Opening a Free Investment Account in Budapest Just Got Easier

Published: December 07 2023

Opening a free investment account in Budapest has become much easier starting from December 11. The Hungarian State Treasury (Magyar Államkincstár) now allows individuals to easily open a free securities account through their online portal.

As announced by the Minister of Finance, everyone with Hungarian citizenship automatically receives a free securities account for purchasing government securities. The account activation process has been simplified and can now be done with just a few clicks on the Hungarian State Treasury's website.

To open an account, individuals need to log in using their eID card. Their personal information is automatically filled in, but they are required to provide a phone number and email address for authentication purposes. By accepting the necessary online statements, the account opening process is completed automatically.

Previously, it was possible to open an online account with the State Treasury, but the new process is much faster and more streamlined. Within minutes of completing the registration, individuals receive a confirmation email and can immediately start buying and selling government securities on their securities account.

In addition to the State Treasury, individuals also have the option to open securities accounts with banks and brokerage firms. However, these accounts typically have fees and offer a wider range of securities, not just government securities.

What is the recent development regarding opening investment accounts in Budapest? As of December 11th, it has become easier for everyone to open a free investment account at the Magyar Államkincstár (Hungarian State Treasury) with just a few clicks using their client gateway registration.

Who announced this new initiative? The announcement was made by Varga Mihály, the Minister of Finance, during the Fidesz congress on September 18th.

Who is eligible to open a free investment account? Every Hungarian adult citizen will automatically receive a free investment account for purchasing government securities.

How can one open an investment account? The account can be opened or activated at the Magyar Államkincstár through the magyarorszag.hu website with the use of the client gateway login.

What information is required for opening an account? The client needs to provide their personal details, such as phone number and email address, for the two-factor authentication and approval processes. The email address can also be confirmed or an additional one can be provided.

What happens after providing the required information? By accepting the requested data and necessary online declarations, the account opening process will be automated, and the client will receive a confirmation email at their registered address within a few minutes. The investment account will then be ready for use, allowing the client to freely buy and sell government securities.

What are the advantages of opening an investment account at Magyar Államkincstár? Opening an investment account at Magyar Államkincstár is free of charge, and it offers a simplified and fast process for managing government securities. Additionally, through the Magyar Államkincstár, clients can hold and trade not only government securities but also other types of securities.

Can investment accounts be opened at other banks or brokerage companies? Yes, clients can also open investment accounts at banks or brokerage companies. However, these accounts usually have fees associated with them and allow for the management of various types of securities, not just government securities.

What were the previous options for online account opening at Magyar Államkincstár? Magyar Államkincstár has allowed online account opening since 2019. Prior to this new automated process, clients would initiate the account opening themselves through the Magyar Államkincstár website.

How popular are online account openings and transactions at Magyar Államkincstár? Since the introduction of online account openings, approximately one-third of clients have opened their accounts this way. Furthermore, almost 80% of government security transactions are conducted through the Webkincstár and MobilKincstár online platforms.

How many clients currently have accounts at Magyar Államkincstár? Magyar Államkincstár currently has over 850,000 clients, with 330,000 of them holding Start accounts (related to baby bonds) and 520,000 having investment accounts for government securities.

What is the current value of government securities held in these accounts? These accounts currently hold government securities with a total value of 7,400 billion Hungarian forints.

Will there be any temporary disruptions to the online services of Magyar Államkincstár? Due to necessary system adjustments, the WebKincstár, MobilKincstár, and TeleKincstár services will not be available from December 8th at 16:00 until December 11th at 6:00. However, after this period, the new service will be fully operational.