What broker best suits my needs?
In the latest issue of Euro am Sonntag, a comprehensive study on online brokers in Germany was published, providing valuable insights into the cost-effectiveness of various brokers for different types of traders.
The study, which assessed cost factors such as commissions, order fees, custody fees, and additional service charges, aimed to help investors make informed decisions when choosing an online broker.
For infrequent or small-volume traders, brokers with low or no custody fees and low commission per trade tend to rank cheapest. On the other hand, active traders are favored by brokers offering flat fees or highly discounted commissions on frequent trading. Professional or high-volume traders, meanwhile, often find the most cost-effective brokers to be those that provide advanced platforms with volume-based pricing or commission rebates.
Some of the popular online brokers often highlighted in Euro am Sonntag studies include Interactive Brokers, Trade Republic and Scalable Capital, Consorsbank, and Comdirect. Interactive Brokers is noted for its low commissions and wide international access for active and professional traders, while Trade Republic and Scalable Capital are known for their low-cost trading especially in Germany for retail investors. Consorsbank and Comdirect cater to beginner to intermediate traders.
However, it's important to note that not every broker is suitable for all traders, as each broker has a different focus. Some online brokers specialize in a few stock segments, while generalists offer many more trading opportunities.
The study calculated the costs of trading for each broker by comparing the costs of five model customers: Active Trader, Normal Trader, Saver, Direct Trader, and Investor. For the Investor who is rarely active at the exchange but has large order volumes, DKB Deutsche Kreditbank emerged as the best option with annual costs of €175.60. The "Investor" has a portfolio of €250,000, with an additional €25,000 in cash (10% of the portfolio value) in the settlement or savings account.
For the Average Trader, Consorsbank was the most affordable with quarterly costs of €51.70. The "Direct Trader" who only trades off-exchange found Max Blue and Targobank to be the most affordable with costs of €160.20 per quarter. For the Savings Planer, ING Germany was the most cost-effective with quarterly costs of €21.09.
Euro am Sonntag conducted a survey on the costs of online trading with 21 classic online brokers, of which 18 responded. Eight out of the ten generalist brokers surveyed made it into the top three for at least one of the five model customers, indicating a balanced provider landscape.
However, it's worth noting that the study did not consider new customer discounts, limited-time discount actions, special interest rates, or discounted order fees in derivatives trading with some issuers. Therefore, it's recommended to consult the most recent Euro am Sonntag issue or their website directly for the 2025 broker cost comparison to obtain precise broker rankings and cost breakdowns by trader type.
Personal finance experts recommend that investors consider cost factors such as commissions, order fees, custody fees, and additional service charges when choosing an online broker, especially for informed decision-making. For instance, the study in Euro am Sonntag revealed that DKB Deutsche Kreditbank is the most cost-effective for an Investor with a large portfolio, with annual costs of €175.60.
