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.
Best German Stock Brokers
- Best Overall: Interactive Brokers
- Best for New Traders: TradeStation
- Best for Forex: eToro
- Comdirect Bank
Table of Contents
- Best German Stock Brokers
- Brokerage Accounts in Germany: What You Need to Know
- What to Consider Before You Open an Account
- The Best Online Brokers in Germany
- Take the Next Step
- Frequently Asked Questions
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.
In order to represent you when purchasing stocks on a German stock exchange, the broker must be registered with BaFin. Check each
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.
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
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
- Active and Global Traders
Securely through Interactive Brokers’ website
Best Overall: 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 a $10,000 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.
- Futures Trading
securely through TradeStation's website
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.
- Demo Accounts
securely through eToro Forex's website
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. Information does not apply to U.S. users.
Read Benzinga's full eToro review.
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.
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.
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.
I'm an experienced trader and enthusiast with a deep understanding of the intricacies involved in the world of trading. My expertise spans across various aspects, including brokerage accounts, trading platforms, regulatory considerations, fees and commissions, customer service, and other services offered by brokers.
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Brokerage Accounts in Germany:
- The Frankfurt Stock Exchange, founded in 1585, dominates stock trading in Germany through its venues, Börse Frankfurt and Xetra.
- Other major stock markets in Germany include Berlin, Stuttgart, Bremen, Hamburg, Munich, and the Tradegate Exchange.
- The Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin), or Federal Financial Supervisory Authority, oversees the German stock market, formed by merging three supervisory agencies.
What to Consider Before You Open an Account:
- Regulatory compliance is crucial, as brokers must be registered with BaFin to trade German securities.
- The trading platform's usability is essential for efficient order execution and confirmation, often accompanied by research materials, stock charts, and news feeds.
- Brokerage fees and commissions can significantly impact trading profits, particularly for active traders.
- Accessible customer service with multilingual support is vital for resolving queries and concerns.
- Additional services like educational resources and market research enhance the trading experience.
Best Online Brokers in Germany:
- Interactive Brokers: Offers a multi-asset international trading platform with advanced features and a $10,000 minimum deposit.
- TradeStation: Known for its professional-grade trading tools and educational resources, including a $0 commission structure for stocks and most ETFs.
- eToro: Popular for its user-friendly interface, social trading features, and virtual trading practice with $100,000 of practice money.
- Comdirect Bank: A German online broker with a customizable trading platform, extensive research offerings, and multiple asset classes for trading.
- Internaxx: Based in Luxembourg, provides access to multiple stock exchanges and investment tools, including Morningstar equity research.
- TradeZero: Offers a free trading platform with Level 2 access and affordable fee structures, along with 24/7 customer support.
Take the Next Step:
- After selecting a broker, investors can research individual equities and invest in the German stock market, while managing investment risks and consulting tax experts for tax implications.
Frequently Asked Questions:
- Investors can invest in German stocks through various means, including ADRs, ETFs, or directly through online brokers.
This comprehensive overview encompasses the essential aspects of trading in the German stock market, from regulatory considerations to practical trading strategies and investment opportunities.