In order to earn a lot and regularly, users prefer to turn to an individual investment account. This is the name of a special instrument that can be used to purchase securities and shares of companies. For these purposes, and quite often, VTB Bank is chosen. It’s worth learning about how it works and its service rates right now.
Why do you need a brokerage account?
You cannot directly register on the exchange and start trading. To make transactions on the stock exchange, an investor needs an intermediary - a professional participant in the securities market, a broker licensed by the Central Bank of the Russian Federation. By opening a brokerage account, the future investor will grant the broker the right to carry out transactions in his own interests. The broker transmits an order to buy or sell a security, according to what the client instructs him to do. From this point of view, brokerage accounts are no different from each other and their division by type is arbitrary. But each account has its own usage characteristics, including from a tax point of view.
Until 2015, in Russia there were no divisions for investors by type of account, but then the state offered long-term investors tax breaks on individual investment accounts. To receive them, two conditions must be met:
- replenish your account with no more than 1 million rubles per year;
- do not withdraw money for three years after opening.
1 000 000
rubles maximum amount of replenishment of IIS per year
This is how the concept of IIS—individual investment account—appeared. Essentially, this is a regular brokerage account with tax benefits from the state. There can only be one such account.
You can open a brokerage account and an IIS at the same time or choose one of them. Each account has its own features and advantages.
How to open an investment account: step-by-step instructions
- Choosing a broker. Most potential investors will satisfy the conditions of the tops listed in this article.
- We study the broker's website. All of the items on this list have a menu with a link to open online. Sberbank and VTB allow you to open IIS online from their bank-client applications. Desktop and mobile versions.
This is what the opening form looks like from the VTB Online application for Windows:
Form for opening an IIS through Sberbank Online on a PC:
If you are already a client of these banks, you do not need to visit the office to open an IIS.
A very detailed form for opening an IIS from the Otkritie broker. With explanations (including video) and choices. After reading, even beginners should not have any questions.
Other brokers have similar online forms.
We prepare all the necessary documents with the broker. After opening the IIS, we transfer money to it. After this, you can start buying shares or other instruments.
When is it more profitable to open an IIS?
If an investor has an official income, he plans to save and use the account for a long time, then an IIS is suitable for him, with which he can receive an additional 52,000 rubles from his own taxes. This money can be reinvested in stocks, bonds and other financial instruments.
The main advantage of IIS is a tax deduction from the state.
There are two types of deduction:
Tax deduction type A
— deduction from the amount deposited into the IIS for the calendar year. The tax office returns this money to your bank account. They can be used in any way you like. For example, reinvest - invest again in exchange-traded instruments, stocks and bonds. How to get a type A deduction online on the tax website - read the step-by-step instructions.
Tax deduction type B
— exemption from personal income tax on income from IIS. Such a deduction is received upon closing an IIS if the account has been open for more than three years. The amount of accrued tax simply remains in the account.
Why should you choose IIS from BCS Broker?
BCS Broker has several advantages that elevate it over its competitors. They look like this:
- No connection to cards.
An investor will be able to top up an account opened with this broker using any debit or credit card. The bank, however, is absolutely not important. - Branches.
This broker has branches throughout the Russian Federation. This will help the investor resolve any questions that he may have. - Convenient application.
It will be used to manage your assets from a smartphone or computer. - Minimum commissions.
BCS Broker offers truly profitable services that are suitable for both beginners and professional investors. - Opens in a couple of minutes.
To become a client, the user will have to spend a couple of minutes of his precious time. - Regulation by law.
Yes, BCS Broker is a legal company whose activities are fully regulated by law and relevant authorities.
Therefore, he is considered, if not the best broker, then certainly one of them!
Cons of IIS
IIS is great for long-term investments and savings. The disadvantages of using it are also associated with this:
- You cannot withdraw money from the account for three years, otherwise the account will be closed, and the type A tax deduction already received will have to be returned.
- The account cannot be replenished by more than one million rubles per year. This means that if an investor wants to invest more, he will have to use another brokerage account in parallel.
If you put 10,000 rubles a month into an IIS and don’t withdraw money from the account for 3 years, you can save 360,000 rubles. With this money you can buy conservative instruments, for example, federal loan bonds with a yield of 4-5.45%. Tax exemption in this case will be a pleasant bonus.
What should you pay attention to when choosing a broker?
To understand where it is more profitable to open an IIS , you need to select a broker according to the selection criteria. Let's consider the most important points worthy of attention from investors. It is better to pay attention to the company’s rating, especially take into account the number of open IIS.
The number of open IIS does not necessarily mean better trading conditions. According to the market, more IIS are open in Sberbank, but the conditions are not the best. A large bank means high reliability.
The second point is the size of brokerage costs. It is adequate if the commission cost is calculated in hundredths of a percent, while some brokers charge a commission for servicing the account, it is better not to have it. When there is a fixed amount in the months when there were transactions, this is tolerable. Next, the depository commission, most companies refuse it, but you still need to see if this cost is present. If it occurs in the months when there were transactions, it is normal, if it is constant, it is unprofitable for you. For some companies, this type of commission may increase depending on the amount of capital on deposit.
Further, in most cases, it is better to choose a tariff that has a higher commission, but does not have a depository commission, and does not charge an amount for servicing the account. It happens that the commission on turnover is slightly higher, as a rule, it will turn out to be a more profitable scenario. We look at the presence of additional commissions, and especially pay attention to an adequate tariff for ourselves, so that there is no commission for servicing retail equipment, additional analytics, etc.
Then, we pay attention to a convenient personal account and preferably have a mobile application. This will allow you to check your deposit, make transactions, etc. Adequate technical support that responds within 24 hours is important.
Equally important, before you ask yourself where is the best place to open an IIS , think about your strategy, what tools you are ready to work with, and whether the broker has them.
It is possible to transfer an IIS from one broker to another, but there is a risk of facing a protracted process, and the cost of such a service can cost a pretty penny.
What are the advantages of a brokerage account?
If an investor plans to adhere to an active investment strategy - often make transactions in shares, withdraw some money from the account and replenish it without restrictions, then a regular brokerage account is suitable for this. There are more possibilities for using such an account, and fewer restrictions.
You can invest more than 1 million rubles per year.
The replenishment amount is not limited in any way. You can top up your account not only in rubles, but also in foreign currency - dollars or euros.
Withdrawal of funds without restrictions.
Money can be withdrawn from your account at any time and in any quantity. The broker will immediately withhold tax if income is received in the current year.
All tools are available.
You can buy any papers in accordance with your qualification status, including those that are not available for IIS. For example, OFZ-n are federal loan bonds for the population.
Qualified investor status.
One of the options to become a qualified investor is to qualify for the amount of funds: invest more than 6 million rubles.
Depositing money
After opening an IIS in BKS, the owner needs to deposit funds. Several possibilities are offered:
- via bank transfer;
- from map;
- from a bank account in BCS;
- in cash at the BCS cash desk.
Top up IIS BKS without commissions - how to do it
A bank transfer does not imply deduction of commissions by the broker. But other banking structures involved in the transaction can hold it.
- You can transfer money from a card without commission.
- From an account in BKS Bank, a commission is possible if the money is transferred from a law firm.
- They may deduct a commission at the BCS cash desk if the client is not connected to the bank’s service package.
Despite the many nuances for opening and maintaining an investment account for an individual in BCS, this is a profitable option for individuals who decide to increase their capital. In any case, the decision remains with the investor. Don’t forget about the benefits offered by the state for IIS owners. There are many more pros than cons, so decide to take active steps.
Brokerage account and IIS: a visual comparison
It is not necessary to open only an IIS or only a brokerage account - they can be used simultaneously. For example, keep a brokerage account for short-term investments, and an IIS for savings. The capabilities of both accounts are in the comparative table:
| Brokerage account | IIS | |
| Number of accounts | As much as you like | Only one |
| Amount of money | Unlimited | No more than 1 million rubles per calendar year |
| Income taxes | 13% on income at the end of each calendar year, or upon closing the account | 13% with tax deduction (type A) or tax exemption (type B) |
| Taxes on dividends | Eat | Yes, they are not subject to deductions |
| Replenishment currency | Rubles, dollars or euros | Only rubles. To buy foreign shares you need to buy currency on the exchange |
| Withdrawal of profit | Any time | Only in three years. Otherwise, the IIS will be closed and the right to a tax deduction will disappear |
| Validity | Is not limited | Unlimited, but not less than 3 years |
| Qualified Investor Status | Any method is suitable | Any method is suitable |
In the Gazprombank Investments application, the tariffs for servicing a brokerage account and IIS are the same. Before you start real investing, you can practice for free on a demo account - it already has a virtual amount that can be spent on buying securities. Collect your first portfolio, trade financial instruments and watch how the price changes. In the mobile and web versions of the application, you need to select the “Portfolio” and “Demo Account” tabs. Transactions have no legal force, and the money on the demo account is virtual - it cannot be withdrawn, but the risk is zero.
To understand which real account to open, take a two-step mini-test.
Whatever account you choose, you need to remember the basic rules of investing - regularly replenish your portfolio, look at the financial performance of companies, monitor news and market analytics, and diversify your investment portfolio.
Rating of the best brokers for opening an individual investment account
| Broker | Type (Broker, Bank, Management Company) (1) | Commissions for basic tariff plans(2) | Depository fee, rub./month | Payment per transaction | Maintenance fee per month, rub. | Minimum deposit, rub. | Number of open accounts | What you don't have access to |
| VTB | Bank, management company | 0,01 | 150 | Included in the tariff plan | 150 (3) | 0 | 608 000 | FORTS |
| Tinkoff | Bank | 0,025–0,05 | 0 | — | 0 | 0 | 930 000 | |
| Sberbank | Bank, management company | 0,018–0,060 | 0 | — | 0 | 0 | 1 145 000 | Foreign shares, minimum currency purchase lot $1000 |
| BKS | Broker | 0,0177–0,0354 | 177 | — | 200 (4) | 100 000 (5) | 370 000 | |
| Opening | — | 0,057 | 175 | — | 295 (4) | 50 000 (5) | 231 000 | |
| Finam | — | 0 | 177 | — | 0 | 0 | 243 000 |
- (1) - design and proposed instruments for individual investment investment funds, including mutual investment funds, ETFs;
- (2) - depends on the investor’s trading turnover per day, month. The higher the turnover, the lower the commission;
- (3) - combined with depository fees;
- (4) - reduced by the amount of remuneration paid within the tariff plan;
- (5) - if the average account balance at the end of the month is less than this amount, a service fee will be charged (previous column).
Charts of changes for the top 5 brokers in 2017–2019 (source - Smart-lab.ru):
- Active clients on the Moscow Exchange.
- Brokerage turnover class=”aligncenter” width=”1440″ height=”462″[/img]
- Dynamics of changes in active clients in %.
Possible risks of trading in financial markets and insurance of funds
Despite the fact that brokerage accounts allow you to buy currency at an approved rate, which is a plus of the site, there are certain risks. Among them:
- no one is immune from choosing the wrong direction of the market trend;
- money may disappear from accounts if the broker turns out to be unscrupulous or his license is revoked.
While a bank deposit is insured by the state, a brokerage deposit is not. In order to reduce the risks of losses, which large market players also face in their practice, you should trust your money only to trusted organizations with a reliable reputation and license. And if you want to know who Oleg Tinkov is and why his name is associated with a bank, a broker and beer, read the material on www.gq-blog.com. To summarize: a brokerage account, in comparison with a bank account, is not protected by the state, but allows you to buy shares, futures, options of different companies on exchanges, not only with reference to your place of residence.
There is an IIS - a certain type of brokerage account, in which if you “freeze” money for 3 years, you can get up to 52 thousand rubles in tax deduction. Without opening an account with a broker, the stock and exchange markets and work with ETFs are not available. According to good tradition, I wish you to quickly and with 100% success decide on the choice of a suitable broker, taking into account commissions and the minimum deposit, and that all bets among active or trust management be highly profitable.
See also:
- IIS tax deduction - how to collect a package of documents, how to submit IIS documents to the tax office and receive a refund?
- Yammi investments - review of financial service from Yandex and investor reviews
Author Ganesa K.
A professional investor with 5 years of experience working with various financial instruments, runs his own blog and advises investors. Own effective methods and information support for investments.
Which account type is more profitable?
Financial benefits depend on several factors:
- investment amount;
- bidding strategy;
- availability of official income;
- experience and qualifications.
Note!
Trading through foreign intermediaries, especially through large ones, involves lower commissions in comparison with the conditions of the Moscow Exchange.
IIS makes it possible to return up to 156 thousand rubles in the first three years, provided that the investor is a personal income tax payer. Moreover, to receive money, it is enough to top up your balance and then submit a declaration to the Federal Tax Service.
The second type of IIS benefit is exemption from income taxes . But it makes sense if the main income is dividends or profit from speculation (the purchase price is lower than the sale price / face value at maturity).
Coupon interest on government and municipal bonds is not taxed at all, regardless of account type. Therefore, when investing in such securities, it is more profitable to open an IIS and return personal income tax.
Financial instruments
BCS clients are given access to all sections of the Moscow Exchange, the stock market of the St. Petersburg Exchange and over-the-counter transactions.
Investment account restrictions do not allow clients to use foreign platforms.
The majority of brokers limit operations on IIS to the stock and derivatives sections of the MB. There is no access to the St. Petersburg exchange.
BCS clients can buy and sell:
- shares, bonds, units of mutual funds, depository receipts, MIS, ETF, Eurobonds (MB stock market);
- futures and options (MB derivatives section);
- foreign currency (MB foreign exchange market);
- shares of foreign companies (St. Petersburg stock market).
The terms of circulation of “people's bonds” - OFZ-n do not provide for their acquisition through brokers.
How does an IIS differ from a deposit?
The key difference comes down to the level of benefit that becomes available to the account holder. In most cases, interest on deposits does not exceed 8.5% per annum (in rubles). And this is the only available type of income in this case.
When choosing a deposit, you will receive only fixed income in the form of interest. When an IIS is used, several sources of profit become available:
- Tax deduction. Only thanks to the return of 13% personal income tax does an individual account become more profitable, even if the annual return on the asset is slightly less than the contribution rate at the bank.
- Income from stock trading. Another advantage is that the funds can be managed by a management company that attracts experienced specialists. In this case, the chances of receiving a good annual income (on average 15%) increase significantly.
It is important to remember that there is no insurance in case of bankruptcy of an investment fund.
Risks
A brokerage account is certainly a riskier investment vehicle than an investment account.
It provides users with ample opportunities - trading unlimited amounts, access to different financial markets, margin trading (purchase of securities on credit). However, the degree of risk is determined not by the type of account, but by the chosen strategy.
The conservative method involves a one-time investment of money and expectation of profitability. No bidding or resale. With this approach, risks are reduced, since negative dynamics will not absorb income.
However, there is a possibility that profitability will fall, for example, if you take out bonds with a variable coupon or if dividends are not distributed on shares. The same factors include issuer default.
The speculative or active method is the use of different strategies, including making money on positive and negative dynamics. This option is more risky, especially for those who do not have the skills to analyze and predict market price fluctuations. You can either make money or lose money by falling and rising in the value of a stock or bond.
Thus, financial risks are associated not with a specific type of account, but with the specifics of investment activity.
Since all securities are stored not in the intermediary’s accounts, but in the depository (custody account), bankruptcy of the broker or management company is not dangerous. The investor just needs to transfer the assets to another specialist and continue trading.
