Become Investor: How to buy and sell Financial Instruments

Where can I buy and sell financial instruments?

You can buy or sell financial instruments only from authorized stockbrokers who are employed by stock exchange members (brokerage houses and banks). In order to become a member, a member firm must meet certain conditions, that provide the safest and most transparent operations for all capital market participants.

How the process of buying and selling finanical instruments takes place?

Before the first purchase of an instrument, the stockbroker will open an account in Central Securities Clearing Corporation (KDD) which will later record all your purchases and sales of financial instruments. Before trading, you will sign a contract with a stockbroker on the provision of stockbroking services, which sets out mutual rights and obligations. The job of a stockbroker is not only to buy and sell instruments, but also to advise on the conduct of business. However, in the end, it is the investor who, based on the gathered information, decides on the most appropriate investment.

What order to give a stockbroker?

A stockbroker performs various types of business – from portfolio management to the execution of individual types of orders. The most basic types of order are: a market order and a limited order. If you are willing to buy or sell financial instruments at the market price, you submit a market order to the stockbroker. However, if you want to buy or sell financial instruments at a specific value, you place a limited order. There are also other types of orders with additional conditions of display mode and execution and with additional conditions of execution time. The stockbroker will charge you 0.5 – 1.5 percent of the value of the deal for concluding the deal. Before placing an order, we suggest that you look at all types of orders and that you read the Rules of the Ljubljana Stock Exchange, in which all orders are also recorded.

In addition to placing individual orders, you can also entrust the stockbroker with portfoilo management.

What do you need to sell financial instruments?

To sell financial instruments you need: An identity card or a passport, a tax number, a bank account, a KDD notice of ownership of shares, and for persons under 18, a birth certificate.