What are your needs as
On the other hand, if you’re new to trading and need to gain experience, then a broker with an intuitive trading platform and educational resources might be your best bet. If your home base is in Germany, you have a choice of several top brokers to choose from regardless of your level of experience.
Quick Look at the Best German Stock Brokers
- Best for Mobile Users: Plus500
- Best for Active and Global Investors: Interactive Brokers
- Best for New Traders: TradeStation
- Best for Forex: eToro
- Best for German Language Service: Comdirect Bank
- Best for Expat Investors:
Inernaxx - Best for Short Selling: TradeZero
Brokerage Accounts in Germany: What You Need to Know
Founded in 1585, the Frankfurt Stock Exchange makes up 90% of stock trading in Germany through its two trading venues, Börse Frankfurt and Xetra. Other major stock markets in Germany include Berlin, Stuttgart, Bremen, Hamburg, Munich and the Tradegate Exchange.
The German stock market has the oversight of the Bundesanstalt für Finanzdienstleistungsaufsicht, generally abbreviated as BaFin, or Federal Financial Supervisory Authority.
BaFin was created as the merger of Germany’s three other supervisory agencies that regulated the insurance, banking industries and stock markets. This put all financial companies in Germany under one supervisory authority.
Keep in mind that if you live in Germany and trade stocks, you are subject to a 25% investment tax. The tax encompasses all capital gains and investment income.
Germany gives a tax allowance of 801 euros (or 1,602 euros per couple) for income derived from interest and investments, which can be divided between different institutions, such as a bank and a stockbroker, for example.
What to Consider Before You Open an Account
Several elements should be considered before you open an account with a stock brokerage company that does business in Germany. Pay attention to these elements — it could save you considerable time and money in the long run. Remember, not all brokerages are created equal, so make sure to carefully consider your needs before you open an account.
Regulation
In order to represent you when purchasing stocks on a German stock exchange, the broker must be registered with BaFin. Check each
Trading Platform
An easy-to-use, intuitive platform to enter orders and receive confirmations makes up another key element to consider when choosing a stockbroker for the German market. Many modern online trading platforms include research material, stock charts and a news feed.
Brokerage Fees and Commissions
The broker’s fees and commission schedule could impact your profits significantly if you trade actively in short-term strategies. If you plan to trade infrequently and don’t mind paying full commission, you could use a full-service broker for your investments, which would give you access to the full-service broker’s research and other offerings.
Customer Service
You want to be able to contact your broker in the event of a misunderstanding or to just ask a question related to your account. Your broker’s customer service department would ideally include telephone access, a live chat feature on its website or trading platform
Other Services
A good stockbroker will have educational resources for less experienced traders and investors as well as market research and analysis useful to traders of all levels. Also, many stockbrokers allow traders to operate in other markets, such as exchange-traded funds (ETFs), forex, commodities and bonds, for example.
The Best Online Brokers in Germany
The best online brokers for the German stock market don’t necessarily have to be based in Germany. Some of our picks include brokers from the United States and other
Best for Mobile Users: Plus500
Plus500 has a platform that advanced traders in Germany who are looking for the best place to manage complex portfolios. You can manage client assets in this space, and there are several assets available like CFDs, forex, stocks,futures, options and more. A $100 minimum makes it easier to get started and fees are very low.
Pros
- You can invest for clients or yourself
- There are multiple assets you can try at any time
- Low fees help you reinvest in your portfolio
Cons
- You may want to try a platform that is easier to understand
Best for Active Investors: Interactive Brokers
This U.S.-based multi-asset international broker can execute stock orders for the German market through its Interactive Brokers U.K. subsidiary. Supported German stock markets include BATS Europe (BATEDE), CHI-X Europe Ltd Clearstream, Frankfurt Stock Exchange, Stuttgart Stock Exchange, Tradegate Exchange, Turquoise TRQXDE and the XETRA Exchange.
Interactive Brokers offers its Client Portal and Trader Workstation (TWS) trading platforms that can accommodate both seasoned traders (TWS) and new traders seeking a simplified trading interface (Client Portal). IB also offers its TWS platform on mobile and an Interactive Brokers WebTrader web-based platform, as well as IBot that consists of a hands-free voice-activated add-on available on its TWS desktop, Interactive Brokers mobile and Client Portal. Customer service is available 24/6 and includes phone, email and live chat options.
You can trade multiple assets on 120 world exchanges with its Integrated Investment Account. The Client Portal platform works for traders at all levels, the broker has no minimum deposit to open an account, which would make it a better choice for more experienced traders.
Other important features include earning interest on idle deposits and having the opportunity to borrow at the lowest market rates. Also, you can use the Bill Pay feature to pay for goods and services with an IB-issued Mastercard Debit card.
Read Benzinga's full Interactive Brokers review.
Best for New Traders: TradeStation
TradeStation's platform, originally designed for professional traders, now welcomes new traders to the fold. TradeStation’s new TS GO account
From stocks to ETFs to futures contracts to cryptocurrencies, TradeStation offers a wide variety of tradable assets as well as a host of educational tools and resources.
TradeStation offers $0 commissions on stocks and most ETFs.
Read Benzinga's full Tradestation review.
Best for Forex: eToro
eToros securities trading offered by eToro Securities, Inc, (“the BD”), member of FINRA and SIPC. Investing involves risk.
eToro offers a boost for international forex/CFD traders, new cryptocurrency traders looking for an easy-to-use platform and those who want to trade cryptocurrencies on the go.
Plus, if you're looking for a quick sign-up process, signing up with eToro means entering a little bit of personal information and verifying your identity — you literally get an a
You can benefit from a social media-like dashboard with eToro. This means you can see what other traders think about your trades when you're buying or selling to learn. The CopyTrader feature also allows you to “copy” buy and sell orders made by professional traders. In exchange, the trader gets a commission when copied.
You'll like other perks from eToro:
- Virtual trading practice: With a cryptocurrency account from eToro, you can practice your trades with $100,000 of practice money.
- Integration with eToro Wallet mobile app: Keep your coins safe and secure by linking your eToro trading account with your eToro mobile wallet.
***Traders are reminded that 76% of retail CFD accounts lose money
***Your capital is at risk. Other fees apply. For more information, visit etoro.com/trading/fees. This information does not apply to U.S. users.
Read Benzinga's full eToro review.
Best for German Language Service: Comdirect Bank
Established in 1994, this online broker’s website and platform are only available in the German language. A member of the Comdirect Group, Comdirect is also a top German bank and a leader in the German online securities business, with over 2.5 million private customers.
Commerzbank owns 80 percent of Comdirect’s shares, and the company has been listed on the Frankfurt Stock Exchange since 2000. It has also been in the SDAX since 2005, which is the DAX small and medium companies stock index. Although Comdirect charges higher commissions, the broker makes up for them through its research offerings.
Comdirect offers trading on all major German exchanges, currencies, CFDs, ETFs, futures, options, bonds and funds. The broker has an impressive array of research offerings from major banks throughout Europe. Comdirect’s customizable trading platform ProTrader has an intuitive interface and advanced charting capabilities, as well as a news feed.
One advantage of the Comdirect trading platform consists of giving you the choice of the stock exchange where you would like your order to be executed. Comdirect also offers a mobile platform option, although it lacks many features found on the ProTrader platform. With respect to customer service, Comdirect can be contacted through telephone, live chat, video chat and email in German.
Best for Expat Investors: Inernaxx
Based in Luxembourg and backed by J.C. Flowers and Company, Internaxx provides a stock brokerage service for exchanges all over the EU, the United States
Internaxx gives traders access to trading on 18 different stock exchanges, including the Frankfurter Wertpapierbörse, or Frankfurt Stock Exchange. In addition to stocks, you can trade ETFs and investment funds on Internaxx. The broker offers a web-based trading platform as well as a mobile platform for iOS and Android devices.
Internaxx features free investment tools and research from Morningstar equity research, in addition to its own research, which includes coverage of ETFs and investment funds. In addition, the broker offers a Smart Portfolio option for a 10,000 unit deposit of USD, EUR or GBP. The Smart Portfolio is designed for people with different risk profiles who prefer a professionally managed account.
The customer service department consists of email contact, plus telephone and fax numbers for the stock trading and derivatives departments. The customer service staff is multilingual and can be reached during U.S. and European market hours.
Best for Short Selling: TradeZero
- Best For:Overall Global Broker for Short SellingVIEW PROS & CONS:securely through TradeZero's website
TradeZero is a unique platform that is free to download, and it allows you to invest in your own way with all the information and access you need. With access to the pink sheets, major indexes and a massive range of securities. If you want more options, you can upgrade to a Pro account for $59 per month.
When you invest with TradeZero, you can access quite a lot of information that will help you make wise decisions. You are free to trade on your mobile device or on your desktop—depending on your preference. Plus, you can pick up and move from one machine to another as much as you like.
TradeZero offers Level 2 access, and there are several free trading options. Anything that requires a fee is more than affordable. Plus, if you need assistance, 24/7 customer support is available.
Take the Next Step
Once you've decided on a broker, you can proceed to research individual equities and invest in the German stock market. Remember to keep your investment risk low by employing money management techniques in addition to your trading or investment plan. You can consult with a German tax expert to find out what the tax implications of your investments might be.
Frequently Asked Questions
How can you invest in German stocks?
Several ways include ADRs, ETFs or buy them directly through a broker.
Can I buy German stocks online?
You can purchase German stocks from anywhere using an online broker.
About Jay and Julie Hawk
About Julie:
Julie Hawk earned her honors undergraduate degree from the University of Michigan before pursuing post-graduate scientific research at Cambridge University. She then started work in the private sector as a business systems analyst for a major investment bank, where she qualified as a Series 7 Registered Representative and received comprehensive training in various financial products. Further honing her skills, she attended the prestigious O’Connell and Piper options training course in Chicago, mastering professional option risk management techniques.
Julie then transitioned into the role of a professional Interbank forex trader, currency derivative risk manager and technical analyst, ascending to the position of vice president over a 12-year career in the financial markets. Julie’s illustrious banking career spanned working for major international banks in New York City, London, and San Francisco, where she served as an Interbank dealer, technical analyst, derivative specialist and risk manager. Her responsibilities included educating, devising customized foreign exchange hedging and risk-taking strategies, and overseeing large-scale transactions for esteemed banking clients, including corporations, fund managers and high-net-worth individuals. As part of her responsibilities, Julie managed substantial portfolios of forex options, spot, and futures positions as a currency options risk manager, earning recognition for executing innovative and highly profitable forex derivative transactions. Julie also spearheaded educational conferences on currency derivatives.
During her banking career, Julie attained world-class expertise in technical analysis, including Elliott Wave Theory, and pioneered research into automated trading and trading signal systems. An active member of the San Francisco Writers’ Guild, Julie also authored trade strategies, educational material, market commentary, newsletters, reports, articles, and press releases. She became a sought-after market expert who was frequently interviewed by financial magazines and news wires such as REUTERS.
Following her retirement from the banking sector, she dedicated 15 years to online forex trading, mentoring and freelance writing for TheFXperts, which she co-founded with her husband Jay. Julie is the co-author of “Forex Trading: A Beginner’s Guide” and “Technical Analysis for Financial Markets Traders,” in addition to five other books on financial markets trading and personal finance. She now focuses on writing articles on financial markets for platforms like Benzinga, although she continues to trade forex online and mentor fellow traders as part of TheFXperts’ financial team.
About Jay:
Jay Hawk grew up in Chicago and Mexico City where he became bilingual in English and Spanish. After taking formal training as a classical guitarist at prestigious music conservatories in Europe, Jay then embarked on a remarkable journey into the financial markets, cultivating his notable expertise through hands-on experience that began on the Midwest Stock Exchange.
His financial career progressed as he started actively participating in various exchange floor trading activities in the Chicago futures and options pits, where he worked his way up the ladder, serving as a clerk, trader, broker, investor and fund manager. Jay then ran a retail stock brokerage desk and managed funds for large institutional investors, leveraging his discretionary trading skills to yield profitable results for clients.
This ultimately led to Jay holding exchange seats and operating as a market maker on options exchanges in Chicago and San Francisco, initially on the Chicago Board Options Exchange. Jay also played a significant role in the Chicago Mercantile Exchange’s evolution, where he contributed to launching and actively trading the first listed currency futures options. After transitioning to the West Coast, Jay then held a seat and ventured into trading stock options and their underlying stocks on the Pacific Options Exchange.
Jay’s comprehensive understanding of fundamental economic and corporate analysis continues to inform his trading and investment activities and has led to his subsequent success as an expert financial writer. Together with his wife Julie, he co-authored “Stock Trading: A Beginner’s Guide”, “Commodity Trading: A Beginner’s Guide” and “Fundamental Analysis for Financial Markets Traders,” among their published books focusing on financial markets trading, market analysis, and personal finance.
As an integral member of TheFXperts’ team, Jay now excels in trading forex online for his personal account, mentoring aspiring traders and writing for financial platforms like Benzinga where he specializes in covering topics related to the stock and commodity markets, as well as investing, trading and reviewing online brokers.