How to Buy Stocks with N26

Summary: N26 Bank allows users to invest in various stocks and ETFs using their N26 cards or bank accounts through a regulated brokerage platform like eToro. Users should consider potential fees when transferring funds for investment.

However, individual investment in N26 is currently not possible as it's a privately-held company. The bank's future plan for an initial public offering (IPO) remains uncertain due to several challenges, including regulatory issues and profitability struggles.

Can You Buy Stocks with N26 Bank?

Indeed, N26 provides its users with the opportunity to invest in a variety of stocks and ETFs using their N26 cards or bank accounts. Those interested in buying shares of companies, whether they're blue-chip, growth, or dividend stocks, need to establish an account on a stock trading platform in Europe that accepts N26 for Euro (EUR) or other currency deposits. It's crucial to select a platform overseen by an authoritative financial regulatory institution, such as the Financial Conduct Authority (FCA) or a similar European body. 

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How to Buy Stocks and Shares with N26

The most secure way to invest in shares using an N26 Bank account is through a regulated brokerage platform. This allows investors to safely deposit any fiat currency from their N26 bank account via bank transfer and other available methods. Based on our evaluation, we recommend using platforms such as eToro due to their compatibility with N26, adherence to regulations, and competitive fee structures for over 3,000 stocks, ETFs, commodities and more.

Here is an easy 4-step guide to investing with your N26 account:

1. Sign up and verify your identity on eToro.
2. Locate the 'Deposit Funds' or similar option on your account dashboard.
3. Choose your fiat currency and your payment method (e.g., Bank Transfer) and execute your transfer from N26 Bank.
4. After the deposit is complete and the funds are credited to your brokerage account, you are ready to invest in stocks.

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What are the Costs?

The fees involved in transferring funds from an N26 Bank account to a stock brokerage platform can differ depending on the platform chosen. Generally, bank transfers from an N26 Personal or Business account to a global brokerage like eToro charges zero fees if you deposit USD, but a small fee applies if you deposit EUR or GBP.

It's important to note that deposits to brokerage platforms using an N26 Bank Debit Card may incur a fee. This is due to the card issuer (Mastercard) charging a standard fee for all transactions, including those related to stock purchases or deposits. We highly recommend confirming any associated fees with your chosen platform before proceeding.

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Can I Invest in N26?

No, it's currently not possible for you to invest in N26. As a privately-held neobank, N26's shares are not listed on any public stock exchanges and are therefore unavailable for purchase by individual investors. N26 is primarily owned by a combination of private investors, including venture capital firms like Insight Partners, GIC, Tencent, Allianz X, Valar Ventures, and others.

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Is N26 Going to IPO?

As of now, the German-based neobank N26's plan for an initial public offering (IPO) is uncertain due to several challenges. These include regulatory issues from BaFin, the German financial regulator, executive turnover, and an industry-wide downturn due to increased interest rates and inflation. Additionally, N26's struggle to achieve profitability, unlike some of its competitors, has complicated its IPO trajectory.

Investor terms also pose a significant challenge for N26's IPO plans. The most recent investors are assured of a substantial annual return before other investors, which could make an IPO more difficult to price and potentially discourage new investors. While some suggest that N26 might reach profitability by the second half of 2024, the general consensus is that the "IPO window" for tech companies might not reopen until 2025. Therefore, the specifics of N26's path towards an IPO remain unclear.

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Bottom Line

To sum up, N26 Bank indeed provides an avenue for users to invest in a diverse range of stocks and ETFs. This process is simple and secure, particularly when using a regulated brokerage platform compatible with N26, such as eToro. Be aware, though, that fees may apply when transferring funds for investments, particularly when using certain currencies or the N26 Debit Card.

While it's currently not possible to invest in N26 itself, the platform's facilitation of stock investments offers a valuable asset to its users, democratizing access to the world of finance.