How to find the best broker in Germany

No trading without a broker

A broker is essential to be able to trade stocks and shares. This type of financial service provider mediates between private investors and the stock exchanges. Depending on the chosen provider, fees can differ greatly. With Verivox, you can easily find the best online broker to suit your needs. To compare various trading accounts, simply use our comparison tool. This will provide you with an overview of the best trading platforms in Germany, including fees the different providers charge.

How the broker comparison works

1. Start the comparison
   Enter the "order volume” (Ordervolumen) in euros and the estimated orders you are going to make per year (Order pro Jahr) and click on "compare now” (Jetzt Vergleichen).
2. Filter results
   You can also compare the average securities account volume and the share of orders to be made via the Internet. If you want to be more specific you can enter further details under "filter settings” (Filtereinstellungen). You can specify whether you want a fee-free trading account (Kostenlose Depotführung) or choose under "securities” (Handelbare Wertpapiere) whether you want to trade in shares, fonds, CFDs, or Forex amongst others. Use the filter option "type of order” (Orderarten) to select if you want trailing or stop orders. Then simply click on "compare brokerage accounts” (Depots vergleichen) to find the right broker and trading account in Germany for your needs.
3. Compare brokerage accounts in Germany
   The comparison tool displays all suitable trading accounts sorted by costs from lowest to highest. If you are interested in a certain offer, you will be forwarded directly to the respective broker.

What is a broker?

A broker can be an individual or a company that acts as an intermediary between their customers. Theyt exchange and trade shares and other financial products on behalf of their customers. This service is referred to as brokerage. Anyone who wants to make purchases and sales on the stock exchange needs a broker, as private individuals are not allowed to trade there themselves. Brokers also open up other financial markets to customers, such as the foreign exchange market.

You do not have to worry about the insolvency of a broker, securities are part of special assets and are protected in the event of insolvency. Banks, but also specialised providers can be brokers, as long as they have been approved by the financial authorities. Online brokers, who may be backed by online banks or independent service providers, are particularly popular. In most countries, brokers are subject to banking supervision.

How much does a brokerage account in Germany cost?

A broker always charges various fees, but the costs vary from provider to provider.

Trading account fees

Banks often charge a monthly trading account fee (Depotgebühr), which functions like a current account fee. However, online brokers also offer fee-free trading accounts. Always check whether these conditions apply for an unlimited period or if they are tied to a certain order volume.

Order fees when trading

Brokers also charge order fees (Ordergebühr). This fee is incurred every time a trader initiates a purchase or sale, i.e., places an order. There are different billing methods available: some brokers charge fixed order fees, while others want a percentage of the order total. There are also minimum and maximum costs that are charged. This means that order fees are raised to a certain minimum amount if the percentage calculated would result in an amount below that. At the same time, the order fee may not exceed a certain maximum limit.

Other fees

A foreign order (Auslandsorder) is usually more expensive than a domestic order (Inlandsorder). Those who want to invest in funds must also expect an expense surcharge (Ausgabenaufschlag). In addition to the trading costs, which include the order commission, stock exchange fees are also often added. The latter are usually not very high, but so-called foreign charges must be included in every trade. Traders should always keep in mind that each fee is deducted from their return.

Save fees with an online broker or trading platform in Germany

The two major advantages of an online broker are that you can initiate trades from the comfort of your home and often also save money. For example, most online brokers do not charge any fees for opening a brokerage account in Germany.

Of course, the trading options will determine the choice of a broker. Future traders should use the Verivox comparison tool to find the right provider for their needs before setting up a trading account.

Compare trading options

In addition to trading stocks and shares on the stock exchange, brokers also offer other financial products. Some brokers specialise, but many allow trading with different products.

Funds are popular, as investors can spread their assets, which helps to minimise the risk of losses. ETFs (Exchange Traded Fund) or index funds are often recommended due to their low costs. These funds are usually not actively managed, but automatically track a specific index, which eliminates management fees.

Many traders achieve particularly high returns in a short time with so-called over-the-counter trading (OTC trading). Transactions do not take place at a centralised location such as the stock exchange, but directly between two market participants. One example of this are derivative products. These are financial products that derive their value from that of another. Derivatives include, for example, swaps, forward contracts, and CFDs (contract for difference). For this type of trading, knowledge of the market is key, as profits can be very high, but risk of losses are great.

Traders should therefore always think carefully before trading. It is advisable to use a demo account, so newcomers can test trading with a broker without speculating with their money.