How It Works

Open share account

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The first thing you need to do when investing in shares is to open an account. There are three main types of accounts in stock and fund trading that allow trading in securities. There are a few things to consider beforehand so you know which one best suits your particular savings strategy. The three options are:

– Investment Savings Account (ISK)

– Capital insurance (KF)

– Share and fund deposit (Depot)

If you choose an ISK, you don’t have to think about declaring your assets, as the bank handles this information and forwards it to the Tax Agency. The ISK is also the most popular form of account.

You also pay a little less tax if you have an ISK compared to a custody account, as you pay a percentage of the value and purchases you have made in the account. Which happens every year and it tends to be a small amount comparatively.

KF is a better option if you are going to deal with foreign shares, but if you are going to buy Swedish shares and at a general meeting, it is not possible with KF. Other than that, there are not so big differences.

Deposit money

The next step is to deposit money into the account you want to trade shares with. A bank transfer works just as well as swish. Each account has an associated bank account number.

Buy your first share

Now you can trade shares in one or more companies you are interested in. Once your preparation and analysis of the company is done and you’ve checked out the stocks and funds, you can place an order and start using your account.

To trade a stock you need:

  1. Search for the name or ticker symbol of the stock.
  2. Click buy.
  3. Choose the number of shares you want to buy.
  4. Choose the price you want to buy.
  5. Review and confirm!


Historical returns are no guarantee of future returns. Money invested in equities can go down as well as up in value and you may not get back all the capital you invested.

What is a share?

A share is an ownership interest in a company. If you buy shares in a company, you own part of the company and can attend general meetings and influence decision-making. The more shares you own, the more votes you have.

To buy shares in a limited company, the company must have its shares listed on a stock exchange or trading platform.

What is the stock exchange?

There are two types of marketplaces for shares: regulated markets, known as exchanges, and trading platforms, also known as MTFs (Multilateral Trading Facilities).

The stock exchanges in Sweden are Nasdaq (Stockholm Stock Exchange) and NGM (Nordic Growth Market).

Trading platforms are a much freer form of marketplace, where the companies operating the platforms themselves have considerable freedom to decide which rules to follow. Swedish trading platforms are First North, Nordic SME, Aktietorget and Burgundy

What determines the price of shares? The share price depends on several things.

Supply and demand broadly dictates the price of a share. Fear and greed are prevailing drivers of shares and markets. Over the long term, however, share prices are determined by the fundamental metrics of a company and the expansion of “intrinsic value”. Good companies with strong fundamentals and a durable business model tend to outperform. A good company out of favor may thus be an opportunity. Conversely, companies without a fundamental underpinning or a speculative profile or a fad will fare less well over time, especially if the valuation is elevated.

How do I make money from shares?

There are two ways to make money on stocks. One is to buy at a low price and then sell at a higher price. The other is to own shares and receive a dividend, i.e. the company decides to distribute part of the profits to shareholders.

What is brokerage?

A brokerage fee depends on the broker. It can be fixed or variable, depending on the size of the trade, or zero.

What is an IPO?

Initial Public Offering (IPO) means that a company lists its shares on a stock exchange, which means that the company goes from being private to public. The public is offered to buy or subscribe for shares in the company at a specific subscription price. Once the listing is complete, normal trading begins on the market. in a freer way and this will be available to the public.