What is a securities account?
A securities account — in Danish a depot — is the account your securities sit in. Where a bank account holds money, a securities account holds stocks, funds and bonds. You open it at a bank or broker, and it is from here you buy and sell. Most people end up with two or three: an ordinary account for free funds, a tax-favoured account (in Denmark the aktiesparekonto) and perhaps a pension account.
The three kinds of account
- Ordinary account (free funds): No ceiling, no lock-in. In Denmark, stocks are taxed only when sold (realisation taxation) as share income.
- Tax-favoured account: In Denmark the aktiesparekonto: 17% tax every year, a deposit ceiling of 174,200 kr. (2026), equities only. Sweden has the ISK, the UK the ISA, and so on.
- Pension account: Low tax on returns, but the money is locked until you retire.
The accounts are separate for tax purposes. You cannot move a stock from one to another without selling and buying again.
What an account costs
The account itself is often free, but check three things: commission per trade, the currency fee on foreign stocks and any custody fee — a fixed yearly amount some banks still charge. A custody fee of 40 a year is 3% of an account holding 1,300. That is a lot.
Are my stocks safe if the bank fails?
Yes, by and large. The stocks in your account belong to you, not the bank — they are registered in your name with a central securities depository or a custodian bank. If your bank fails, the account is moved. Cash on the account is covered by the deposit guarantee, in the EU up to 100,000 euro. What you are not insured against is the stocks falling.
The typical beginner's mistake
Buying your first stocks in an ordinary account and only afterwards discovering the tax-favoured one. To move them, you have to sell and buy again — and pay tax on the gain along the way. Read about the account types before you buy the first time.
How you see it in Kiggo
Kiggo does not trade and has no accounts. Under "Get started", Kiggo walks you through choosing a bank or broker and opening an account, and what the different ones charge per trade. Once you have bought, you can enter your own purchases in Kiggo's portfolio and follow gain and loss.
Related terms
Frequently asked questions
What does "free funds" mean?
Money that is not locked in a pension. An ordinary securities account is free funds: you can sell and withdraw whenever you like. Pension accounts are the opposite — locked funds.
Can I have several accounts?
Yes, as many as you like, at as many providers as you like. Tax-favoured accounts are usually limited to one per person, though.
What is a custodian?
The institution that holds your securities on your behalf — your bank or a depository it uses. It is a technical detail you rarely need to think about.
Kiggo explains — Kiggo does not advise. We never tell you what to buy or sell, and key figures can only be compared between companies in the same industry. The decision is yours. Last updated 2026-09-23.
Written by Claus Frisch, founder of Kiggo. Not an adviser, not a bank — Kiggo explains, you decide.
