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Online Broker Comparison
- Learn what a brokerage account (Depotkonto) is and how it enables you to buy and sell securities in Germany
- Understand how banks and online brokers provide access to stock exchanges and other trading venues
- Compare typical costs such as custody fees, trading fees, and additional charges
- Discover how taxes on investments work, including capital gains tax and the annual tax-free allowance
- Find out what to consider when choosing a broker and opening your brokerage account
Best Online Broker Accounts for Expats
| Stock exchange: | Gettex |
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| Order price: | €0.99 |
| Stock exchange: | Lang & Schwarz |
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| Order price: | €1 |
| Stock exchange: | Tradegate |
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| Order price: | €4.90 + 0.25% |
| Maximum price: | €69.90 |
| Stock exchange: | Xetra |
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| Order price: | €4.90 + 0.25% |
| Minimum price: | €9.90 |
Based on my experience as a financial journalist covering brokerage accounts and investment platforms for many years, the differences between providers often become apparent only when you look closely at fee structures, trading venues, and platform usability. In Germany, investors can decide between traditional banks, direct banks, and modern online brokers, each offering different advantages. Understanding how brokerage accounts work and comparing these factors carefully can help you select a platform that fits your investment strategy.
Brokerage Accounts in Germany
Before you can buy or sell securities, you need a special type of account designed for investment transactions. In Germany, this account is known as a brokerage account and is commonly referred to as “Depotkonto” or “Wertpapierdepot”. It serves as the central place where your securities are held and managed, while a linked settlement account processes payments for trades.
Definition of a Brokerage Account
A brokerage account, or securities account, is an account that allows you to hold, manage, and trade financial assets such as individual stocks, ETFs (exchange-traded funds), bonds, or investment funds. When you purchase securities through a bank or an online broker, the assets are booked into this account and stored there electronically.
Unlike a regular bank account, a brokerage account does not primarily hold cash. Instead, it records the securities you own and tracks their value over time. You can view your portfolio, monitor price developments, and place buy or sell orders through the trading platform provided by your bank or online broker.
The Role of a Brokerage Account in Securities Trading
The brokerage account provides the technical foundation for participating in the financial markets. Whenever you place a buy or sell order, the transaction is executed through a trading venue such as a stock exchange. Once the trade has been completed, the purchased securities are credited to your account.
At the same time, your brokerage account gives you a structured overview of your investments. It records all transactions, shows your current securities positions, and tracks changes in value over time. Most trading platforms also display information such as performance data, dividend payments, and other details relevant to your portfolio.
Brokerage Account vs. Bank Account
Although a brokerage account is often offered by the same bank that provides your checking account, the 2 accounts serve different purposes.
A bank account is primarily used for everyday financial transactions such as receiving income, paying bills, or transferring money. A brokerage account, on the other hand, is designed specifically for managing investments and executing trades.
To connect these 2 functions, brokerage accounts include a linked settlement account, often called a reference account. When you buy securities, the required amount is deducted from this account. When you sell investments, the proceeds are credited back to it. Depending on the provider, this settlement account may be a current account with the same bank, an account held with a partner bank, or an external bank account chosen by the investor.
Custody and Safekeeping of Investments
Another key function of a brokerage account is the custody of securities. Instead of receiving physical certificates, modern securities are held electronically in a centralized custody system. The brokerage account records your ownership and ensures that your assets are safely stored and properly allocated to your portfolio.
In Germany and the European Union, brokerage accounts are subject to strict regulatory standards. Securities are generally kept separate from the bank or broker’s assets, meaning they remain the investor’s property even if the financial institution faces financial difficulties.
- Buying and selling investments such as stocks, ETFs, funds, and bonds, or participating in cryptocurrency trading through a bank or online broker
- Building long-term portfolios with diversified investments across different asset classes
- Using savings plans (ETF savings plans or share savings plans) to invest regularly with smaller amounts
- Managing and monitoring investments through portfolio overviews, performance tracking, and transaction records
- Implementing different investment strategies, from long-term investing to more active trading
Providers of Brokerage Accounts in Germany: Banks and Online Brokers
Investors in Germany can choose from several types of providers when selecting a broker. While all of them provide access to securities trading, they differ in pricing models, trading infrastructure, and service levels. Understanding these differences helps you decide which type of provider best fits your investment strategy and personal preferences.
Branch Banks
Branch banks such as Commerzbank, Deutsche Bank, or Postbank typically combine brokerage services with a full range of banking products such as checking accounts, loans, and payment services. Brokerage accounts are integrated into the bank’s overall online banking environment.
Account management and order execution are typically available via apps and online banking. In addition, you can receive personal investment advice at branches and by phone.
These institutions typically provide access to a broad range of stock exchanges, trading platforms, and investment products. Brokerage accounts at branch banks usually follow a tiered pricing model, with base fees and per-order volume-based costs.
Direct Banks
Direct banks like comdirect or 1822direkt operate online and do not maintain a branch network. They provide support mainly by phone and email. Account management is handled online or via app. Their brokerage accounts are integrated into digital banking platforms that combine everyday banking and investment services in a single interface.
They also offer access to a wide range of investments and trading venues, and their pricing structure is comparable to that of branch banks.
Online Brokers
Online brokers focus specifically on securities trading. Unlike branch and direct banks, they usually do not offer a full range of banking services, such as checking accounts or lending products. Their platforms are primarily designed for buying and selling investments and managing portfolios via web interfaces or mobile apps.
Within this group, different business models exist. Many online brokers focus strongly on ETFs and share savings plans, allowing investors to build portfolios through regular monthly investments. Examples include Trade Republic and Scalable Capital, which offer a wide range of savings plans and simplified investment tools.
Other brokers concentrate more on low-cost trading with a limited number of trading venues. These platforms often route orders through only 1 or a few partner exchanges or market makers. Trade Republic, for example, executes orders via Lang & Schwarz Exchange, which allows the broker to offer very low fees. Finanzen.net ZERO conducts all of its stock market trading exclusively through gettex, the digital trading platform of the Munich Stock Exchange.
A third group of brokers provides access to many stock exchanges and a broad range of investments, sometimes combined with more advanced trading tools. Such an online broker account appeals more to experienced traders who want greater flexibility in choosing trading venues and investment products. Examples include brokers such as fxFlat or Traders Place, which offer access to numerous trading venues and a wide selection of securities.
Compared with banks, online brokers generally offer lower trading fees and simpler pricing structures. However, the exact cost model depends on the provider. Some brokers charge a flat fee per order, while others apply minimum order fees, exchange fees, or pricing tiers depending on trade volume.
How Brokerage Accounts Work
A brokerage or trading account is the system through which investment transactions are processed. It provides the infrastructure that allows investors to manage their investments and place orders through their broker’s platform.
Buying and Selling Investments
To place a trade, you submit an order through the broker’s platform, usually via web interface or mobile app. The order is forwarded to the selected trading venue for execution. Once completed, purchased investments are credited to your brokerage account, and sold positions are removed from it. The corresponding payment is processed through the linked settlement account.
The technical completion of the trade is called settlement. In most European markets, settlement takes place 2 business days after the trade (T+2). During this process, investments and payments are formally transferred between the parties.
Many brokers also offer savings plans. In this case, the broker automatically places buy orders at regular intervals based on the amount and schedule chosen by the investor.
Trading Venues
Orders placed through a brokerage account can be executed across different trading venues. In Germany, 3 main structures exist:
- Electronic stock exchanges (i.e., Xetra, gettex), where trades are executed electronically through the exchange’s trading system.
- OTC trading platforms run by market makers (i.e., Tradegate, gettex, Lang & Schwarz Exchange) operate alongside traditional stock exchanges.
- Floor trading exchanges (i.e., the Frankfurt Stock Exchange trading floor), where orders are executed through designated specialists on the exchange floor.
Depending on the broker, investors may be able to choose between several trading venues when placing an order. The available options can affect trading hours, liquidity, and transaction costs.
Costs of a Brokerage Account
Brokerage accounts in Germany follow different pricing models depending on the provider. Banks and online brokers charge fees in different ways, but most costs fall into a few typical categories:
- Account fees (Depotführungsgebühr) – Some providers charge a periodic fee for maintaining the brokerage account, but many banks and online brokers now offer accounts without ongoing fees.
- Trading fees – Costs charged when you buy or sell investments. These may be a flat fee per order or a combination of a base fee and volume-based pricing.
- Exchange fees – Additional charges that may apply depending on the selected trading venue. These fees can vary between stock exchanges and trading platforms.
- Additional services – Optional costs for services such as real-time market data, advanced trading tools, special order types, or withdrawal fees.
Taxes on Investment Income in Germany
Investment income in Germany is subject to specific tax rules. The following overview highlights the most important elements investors should know.
- Capital gains tax – Profits from investments such as shares, ETFs, funds, bonds, interest, or dividends are generally taxed at a flat rate of 25%.
- Additional taxes – If applicable, solidarity surcharge and church tax.
- Withholding tax system – In Germany, capital gains tax is usually deducted automatically by the bank. However, investors typically need to report investment income on their tax returns if the tax allowance is exceeded or if the investments are held with a foreign bank.
- Tax allowance – Private investors benefit from an annual tax-free allowance (Sparer-Pauschbetrag). Capital gains up to this amount can be received tax-free if a valid exemption order is submitted to the bank or broker.
How to Choose the Right Broker
Choosing a brokerage account depends on several factors, including costs, available investments, and the platform’s usability. The following aspects can help you compare providers and select the broker that best fits your investment strategy. The specific investments you choose will depend on your risk tolerance.
One of the first aspects to consider is the fee structure. Brokers use a range of pricing models, from flat fees per trade to volume-based pricing. Some providers also charge additional exchange fees or fees for specific services. Understanding how these costs are calculated helps you estimate the total expenses of your investment activity.
Another important factor is the range of available asset classes. Not every broker offers the same investment options. While most platforms offer access to shares and ETFs, the availability of bonds, funds, derivatives, and other instruments may vary by provider.
The number of available trading venues can also play a role. Some brokers allow trading on many stock exchanges and platforms, while others limit orders to 1 or a few partner venues. This can affect trading hours, liquidity, and, at times, transaction costs.
In addition, the trading platform’s usability is an important criterion. A clear interface, reliable mobile app, and transparent portfolio overview can make it much easier to manage investments, especially for investors who trade regularly.
Finally, customer service should not be overlooked. Depending on the provider, support may be available through phone, email, chat, or help centers. For expats, accessible English-speaking customer support can be an important factor when choosing a broker.
Opening a Brokerage Account in Germany
Many providers offer quick account opening, and the process can usually be completed online. The exact procedure may vary slightly between banks and online brokers, but most providers follow a similar structure.
The first step is the registration process. During registration, you create your online account and provide basic personal information such as your name, address, date of birth, and tax identification number. Many brokers also ask about your investment experience and financial situation, as required by financial market regulations.
After registration, you must complete identity verification. In most cases, this is done through an online identification process such as VideoIdent or other digital verification systems. Alternatively, some providers still offer identification through a local post office.
Once your account is verified, you can deposit money and start trading. Orders are submitted through the broker’s trading platform, where you can select the investment, specify the order details, and choose the trading venue.
Before investing, many investors in Germany also submit a tax exemption order (Freistellungsauftrag) to their bank or broker. This allows investment income up to the annual tax-free allowance to be received without automatic deduction of capital gains tax.
Conclusion: Why Comparing Brokerage Accounts in Germany Matters
From my experience, selecting the right brokerage account is one of the most important decisions when you start investing. The differences between providers can be significant, especially in terms of fees, available trading venues, investment options, and the usability of the trading platform.
In Germany, investors can choose between banks, direct banks, and specialized online brokers. These providers follow different business models. Some platforms focus on simple, low-cost trading, while others provide broader access to stock exchanges, investment products, and additional trading tools.
In my view, this is precisely why a careful comparison is essential to identify the best online broker for your needs. A provider that works well for one investor may not necessarily be the best choice for another. Investment strategy, trading frequency, and personal preferences all influence which broker ultimately fits best.
If you want to explore the available options in more detail, our broker comparison provides an overview of the most relevant providers. It helps you identify a brokerage account that fits your investment approach.
Frequently asked questions – FAQ
An investment account is another term for a brokerage account. It is used to hold and manage financial investments such as shares, ETFs, bonds, or other securities. In Germany, this type of account is commonly called a “Depotkonto” or “Wertpapierdepot”.
Yes. Banks and online brokers offering brokerage accounts in Germany must be licensed and supervised by financial authorities. The main regulator is the Federal Financial Supervisory Authority (BaFin), which ensures that brokers comply with financial market regulations and operate under strict regulatory standards.
Cash held in the settlement or reference account of a brokerage account is generally protected by the statutory deposit guarantee scheme, which provides up to €100,000 per customer and bank.
Investments such as shares, ETFs, or bonds are not covered by deposit insurance because they remain the legal property of the investor and are held separately from the broker’s own assets in custody accounts.
Many German brokers provide access to international stock markets, though direct access to foreign exchanges depends on the broker and its trading venues. The exact range of available markets depends on the broker and the trading venues supported by the platform.
Some brokers offer educational resources such as articles, webinars, tutorials, or market analysis. These materials can help beginners understand investment strategies and support experienced traders in developing their knowledge of financial markets.
