What is a brokerage account (Depot) and why do I need one?
A securities account (Wertpapierdepot, or simply Depot in German) is an account in which your securities such as shares, ETFs, bonds and funds are held. Just as a current account holds your cash, the Depot is the safe place for your investments. Without one you cannot buy exchange-traded shares or ETFs in Germany. Every Depot comes with a settlement account (Verrechnungskonto) through which purchases, sales, dividends and taxes are settled.
Your choice of broker can make a noticeable difference to your costs over the years. An investor putting €500 a month into an ETF savings plan pays around €90 a year with a 1.5% execution fee – and €0 with a broker that executes savings plans free of charge (the ETF's own running costs and spreads come on top in both cases).
Tip: start without a custody fee
Neo-brokers such as Trade Republic or Scalable Capital (FREE model) charge no custody fee; what is free there is mainly the execution of savings plans. Individual orders usually cost around €1.
The main functions of a brokerage account
- Custody: safe keeping of your securities
- Trading: buying and selling shares, ETFs, funds and more
- Savings plans: automatic, regular investments
- Dividends: automatic crediting of distributions
- Tax reporting: annual tax certificate for your tax return
The securities themselves belong to you and are held as segregated assets – they do not form part of the broker's insolvency estate if it fails. For the cash balance in the settlement account, the following applies: if it is held at a bank in the EU, statutory deposit protection covers up to €100,000 per customer and bank. Brokers without their own banking licence (for example intermediaries whose accounts are held at Interactive Brokers Ireland) instead fall under investor compensation: the Irish Investor Compensation Scheme reimburses 90% of the loss, up to €20,000. So check which institution actually holds your money.
Order costs compared – the infographic
The biggest cost factor in securities trading is the order fee, and it varies considerably between brokers. The chart shows the order commission of some well-known providers for an order volume of €1,000 (standard exchange or standard model):
Order costs per €1,000 order
Basis: €1,000 order volume. As of October 2026. Excluding exchange fees and spreads. Scalable FREE: purchases of ETFs from Amundi, iShares, Vanguard and Xtrackers of €250 or more cost €0. finanzen.net zero: mind the minimum order volume and the spread.
Worked example
Difference per year
With 10 orders of €1,000 each you pay around €74 in order commission at ING, versus €10 at Trade Republic. With larger orders or branch-bank pricing the gap widens considerably.
Watch out: hidden costs
Don't look only at order fees! Exchange fees, third-party costs and the spread can raise your actual costs considerably.
What types of brokerage accounts are there?
The German market offers several types of account for different investor profiles. The right choice depends on your needs, your trading volume and your preferred investment strategy.
Account types at a glance
| Type | Examples | Cost | Best for |
|---|---|---|---|
| Neo-brokers | Trade Republic, Scalable | €0–1 per order | Beginners, ETF savers |
| Online brokers / direct banks | ING, Consorsbank, DKB | approx. €5–15 per order | Investors who want many trading venues and everything from one provider |
| Professional brokers | CapTrader, LYNX | approx. €2–6 per order | Active traders, options, foreign exchanges |
| Branch banks | Sparkasse, Volksbank | often a percentage with a minimum fee, varies by institution | Personal advice |
Neo-brokers (Trade Republic, Scalable Capital)
Neo-brokers are modern, mostly app-based brokers with minimal fees. They offer €0 custody and order fees of usually €0–1. They suit cost-conscious investors and ETF savers. The catch: often only one or two off-exchange trading venues are available.
Trade Republic (Trade Republic Bank GmbH, with its own banking licence) offers shares, ETFs, derivatives and cryptocurrencies, free savings plans and a flat third-party cost fee of €1 per order. Cash balances earn variable interest (as of 10/2026: 2.5% p.a. according to the provider). Share trading runs largely via LS Exchange (Lang & Schwarz), which can lead to wider spreads on illiquid securities.
Scalable Capital (Scalable Capital Bank GmbH) offers two brokerage models: FREE (€0 base fee, €0.99 per trade; purchases of ETFs from Amundi, iShares, Vanguard and Xtrackers of €250 or more cost €0) and PRIME+ (€4.99 a month, trading flat rate: €0 per trade from an order volume of €250 on gettex and European Investor Exchange, €0.99 below that). Savings plan executions are free in both models; orders via Xetra cost €3.99 plus the exchange fee. According to the provider, cash balances earn 2.60% p.a. (variable, as of 10/2026). From around five trades a month, PRIME+ can be cheaper than FREE. There is also an asset management service (robo-advisor).
Pros of neo-brokers
- ✓ Low order fees (usually €0–1)
- ✓ No custody fees
- ✓ Free ETF savings plans
- ✓ Mobile-first with intuitive apps
- ✓ Quick account opening (video ID)
Cons of neo-brokers
- ✗ Only 1–2 trading venues available
- ✗ Limited order types
- ✗ Support often by chat or email only
- ✗ Fewer analysis tools
- ✗ Sometimes wider spreads on niche securities
Online brokers (ING, Consorsbank)
The established online brokers offer a broad range of products with access to the German exchanges and many foreign ones. Costs per order are usually higher than at neo-brokers (often a base fee plus a percentage of the order value, plus an exchange fee), but you get telephone customer service and often a current account from the same provider. Many also run direct-trading promotions with reduced fees.
Professional brokers (CapTrader, LYNX)
For active traders and professional investors, these brokers offer access to global markets, options, futures and margin accounts. Order fees are low, but complexity is higher. CapTrader and LYNX are intermediaries (introducing brokers) for Interactive Brokers: your account is held at Interactive Brokers Ireland and protected by the Irish Investor Compensation Scheme (90% of the loss, max. €20,000) – not by German deposit protection.
What should I look for when choosing a brokerage account?
When choosing the right account you should weigh up several factors. The lowest fees are of no use if the broker doesn't fit your investment strategy.
Money-saving tip: use several accounts
It is perfectly legal and often sensible to hold accounts with several brokers. That way you can make the most of each provider's strengths.
Order fees and trading costs
Order fees are the biggest cost factor for active traders. They usually consist of a base fee plus a percentage of the order volume. Many neo-brokers charge a flat €0–1 per order; with monthly models (such as Scalable PRIME+), trading above a minimum volume is included in the base fee.
Savings plan costs
For long-term investors, savings plan costs are decisive. Many modern brokers execute ETF savings plans free of charge, often from a minimum instalment of just €1 to €25. With a monthly instalment of €200, even a 1.5% fee adds up to €36 a year.
Product range
Not every broker offers every asset class. Neo-brokers mostly focus on shares, ETFs and sometimes cryptocurrencies. Online brokers additionally offer bonds, funds and certificates. Professional brokers such as CapTrader or LYNX also allow trading in options, futures and CFDs. Think in advance about which products you want to trade now and in the future.
Trading venues and exchanges
The number of available trading venues affects the price quality of your orders. Neo-brokers usually offer only one or a few venues (for example LS Exchange, gettex), while classic online brokers give access to all German exchanges (Xetra, Frankfurt, Stuttgart, Tradegate) as well as international markets (NYSE, NASDAQ). For larger orders or less liquid securities, the spread can matter more than the order fee depending on the venue – it is worth checking the bid and ask prices before you place an order.
Usability and apps
The user interface should be intuitive and suit your level of experience. Beginners benefit from simple apps such as Trade Republic's, which focus on a few functions. Experienced traders need professional charting tools, a range of order types (limit, stop-loss, trailing stop) and real-time prices. Some brokers offer free demo accounts – use them before opening an account.
Customer service and support
When problems arise, good customer service is worth its weight in gold. Neo-brokers rely mainly on chat and email support, while traditional brokers usually have telephone hotlines. Check the support hours and read reviews about response times. Fast support is especially important for account transfers or tax questions.
Opening a brokerage account: step-by-step guide
Opening a Depot is now fully digital and usually takes just 10–15 minutes. This is the typical process:
- Choose a broker: compare costs, product range and usability
- Fill in the online application: personal details, tax ID and occupation
- Identity check: by video ID (a few minutes) or PostIdent (1–2 days)
- Account is activated: usually within 1–2 working days
- Pay in money: top up the settlement account by bank transfer
Which documents do I need?
- A valid identity card or passport
- Your tax identification number (Steuer-ID)
- An IBAN for the reference account
Transferring your account: how it works
Transferring a Depot from one broker to another is usually free of charge for you and normally takes 1–4 weeks. The new broker handles the process for you. In 2004 the Federal Court of Justice (BGH) declared fee clauses for account transfers invalid (case XI ZR 200/03); for foreign custodians, however, third-party costs may arise. Switching is particularly worthwhile if you are with an expensive provider or want better terms.
Checklist: switching brokers in 8 steps
Choose a new broker
Compare fees, product range and usability
Open an account with the new broker
Online application + video ID, takes about 10–15 minutes
Request an account statement from the old broker
ISIN, quantity and purchase prices of all securities
Submit the transfer order to the new broker
Most brokers offer online forms
Adjust running savings plans
End old savings plans and set up new ones with the new broker
Move your tax exemption order
Cancel it with the old broker, set it up with the new one (Freistellungsauftrag)
Wait for the transfer (1–4 weeks)
The securities can't be traded in the meantime, so be patient!
Check the purchase prices
Important for the tax calculation – have them corrected if necessary
Tip: partial transfers are possible
You don't have to transfer all your securities! A partial transfer is possible. It makes sense if, for example, you want to keep exotic securities that the new broker doesn't hold.
Taxes and your account: what you need to know
In Germany, gains from securities transactions are subject to flat-rate withholding tax (Abgeltungsteuer) of 25%, plus a 5.5% solidarity surcharge on top and, where applicable, church tax. That works out at 26.375% without and roughly 27.8 to 28% with church tax. It is important for investors to understand the different types of tax and use them to best effect.
Use a tax exemption order
Every investor has a saver's allowance (Sparerpauschbetrag) of €1,000 a year (€2,000 for married couples). Investment income up to this amount remains tax-free. Be sure to set up a tax exemption order (Freistellungsauftrag) with your broker! If you have several accounts, you can split the amount across several exemption orders – but the total must not be exceeded.
The advance lump sum on ETFs
Since 2018, accumulating ETFs have been taxed annually via the advance lump sum (Vorabpauschale). It is calculated from the fund value at the start of the year and 70% of the base rate published each year by the Federal Ministry of Finance, and is capped at the actual increase in value over the year. With a negative base rate (for 2021 and 2022) it was €0; since the base rate rose (2023 to 2025: 2.55%, 2.29% and 2.53%) it has become noticeable again. The broker deducts the tax from the settlement account automatically at the start of the following year – make sure you have enough cash or an exemption order in place.
Withholding tax on foreign dividends
Dividends from abroad are often subject to withholding tax in the country of origin. The US, for example, levies 15% (under the double taxation treaty and with a W-8BEN form on file). Withholding tax is credited against German flat-rate tax up to the treaty rate; German brokers do this automatically. If the amount withheld is higher (for example Switzerland 35%, creditable 15%), you have to reclaim the difference yourself from the source country.
Use loss offsetting
Losses can be offset against gains and thus reduce your tax bill. Important: losses on shares can only be offset against gains on shares, whereas other losses (ETFs, funds) can be offset against all investment income. Losses that are not offset are carried forward by the broker automatically. If you want to offset losses against gains at a different broker, apply for a loss certificate by 15 December and claim it in your tax return.
Tax tip: make the most of your allowance
If you haven't used up your saver's allowance, you can sell holdings that have risen in value towards the end of the year and buy them straight back. This realises gains tax-free within the allowance and raises your purchase price (often called a "tax reset"). It is legal, but order fees and spreads shouldn't eat up the benefit.
Automatic tax deduction
German brokers pay taxes to the tax office automatically. You don't have to do anything. After the end of the year you receive an annual tax certificate (Jahressteuerbescheinigung). You can enter its figures in Annex KAP of your tax return if you apply for a more-favourable-tax check (Günstigerprüfung) or want to reclaim overpaid tax.
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