Investing in Germany with Platforms [2024] - Navigate Germany

The Federal Republic of Germany is the most famous country in Europe due to its strong economy and investment opportunities. Investors can enjoy profitable opportunities to make money and grow their wealth in Germany.

Pros of Investing in Germany

As you are getting a monthly salary and saving some money in the bank which you think is safe, and have no risks. But, investing in Germany is more beneficial due to various reasons;

• Increased purchasing power and value of money.
• Increase in the amount which is not possible in bank accounts.
• An annual tax allowance on capital income
• Easy to buy a property for a long period.

Cons of Investing in Germany

Investing in Germany is a bit risky due to;

• Poor customer protection laws
• False information regarding investment opportunities.
• Unreal assurance for investment selection.
• High tax on the investment in capital gains usually 25%.

Things to Consider Before Finalizing Investment Decision

Consider following factors before investing in Germany;

• Diversification – do not put all your eggs in one basket, so invest in different plans to get a better return.
• Know your rights – you can cancel the contract two weeks after making the contract, so think carefully and cancel it if you feel any issue.
• Risk buffer – do not invest all of your savings and have something in your hand or bank to meet unexpected expenses.
• Risks and returns – be clear about the kinds and levels of risks associated with your investment plan for which you can seek help from a professional financial consultant.
• Scam investments – ensure if an investment opportunity is real to benefit you. You can check reviews by previous investors to find the best investment plan.

Top Investment Products

There are a variety of products with different periods, risks, and returns according to the investor’s needs and requirements.

• Bank deposit in a bank that is covered with a government guarantee scheme
• Cash saving plans
• Closed-ended funds that have a finite maturity date
• Certificates and other instruments that reflect movement in market and indices
• Deposit plans by an insurance company
• Guaranteed pension plans
• Hedge funds
• Investment in saving accounts
• Invest in exchange-traded funds
• Investment in government long-term projects
• Investment through trading
• Investment with P2P lending
• Investment in real estate, residential land, or property
• Investment in German’s stock market
• Investment funds with different risk categories
• Mutual funds with different risk categories
• Private pension plans
• Private equity investment

Investment via German Banking System

The German banking system is efficient but has issues related to control and supervision. They have a small collection of financial products and check the creditworthiness to complete the investment process.

Top Investment Platforms

Here are the best investment platforms in Germany;

• Capital.com has 300,000 clients and an AI based mobile interface.
• Commerzbank is a traditional branch banking system offering free checking, security accounts and saving plans at reasonable prices but it is expensive for active and inactive traders.
• eToro is a user-friendly platform that boosts forex traders, cryptocurrency traders, and CFD traders.
• Interactive brokers are for seasoned and new traders due to its simplified trading interface.
• Scalable capital offers a free securities account, free saving plan, and flat-rate plans for their active traders.
• SmartBroker offers services at a low trading fee and has a variety of stocks, ETFs, certificates, bonds and warrants.
• Trade Republic is for beginners which offer free securities accounts and saving plans. They have an app in English.

Key Instructions

Investors should use a professional platform after doing thorough research to make their investment as they submit their reports to the IRS due to which they have less chances of human errors, and omissions. Annual expenses to use investment platforms are low, but investors have a huge probability of retaining ownership of the assets they are investing in. The collection of all payments and dividends from investment in bonds, stocks, and funds is always efficient, fast, and automatic. Whenever making an investment, confirm the risks associated with using the selected platform and investment opportunity and check if it meets your investment goal. You must be clear about filing your tax to the IRS to avoid double taxes.

Conclusion

Investing in Germany is a good option but a decision should Be made after careful research. Choose an attractive and profitable investment plan from a reliable and professional platform. Check the risks, returns, and period of your chosen investment plan so you can select a long term or short term plan based on your needs. Get help from a professional advisor or financial consultant if you have any issue.