Best Online Brokers in Germany + Pros & Cons [2024] - Navigate Germany

Saving your money is compulsory to deal with the rainy days, but having a savings account is not a viable option in the long term. So, investment is the best way to save money through a good broker.

Reasons to Start Investing in Germany

Restore the purchasing power of your money through investment so you can deal with the rising inflation. As the interest rates are low in Germany, it is better to invest your money for financial security and for the time of your retirement. Through investment, you can amplify your wealth and seek an income stream to sustain your lifestyle.

Comparison Between Best Online Brokers

How to Choose Online Broker in Germany?

Open an account with an online broker by considering several factors.

Compatibility

A good and compatible broker offers their customer full support in appropriate time zones and works according to the existing infrastructure of Germany.

Authenticity

Choose a broker who is based in Germany and regulated from a Tier 1 reputable company or Federal Financial Supervisory Authority (BaFin). Do not risk your money by choosing an unauthentic broker.

Deposit and Withdrawal of Money

Choose a broker account through which you can easily deposit and withdraw your money anytime and anywhere. Choose one that enables you to transfer funds via bank account, or payment methods like debit/credit cards or PayPal. An account that is expensive and difficult to operate is never beneficial.

Broker’s Fee

Every broker charges a different fee and it is common to charge a fee on every order. If you are a frequent trader, fees can add up quickly. Other charges include regular management fees, deposit fees, inactivity fees, and withdrawal fees. When choosing a broker, consider the fees and choose one that is affordable.

Educational Resources

Best online brokers offer free educational resources to do a thorough research on the market, and analyze risk management tools, stock charts while you are trading. These resources help you irrespective of your trading experience.

User Friendly Platform

There are multiple platforms where you can find trading options. Choosing the right platform is necessary for the time when you are in the heat of trade with thousands of dollars rolling on the line. User interface must be friendly to handle multiple transactions.

Customer Service

Stay in touch with your broker and get necessary updates. A good broker offers full customer support and responds to the client’s enquiries in time.

Trading Products

Every broker and trading platform deals with different products and offers their services at different rates. Some of the brokers only offer orders at a few exchanges at relatively competitive prices, while the others offer both domestic and international trading with numerous investment types.

Some of the financial products are:

• Cryptocurrency
• CFDs
• Derivatives
• ETFs
• Forex currencies
• Stocks

Way To Start Trading Using Online Broker

1. The first step is to choose a reliable broker after thorough research.
2. Open a securities account (depot) to ensure that you are qualified in the field of stock-market and contain substantial trading experience. Get recommendations to choose trading products.
3. Prove your identity digitally via laptop or phone or show your passport.
4. Deposit enough money in your account to start trading.
5. Use your online broker and place your first order.

Best Online Brokers in Germany

Here are the top-ranked online brokers in Germany;

Scalable Capital

This platform offers trading in both automated and manual form that can be accessed through website or mobile application. Website is in German, but you can get support and services in English through its application. It is safe due to its own BaFin license.

They offer three different plans: Prime Broker and Prime Broker Flex come with a price of 2,99 and 4,99 Euros, while Free Broker is an exceptional option for the EFT investors and beginners. You can invest in cryptocurrencies, EFTs, stocks, and derivatives. You can transfer funds via bank account or wire transfer, but not with credit/debit cards or Apple or Google pay.

Interactive Brokers

It is a U.S based international platform that offers trading to the German market through its U.K. subsidiary. Required minimum deposit to open an account is $10,000. It is a licensed platform so you can use it for investing in different places. Their fees are low and the Lite plan provides free stock and ETF trading for US clients.

Smartbroker

It was launched in 2019 by wall street and became popular due to its low trading fee, free saving plans, and a big selection of stocks, certificates, bonds, warrants, and EFTs at 0 Euro per order. It is regulated and licensed by the Federal Financial Supervisory Authority (BaFin). Trading with Smartbroker is free for trading of more than 500 Euros by using Gettex trading system. Through other trading systems like Lang & Schwarz or Xetra, you will pay up to 4 Euros on each trade.

Capital.com

Capital.com, founded in 2016, is a user-friendly website and has an AI based mobile interface. Its funding process goes at zero rates with free withdrawal options. They are offering their services across Cyprus, London, and Belarus and became one of the largest investor-centered fintech companies in the world. Capital.com have more than 300,000 clients dealing in millions of financial products, including stocks, indices, cryptocurrencies through CFDs aka contracts-for-difference as they offer negative balance protection to ensure that you do not lose more than the deposited amount.

Trade Republic

Founded in 2015, it’s one of the safest platforms that have its own BaFin license. Trade Republic launched its mobile-only trading application in 2019. Other than trade of stocks, ETFs, saving plans, and derivatives, they purchase and sell cryptocurrencies with only 1 Euro of external fees. You can deposit money via bank transfer or credit/debit card. You can invest more than 8500 stocks and ETFs.

eToro

To trade in forex or CFD, eToro offers options to trade over 2000 assets including, cryptocurrencies, commodities, stocks, and ETFs. It also provides copy trading services with its easy sign-up process that only takes a maximum of ten minutes. You can keep an eye on other professional traders with its dashboard. It is regulated by the Financial Conduct Authority (FCA), and the Australian Securities and Investment Commission (ASIC) so it is the safest option. It also provides educational resources. 

Final Words

Trading has become easy with time so if you want to invest in trading, you must do thorough research to select the best and reliable broker. Chosen broker must be regulated by the authority so you can invest safely. Before making any final decision, take necessary investment advice from a professional and check out the online educational videos to take the first step.