ETF Brokers Germany

Investing in ETFs is one of the easiest and most tax-efficient ways to build wealth in Germany. With low fees, broad diversification, and automated savings plans, ETFs have become the go-to option for beginners, expats, and FIRE followers alike.

This guide shows you how to start, what brokers offer the best ETF conditions, and how to avoid common tax pitfalls when investing from Germany. Whether you’re putting in €25 a month or managing a long-term portfolio, the right broker can make a big difference.

What Are ETFs and Why Germans Prefer Them

Exchange-Traded Funds (ETFs) are investment funds that track a market index—like the DAX, S&P 500, or MSCI World—and trade on stock exchanges just like individual stocks. When you buy an ETF, you’re getting exposure to dozens or even hundreds of companies in a single transaction.

Germans prefer ETFs for three main reasons:

1. Low fees: Most ETFs have annual costs below 0.2%, far cheaper than mutual funds.
2. Diversification: A single ETF can spread risk across entire sectors or global regions.
3. Simplicity: ETF investing fits well with automated monthly contributions and long-term saving strategies like Sparpläne.

There are two ETF types:

• Accumulating ETFs (thesaurierend): Reinvest earnings automatically—no dividend payout.
• Distributing ETFs (ausschüttend): Pay dividends directly to your account.

Most German investors choose accumulating ETFs to minimize taxable events and benefit from compounding. These funds are also better aligned with passive investing strategies over 10+ years.

Who Can Invest in ETFs in Germany

Anyone over 18 with legal residence in Germany can invest in ETFs. You don’t need to be a citizen, and most brokers accept both locals and EU/EEA residents. The onboarding process is usually digital and completed within 1–2 days.

To open an ETF account, you typically need:

• Valid government ID (e.g. passport or national ID card)
• German residential address
• German tax ID (Steuer-ID)
• SEPA-compatible bank account
• Smartphone or computer for digital onboarding (VideoIdent or PostIdent)

There are no minimum wealth requirements. Most platforms let you start with as little as €1–€25 per month, making ETF investing accessible even for students or part-time workers. Some brokers also allow non-German EU residents to invest, though you may need to provide foreign tax documentation (TIN).

How to Start ETF Investing in Germany

Starting with ETFs in Germany is straightforward—especially with modern brokers designed for automation and low-cost investing.

Step-by-step process

1. Choose a broker
2. Complete identity verification (KYC)
3. Connect your bank account (SEPA)
4. Select your ETF(s)
5. Set up a savings plan (optional)
6. Review tax handling options

1. Choose an ETF broker

Decide between a neo broker, direct bank, or international provider. Focus on ETF availability, savings plan options, fees, and whether they automate tax reporting.

2. Complete identity verification

Use VideoIdent (live video call) or PostIdent (in-person ID check at a postal location). This is required by law to activate your account.

3. Connect your bank account

You’ll need a SEPA-compatible account in your name. Some brokers accept non-German IBANs, others don’t—especially for automated monthly plans.

4. Select your ETF(s)

Use the broker’s search tool to filter by region (e.g. global, Europe, emerging markets), sector (e.g. tech, clean energy), or fund type (accumulating/distributing).

5. Set up a savings plan (optional)

Choose how much to invest each month, on which day, and in which ETF(s). Most brokers allow €1–€25 minimum, and plans can be paused or edited at any time.

6. Review tax handling options

German brokers will withhold taxes automatically. With foreign brokers like DEGIRO or eToro, you’ll need to declare income manually in your tax return via ELSTER.

Types of ETF Brokers in Germany

Germany offers a wide range of brokers suited for ETF investing. Your choice affects costs, tax handling, savings plan flexibility, and overall ease of use. Here’s how the main broker types compare:

ETF Broker Comparison

Broker Type	ETF Fees	Tax Handling	Min. Plan Amount	User Interface	Best For
Neo brokers	€0–1 per plan	Automatic	€1–€25	App/web	Beginners, passive investors
Direct banks	~€1.50 per plan	Automatic	€25	Web, more complex	Long-term savers
Full-service banks	€2–3 per plan	Automatic	€50+	Bank-integrated	High-touch clients
EU brokers (e.g. DEGIRO)	€1 or free	Manual (via ELSTER)	€25+	Advanced tools	Global ETFs, experienced users

Neo brokers

Examples: Trade Republic, Scalable Capital

Neo brokers dominate the ETF savings market in Germany. They offer low or zero-cost ETF plans, simple mobile apps, and fast onboarding. Plans can be set up in minutes with automatic monthly investing. Most support fractional ETF investing, allowing you to start with just €1.

Direct banks

Examples: Comdirect, ING Germany

These combine banking and brokerage services. ETF selection is wide, and plans are reliable and tax-compliant. However, user interfaces can feel dated, and fees are typically €1.50–€2.00 per monthly investment. Best for investors who want traditional security and more account features.

Full-service banks

Examples: Deutsche Bank, Commerzbank

These are not ideal for most ETF investors due to high costs and limited flexibility. Plans often require €50 or more per month and may come with advisory services you don’t need. Suitable mainly for clients who want a dedicated banker or premium service.

EU-based brokers

Examples: DEGIRO, eToro

DEGIRO offers a wide range of ETFs and low fees, but no automated savings plans. Tax reporting is manual. eToro supports ETF investing with zero commission (spread-based), but it doesn’t offer savings plans. These brokers suit investors who prefer hands-on portfolio control.

ETF Savings Plans (ETF Sparpläne) Explained

ETF savings plans—known in Germany as ETF Sparpläne—are automated monthly investments in one or more ETFs. They’re designed for long-term investing and ideal for building wealth gradually without timing the market.

With a Sparplan, you set:

• Monthly amount (e.g. €25, €50, €100)
• Execution day (1st or 15th of the month, usually)
• Chosen ETF(s)
• Investment type (accumulating or distributing)

Once set, the broker will automatically withdraw the amount from your bank account and invest it in the ETF(s) you’ve selected. Most plans can be paused, modified, or cancelled at any time with no penalty.

ETF savings plans are especially popular in Germany because they combine:

• Low-cost investing (some brokers offer €0 commission on select ETFs)
• Psychological ease (removes decision stress and timing pressure)
• Long-term tax benefits, especially with accumulating ETFs
• Flexible access (edit or stop anytime without selling)

They’re also aligned with common financial goals like retirement, FIRE (Financial Independence, Retire Early), or saving for children. Most brokers support dozens to hundreds of eligible ETFs, often from providers like iShares, Vanguard, and Xtrackers.

Cost Comparison – ETF Brokers in Germany

ETF investing is low-cost by nature, but the fees still vary by broker—especially when it comes to savings plan execution, custody fees, and foreign exchange charges. Below is a current fee comparison for major ETF brokers in Germany.

ETF Broker Fee Table

Broker	ETF Plan Fee	Custody Fee	FX Fee (Non-EUR ETFs)	Min. Plan Amount	Notable Highlights
Trade Republic	Free (select ETFs)	None	0.15%	€1	Clean UI, fractional ETFs, mobile-first
Scalable Capital	Free (Prime) / €0.99	None	0.15%	€1	Automation-friendly, web+app
flatex	€1.50 per plan	€0.90/month	Up to 0.40%	€25	Tax handled, broad ETF selection
Comdirect	€1.50 per plan	€1.95/month	0.25–0.50%	€25	Linked to bank account, good support
DEGIRO	€0–€1	None	~0.25%	€25	Manual investing only, no auto plans
eToro	Free (spreads)	None	~0.50%	€50 (manual buy)	No Sparpläne, manual only, social investing

• Neo brokers like Trade Republic and Scalable Capital (with Prime) are the cheapest and most beginner-friendly.
• Traditional banks offer stronger service but add account and plan fees that reduce long-term compounding.
• Foreign brokers like DEGIRO and eToro may offer great ETF access—but without automated savings plans or tax automation.

For long-term passive investing, even a €1.50 fee per month adds up. Over 10 years, that’s €180 in lost capital growth—so if your broker offers free ETF plans, it’s a major advantage.

Taxes on ETFs in Germany

ETF investments in Germany are subject to capital gains tax, dividend tax, and special rules depending on fund type. Understanding how taxation works is crucial to avoid surprises—especially with accumulating vs distributing ETFs.

Flat tax on investment income

All profits from ETFs—whether through sale or dividends—are taxed at a flat rate:

• 25% capital gains tax
• 5.5% solidarity surcharge (on the 25%)
• 8–9% church tax (if applicable)

Total: approximately 26.375%, unless you’re exempt from church tax.

Tax-free allowance (Sparer-Pauschbetrag)

Every investor gets an annual €1,000 exemption on investment profits (€2,000 for married couples). Your broker will only apply this automatically if you submit a Freistellungsauftrag (tax exemption form).

Accumulating vs distributing ETFs

• Distributing ETFs pay out dividends, which are taxed when received.
• Accumulating ETFs reinvest income, but are still taxed annually under the Vorabpauschale rule—even if you didn’t sell.

The Vorabpauschale is calculated using a notional return and only applies if interest rates are positive. In recent years, it has been very low or zero—but may rise again.

Domestic vs foreign brokers

• German brokers handle tax automatically, with pre-filled tax certificates (Jahressteuerbescheinigung)
• EU-based brokers (like DEGIRO or eToro) don’t withhold taxes. You must declare income yourself via ELSTER, the online tax portal.

If you use foreign brokers, consider hiring a Steuerberater (tax advisor)—especially if you hold ETFs across multiple jurisdictions.

Best ETF Brokers in Germany 2025

• Best for free ETF savings plans: Scalable Capital (Prime plan)
• Best for starting with €1: Trade Republic
• Best for long-term automation: Scalable Capital
• Best for combining banking + ETFs: Comdirect
• Best for global ETF access (manual only): DEGIRO
• Best for passive investors with clean interface: Trade Republic
• Best for EU residents outside Germany: DEGIRO
• Best for manual ETF investing + crypto: eToro
• Best for social investing with ETFs: eToro
• Best for FIRE strategy (low-cost + autopilot): Scalable Capital

How to Choose the Right ETF Broker

Choosing the right ETF broker in Germany depends on your goals, monthly budget, and how much control or automation you want. Here’s what to focus on:

1. ETF Savings Plan Support
If you want automated monthly investing, choose a broker that offers Sparpläne. Trade Republic and Scalable Capital support plans starting from €1. DEGIRO and eToro do not offer this feature.

2. Fees and Cost Structure
Look at ETF plan fees, custody charges, and FX fees. Brokers like Scalable Capital (Prime) and Trade Republic offer free ETF plans, while traditional banks often charge €1.50–€2 per execution.

3. Tax Handling
German brokers like flatex, Comdirect, and Scalable Capital handle taxes automatically. Foreign brokers like DEGIRO and eToro require manual reporting, which may add complexity for beginners.

4. ETF Selection
Some brokers limit the ETF universe. Scalable offers over 2,000, while others focus on a smaller number of commission-free ETFs. DEGIRO offers wide access, but no automation.

5. Platform Usability
App-first brokers (Trade Republic, eToro) offer simplicity but fewer advanced tools. Web platforms like Scalable and Comdirect give more control and planning features.

If you value automation, low fees, and tax simplicity, Scalable Capital or Trade Republic are ideal. If you prefer hands-on investing and broader ETF access, DEGIRO or eToro may be a better fit.

Regulation and Fund Protection

ETF brokers operating in Germany are regulated under EU financial law and must comply with MiFID II—a framework that protects retail investors across all member states.

Regulatory bodies to look for:

• BaFin (Germany)
• CySEC (Cyprus, for eToro)
• AFM (Netherlands, for DEGIRO)

All licensed brokers must:

• Keep client funds segregated from company assets
• Provide negative balance protection (no debt from losses)
• Offer transparent risk disclosures

Investor protection limits:

• Cash deposits: Protected up to €100,000 per investor under the EU deposit guarantee scheme
• ETFs and securities: Held in your name and not at risk if the broker becomes insolvent
• Foreign brokers: Also covered by their home country’s investor protection fund

Whether you use a broker in Germany or an EU-based one like eToro or DEGIRO, your investments are legally safeguarded under European law.