Welcome to the most detailed Scalable Capital Review (2023) ! In this article I will be uncovering the reasons why it stands out as the top German broker of 2023. In addition to that, I’ll be providing you with all the essential insights you need. This is the most updated and detailed review of Scalable Capital (best broker in Germany) that you will find anywhere!
Scalable Capital – An Introduction
Scalable Capital is an Online Broker based in Germany. It provides services across Europe. This broker is a platform that allows you to buy or sell Stocks, ETFs and so much more!
A short background!
It is the most affordable online brokers around! You can use to start your Depot account in Germany. The platform allows you to open a Depot account for FREE, and frequently do transactions. You can do these transactions with low transaction cost. In addition to that, Scalable has a quick Registration process. More advantages (for example a user-friendly interface) makes Scalable Capital the best place for you to open your Depot in Germany.
Service Offerings of Scalable Capital
Scalable Capital is a fintech company. The company aims to simplify and enhance investing in Germany. To summarize what they do, they make investing accessible and efficient.
The services of Scalable Capital can be divided into two – Broker and Wealth.
Firstly, the broker service allows you to open a depot account & start investing in Germany.
A broker helps you buy and sell stocks , ETFs, or bonds. Scalable Capital is a broker that lets you trade and invest. They make it easy for you to do it online and may even give you advice on what to invest in.
In addition to that, they also offer a Wealth management services. This is a service that enables you to ‘invest without the hassle’. Scalable Capital has the largest robo-advisor in Germany. With over 2 Billion Euros in assets under management.
Detailed review – Is Scalable Capital the best broker in 2023?
Firstly, before we decide whether a broker is ‘the best’ or not, we need to set a few parameters. This will help us measure the performance of the broker, and compare it to our other options. Because of the various options available in Germany, Scalable Capital needs to perform well on these parameters to stand out.
So what are the parameters we will review the broker with?
- Cost – First and foremost parameter is the cost of the broker.
- Sign up process – Next, we look at how easy it is to sign up for the broker.
- Products – Then we analyze all the products available with this broker
- Features – We find out the unique features that you get with the broker
- Customer Support – How good is the support for customers?
- User interface– How is the interface & is it easy for beginners?
- Safety Regulations – Will your money be safe with this broker?
1. Cost of Scalable Capital
Firstly, we measure about the most crucial parameter – that is the cost. As with most things, money is a really crucial part when it comes to choosing a broker in Germany. The broker you choose a broker should not ending up costing a lot. The cost we will be analyzing includes signing up fee (if applicable) and brokerage fee for trades executed.
There are many brokers in Germany for which you can sign up without any fee. As in, no monthly subscription cost. However, with Scalable Capital you will get a lot of variety. There are 3 plans that Scalable Capital offers in their broker service.
- FREE Broker Plan
- PRIME Broken Plan
- PRIME Broker PLUS
The FREE BROKER comes without a monthly fee. On the other hand the PRIME BROKER and PRIME BROKER FLEX cost 2.99 and 4.99 euros a month respectively
2. Sign up process
This is a crucial need that shouldn’t be overlooked. It should be simple to register with the broker of your choice, especially if you are an expat. The requirements for signing up must be straightforward and uncomplicated. We don’t want to make things more difficult for ourselves than necessary, so
It is simpler to open your depot with Scalable Capital as an expat in Germany. For instance, Trade Republic only supports a select group of nationalities. It might be challenging to access your depot if you don’t already have a German passport.
However, Scalable Capital accepts the vast majority of passports from non-EU nations. Indian, Bangladeshi, Pakistani, Sri Lankan, UAE, and many other well-known non-EU nations have very simple account opening procedures.
The process of signing up should be simple and convenient. Another example is Flatex and Comdirect provide digital sign-up procedures. But only German and Austrian citizens can do so with ease. Otherwise, it is very challenging. Flatex and Comdirect’s registration procedures are also long.
There is no minimum deposit requirement for Comdirect, Scalable Capital, Trade Republic, or Flatex. On the other hand, eToro requires a 200 USD minimum deposit. It’s not ideal.
3. What Products can you invest in?
As a beginner who wants to invest in Germany, you may be confused as to what to invest in. However, you need not worry as I will make it simple for you in this article.
- EQUITY (Shares)
The Scalable Capital platform functions as a broker, enabling you to invest in various stocks within the stock market. Moreover, this broker offers comparatively low commissions. Additionally, regardless of whether you reside in Germany, France, the United Kingdom, Spain, or Austria, you have a diverse range of stock options available for investment.
With Scalable Capital, you currently get access to a wide selection of over 1,000 ETFs. As recent trends suggest, majority of this German broker’s clients opt for ETF investments. Furthermore, when examining the top 500 products available for trading on this platform, the first nine spots are dominated by ETFs, with the Apple stock following closely behind.
Investing in crypto has become really popular lately. Scalable Capital offers all the important cryptos. For example Bitcoin, Ethereum, Ripple, and Litecoin. They want to make their customers happy. Therefore they recently added some new currencies to their list. These include Cardano, Uniswap, Chainlink, Solana for instance. As a result of this, you have even more options to choose from when investing in crypto with Scalable Capital.
4. Features of Scalable Capital
Now we take a look at the features of this app. We can compare features for all the different plans. The thing I personally like the most about Scalable is that there are a lot of features with just the basic FREE plan itself!
First let us look at the FREE broker plan.
- There is a trading fee of 0.99 Euros per trade. Although the plan is free of cost, you pay this marginal fee every time you purchase or sell a stock on Scalable Capital.
- However, if you start a ‘Savings plan’ you absolutely do not have to pay any commissions.
Not sure what a ‘Savings Plan’ is and how to start one? Do not worry, we have you covered!
- With the FREE Broker plan, you will be getting 3 Price Alerts. A price alert allows users to set a specific price for a particular security (such as a stock or ETF). If the price of the security reaches or increases the specified price, the platform notifies the user. It will alert you about the price movement. This feature helps users stay informed about significant price changes in the securities they are interested in, enabling you to make informed investment decisions.
Next we take a look at the PRIME BROKER Plan and its features.
- The PRIME Broker Plan is the first plan where you start paying a ‘subscription fee’
- At €2.99 per month, this is still a really good deal for the benefits you get. One thing you should note is that the €2.99 fee would be paid annually.
- Now, you can do any number of trades as per your wish without paying any trade fee (€0.99 in the FREE plan)
- Just like the FREE broker plan, there is no charge for the Savings Plan
- In addition to that, there are unlimited number of Price alerts
Finally, here are the PRIME Broker PLUS features
With this plan, there are all the features of the PRIME Broker plan. There is just one advantage where you can pay the fee monthly. On the other hand, you have to pay the fee annually for the PRIME Broker plan.
The fee for the PRIME Broker PLUS plan is €4.99 per month. The flexibility of monthly payments allows you to opt out of the plan anytime.
However, there is a new feature in the Prime Broker PLUS which will allow you to earn upto €2300 FOR FREE! YES! Scalable Capital allows you to deposit money in your depot account and earn INTEREST on it!!
Interest rate of 2.6% starting on 03.08.2023. Until then, 2.3% p.a. You will be having a Cash account at Baader Bank AG.
5. How is the customer support?
Customer Support is a deal-breaker. If a broker has all great features, but poor customer service, it does not make sense to choose the broker. Especially as an expat in Germany, you need to look for the best customer support and service offered.
Here are a few things we look out for:
- Customer Support Accessibility – Live Chats, Phone Calls, Emails
- Support offered in English
- Mobile App and Website Services
- Accessible Online
Therefore, having these features would be ideal for the broker to be the best choice. So here is a table describing Scalable Capital on these metrics.
6. User Interface
This may or may not be a crucial feature for you. But for me, personally, I prefer a simple, attractive & informative interface. You can compare the brokers based on your preference. Here are my thoughts on the User Interface of Scalable Capital:
- Although there is nothing to complain about the interface of here, I personaly feel a few more options could be added.
- They are getting better and improving as a company, which is of course nice to see.
- One clear advantage is that Scalable Capital is available on both Mobile Phones and desktops
7. Is Scalable Capital safe?
Ultimately the most important question that crosses everybody’s mind is the safety. Is is safe to invest in Scalable Capital?
Yes, it is absolutely a safe platform. In fact I can say this from my own experience.
Scalable Capital ensures safety for clients’ investments through various measures. These specifically include regulation, asset segregation, and investor protection schemes. Security measures like encryption and monitoring are in place. Risk management techniques are employed to protect investments.
However, investing always carries risks. Research, understanding, and consulting with a financial advisor are crucial.
To find the best broker in Germany, it’s essential to consider multiple factors. It’s not enough for a broker to have low costs. Tt should also offer an easy sign-up process and reliable customer support.
Scalable Capital comes out as a top choice due to all of these features. One big advantage is its Automatic Tax Collection service. This removes the need for additional paperwork during tax filing.
Furthermore, Scalable Capital provides the flexibility to transfer your depot to other EU countries. Unlike other brokers that require you to close the depot before moving out of Germany. There are specific conditions to meet, such as age, non-US taxation, EU residence, and a current account within the SEPA region.
Scalable Capital also excels in terms of fees, with its free broker plan that incurs no monthly fees. Additionally, the trading fees are low, with a fee of 0.99 € per trade and free savings plan. Comparatively, other brokers like Comdirect and Flatex have high brokerage fees, while eToro’s non-trading fees make it less favorable overall.
Taking all these factors into account, Scalable Capital emerges as the best choice for its combination of features.
In conclusion, Scalable Capital is the ideal choice for investors. It is the best choice if you are looking for a broker with low costs, unique features, flexible plans, safety measures, and excellent customer support. Join today by using our referral link to experience the benefits firsthand!
Start your investment journey with Scalable Capital today!