When you buy Deutsche Bank shares, you invest in the largest European bank. Yet, this bank is certainly not completely 'clean'. The Deutsche Bank makes various dubious investments and the results have not always been good. In this analysis, you will read everything you need to know before investing in Deutsche Bank. You can also request the current Deutsche Bank stock price here.
How can you actively invest in Deutsche Bank?
Smart investors are active investors. When you have the time to study the price in detail, you can take advantage of the smallest price movements. If you had bought Deutsche Bank shares, and they get fined, this would not have been good for your investment. As an active investor, however, you can take a short position with which you can achieve a positive result when the stock price falls.
But where can you actually actively trade in Deutsche Bank shares? A good party to do this is Plus500. With Plus500 you can actively trade CFDs entirely risk-free with a demo. Use the button below to open a free demo account straight away:
Where can you buy Deutsche Bank shares?
Before you buy shares, it is important that you have confidence in the future. Deutsche Bank has made some wrong decisions in the past. Do you think the company has a better vision for the future? Then you can certainly consider buying Deutsche Bank shares. A good party to buy the shares is eToro. At eToro, you can buy any share without commissions. Use the button below to open an account immediately:
What is Deutsche Bank's current share price?
Are you curious about the current Deutsche Bank share price? Below you can see the CFD price of this interesting bank. You can also use the buttons to directly open a position whenever you want.
How can you buy Deutsche Bank shares?
Before you can buy Deutsche Bank shares, you have to go through a few steps. In this part of the article, we will discuss how you can buy Deutsche Bank shares yourself via the internet.
Select a broker
A broker is a company where you can buy & sell shares as a private individual. With the best brokers you can create a free account. After you have left your details, you can immediately start investing. Are you curious about the best stockbrokers? In our overview of brokers you can immediately find out which broker you can invest with:
Then you have to think about the amount of money you want to buy Deutsche Bank shares for. With some brokers, you can invest as little as $100 in Deutsche Bank shares. This allows you to invest even a small amount in this well-known bank. It is recommended that you do not deposit more money into your investment account than you use immediately: at some brokers, you pay costs over unused money in your account.
Place a share order
As soon as your account is ready to make investments, you can place a share order. You can choose between a market order with which you buy the shares directly at the current price and a limit order with which you can set a price at which you buy the shares. The costs you pay for your share order vary widely: some brokers do not charge any purchase costs at all, while other brokers charge you a few pounds for each order.
Evaluate your investment
Once you have bought the Deutsche Bank shares, it is important to keep a close eye on your investment. For example, you can keep track of whether Deutsche Bank is still operating profitably. You can also compare the bank with its main competitors. Does the investment no longer fit within your investment plan? Then it may be wise to sell your Deutsche Bank shares.
Contents of the Deutsche Bank analysis
- What does the bank do?
- What is the competition from Deutsche Bank?
- What are the strengths of Deutsche Bank shares?
- What are the risks of investing in Deutsche Bank?
Deutsche Bank was founded in Berlin in 1870. The bank's head office is located in Frankfurt am Main. Deutsche Bank is a global bank with a focus on the business market. The bank consists of three parts, each of which focuses on individual activities:
- For example, Corparate & Investment Bank focuses on large companies and the trade in securities and foreign currencies.
- The Private @ Commercial bank department provides banking services to private individuals and small and medium-sized enterprises.
- The third component is Asset Management.
Deutsche Bank is an internationally operating bank that wishes to remain one of the largest European parties. Nevertheless, competition is fierce and the bank will have to stay ahead of these parties. But which banks are actually the company's biggest competitors? According to our analysis, you have to watch out for the following other companies:
- BNP Paribas
- China Construction Bank Corporation
- Bank of America
- National Australia Bank
- Standard Chartered Bank
- Royal Bank of Scotland
Before you buy Deutsche Bank shares, it is interesting to look at the shares of these banks as well. That way, you can see whether an investment in Deutsche Bank is really the best decision. Will another bank perhaps perform better in the future? Then it would be better to buy shares in that company.
The internationally strong position is, of course, a good argument in favour of buying Deutsche Bank shares. The bank is the largest European bank and its extensive range of services allows it to serve different types of customers. These include individual, private clients, but also large asset managers. This diversification reduces the bank's dependence on one type of service or on one specific region.
Another advantage is that the Deutsche Bank brand is very well known. Recognizability is an important factor in the success of any company. Because the brand name is already very well-known, customers will be more inclined to choose Deutsche Bank. Nevertheless, investing in Deutsche Bank also involves the necessary risks.
It is important to remember that Deutsche Bank shares are very cyclical. This means that the shares perform well when the economy is performing well. During such periods, banks can make good profits from investments and do not lose money through bad loans. Therefore, be careful not to invest in Deutsche Bank when the economy is performing poorly.
Another risk that applies to the entire banking sector is the increasingly stringent legislation. Banks have to comply with more and more rules, and they have to incur many extra costs to comply with all the new regulations. This is also a risk for Deutsche Bank. If the bank makes a bad decision, the company can count on hefty fines.
Deutsche Bank's reputation has also had some dents in the past. For example, the company has made several dubious investments, received several fines and carried out a major reorganization. In the rest of this analysis, we will discuss these individual events in more detail.
The Deutsche Bank has been widely criticized for investing in certain unethical companies. For example, EUR 1.7 billion was invested in companies guilty of deforestation and human rights violations. The bank also has contacts with the companies Enzi and Bayer, which seriously damage the environment.
In addition, the Deutsche Bank has contacts with companies such as Gazprom, Glencore and G4S that are known for violating human rights. Deutsche Bank therefore invested in companies that violate human rights or damage the environment. No less than USD 7 billion was also invested in nuclear weapons companies.
Sustainable investment is receiving more and more attention. If consumers find it more important for companies to operate responsibly, this type of investment can ruin a company's reputation. Do you believe that people will be less likely to do business if Deutsche Bank continues these practices? Then perhaps it would be better to postpone buying Deutsche Bank shares.
Fines paid by Deutsche Bank
Deutsche Bank has had to pay various fines in the past. For example, in 2015 the bank paid a fine of around USD 2.3 billion to UK and US regulators. This was a Labour-related fine.
In 2016, the Bank had to pay a fine because of the junk mortgages in which the company was active. The Bank could reach a settlement with the US government for USD 7.2 billion, of which USD 3.1 billion was a fine. The remainder was used to relieve the mortgages of aggrieved US customers.
This type of business is, of course, not good for a bank's reputation. The price of a share is determined by the interplay of supply and demand between buyers and sellers on the stock exchange. If a bank continues to do shady things, this can have a negative impact on the share price. Pay attention to this before investing in Deutsche Bank shares.
Disaster year for the Deutsche Bank
The year 2019 is a disastrous year for the Deutsche Bank. The reorganization will involve high costs and more than 18,000 jobs will be lost. The result will be a loss of no less than EUR 3.1 billion. The reorganization must be completed in 2022. The cost of the reorganization is approximately EUR 7.4 billion. The unsuccessful merger with Commerz Bank also contributes to Deutsche Bank's mediocre results.
Do you think this reorganization is going to be beneficial? Then this could be a good time to buy Deutsche Bank Shares. However, a reorganization can also be detrimental. Perhaps they have dismissed the wrong employees and this will be at the expense of the company's profitability. It is important to make a proper analysis of the bank's future capabilities before you buy the shares.
The history of Deutsche Bank
The Deutsche Bank was set up in Berlin in 1870 to promote the financing of trade and German exports. The bank was meant to facilitate trade relations between Germany, other European countries and overseas territories. The bank opened branches in Shanghai (1872), London (1873) and South America (1874-1886), among others. The bank also financed major projects such as the North Pacific Railroad in the US. Alliances were formed with regional banks in the second half of the 1990s.
After 1918, the German banks were in a bad state, followed by many liquidations. The banks Deutsche Bank and Disconto-Gesellschaft merged in 1929, making it the largest bank in Germany. The name Deutsche Bank-Disconto-Gesellschaft was changed back to Deutsche Bank in 1937.
In the years 1993-1945, the Deutsche Bank played a dubious role. For example, it was involved in the restructuring of Jewish companies. In November 1938, the bank was involved in 383 seizures. It also admitted its involvement in the construction of the Auschwitz concentration camp.
After the Second World War, the Allies ordered the bank to be divided into 10 regional banks. Following a merger in 1952, three banks were created and merged into Deutsche Bank AG in 1957. In the 1970s, the bank expanded into new regions, opening new branches in Moscow, Tokyo and London, among others. Through acquisitions of other banks, the company grew.