to general questions about working with VTB Investments (both about the application and directly about asset transactions). Questions can be asked in any form. The bot gives pre-prepared answers that are closest in meaning.

Chatbot in the VTB My Investments application

• The exchange
  is the main functional section of the application, through which all work with investments is carried out. All assets here are divided into categories - Placements, Shares, Bonds, Currency, Foreign shares, Futures, Eurobonds and Funds. By the way, despite the absence of options in this list, they can still be found in the application through the search function (if you know the specific name).

In addition to the names of assets, for each of them the current value is displayed, as well as its change in currency and percentage for the trading session. Selecting one of the assets opens a page with detailed data on it - a chart, supply and demand ratio, trading volume, minimum and maximum price for the period under consideration.

Here you can set a notification when the asset price reaches a certain value, get acquainted with the latest investment ideas and start opening a purchase or sale transaction.

Section Exchange in VTB My investments

When opening a new order, you need to specify the number of lots, the cost of which can vary depending on the asset (usually from 1 to 1000 $), as well as the rate at which the order should be triggered. Here you can also use the “Buy at market price” switch. If you are satisfied with all the details of the transaction, all you have to do is click the “Confirm” button. After this, the order will appear in the Transaction History on the Orders tab.

Registration of a transaction in VTB My Investments

• Other
  - user profile data is displayed here (name, login and agreement number), as well as application settings (notifications, enabling Touch ID, changing the theme and blocking).

Replenishment and withdrawal of funds

Depositing and withdrawing money from VTB Investments
You can top up your VTB Investments account in several ways. This function is present in the investment section in the account on the broker’s website and in the mobile version of VTB Online. You can also transfer money from a card or using the details from the account of any third-party bank (up to 100,000 rubles per month).

But it’s much easier to do this directly in the VTB My Investments application. To do this, on the Main tab, under the line of the total value of all assets, you need to click on the Actions button and select the Replenish item. Then choose one of three options - from an account at VTB Bank, from a bank card, using the details. In the first case, the transfer of funds takes 10–15 minutes. In the rest, it is usually processed within a day, but it can take up to three days.

Topping up a VTB Investments brokerage account

Withdrawal of funds from the VTB Investments brokerage account is carried out in the same way - through the Actions/Withdraw menu. After this, you will need to select the card to which you want to transfer money and confirm the withdrawal operation using the code from SMS. The withdrawn money usually arrives in your bank account before 6:00 p.m. on the day after the application is created.

When withdrawing funds, the broker automatically withholds taxes from the client from earnings on Russian bonds and shares. But if the money is received as a result of transactions with foreign securities and currency exchange, they are credited to the bank account in full, since taxes for this type of income must be paid independently.

Tariffs VTB Investments

VTB Investment tariffs
By default, when opening a brokerage account, VTB Investment clients receive the basic “My Online” tariff with very simple and favorable conditions.

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For carrying out a trading operation, the broker charges a commission of 0.05% and the exchange takes another 0.01% for its services.

There are no fees for account maintenance and depository.

You can also connect to the “Investor Standard” package, which will have a slightly reduced brokerage commission (0.0413%), but there will be a monthly service fee of 150 rubles (if there was at least one transaction with securities).

Another option is the “Professional Standard” package, in which the broker’s commission varies depending on the daily trading turnover (from 0.0472% to 0.015%). Account servicing fees are RUB 150. per month.

More detailed information about the existing variations of VTB Investments tariffs can be found in the corresponding section on the broker’s website.

How to make money on VTB Investments

Earning money on VTB Investments
How to make money on VTB Investments:

1. Fund your brokerage account.
2. Select an asset to purchase in the “Exchange” section.
3. Complete and confirm the transaction.
4. Wait for the asset price to rise and sell it to lock in profit on the transaction.

Now let's look at the process of making money on VTB Investments in more detail.

The main essence of making a profit in this service, as with any other speculation with exchange assets, is to make a purchase at a cheap price and then sell at a more expensive one. You can make a decision about opening transactions yourself or taking into account the ideas from the Showcase section proposed by service experts. In the second case, you will be able to assess in advance the possible size of profit and risks.

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Another option is to connect a robo-advisor, who will help form a portfolio of assets and, if necessary, give advice on rebalancing it.

You can activate this tool through the advice feed, which is displayed by default above the list of accounts. To collect a portfolio through a robo-advisor, you need to fill out a short online form. Depending on the type of investment profile selected by the user and the timeliness of implementing the advice received, the annual portfolio return on average can range from 10 to 20%.

Roboadvisor in the VTB My Investments application

In addition to the main income from the purchase/sale of exchange-traded assets, you can receive additional profit by purchasing shares of companies, for the possession of which regular dividends are received, as well as bonds with the payment of coupons.

The direct process of conducting transactions is described above in the section on getting acquainted with VTB My Investments. Apart from viewing a simple line chart and the presence of “Buy” and “Sell” buttons, this application, unfortunately, cannot please you with any other tools such as a set of technical indicators.

For clients with the Prime package

Investor prime

This tariff is more adapted for professional traders.

• The broker will charge 0.034% of the amount of completed transactions for its services;
• The exchange commission is unchanged and amounts to 0.01%;
• Exchange commission for currency transactions of 1000 USD. from 1 to 50 lots - 50 rubles per transaction, if more - 0.015%.
• Monthly maintenance is 150 rubles.

Professional Prime

The commission for transactions from the daily turnover will be:

• up to a million - 0.042%;
• from 1,000,000 to 5,000,000 - 0.026%;
• from 5000000 to 10000000 - 0.022%;
• from 10000000 to 50000000 -0.018%;
• from 50 million to 100 million - 0.015%;
• over one hundred million - 0.012%.

The amount of the account maintenance fee remains unchanged and will be 150 rubles per month.

Tariffs for owners of the Privilege package

The Privilege tariff packages provide free analytics; you can withdraw funds from both the main and derivatives markets.

Investor privilege

• The broker's commission for transactions is 0.037%;
• Monthly maintenance of a brokerage account is 150 rubles, provided that at least one transaction is made during the month;
• The exchange interest is 0.01% of each transaction;
• The commission for transactions with currency is: if the transaction is worth up to 999 USD. - 50 rubles, if above this amount -0.015%.

Preferential terms of transactions for certain securities are presented.

Professional privilege

The broker's commission for working with securities will depend on the cash flow:

• up to a million - 0.042%;
• from 1,000,000 to 5,000,000 rubles - 0.027%;
• from 5,000,000 to 10,000,000 rubles -0.024%;
• from 10000000 to 50000000 rubles - 0.02%;
• from 50 million to 100 million - 0.018%;
• over 100 million - 0.014%.

The exchange commission will be 0.01%, as well as 150 rubles for the depository commission for storing shares.

Classification of commissions

All commissions and write-offs are displayed in the brokerage report, which the investor can review at any time. The following types of commissions are provided:

• brokerage;
• stock exchange;
• for withdrawal and replenishment of funds;
• margin lending;
• transfer of securities;
• corporate actions.

A commission will be debited daily for settlement of transactions from 7 pm of the previous day to 7 pm of the current day. The amount will be blocked in the account for debiting on the settlement day.

The commission on the derivatives market will be equal to 1 ruble = 1 contract. The exchange commission will differ significantly depending on the exchange instruments.

Funds for servicing a brokerage account are debited once a month, provided that the client has made at least one transaction on the platform. This will happen on the first day of the transaction before 7 pm or the next day after the close of trading.

Is it worth investing with VTB or can you invest on your own?

Having studied the information on investing, many clients begin to think about the possibility of investing independently in certain funds and companies.

In fact, the independent investment process, despite all its apparent simplicity, can be quite problematic.

In particular, when investing on your own, you may encounter the following problems:

• The need to have sufficient capital for a down payment;
• Lack of experience in capital management, and as a result, loss of funds;
• Inability to quickly withdraw funds during financial crises;
• The likelihood of choosing an unreliable or economically unprofitable company for investment;
• The risk of losing all funds during collapses in foreign exchange markets and so on.

When collaborating with VTB Capital, such problems are either completely excluded or minimized.

The only drawback, which is not so significant, regarding the negative consequences of investing capital independently listed above is the need to pay for the work of a third-party trader.

However, it is obvious that the work of a trader, even if highly paid, cannot be compared with the risks that can be encountered when independently investing in shares, securities or mutual funds.

Each person must decide for himself whether he wants to invest on his own and be solely responsible for all the consequences that occur with capital, or whether it is easier for him to pay for the work of a third party and calmly receive a profit without unnecessary problems and surprises.

Which tariff to choose

The choice of tariff plan will depend on your knowledge and skills, as well as your goals. If you do not want to make a large number of transactions , then you like to play big, then you need to take a closer look at the professional prime and privilege rates.

For beginners, the tariff set by VTB by default is enough. “My Online” is not only convenient, but also profitable to maintain. This is a great start to start your investment activities.

Having your own “My Investments” application allows you to make transactions from any convenient place: in transport, in the company office, lying on the couch at home. Tariff plans are designed for all types of investment, so finding a convenient package will not be difficult. Many beginners are advised to familiarize themselves with analytics and investment ideas before starting trading.

Reviews

To date, reviews of the investment company, together with VTB, are the best and most positive.

Those who have already invested in the program and received the first dividends boldly declare that this is the best way to increase and preserve capital of all those available today in our country.

Trading systems and reviews about them

In particular, clients note not only the high profitability of the market when investing with VTB and professional traders, but also the high-quality work of the latter.

Skillful maneuvering between shares of several companies, as well as the possibility of professional orientation in the global economy, allows you not only to receive a high level of income, but also reduces to a minimum the likelihood of losing capital in general.

Here's what grateful clients say about investing their funds under the proposed program:

• Excellent investment conditions, high profit percentage, high-quality trader work;
• I liked the official formalization of the cooperation, as well as the high professionalism of the people managing the mutual fund;
• A good company and an excellent offer - I plan to invest more money, now a more significant amount.

As reviews show, VTB can be trusted to invest and increase capital without worrying that the commission to professionals will be quite high or that the capital will completely disappear without explanation.