How to trade on the Moscow Exchange as an individual - specific steps for a novice trader

This material is a kind of introductory lecture for those who want to get into investing, but don’t know where exactly to start. If, after reading it, you want to delve deeper into the topic, you can take the full training course on the Investments 101 portal. The course materials were prepared jointly with professional traders and analysts at BCS Broker and combine theoretical blocks with practical exercises. So what are stocks?

A share is a security that gives its owner the right to participate in the management of the company and receive a portion of its profits.

In a simplified form, everything looks like this: an enterprise needs money for development, so it turns to investors for help, who provide the necessary amount. In return, they receive ownership of a certain share of the company, expressed in shares.

The total nominal value of the shares must be an amount equal to the authorized capital of the joint stock company. Investors can be both individuals and legal entities, and their share in the share capital is determined by the ratio of the number of securities owned by the company to the total volume of its shares. The company returns part of the annual profit to shareholders as dividends - a kind of gratitude for financial support.

Why did I decide to trade on the stock exchange?

Hi all!
I have long wanted to write specific information about how to trade on the Moscow Exchange as an individual. But for some reason it seemed to me that this information was available to everyone. But it turned out that people stumble at this step and deprive themselves of excellent earnings on the Internet without investment. By the way, if we don’t know each other yet, you can read about me and the successes of my students here.

What can I say, I myself stumbled at this important stage in my trading career. We could have started earlier, much earlier. After all, seeing an opportunity to earn money does not mean starting to earn money.

Even on RBC, I saw these quote boards, monotonous dialogues with smart-looking guys over 50 who spent hours predicting the direction of the market. And the information seemed so damn complicated that even I had no desire to poke my nose into it.

And I, for a moment, received two higher educations, both with honors. But in the end everything turned out to be much simpler, because even in any swamp there is an excellent path along which you can go through everything easily and quickly.

1. How to increase your brokerage account from 50,000 to 100,000 rubles. Description in the VKontakte group

2. How to increase your brokerage account from 50,000 to 100,000 rubles. Description in the group In the telegram channel

Therefore, friends, I suggest you find out the path along the path, and it’s up to you to move along it or pass by. But it's important not to screw it up at the very beginning.

After all, who knows, maybe this is your only chance to change your life? Moreover, in our time, higher education is already losing its power.

The time has come to master professions that directly lead to earnings.

Do you agree? Then let's begin. But let's start with how I ended up there. The answer may seem banal to you:

1. The same thirst for money.
2. Nauseous reflex to hired work

If for the first reason everything is very clear. The second one is definitely worth explaining. It so happened that there was no advanced environment around me. Who could have foreseen some times, opportunities, or discerned in me the makings of some kind of talent, to which I could definitely devote my life.

And in the end, I had to go to study in a class at the railway university only because my loved ones firmly believed in the well-being of this idea. And there was nowhere else to study in a small provincial town in Siberia.

Let's just say, looking back now, there were opportunities. I could have entered any other university. But the influence of the opinions of my environment, which for some reason decided that they knew better where I should go, cut off all these opportunities in the bud. Result: I had to work at a job I didn’t like.

And the only right decision to run away from there and take a break was the decision to go on maternity leave. And then on the second maternity leave. And the first time I heard about the Moscow Exchange was on maternity leave. I really liked this idea because I could work without leaving home. And finally quit the job I didn’t like, even though it brought me good money.

How and why I chose the Moscow Exchange

Everything is simple here. I was hooked on the idea of ​​trading shares, but we don’t have any other options in our country. The choice is small and I had to trade on the Moscow Exchange. And it turned out:

In Russia, the Moscow Exchange is the only platform where you can buy shares of Russian companies.

Although not so, I heard not about the Moscow Exchange, but about stocks and a broker who teaches trading for free. And only then I found out that these stocks would have to be traded on the Moscow Exchange. To be honest, I wasn’t particularly interested in where to trade, it was important , so that it doesn’t look like another “MMM” from the 90s.

What are shares and why are they needed?

A security that certifies your eligibility as an investor. With the purchase of shares, the investor becomes a co-owner of the company. Obtains rights in accordance with the company's charter and legislation. For dividends, participation in shareholders' meetings, the right to a share after the bankruptcy of a joint-stock company.

How much money do you need to buy shares?

I will consider the Russian market.

To purchase shares, 1000 rubles are enough. Strictly speaking, to purchase you need as much money as is enough for 1 share. Purchasing one share of Sberbank and Gazprom will cost 220-240 rubles. (October 2019), LUKOIL - 5,400 rubles, Norilsk Nickel - 16,000 rubles. That is, a purchase for 1000 rubles. Sberbank and Gazprom are possible, but there is not enough money for the rest.

Hurry up to take advantage of the doubling of the tax deduction until December 31, 2022.

The cost of 1 share in rubles based on trading results on October 12, 2019 on the Moscow Exchange. The top 20 companies by trading turnover that day. Source: MICEX website.

In this case, you need to take into account the commissions of the exchange and broker. Additionally, the broker will (usually) charge a fee for maintaining the brokerage account if the assets are less than a certain amount. Example - if the account balance is less than 50,000 rubles. IT Invest will write off 300 rubles, Opening - 249 rubles. The process of buying shares in this situation becomes economically meaningless.

The minimum amount for investment is 30–50 thousand rubles. This should not be borrowed funds or essential money, which in a month may be urgently needed for the family budget. An important aspect is building a trading strategy after purchasing shares. It is difficult or impossible to do this for a small amount.

How the exchange functions and how trading occurs on it

As I already wrote, this is a platform. Bidding is carried out on it:

1. Shares
2. Payami
3. Depository receipts
4. Bonds
5. Futures and options contracts
6. With the purchase and sale of currency with the possibility of withdrawing it to bank foreign currency accounts
7. Currency speculation
8. There is even a market for precious metals and a market for grain and sugar.

commodity exchange home page

Where does all this come from on the stock exchange? Are they delivered by car?

If everything is more or less clear about precious metals, grain, and currencies, then what about securities? In fact, securities are issued to attract money. Any company or state can issue such securities. One way to get money for your further development is to provide a share of your company.

Who can get them from very easily?

For investors and ordinary citizens. Buyers become co-owners of the company. The company's capital is divided into micro shares and there can be a lot of such co-owners.

This company carries out state registration of shares in the register and goes out to meet buyers at the Moscow Stock Exchange. You can borrow money from buyers by giving them bonds. And then pay off according to the conditions specified in this very promissory note. Something that benefits everyone.

This option is also beneficial for us individuals.

And speculation with securities, with futures, with currencies, buying bonds, but under one condition...

We need to think about what we are doing, why we are doing it, and what we want to get.

That's all! And I also forgot to say that on the Moscow Exchange trading is divided into categories.

1. Stock market
2. Derivatives market
3. Currency market
4. Commodity market

Okay, let's talk briefly about it, but who is the owner of this Field of Miracles? The owner is not the state, but the Moscow Interbank Currency Exchange. The Moscow Exchange appeared after the merger of two different exchanges: MICEX and RTS. But personally, all this is not interesting to me, what matters is who manages it and what federal laws control its activities.

On the exchange’s website itself, it was not without difficulty that I found information about who manages such a huge platform. The governing bodies of the Moscow Exchange are:

1. General Meeting of Shareholders
2. Supervisory Board
3. Board and Chairman of the Board

The control body is the Audit Commission. This is what I found from the REGULATIONS on the Audit Commission of the Public Joint Stock Company "Moscow Exchange MICEX-RTS" dated April 26, 2016, minutes No. 54:

From the regulations on the Audit Commission of the Public Joint Stock Company "Moscow Exchange MICEX-RTS" dated April 26, 2016, minutes No. 54

Everything is in our Russian style, a lot is written, but little is understandable.

But so far I have not had any problems with the exchange, which means that the exchange and the broker perform their functions well. The exchange ensures the security of the transaction. And its activities are regulated by the laws of the Russian Federation:

Federal Law No. 208-FZ of December 26, 1995 “On Joint Stock Companies”

Civil Code of the Russian Federation (part two) N 14-FZ dated January 26, 1996

Federal Law No. 307-FZ of December 30, 2008 “On Auditing Activities”

Federal Law No. 39-FZ of April 22, 1996 “On the Securities Market”

Federal Law No. 325-FZ of November 21, 2011 “On Organized Auctions”

Federal Law No. 7-FZ of 02/07/2011 “On clearing and clearing activities”

And this is not the entire list of laws. And there are also regulatory legal acts. I have cited only the most basic ones. And at the end of this section of the article, it is worth noting that the Moscow Exchange is gaining momentum. See for yourself. I found such data in the archives of the Moscow Exchange.

Since 2013, the number of individuals involved in trading activities has increased 2.2 times.

And this is in just 5 years. Look for yourself, in the table this dynamics can be traced from left to right.

Of course, this is very little if we take into account that according to https://www.statdata.ru/ the population of the Russian Federation as of January 1, 2019 is 146,780,720 people. Even if we take only ¼ of these 146 million people who, by age and education, can trade on the stock exchange. This will be only 5% of 37 million people.

We are at the very beginning of this journey.

Bank deposits vs stock market: what to choose for a novice investor

Bank deposits in rubles

The simplest and most common investment instrument is still bank deposits. Now the total volume of household deposits in Russian banks is about 29 trillion rubles
.

pros

Firstly, reliability and predictability. All conditions are determined in advance and are not subject to change for the duration of the deposit.

Secondly, profitable seasonal promotions. In December, banks traditionally attract customers with favorable conditions for deposits. As a rule, New Year's promotions involve placing deposits with increased rates for certain periods. Rates fluctuate at 5.25-6.5%.

Minuses

The main disadvantage of this method of placing funds is the low profitability, even taking into account seasonal promotions. According to Central Bank statistics, in mid-November the average maximum rate on individual deposits reached its lowest level since 2009 - 6.03%, Kommersant

. This indicator has been steadily falling since May 2022 following the reduction of the Central Bank’s key rate. In the past year it was reduced five times. Since the beginning of the year, it has decreased by a total of 1.25 percentage points. — from 7.75% to the current level of 6.25%. It is possible that it will be reduced again. Following this, rates on bank deposits will also fall.

close

100%

Bank opening"

Another problem is that seasonal promotions have a limited validity period. The client does not have much time to think and make an informed investment decision. At the end of the deposit’s validity period, the favorable conditions turn into ordinary ones - as a rule, it is impossible to prolong a more profitable deposit. Often, higher rates are accompanied by restrictions such as the impossibility of early closing of a deposit without a penalty, the inability to replenish funds, etc. And, of course, it is worth mentioning that this year only nine of the 35 largest Russian banks launched seasonal promotions - the choice is small.

Risks

For novice investors, bank deposits remain one of the most risk-free instruments. However, do not forget about the limitation on the amount of the insured amount (RUB 1.4 million). In the event of bankruptcy of a bank that is part of the deposit insurance system, you are guaranteed to receive funds back only up to this amount.

Buying Russian shares

Investments in Russian stocks have become a trend in 2019. Over the period since the beginning of the year, the Moscow Exchange index (calculated based on share prices of leading Russian companies) has grown by approximately 24%. This is one of the best indicators among world exchanges. There are more and more private investors in the stock market: since January 2019, more than 1.5 million citizens have opened brokerage accounts on the Moscow Exchange; in total, more than 3.5 million accounts are registered on the trading platform. Only in November, according to the Kommersant

, retail investors invested 22 billion rubles in shares of Russian enterprises.

pros

has risen in price by almost 31% in 2022

(according to Bloomberg data on the dynamics of the MSCI index). The driver of growth this year was shares of companies in the oil and gas sector. For example, Gazprom shares rose in price by 63.4%, Surgutneftegaz by 72%, and Lukoil by almost 24%. It is obvious that investing in stocks can bring higher returns compared to bank deposits.

In addition, it is possible to receive income not only from the profitable sale of shares during periods of increasing prices, but also from dividends. At the end of last year, Russian companies broke the record for paying dividends to their shareholders, Forbes reported in September (2.6 trillion rubles, including interim payments, versus 1.66 trillion rubles a year earlier, according to the registrar). Last year's leaders were preferred shares of Surgutneftegaz (+15.56% per share). Enterprises in the metallurgical sector (in particular, Norilsk Nickel) collectively increased payments by 72%, and in the banking sector (due to shares of Sberbank) there was an increase

1.3 times.

At the same time, you can significantly diversify your portfolio. By investing in the Russian market, where there are “blue chips” (shares of the largest and most capitalized (shares of small but promising enterprises), you can constantly “shuffle” assets in the right proportions. This strategy protects funds during periods of market instability: if any Some stocks are falling in price, while others may rise at the same time.

Another advantage is the ability to independently choose an investment strategy: from the most conservative to the most aggressive. Unlike bank deposits, where all conditions are predetermined in advance, investments in Russian shares allow you to flexibly manage your portfolio in response to changing market conditions.

Russian shares can be purchased using an individual investment account (IIA). When investing in an individual investment account, you can receive a tax break: either on the amount of funds and assets deposited into the account (maximum 400 thousand rubles), or on income received as a result of investments. The state will return 13% of this or that amount to you in the form of a tax deduction (depending on the type of IIS you choose).

close

100%

Bank opening"

Russian brokers strive to be in trend and expand the possibilities of remote customer service. You can open a brokerage account and trade in the stock market without leaving your couch. So, "Opening Broker"

offers to open an account directly in the mobile application (available in the App Store and Google Play app stores for free).
And IIS can be opened from your personal account. There you can also view all important information on your investments, for example, dividends paid. All trading activity is possible through a smartphone: you can monitor your account status, view quotes, and make transactions with any financial instruments. In December, the Otkritie Broker application received a gold award at the Tagline Awards 2019
in the category “Excellence in Execution / Usability.”

And one more pleasant detail: you don’t have to deal with tax problems yourself. A broker is a tax agent for an individual and is responsible for withholding personal income tax from him (for example, for income received from dividends).

Minuses

To invest in the stock market, you need to understand at least a little about its structure, so a sufficient level of financial literacy is necessary. But even knowledge and experience do not guarantee income when investing in stock market instruments.

Another important point is the lack of an investment insurance system. Therefore, you need to carefully check the information about the financial intermediary with whom you are going to cooperate. This will help avoid the risk of broker bankruptcy.

Risks

The most serious risk involves losing some or all of your investment. The market is capricious and influenced by many factors. Sometimes even a professional, let alone a novice investor, cannot foresee everything. The “cure” for disappointments in the market will be portfolio diversification, actions within the risk profile and healthy conservatism in strategies. The help of an investment adviser will be a good help.

Bank deposits in foreign currency

This tool, previously very popular, has lost its position by 2022. Foreign currency deposits turned out to be unprofitable for both banks and their clients.

pros

If you constantly travel abroad and often pay in dollars or euros, it is more profitable to have currency on hand - this way you can save on conversions. In addition, during periods of weakening of the ruble, foreign currency deposits provide income due to exchange rate differences. But that's where the benefits end.

Minuses

Most importantly, in 2022, the profitability of foreign currency deposits in Russian banks has decreased significantly. Now the rates on deposits in US dollars on average do not exceed 1.08% (according to the Central Bank for October 2022 - the weighted average interest rates on deposits of individuals in US dollars attracted by credit institutions in the Russian Federation as a whole, published on December 9. And the yield on deposits in euros have even approached negative values ​​- some banks have already introduced fees for storing funds in euros, as they incur losses because of this. Some banks have completely abandoned euro deposit products.

If earlier, during periods of weakening of the ruble, owners of foreign currency deposits were able to make money on the difference in exchange rates, now this possibility is in question. During the current year, the domestic currency has strengthened. The euro to ruble exchange rate from December 2022 to December 2019 decreased by 7%, and the dollar exchange rate by 3% (calculation based on Moscow Exchange data).

And, of course, not all types of foreign currency deposits allow you to withdraw funds in the required amount upon request. If there is a need for constant purchases abroad in dollars or euros, then it is better to simply open a foreign currency account.

Risks

Unpredictability of foreign exchange market movements.

Purchasing foreign shares

Such financial instruments are no longer exotic and are attracting more and more private investors. More than 1000 shares of foreign companies (including (Apple, Alibaba, Facebook, Netflix, The Coca-Cola, Wal-Mart Stores, Exxon Mobil, First Solar, Boeing, General Electric, Visa, Bank of America, Morgan Stanley) can be purchased on St. -Petersburg Exchange. Securities are traded in US dollars. Access to these assets is provided by many Russian financial intermediaries, for example, Otkritie Broker

. Clients of this broker can buy shares of world market leaders not only through the trading terminal, but also using their personal account and mobile application in any place convenient for them.

pros

A huge selection of the highest quality assets from around the world allows you to significantly diversify your investment portfolio and choose the most profitable options. Prices for foreign blue chips are rising quite steadily. Thus, the Wall Street Journal calculated that from January to June 2022, the American S&P 500 index (calculated based on the value of shares of the largest American companies by market capitalization) grew by 17%. This is a record for the last 22 years. The shares of the cosmetics company Avon Products became the leaders of the half-year, the price of which increased by 2.5 times. Papers of microchip manufacturer AMD increased in price

64.5%, shares of the Ferrari automaker - 62.33%.

It is also important that many companies consistently pay dividends for many years in a row. A significant part of them is available to Russian investors. For example, the return on shares of Cintas Corporation (provides services to businesses - from cleaning premises and sewing uniforms to corporate training), included in the S&P 500 index, for 5 years amounted to 337% (taking into account the growth in the value of securities), and their current dividend yield is 0 .79%. Cintas Corporation has paid dividends for 25 consecutive years.

A large number of strategies and investment ideas are available for Russian clients. Thus, at Otkritie Broker, clients with the “Your Financial Analyst” tariff plans receive trading ideas on a regular basis. Universal", "Your financial analyst. Investor", "Personal Broker" and "Advisory".

Foreign securities, just like Russian ones, can be purchased using an IIS. At Otkritie Broker, this can also be done through the mobile application.

Minuses

A higher level of financial literacy is needed. In addition, knowledge of English is desirable in order to obtain information about foreign companies from primary sources.

And the broker is not a tax agent for dividends received from foreign issuers. You will have to submit the declaration yourself through the tax office.

Risks

The foreign market is less clear to the Russian investor, especially a beginner. There is a chance to make a mistake and misjudge the situation.

Bank deposits are becoming less attractive due to the ongoing process of rate cuts. The stock market, in particular the stock market, both Russian and foreign, is gaining popularity.

If you take into account all the risks and choose the right financial intermediary, you will be able to earn more on these instruments in 2022. Happy investing in the New Year!

Otkritie Broker JSC, license of a professional participant in the securities market to carry out brokerage activities No. 045-06097-100000, issued by the Federal Securities Commission of Russia on June 28, 2002 (without validity period

). Otkritie Broker JSC does not open bank accounts for clients and does not accept client funds as deposits. Investing in financial instruments is associated with a high degree of risk and does not imply any guarantees regarding the return of the principal invested amount or the receipt of any income. You can familiarize yourself with the risks associated with carrying out transactions on the financial market in section 11 of the Brokerage Services Agreement (published on the website open-broker.ru in the “Documents and Information Disclosure” section).

What do you need to start trading privately? face on the Moscow Exchange

The exchange itself is simply an organizer of trading. Sellers and buyers meet here. But why can’t buyers and sellers meet without intermediaries? What's stopping them?

Yes, everything is simple. To make it even clearer why we need an exchange if we want to trade without fear of being deceived with our assets: Each of you will agree that it is safer to buy dairy products in a centralized store than from a car on the street.

It’s the same here. The procedure for selecting bidders is very complicated. It won’t be like you bought shares, and the next day the company disappeared from the face of the Earth. This, of course, is just an example. But it clearly shows the essence. The Moscow Exchange has special requirements for participants.

All these requirements can be viewed on the exchange website.

Here's a summary of the requirements:

To Legal Entities

1. High long-term credit rating
2. Compliance with mandatory standards of the Bank of Russia or the competent authority of the state of establishment of the non-resident Bank
3. License for banking operations (validity period)
4. Professional Participant License

This is the bare minimum requirement.

As for individuals, in fact, the article itself is about this, everything is much simpler here. Individuals can participate in the markets of the Moscow Exchange as clients of trading participants. This means that neither you nor I need to fulfill the requirements for admission to participation in the auction.

1. It is enough to find one of the trading participants and conclude a brokerage service agreement with him.
2. Connect to the exchange using appropriate programs
3. Deposit funds
4. Learn to trade
5. To earn money little by little or not slowly)))

Where to start trading on the Moscow Exchange and important subtleties of work

1. The very first thing you need is a computer.

Moreover, even the weakest computer handles the QUIK terminal well. In addition, in the terminal settings itself, you can disable part of the information flow that you will not use in your work.

2. Internet required.

It is desirable that there is also a backup channel. I usually have a backup channel from my phone. I just distribute the Internet from my phone to my computer.

3. Capital is needed.

40,000-50,000 rubles is enough to get started. Of course, there is no talk of huge earnings here. But you will earn money for the chocolate.

4. Don’t try to study everything at once.

Choose something intuitively. Understand trading, collect statistics, and then you can try something else.

Common mistakes made by newbies

Basic:

1. Using leverage.
2. Playing short is for a fall. You won't be able to sit through it.
3. Closing a position by an investor after the first drawdown in price. With a balanced portfolio, a decrease in the price of one instrument is compensated by an increase in another.
4. Playing against the trend.
5. Do not place stop orders.
6. The investor does not revise the portfolio, leaving unsuccessful assets.
7. "Exchange addiction." You constantly want to make a deal without thinking about the result.
8. Bad choice of broker. The tariff plan or other conditions do not apply. Change broker.
9. Does not use expert advice.

How to register and open an account on MOEX for an individual

1. To do this, you need to find a company or bank that participates in trading on the exchange.

See the list of participants here. Take the time to make sure that you are not being deceived by some fly-by-night companies. They must also have a brokerage license from the Bank of Russia.

2.Come to their office or through their official page on the Internet (usually a website) and enter into a brokerage service agreement, thereby opening a brokerage account.

3.After this, you will generate a login and password under which you will log into the broker’s system to make transactions, or into the trading terminal.

If you still don’t trust anyone, you have doubts, then you can choose a broker through the official website of the Moscow Exchange.

Official page for opening an account on the exchange

This will definitely be reliable, especially if you live not in a large city, but somewhere in a village.

When I clicked on the “Open account” button and registered through a Google account, I was offered only two brokers.

By default, the exchange offers brokers: Otkritie and KIT Finance

And if I choose a broker myself on the same page of the Moscow Exchange website, then the choice is very large. I need to click on the “Select broker.” button.

Use this form to open a list of brokers

See for yourself. And this is only a part of the brokers. And there are more interesting brokers than brokers: Otkritie and Kit Finance in terms of indicators.

List of brokers on the Moscow Exchange (this is only part)

How to buy securities based on data

I will consider some fundamental analysis multipliers that are used to assess the performance of a company.

ebitda

“Dirty” profit without deduction of tax, depreciation, % of debt load. Shows how capable a company is of generating profits, servicing debts and reinvesting in the business.

pe or price and profit

Shows the amount of time (in years) for the company to pay back. Ratio of profit to market capitalization. The default value is <5 – the company is undervalued.

ps price and sales volume

Helps compare issuers with zero or negative yields. Calculated based on the market value of the issuer. Capitalization is divided by revenue. Multiplier <2 – the company is undervalued. Those. for 2 rubles investment 1 rub. implementation.

Choosing a broker

How to trade through Sberbank online

Despite the fact that my broker is not Sberbank, I decided to write about how to trade through Sberbank. When I was looking into the development of the Moscow Exchange, I came across some very interesting data. Take a look for yourself:

According to the exchange itself, as of November 2022, the largest number of clients attracted to the Moscow Exchange came from Sberbank.

Only this number includes not only individuals, but also legal entities, foreign persons, clients who have transferred their money to trust management. But the fact remains. Sberbank didn’t even have to sweat.

According to the Vedomosti newspaper, in terms of the number of transactions, Sberbank occupies 50% of the market for accepting card payments.

All that remains is to create technical capabilities for their clients to trade on the Moscow Exchange. Which they successfully did. After all, you don’t even need to look for clients, they already exist, you just need a push, a hint, and it’s done. Which is actually what can be seen in the table from the archives of the Moscow Stock Exchange.

What’s even more interesting is that in terms of the number of clients who have made at least one transaction, Sberbank is ahead of everyone.

I think that most new recruits who want to trade are interested in how to do it all without coming to the Sberbank office?

Yes, Sberbank provides such an opportunity. And if you have a Sberbank personal account online, then you can enter into an agreement for brokerage services. In the OTHER section we find the subsection - Brokerage services.

In the “Other” section, open an account with Sberbank-online

Click on the button - Open a brokerage account.

Click on the button “Open an account" in Sberbank-online

When you click on brokerage services, a window will open with a list of options for interacting with Sberbank as a broker.

Select the market we are interested in

We select the markets we need to trade.

To put it very briefly, for trading shares of Russian companies we choose the Stock Market, for trading futures - the Futures Market.

And click on the CONTINUE button. This button will be highlighted under the list of markets, which is in the picture above. Select independent trading.

Tariffs from broker Sberbank

Be sure to indicate where to withdraw money from the brokerage account.

We indicate the card or account where to withdraw profits

Important! If you use borrowed funds, you need to check the box.

We tick the box when using borrowed funds.
Then we are offered to open an investment account, or refuse. I advise you to refuse, and then deal with this topic.

Choosing: to open or not to open an investment account

Be sure to select the purpose of opening a brokerage account by checking the box next to “Get additional income”

Check the box next to your goal for opening a brokerage account

The remaining data should not cause any difficulties when filling out: passport details, place of residence, etc.

Well, now we just have to choose what we will trade through.

I recommend choosing to trade through Quik on your computer.

Choosing to trade through Quik

We will be transferred to another window. In this window the following will be available for selection:

1. Sberbank Investor application
2. Computer program QUIK
3. WebQUIK in the browser
4. QUIK mobile applications

We choose the most reliable method of trading through the broker Sberbank, as a guide for trading on the Moscow Stock Exchange.

Choosing to install Quik for your computer

All! Everything is ready for trading through Sberbank!

How to trade through VTB online

We go to the official website of VTB Bank. Find the section-Investing

Opening a brokerage account through VTB Bank

Click on the button - Open an account.

Opening a brokerage account with VTB

But on the next page I was disappointed. It turns out that in order to open an account you need to become a VTB client? Or not ?

Nothing is clear. The navigation is weak, unlike the Sberbank website.

Opening an account with VTB

I sent a letter to technical support with a question.

I am not a VTB client. I would like to open a brokerage account for trading futures and shares on the Moscow Exchange as an individual. Is this possible? Without your bank cards and services. I am a client of Sberbank.

The answer was the following:

1.In the VTB My Investments application : the client fills out passport data and SNILS/TIN.

2. In the VTB Online mobile application : section “Showcase” -> in the “Investments” product, click on the button at the bottom of the screen “Open a brokerage account, IIS” -> The client is taken to the opening wizard. In step 1 of 3, you need to check your passport data and indicate your email address -> if all the data is correct, proceed to the next step by clicking the “All is correct” button -> in step 2 of 3, the client checks his consent to additionally open an IIS account in the “ field I instruct you to additionally open an IIS" or refuse to open an IIS in the field "I do not need to open an IIS" and click the "Continue" button -> in step 3 of 3 the client puts o and clicks the "Receive SMS/PUSH code" button

3.On the Bank’s website: section “Investments” -> indicate email and confirm passport data -> Client confirms the need to open a brokerage account -> confirm agreement with the terms of brokerage and depository services and risk declarations by entering the code received via SMS - > click the “Done” button.

4.The brokerage account/IIS account will be opened to the client within a few minutes. On the trading platform “Stock and Foreign Exchange Market of PJSC Moscow Exchange”, the client can begin trading on the same day if the Client opened an account in the first half of the day, otherwise on the next business day.

5.At the VTB Bank office.

Following all their instructions, at any stage I was transferred to this window. I can’t even get my UNK login online.

And on the “VTB My Investments Application” page, nothing can be completed or filled out at all.

I was unable to open an online brokerage account with VTB using any of the methods.

If you managed to open an online brokerage account, provided that you do not have any accounts or cards with this bank, then please write in the comments.

However, the bank promises on its website that a brokerage account will be opened immediately. In this case, the Client has the opportunity to start trading within 3 business days. To open a brokerage account at the Bank’s office, the Client must have the following documents with him:

1. Citizens of the Russian Federation: passport or other identification document in accordance with the legislation of the Russian Federation.
2. Foreign citizens: migration card, residence permit, foreign passport, certified notarized copy of the passport if registered.

Where can I buy shares

Let's look at the options for purchasing shares for an individual (how to sell is similar).

On the exchange

Buying shares of public companies on the stock exchange is the shortest route for an investor who wants to purchase securities. It is necessary to conclude an agreement for brokerage services with a professional participant in the securities market (RSM) - a broker.

Sign a depository service agreement to maintain records of shares. After this, buy shares on exchange trading yourself or give a purchase order to a broker. In the second case, you can contact an online stock store, for example, IC Freedom Finance.

In the bank

Large Russian banks, as a rule, are themselves brokers and participants in the securities market. These are Sberbank, VTB, Alfa Bank, Gazprombank, Tinkoff, Otkritie, etc. Brokerage activities are separated into a separate division. The scheme of working with them is the same as with a regular broker.

The second rare case is when the bank issues additional shares or conducts an IPO - initial public offering. As happened with the so-called “people’s” IPO of VTB in 2007.

At the issuer

From the issuer directly during an IPO or an over-the-counter transaction. Direct purchase option - above in the text (VTB IPO). At the same time, a joint stock company may not necessarily be a public company, that is, list its shares on the stock exchange. An option is the transfer of shares within a joint-stock company from one owner to another. Or the owner wanted to sell his shares to a third party, unless this is prohibited by the company’s charter.

For individuals and organizations

An over-the-counter purchase by an investor from the owner of securities directly is an over-the-counter transaction. Not prohibited by Russian legislation. At the depository, the shares are transferred to the new owner. Is it worth doing this if you can buy it on the stock exchange? Everyone decides for themselves.

Tariff selection

We have made sure that trading on the Moscow Exchange can be carried out through the Russian banks Sberbank and VTB. True, they were unable to open an account with VTB online without being a client before. The most important stage is to understand the tariffs for trading.

If on the Sberbank website I found the numbers I was interested in without any problems, then with VTB again everything turned out to be much more complicated.

Sberbank tariffs for trading on the Moscow Exchange

And don’t forget the exchange commission of 0.01% of the transaction amount.

VTB tariffs for trading on the Moscow Exchange

There is such a nuance at VTB that it is better to know about in advance before the start of your trading on the Moscow Exchange:

Anyone who enters into an agreement online, through the bank’s website or through VTB-My Investments, is automatically connected to the “My Online” tariff.

You won't be able to figure out the tariffs right away. In all sections and advertising landing pages there is a figure of 0.05% per transaction, whether in shares or futures. And upon deeper study of all the sections in the pdf file I found the following data:

Information about VTB broker tariffs

From the table it becomes clear that futures trading is not very cheap compared to Sberbank. There, the price for selling a contract is 0.5 rubles. There’s nothing wrong with this, you say. But at Sberbank everything is done for the people. And everything is clear about the tariffs. And at VTB I had to spend time to find the coveted figure.

From VTB, even at the first acquaintance, I developed a negative feeling.

The commission for futures trading is 2 times higher than the Sberbank commission. It is not surprising that it is not easy to find when you first meet.

Conclusion: Of the two banks reviewed, I recommend Sberbank.

Step-by-step instructions: how to buy shares for an ordinary person

Today, purchasing securities is a technically simple process. The steps to be taken are below.

We evaluate our own financial resources

I advise you to invest at least 50,000 rubles in the purchase of shares. This is the optimal minimum amount for forming a starting long-term portfolio or speculation. For large brokers, this same amount is the starting point for charging an additional commission (Otkritie, IT Invest, etc.). If the client’s assets are smaller, there is an additional fee of 250-300 rubles per month.

The money that an investor invests in the purchase of shares must be free of obligations (credit, etc.), not least in the family budget. Trading on the stock exchange does not like haste. These are, first of all, long-term relationships, investments in the future when investing.

Deciding on a strategy

Decide on your future investment strategy and timing. Buying long-term means a year or more. The main strategies are dividend-paying, undervalued shares based on fundamental indicators, the best based on the reporting for the previous period. Or strategies taking into account various factors. An example is the selection of undervalued companies with high dividend levels.

Choosing trading platforms

For a Russian resident, the choice is possible from Russian and foreign trading platforms. Russian - without an alternative to the largest Moscow Exchange. Leading brokers, in addition to the Moscow one, also provide access to the instruments of the St. Petersburg Stock Exchange. The entry threshold is 30–50 thousand rubles to start.

Foreign - primarily American exchanges - NYSE, CME, NASDAQ. Access through a Russian or foreign broker. The minimum amount for trading is $10,000. If through a Russian broker with the status of “qualified investor” - 6 million rubles.

There are an order of magnitude more liquid instruments on American exchanges, but it is also technically more difficult to trade there. Starting from the difficulties of opening a trading account to protecting the rights of an investor who is not a resident of the United States or another country. For a beginner, the best option is to start by buying blue chip shares in the stock section of the Moscow Exchange.

Timing to Enter the Market

Not a single investor in the world knows how the price of shares of a particular company will behave tomorrow or in three months. The purchase is based on the assumption of future growth. Price movements are influenced by a lot of factors - from fundamental and geopolitical to regional and news about the issuer itself.

The best time to buy is when the price is falling on a general long-term uptrend.

Using the example of a daily price chart, I will consider the purchase of Sberbank shares; the optimal entry points for a long position are shown by arrows. As you can see, the general trend is upward.

Any news about the company can give impetus to a long-term trend up or down. An example is a change in Gazprom's dividend policy towards an increase. This decision was published on May 14, 2022, instantly giving impetus to the purchase of securities.

This is a positive long-term factor that large investors will take into account when considering buying shares of the blue giant. They can raise quotes to new levels.

Indicators of technical and fundamental analysis will provide additional clues to the investor.

Who is a broker and how to choose one

A professional market participant whose main activities are now related to stock trading and investing. The broker operates on the basis of a license from the regulatory authority. In Russia - the Central Bank, in the USA - SEC (Securities Commission). The website of the Central Bank of the Russian Federation publishes current information on issued licenses.

The second thing you need to pay attention to is the broker’s access to the platform that interests you - the stock market, FORTS derivatives market, currencies. To buy shares we need a stock section. This information is published by the Moscow Exchange on its website. We look at the column “Trading participant in the stock market”.

Look at the broker's history. If it has been on the market for less than 5 years, it is better not to consider it. Plus customer opinions on the Internet. You should consider whether the broker's rates are suitable or not for the strategy you have chosen.

An important aspect: whether or not the broker conducts training in various forms - from webinars to personal participation.

Rating of the best and reliable brokers

When choosing a broker, I recommend paying attention to the following companies (licensed and time-tested):

Reliable Russian brokers

Which stocks are best to buy: tips for choosing

When purchasing a security, various approaches and strategies are used to form an investor's portfolio. The goals are to make money on dividends and rising stock prices. Selection of investment objects - from the selection of undervalued securities to the purchase of shares for events that may affect price growth in the future.

An example is a sharp decline in oil production, followed by an increase in the price of hydrocarbons, followed by an increase in oil production companies.

To evaluate before purchasing a portfolio, I recommend using the analytical table of IC Income with a selection of investment strategies developed by experts of this company using standard and original methods.

Leading Russian enterprises in whose shares it is profitable to invest

I will use the IR Income service, which is described above, using two strategies simultaneously to buy shares in the portfolio:

• dividend, with the largest payments and a high DSI coefficient (regularity of payments over the last 7 years);
• value, undervalued by the company's market in terms of profit assessment.

As can be seen from the sample results, the service recommends 5 companies for purchase:

• Sberbank;
• IDGC;
• VTB;
• LSR;
• Gazprom Neft.

By setting individual values ​​in the filters, an investor can flexibly select shares for purchase based on different parameters and using different approaches.

How to make a deal

After signing an agreement with a broker and opening a trading account, an application to purchase shares can be sent by phone, in writing, or using a trading terminal installed on a PC. Or use the WEB version. For smartphones - mobile.

Using the trading terminal, place an order at a market or fixed price. In the first case, the purchase order will be satisfied on the market by the nearest sale price in the spread. In the second - at the price determined by the investor. However, it may not be satisfied due to the lack of a price offer.

How to receive dividends

At the time of the cutoff of the register of shareholders, the depositary must have a record confirming ownership of the share. The cut-off date is known in advance and is published on the issuer’s website or in the media. In case of payments, the nominal holder receives dividends. To receive it, you do not need to hold the share all the time - it is enough to purchase 3-4 days before the cutoff - no later than the ex-dividend date.

Choosing a trading instrument

It really doesn't matter what you trade. If you don’t have a business approach, then you will fail in any trading. Therefore, just familiarize yourself with the tools, and intuitively choose where to start. And then jumping from one tool to another will be a matter of seconds.

Stock trading

Despite the fact that I don’t trade stocks now, this instrument is very popular. And it’s not surprising. See for yourself. Let me omit the unnecessary and boring theory here. I will try to show you the beauty of stock trading through comparison and examples.

Let's take the largest bank in the country and see if it is possible to make a deposit in this bank. I go to the official page of Sberbank and use a calculator to calculate the return on the deposit of my accumulated 200,000 rubles at interest. The bank seems reliable, I don’t need the money yet. I'll put them in and let them work.

The calculator calculates the income from depositing money in a bank

And what happens?

My hard-earned 200,000 rubles lay in the bank for 12 months.

And I received 200,000+ 5.5% = 211,000 rubles.

Let's bring 200,000 rubles to the Moscow Exchange through a broker.

And having learned to trade, we will make a deal according to all the rules. We decided to buy shares at a price of 233 rubles, and then sell them at a price of 254 rubles. Of course, we need to calculate the possible losses. Let’s take 2% losses for the calculation.

In the worst situation, if the market goes against us, we will lose only 4,000 rubles, leaving 196,000 rubles left.

200,000 - 2% = 196,000 rubles. Yes, it’s unpleasant. But this is part of the profession when trading on the stock exchange. Learn not to notice it emotionally, don’t worry.

Then how much will we earn?

Now we will not take into account commissions, lots, etc. We will calculate it as simply as possible, and this will not affect the final result in any way. We buy shares at 233 rubles and sell them at 254. This is one transaction that we held from December 6 to 30 December.

Earnings at Sberbank from December 6, 2022 to December 30, 2019

233-2%=228 rubles.

Our stop per share is:

233-228=5 rubles

4000 divided by 5=800 shares (or 80 lots)

Let's calculate how much we will earn after 24 days of tedious waiting:

800*254- 800*233=16800 rubles.

200,000+8.4%= 216,800 rubles.

Important! In 24 days, we earned 2.9% more than our deposit in Sberbank for the whole year.

What do you think? Is trading stocks interesting compared to depositing in a bank?

I think so. Well, there are risks everywhere. You just need to learn how to manage them.

Bond trading

I don't trade bonds because I'm a fan of futures. But this is also an opportunity. And this kind of trading may be more suitable for some of you. In my QUIK terminal, through the current table of parameters, I find several sections with bonds. Here is one of them:

Quik table with list of bonds

But of course, in order to trade them, you need to choose the appropriate tariff. We will not consider this here. This is a separate whole article. Let's better understand what a bond is.

Official definition: A bond is a debt security in which the borrower must return to the investor, within a specified period, the cost of the bond and interest (coupon income).

My definition: A bond is the most ordinary receipt.

I remember my parents borrowed money from their neighbors against a receipt. In it, the person indicated his passport details, the amount borrowed and the time frame within which he was obliged to repay it. If the neighbors borrowed for a long period, then they still had to pay a percentage of the borrowed amount. The percentage was small, but this was all stipulated in this very receipt.

Only in the business world there will be more impressive terms:

11,000 rubles is the nominal value

January 1, 2021 - maturity date

10,000 rubles - bond placement price

11,000-10,000 = 1,000 rubles - income on a bond or also called a coupon.

But the coupon can be paid according to a different scheme. Here we consider that it was paid in a year, or in six months, in three months, in a month.

Let's look at an example with the same receipt but payment of the coupon quarterly.

This means that on January 1, 2022, we will receive only 10,250 rubles from our debtor. He will pay us the rest by this date. In total, he owes us 1,000 rubles in interest.

How many quarters are there in a year? That's right, four. Every quarter he will pay us 250 rubles.

Why is the yield on a bond called a coupon?

Previously, the investor had the bond in paper form. When the payments ended, the coupon was torn off. Now everything is electronic. Most bonds on the market are coupon.

The topic is quite extensive.

In short, when trading bonds it is important:

1. The higher the risk, the higher the return.
2. The lower the risk, the lower the profitability.

In other words, long-term bonds are more profitable than short-term bonds.

Credit quality matters!

What is credit quality? Credit quality shows how likely an issuer is to go bankrupt. The higher this indicator, the lower the incidence of bankruptcy.

It is better to trade Federal Bonds. they were issued by the Ministry of Finance. And don’t fiddle around with these parameters anymore.

This means that it is better to take bonds from the state. And on the Moscow Exchange you can buy OFZ bonds of only four types: OFZ-IN, OFZ-PD, OFZ-PK, OFZ-AD

I would start my work with OFZ bonds, and specifically with OFZ-PD. Here the coupon yield is determined in advance and does not change. Here you will get what you expected. And the issuer is the Ministry of Finance of the Russian Federation.

An example of such bonds:

True, they will not be extinguished any time soon:

1. OFZ-52001 at 08/16/2023
2. OFZ-52002 at 02/20/2028.

OFZ bonds

The profitability should be greater than from a bank deposit. And the party issuing bonds understands this well. But without knowledge and experience, you may not get any profit at all. It is important to understand this!

Futures trading

We have already considered two options for trading on the Moscow Exchange. But still, I prefer futures trading. Here, a return of certainly more than 5-8% can be obtained several times a month, and even several dozen times in a year.

Take a look for yourself, in the table for one month, earnings on futures amounted to +26.71%. On a bank deposit, I had to wait several years without the right to withdraw money, and annual inflation would eventually eat up all the profit.

Extract from my transaction journal

If you don’t know anything about the transaction journal, then be sure to adopt this tool!

Currency trading

This is a really cool replacement for all Forex dealers. There are many advantages over them:

1. Regulated trading times
2. Buy real currency
3. You can easily withdraw it to your bank account
4. You can buy any of the world currencies
5. The spread between the purchase and sale prices is minimal

There are many opportunities, but as a speculator I am interested in making money here on fluctuations. For example, I trade the dollar/ruble pair. We purchase some currency, hold it from one day to several months and wait for the rate to change in the desired direction. We sell it and make money on the difference.

This is the simplest option for working in the foreign exchange market. There is no point in going deeper until this option is mastered.

Pros and cons of investing in stocks

Advantages of investing for individuals:

1. There are no income limit restrictions.
2. Additional income. You don't have to quit your day job to become an investor. At the very beginning, investing takes more time to build a portfolio. Then - less. When speculating, much more time is needed. But even in this case, it can be an activity parallel to work.
3. High probability of receiving income over long periods of time (from a year) in case of long-term investment. During such periods, markets tend to rise. The exception is periods of global crises. But this is also a plus for the investor - buying shares at lower prices.
4. The purchase takes place via the Internet. It is possible to open an account with many brokers remotely. You can trade on the stock exchange from home or anywhere in the world where there is a network. Technical requirements are minimal - you can earn money even from a smartphone. Most brokers provide this opportunity.
5. You can learn to invest or speculate on your own.
6. Convenient for speculation. Many instruments are traded around the clock - buying and selling at any time, with the exception of technical breaks, weekends and holidays. The Asian session is picked up by Europe, then by American stock exchanges.
7. There are no requirements for the investor.

The main disadvantage of buying shares and this way of earning money is the risk of losing money. Partially or completely. What and how to do in this case is below.

Risks and ways to avoid them

I will not consider day trading or holding an open position for several days. The risks during such periods are off the charts, especially for beginners.

I will consider the medium-term period - buying shares for a period from several weeks to several months, long-term - > years.

When trading Russian shares on the Moscow Exchange:

1. Margin trading or use of leverage. Can be used both for buying and for short positions. For each issuer, the broker sets the leverage size in accordance with the internal rules and rules of the exchange. The average amount of leverage provided for a purchase is 1:3. That is, having his own 100,000 rubles, the broker gives the opportunity to purchase shares for another 300,000 rubles. This is a paid pleasure - you have to pay for a margin loan based on the annual interest rate.

Do not use margin leverage immediately when opening a medium-term position. Alternatively, if the price goes in the desired direction, buy additional shares using a leverage ratio of no more than 1:1. In this case, the average price of the position will be lower than the current price. Place stop orders within 2% of losses from the average price of the position.

When investing long term, do not use your shoulders. If the portfolio is formed without borrowed funds, in the event of unfavorable developments, its drawdown is possible. It's unpleasant, but not lethal.

In the case of leverage, you can use a margin call - a forced closure of broker positions due to the fact that your cash collateral will not be enough. The broker sets the amount of leverage at his own discretion - during strong movements, he can reduce it unilaterally or cancel it completely.

1. The price of shares on the stock exchange is constantly changing. And it doesn’t necessarily just grow. To reduce the risk of losses, diversify your portfolio by purchasing shares of different companies. Minimum 10 issuers. For each share no more than 15% of the purchase amount. Purchase of high-risk stocks (3.4 tier, small companies) - no more than 3% of the portfolio for each. A stock index is the same portfolio of securities. Look at his 5-10 year chart. An example is the MICEX index.

The general trend is upward.

1. Do not use shorts in your trading. This is an opportunity to speculatively make money on a falling price, but with a very high risk. To trade short, a speculator borrows shares from a broker. It will not be possible to sit out for a long time when the asset is growing.

Taxes and benefits

What taxes and benefits are payable in the Russian Federation for an individual?

Firstly, personal income tax in the amount of 13% on profits received on the stock exchange (growth in value, dividends). Broker is a tax agent. Calculates and pays at the end of the year from the investor's brokerage account.

Privileges:

• there is no tax on coupon income of bonds of federal and municipal loans;
• tax deduction in the amount of 3 million rubles. for every 3 years of retention of securities by the owner (Article 219.1 of the Tax Code of the Russian Federation). Shares must be purchased after 01/01/2014.

Secondly, use an individual investment account.

Tax deductions of 2 types:

• “A” - refund of already paid personal income tax 13%;
• “B” - exemption from personal income tax on income on the stock exchange.

Difference between deductions (source - Open Journal).