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Broker Accounts in Germany
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Janine El-Saghir
Janine El Saghir is an editor at How-to-Germany.com, where she specializes in the practical aspects of daily life and integration for expatriates. With years of...
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Sadie Voss is the Lead Editor for How-to-Germany.com. As an expat who carved her own way into Berlin from the United States, Sadie is deeply...
- Germany’s online trading landscape offers various types of brokers, from trading platforms to direct and traditional banks, each with different fee structures and services tailored to specific needs.
- You can trade a diverse range of financial products including stocks, ETFs, and cryptocurrencies with certain restrictions.
- In Germany, profits from asset or investment sales are taxed with the withholding tax (25%).
- Scalable Capital – Best online broker and trading platform in Germany. Great for active traders. Very low fees. Separate Overnight account with 2.50% p.a. interest. Easy and quick account opening. Everything in English.
- Trade Republic – Best for beginners. Easy to use app. Very low fees. 2.25% p.a. interest on uninvested cash. Everything in English.
- Flatex – Best for experienced traders. Low fees. Everything in German.
- ING Direct Depot – Best online broker at a direct bank. Everything in German.
- Commerzbank DirektDepot – Best online broker at a branch bank. Customer support and banking app in English.
Types of online brokers in Germany
| Stock exchange: | Lange & Schwarz Exchange |
|---|---|
| Order price: | €1 |
Remark
| Stock exchange: | Gettex |
|---|---|
| Order price: | €0.99 |
| Stock exchange: | Tradegate Exchange |
|---|---|
| Order price: | €4.90 + 0.25% |
| Maximum price: | €69.90 |
| Stock exchange: | Frankfurt |
|---|---|
| Order price: | €4.90 + 0.25% |
| Minimum price: | €9.90 |
Brokers in German financial markets manage a complex network of transactions, orchestrating buy and sell orders for their clients. For instance, flatex, one of the oldest and best trading platforms in Germany, provides an advanced trading platform for clients to engage in online trading of various financial products.
Trading platforms
Trading platforms, as specialized brokers, concentrate on managing trading accounts and typically charge less than traditional banks. For example, eToro provides stock and ETF trading in Germany without charging commission, but additional fees such as currency conversion are applicable.
Interactive Brokers, on the other hand, charges a fee of $0.0035 per US stock with a minimum of $0.35 per order. However, the wide range of available financial instruments compensates for the costs involved.
Direct banks
Direct banks deliver a mix of conventional banking services and investment opportunities, mainly operating online. For example, Comdirect is a brand of Commerzbank AG and provides various investment options including:
- Cash savings plans
- Government-guaranteed bank deposits
- Guaranteed pensions
- Digital access to national and international stock markets for trading.
Traditional banks
Traditional banks provide brokerage services in addition to their standard banking products, but often at higher fees. For instance, Commerzbank DirektDepot, an online broker account, facilitates the trading of stocks and ETFs, and also provides the option of ETF savings plans with a minimum monthly investment of 25 euros. However, it’s not recommended for active day traders due to its higher fees.
Financial products you can trade with an online broker in Germany
Germany offers a wide array of financial products for trading, reflecting the diversity of the country’s landscape. You can trade stocks, ETFs, and cryptocurrencies, among other options.
Stock trading
Stocks are shares of ownership in a company and can be traded on various stock exchanges. Commonly traded stocks in the German market include:
- DTG
- BMW
- PSM
- ADS
The Frankfurt Stock Exchange is the largest stock exchange in Germany.
ETF trading
ETFs, or exchange-traded funds, are collections of securities that mirror an index and can be traded like individual stocks. In Germany, broad-market ETFs are especially popular for long-term investors and savings plans. Common examples include ETFs tracking the MSCI World, S&P 500, MSCI ACWI, and FTSE All-World indices, offered by providers such as iShares, Vanguard, Xtrackers, Amundi, and SPDR.
Crypto trading
Crypto trading involves buying and selling cryptocurrencies like Bitcoin and Ethereum. The top cryptocurrencies traded in Germany are Bitcoin, Ethereum, Bitcoin Cash, and Ripple.
Fees of online brokers
Broker fees in Germany are as varied as the brokers themselves. They can include trading fees, account maintenance fees, and other fees such as deposit and withdrawal fees. Fees are typically billed using fixed amounts or percentage-based calculations, and may also have minimum and maximum thresholds.
| Broker | Best for | German tax handled automatically? | Key fee point | Language support | US citizens accepted? |
|---|---|---|---|---|---|
| Commerzbank DirektDepot | Branch-bank customers | Yes | Often more expensive than neo-brokers, but useful for customers who want traditional bank support. | German, with some English support through Commerzbank services | Usually restricted; check directly before applying. |
| DEGIRO | Cost-conscious investors using multiple exchanges | No | No monthly custody or inactivity fee for standard portfolios; connectivity fees can apply for non-home exchanges. | German | Usually restricted; check directly before applying. |
| flatex | Experienced German-speaking investors | Yes | No securities account fee since 2023, but order costs depend on product and exchange. | German | Usually restricted; check directly before applying. |
| Lightyear | International investors who want simple pricing | No | No monthly account fee; trading and FX fees depend on asset type and currency. | English | Usually restricted; check directly before applying. |
| Scalable Capital | Active traders and ETF investors | Yes | Low trading fees, free savings plans, and separate Overnight account with 2.50% p.a. interest. | English | Usually restricted; check directly before applying. |
| Trade Republic | Beginners and mobile-first investors | Yes | Low fixed order fees, free savings plans, and 2.25% p.a. interest on uninvested cash. | English | Usually restricted; check directly before applying. |
Trading costs
Trading costs are fees charged for executing trades and can be either fixed or percentage-based. Some providers may impose a flat fee per order, while others may levy a percentage of the order volume.
Account maintenance fee
Account maintenance fee is a charge for the upkeep of a brokerage account and can be:
- Monthly or annual
- Some brokers, like eToro, Lightyear, Trade Republic, and DEGIRO, offer no standard monthly account maintenance fee
- DEGIRO does not charge a standard custody or inactivity fee, but it may charge a connectivity fee for trading or holding positions on certain non-domestic exchanges
- Lightyear does not charge a standard monthly account fee for personal investment accounts
Other fees
Other fees may include deposit and withdrawal fees, inactivity fees, connectivity fees, service fees, and currency conversion fees. For example, BUX, formerly known as Bux Zero, no longer uses the old Bux Zero inactivity-fee model. Instead, its pricing is based on account plan and service fees, such as a percentage-based service fee on the Basic plan or a monthly fee on the Plus plan.
Tax implications of trading in Germany
In Germany, capital gains tax, also known as withholding tax (Abgeltungsteuer), is imposed on the profits made from selling an asset or investment. This tax is typically 25% plus a solidarity surcharge of 5.5% of the tax amount, plus church tax if applicable. When using a German online broker, supervised by BaFin, the Federal Financial Supervisory Authority, usually the broker handles the deduction of this tax automatically. If you use an international online broker, regulated outside of Germany, you have to pay the withholding tax yourself.
However, there is also an annual tax-free allowance, known as Freibetrag, of €1000 for single taxpayers and €2,000 for married couples or registered partners.
For expats, the tax-reporting difference between German and international brokers is especially important. A German broker usually withholds German capital gains tax automatically and can apply your Freistellungsauftrag if you submit one. This is usually the case for German-regulated brokers such as Commerzbank DirektDepot, flatex, Scalable Capital, and Trade Republic. An international broker, such as DEGIRO, Lightyear, or BUX, may provide lower trading costs or more products, but you may need to report dividends, sales, currency gains, and taxable events yourself in your German tax return.
US citizens and green card holders should also check whether a broker accepts US persons before applying. Many German and European brokers restrict US customers because of FATCA reporting obligations. If you are a US person, you may be asked for a US tax identification number, W-9 form, or additional tax declarations during account opening.
- German brokers: Usually deduct German capital gains tax automatically and may apply your Freistellungsauftrag.
- Foreign brokers: Usually do not handle German tax automatically, so you may need to declare investment income yourself.
- US persons: FATCA rules can make account opening difficult, even if you live and pay tax in Germany.
It’s important to note that tax laws can change and can be complex. Therefore, it’s advisable to consult a tax advisor or accountant to ensure you are meeting your tax obligations correctly. This can help prevent potential penalties and ensure you are taking advantage of any allowances you are eligible for.
Best online brokers in Germany
The top online brokers are Scalable Capital, Trade Republic, flatex, ING Direct Depot and Commerzbank DirektDepot.
Scalable Capital
Scalable Capital is a great trading platform and robo-advisor that was founded in Munich in 2014. Known for its low fees, user-friendly interface, and a wide range of investment options, it has quickly become a favorite among traders. Its customer support is available in English. Moreover, Scalable Capital does not have account management, withdrawal, or inactivity fees, making it a cost-effective choice for traders. It also uses advanced technology to offer a fully automated portfolio management service, making investing easy even for those with little experience. Its trustworthiness and reliability are further enhanced by its regulation by the German Federal Financial Supervisory Authority (BaFin). Scalable Capital also offers a separate Overnight account with 2.50% p.a. interest, although interest rates can change and should be checked before opening an account.
Trade Republic
Trade Republic is one of the best online brokers in Germany, offering plenty of advantages to its users. Known for its low fees and user-friendly interface, it has become a go-to platform for many investors. It has a diverse range of financial products and offers English customer service. The process of account opening is seamless and hassle-free. One of its standout features is low-cost trading, making it a cost-effective choice for investors. Moreover, it offers free savings plans for ETFs and stocks, an extensive trading portfolio, and even the availability of cryptocurrencies for trading. Plus, there is no mandatory initial minimum deposit or account management, withdrawal, or inactivity fees, making it an even more attractive option for both beginners and seasoned investors. Trade Republic also pays 2.25% p.a. interest on uninvested cash, although interest rates can change and should be checked before opening an account.
flatex
flatex, one of Germany’s top online brokers, offers a seamless account opening and has been exempt from securities account fees since 2023. Its trading portfolio is notably diverse, encompassing over a million funds, stocks, ETFs, certificates, and more. However, some users may find its pricing for orders non-transparent, and costs can vary depending on the chosen exchange platform. It’s also worth noting that flatex does not currently support investments in cryptocurrencies and is only available in German.
Commerzbank DirektDepot
Commerzbank DirektDepot is a great online broker, offering a wide array of tradable securities and a streamlined online account opening. However, it might not be the most cost-effective choice for active day traders due to its relatively higher trading prices.
Key features of Commerzbank DirektDepot include:
- Easy and fast online account opening
- A vast selection of tradable securities to diversify your portfolio
- Complimentary securities account for those who make at least one order per quarter
- Over 700 products available for saving plans, providing various investment options
- ETF savings-plan executions available for a fee of 2.50 euros plus 0.25% of the transaction volume per execution
How to open a trading account in Germany
To start trading in Germany, you need to:
- Compare brokers
- Fill out an application
- Verify your identity
- Deposit funds into your account
This process typically takes up to three working days.
Account opening process
The account opening requires providing personal information and meeting certain requirements. To start the process of opening a broker account in Germany, it is essential to provide:
- Identity details, including an ID card or passport
- Proof of address
- Social Security Number or proof of ID number
- Occasionally, information regarding your employer and existing bank or broker account numbers.
For expats, account opening can take longer if your ID document, address, tax residency, or phone number does not match the broker’s automated verification system. VideoIdent and app-based ID checks may fail if your passport is not supported, your lighting is poor, your name contains special characters, or your registered address is not yet accepted in the system. If this happens, check whether the broker offers PostIdent, manual verification, or support in English before starting a second application.
- Address: Use the same German address format shown on your Anmeldung, bank account, or official mail.
- Documents: Keep your passport, residence permit if available, and German tax ID ready before starting verification.
- Name spelling: Enter your name exactly as it appears on your passport, including middle names if requested.
- Tax residency: Declare all tax residencies truthfully, especially if you are a US citizen or green card holder.
Funding your broker account
Funding your broker account can be done through various methods such as bank account transfers, credit cards or debit cards, and e-wallets. To deposit money, the majority of online brokers in Germany provide fee-free trading. Nevertheless, it is important to note that some banks may impose a monthly fee for the maintenance of a bank account linked to a trading account.
How to switch brokers
Switching brokers in Germany is generally straightforward, requiring the completion of a transfer form and coordination of asset transfers between brokers. The duration for switching brokers in Germany can vary significantly, with some experiences taking less than 1 hour and others taking less than two weeks.
Conclusion
Selecting the best online broker in Germany doesn’t follow a one-size-fits-all approach, but rather involves understanding your individual needs. It requires understanding your own investment goals, risk tolerance, and financial needs. By comparing different brokers, understanding their offerings, and evaluating their fee structures, you can make a choice that aligns with your financial goals and helps you navigate the financial market jungle with ease. Expats should also check tax handling, FATCA restrictions, ID verification options, and language support before choosing a broker.
Frequently Asked Questions
When choosing a trading broker in Germany, consider factors such as low trading fees, customer service quality, platform usability, and regulation by German financial authority BaFin.
The process to open a trading account in Germany typically takes up to three working days. This includes the time it takes to verify your identity and deposit funds into your account.
Not all online brokers in Germany offer cryptocurrency trading. It’s important to check the broker’s range of financial instruments before opening an account if you’re interested in trading cryptocurrencies.
In Germany, the capital gains tax, also known as withholding tax, is typically 25% plus a solidarity surcharge of 5.5% of the tax amount, plus church tax if applicable.
Yes, many online brokers in Germany offer educational resources to help both beginners and experienced traders enhance their trading skills and knowledge. These resources can include webinars, articles, e-books, and even one-on-one coaching sessions.