Summary: In Germany, purchasing stocks, ETFs and other securities is a secure and streamlined process when carried out on a platform that complies with BaFin regulations. Investors can make use of options like SEPA bank transfers, credit cards, Giropay, Sofort, and various alternative payment methods to deposit Euros (EUR). These methods allow them to buy, hold, and trade securities within a regulated framework.
Our team has evaluated and curated a list of the top 5 stock trading platforms in Germany to aid your initiation into the world of stock trading. Here are the most reliable options available:
Top Stock Trading Apps in Germany
Following an exhaustive assessment of over 15 brokerages, we have compiled a list of the best stock trading platforms for German investors. Our assessment criteria include aspects like adherence to regulations laid out by the Federal Financial Supervisory Authority (BaFin) and the German Federal Parliament (Bundestag), the diversity of tradable securities on offer, the overall user experience, methods for Euro deposits, transaction charges, as well as other factors, in order to deliver a reliable evaluation.
eToro is the best stock trading platform in Germany, as it offers investors free and instant EUR deposits to trade thousands of stocks with zero brokerage fees. It also provides 24/7 German customer support, and the platform can be used entirely in the language. In addition to stocks, they've spread their branches to include commodities, currencies, and ETFs, adapting to the growing appetite of traders. The web platform and app are easy to navigate, ideal for greenhorns taking their first steps in the trading world and for more seasoned investors with the ability to trade leverage.
- Fees: Zero trading or deposit fees and 1% spread.
- Assets: 3,000+ Stocks, ETFs, Commodities, Currencies, Indices, and more.
- Regulation: Licensed by the European Securities and Markets Authority (ESMA).
- EUR Deposit Methods: SEPA Transfers, Bank Transfers, Trustly, Debit Cards, Credit Cards, Sofort, Klarna, and PayPal.
2. Interactive Brokers
With its Interactive Brokers U.K. subsidiary, this American multi-asset broker effortlessly executes stock orders for the German market. From the Frankfurt Stock Exchange to Turquoise TRQXDE, IB offers access to a wide range of supported German stock markets. But that's not all - seasoned traders can tap into IB's Trader Workstation (TWS) trading platform, while newbies can navigate the simplified Client Portal. Even on-the-go traders can stay in the game with IB's mobile TWS and Interactive Brokers WebTrader web-based platforms.
- Fees: €2 Monthly market data fee. 0.050% - 0.015% fee per trade value.
- Assets: Stocks, ETFs, Futures, Options, Bonds, Funds, and more.
- Regulation: Regulated by the FCA and the Central Bank of Hungary.
- EUR Deposit Methods: Bank Transfers.
DEGIRO commits to lower trading fees than its competitors by charging a small €2 commission on trades. With its banking license and strict regulation by top-tier financial authorities like BaFin in Germany, DEGIRO is now the largest online execution-only broker in Europe. Navigating its web and mobile platforms is simple, with no withdrawal fees or minimum deposit required. It offers various services and products, including trading on several financial instruments such as stocks, ETFs bonds, CFDs and more.
- Fees: €1 handling fee and €2 commission fee for ETFs.
- Assets: Stocks, ETFs, Bonds, Futures, Funds, Commodities, and more.
- Regulation: Licensed by the Financial Conduct Authority (FCA) and BaFin in Germany.
- EUR Deposit Methods: Bank Transfers, Bank Wires, Debit Card or Credit Card
Comdirect is a member of the Comdirect Group, a major German bank and the leader in online securities trading in the country. This broker has a website and platform exclusively available in German. Comdirect remains a top choice among investors despite higher commission fees. The broker provides trading in currencies, CFDs, ETFs, futures, options, bonds, and funds on all significant German exchanges. One of the standout features of Comdirect is its adaptable trading platform, ProTrader, which offers a news feed, sophisticated charting features, and an easy-to-use interface.
- Fees: 0.25% of trading fee + €7.9 (min. €12.9, max. €62.9).
- Assets: Stocks, ETFs, Bonds, Futures, Funds, Forex, and more.
- Regulation: Federal Financial Supervisory Authority (BaFin) in Germany.
- EUR Deposit Methods: Bank Transfers & Bank Wires.
5. Trade Republic
Trade Republic is the ultimate mobile-only trading platform and online broker. Its users can indulge in trading individual stocks, ETFs, and derivatives with ease and efficiency. Since its establishment in 2019, Trade Republic has relentlessly strived to be the best mobile trading platform. What sets it apart from its competitors is its bona fide banking license, making it a securities trading bank. Deposits in a user's clearing account are legally protected up to €100,000, safely guarded in a collective trust account with Solarisbank, and monitored by the Federal Bank of Germany and the BaFin (Federal Financial Supervisory Authority).
- Fees: €1 fee per trade
- Assets: Stocks, Crypto, ETFs, Bonds, Futures, Funds, Forex, and more.
- Regulation: Federal Financial Supervisory Authority (BaFin) in Germany
- EUR Deposit Methods: Bank Transfers, Bank Wires, Apple Pay, Google Pay & Credit Card.
How to Buy Stocks in Germany for Beginners
Embarking on an investment journey in Germany can seem daunting for beginners, but with this short and simple guide, German investors can flourish. Let's dive into some tips that will make your journey a success:
- Set Goals and Strategy: Define your investment objectives and choose a strategy that aligns with them.
- Research and Educate: Start by learning the basics of risk management, stock market functions, and investment.
- Choose a Trading Platform: Research the various trading platforms available. Look for one that suits your needs, offers competitive fees, and has an intuitive user experience.
- Open an Account: Register and complete any necessary verification processes once you've found the perfect trading platform.
- Fund Your Account: Choose your preferred method, whether it's via credit/debit card, bank transfer, or another option to deposit some Euros.
- Research Stocks: Use the platform's tools and resources to identify the best stocks that align with your investment goals.
- Place an Order: Finally, place a market or limit order and monitor your investments regularly.
Who Regulates the Stock Market in Germany?
In Germany, the Federal Financial Supervisory Authority (BaFin) is instrumental in supervising and regulating securities markets. Is principal responsibilities include protecting investors, maintaining market transparency, and upholding the stability and integrity of the financial system. BaFin monitors many entities, including stock exchanges, securities issuers, brokers, investment funds, and asset management firms. It sets standards for market participants' conduct, enforces adherence, investigates potential market misconduct, and imposes penalties in cases of non-compliance.
In conclusion, for both seasoned investors and those taking their first steps in the stock trading world, there are numerous secure and reliable platforms available in Germany. Our top 5 picks, based on regulations, fees, available assets, user experience, and deposit methods are eToro, Interactive Brokers, DEGIRO, Comdirect, and Trade Republic.
Choosing the right platform hinges on individual investment goals, preferred assets, and the desired level of customer support. Remember, research is crucial, and regular monitoring of investments can be invaluable. With the proper knowledge and tools, the world of stock trading in Germany can be navigated confidently and profitably.