Best Online Brokers & Investing Apps in Germany

What is an Investment/ Securities Account?

If you’re ready to dive into the exciting world of investing in stocks and ETFs, you’ll need an investment / securites account or a “Depotkonto” in German. It’s like a digital storage space where you can securely keep and manage your securities.

Depending on the provider, you’ll have access to a wide range of securities to trade and keep in your custody account. That means you can explore ETFs, stocks, funds, and more. Some providers even offer derivatives, bonds, and cryptocurrencies for those looking to diversify their investments.

Your custody account is linked to a clearing account, which acts like your financial hub. You can use the funds in your clearing account to buy securities, and any profits from sales or dividends can be credited right back to your clearing account.

How to open a Securities / Investment Account in Germany?

Opening an account these days is a breeze, thanks to the wonders of digital technology! You can do it all from the comfort of your own home, without any hassle. Here’s how it works:

First, you’ll fill out an online application where you provide your personal details like your name, address, account information, and tax ID. Once that’s done, it’s time for the identity verification step. There are a few popular methods for this.

One common way is through video identification, where you hop on a video chat with a representative who will verify your identity. It’s like having a virtual face-to-face interaction. Another option is using E-Ident or Postident, which are widely used as well.

Is it better to select a German Investing App?

The biggest advantage to choosing a Investing apps in Germany from a German broker to buy Stocks and other Securities is the Tax Handling. Most German brokers, specially Scalable Capital and Trade Republic handle the taxes for you automatically. All you have to do is setup your profile correctly by giving your Tax ID number.

If you sell at a profit or even if you get Dividend payments, these brokers automatically transfer this information to the Finanzamt. So you do not have to worry about handling your taxes.

How to Buy Stocks and ETFs in Germany?

If you want to invest smartly without breaking the bank, it’s all about finding a wallet-friendly portfolio packed with a variety of ETF savings plans. Luckily, many neo-brokers and direct banks now offer these options, along with some cool additional services that can make your investing journey even better.

When choosing the right broker, keep an eye out for important features like available securities, trading venues, and the flexibility to adjust your savings rate. It’s all about getting the most bang for your buck!

Scalable Capital’s free broker takes the crown with an awesome overall package. But don’t worry, we’ve got more top contenders for you. Trade Republic, Flatex, and eToro also offer some fantastic depot options. We’ve rounded up all the essential info about these brokers to make your decision-making process super easy.

Why start investing?

Start investing now because time is on your side. The power of compounding allows your money to grow exponentially over time. For example, if you invest €100 per month in an S&P 500 ETF, after 10 years, assuming an average annual return of 7%, you could potentially have around €17,500.

Frequently Asked Questions

What to look for in an Investing App in Germany?

When it comes to choosing an investing app or a Broker in Germany, you want to make sure it’s a perfect fit for your needs. Ask yourself, can you trade all the things you want right here? Some brokers have a wide range of ETFs to choose from, while others may have lower fees and are better suited for individual stocks. So, it’s all about finding the right balance.

But it’s not just about the costs. Another key factor to consider is whether the broker in Germany offers savings plans. These little lifesavers make it super easy to save regularly without spending too much time or effort. They’re like your secret weapon for building wealth gradually.

What are the costs of Buying Stocks as a Foreigner in Germany?

There are various costs of Buying stocks and ETFs as a Foreigner in Germany. These could include Account Management Fee, Order Fee, Trading Fee, Spread and other fees.