How to Buy Stocks in Germany – Regulated Stock Brokers Reviewed

In this beginner’s guide, we explain how to buy stocks in Germany with a regulated online broker without paying any commission.

We also explore the most popular share brokers to consider and offer insight into the benefits and risks of creating a stock portfolio in today’s market.

Your capital is at risk. 68% of retail investor accounts lose money when trading CFDs with this provider.

Where to Buy Stocks in Germany – Popular Stock Brokers Reviewed

Before buying stocks in Germany, investors will need to spend some time choosing a suitable broker – of which there are many.

When considering where to buy shares in Germany, look for brokers that offer low trading fees and support for thousands of domestic and international equities.

It is also wise to explore what payment types the stock broker accepts and what the minimum investment requirement amounts to. Below, the most popular places to invest in shares in Germany are discussed via comprehensive reviews.

1. eToro – Overall the Most Popular Stock Broker Germany 

eToro is an online broker that offers a variety of asset classes. In addition to stocks, this is inclusive of ETFs, cryptocurrencies, forex, commodities, and indices. Those looking to buy stocks in Germany will be pleased to know that eToro offers 0% commissions across all supported equities. 

This includes more than 100 companies listed on the Frankfurt Stock Exchange – such as Siemens, Mercedes-Benz, BMW, and Bayer. Outside of the German marketplace, it is also possible to invest in stocks from the US, UK, Canada, France, the Netherlands, Saudi Arabia, Hong Kong, and more. 

The minimum investment required when users buy shares on eToro is just $10. This is the case regardless of how much the stocks are trading for, as eToro supports fractional shares. In buying dividend stocks here, German traders will receive their share of any payments directly in their eToro account.

Those with little to no experience in online stock trading might consider a Smart Portfolio. From a minimum investment of $500 (about 470 EUR), Smart Portfolios are diversified baskets of stocks that aim to track a specific market – such as Big Tech, China, renewable energy, e-commerce, or dividend aristocrats.

Either way, the Smart Portfolio will be managed by the eToro team, which allows German investors to trade passively. Another way to invest passively on eToro is via its Copy Trading tool. This allows users to copy the trades of another eToro user like-for-like. Some traders on the platform have a solid track record in terms of the ROI, so this is well worth exploring.

Moreover, there are no additional fees to use the Copy Trading or Smart Portfolio tools at eToro. All eToro products and services can be accessed online or via the app. The latter is available to download onto iOS and Android devices fee-free. There is also an eToro demo account facility. This allows traders to invest in the financial markets without risking any personal money.

When it comes to safety, eToro is regulated by CySEC for the European market. It also holds licenses with the SEC, FCA, and ASIC. More than 25 million clients use eToro and the broker has been operational since 2007. To get started with an account, a minimum first-time deposit of $50 is required.

This can be funded with a variety of payment methods – including Visa, MasterCard, Maestro, Paypal, Skrill, Neteller, WebMoney, and a bank wire. The fee to deposit funds across all payment methods is just 0.5%. Finally, eToro is also a popular cryptocurrency broker that allows users to buy Bitcoin in Germany from just $10 and at a competitive fee of 1%.

Your capital is at risk. 68% of retail investor accounts lose money when trading CFDs with this provider.

2. Capital.com – Trade Stocks in Germany With Leverage of 1:5    

Those looking to actively trade stocks in Germany might want to consider the Capital.com platform. In doing so, it is possible to trade more than 5,400 stock CFDs. In trading CFDs, this means that investors can gain exposure to stocks without becoming a shareholder.

As such, no commissions are charged by Capital.com on any of its supported markets. Moreover, Capital.com allows German traders to apply leverage on stock CFDs, up to a maximum of 1:5. This means that by entering a position worth $1,000, the trade can be boosted to $5,000.

Another benefit of using Capital.com to trade stocks is that it permits long and short orders. The latter should be used when the investor believes that the price of the stock will decline. The former should be used when there is a belief that the stock price will increase. Either way, there is the opportunity to profit from both rising and falling stock markets.

In terms of diversification, Capital.com lists shares from the Frankfurt Stock Exchange and nearly 20 other marketplaces. This includes stocks listed in the UK, Singapore, US, Canada, Japan, France, and more. It is also possible to trade other CFD assets, such as ETFs, forex, cryptocurrencies, indices, hard metals, energies, and agricultural products.

We like that Capital.com requires a minimum deposit of just 20 EUR when funding an account with an e-wallet or a debit/credit card. With that said, bank wire deposits come with a much higher account minimum of 250 EUR. There are no fees charged on deposits and withdrawals. In terms of licensing, Capital.com is regulated by CySEC, FCA, ASIC, and NBRB.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and can afford the risks.

3. Interactive Brokers – Choose From Thousands of Stocks at Competitive Fees 

Interactive Brokers is a household name in the global brokerage scene. The platform offers access to over 10,000 stocks from dozens of international markets.

There is no minimum deposit required to get started with this broker and no ongoing account fees apply.

When it comes to fees, this will depend on the stock exchange. For example, buying shares listed on the Frankfurt Stock Exchange will cost 0.05% of the trade value.

US-listed stocks, on the other hand, are charged at $0.0035 for each share purchased, at a minimum of $0.35. Lower rates are available on all listed markets when larger trading volumes are generated.

Therefore, Interactive Brokers is perhaps the most popular share trading platform in Germany for large-scale investors.

4. DEGIRO – Low-Cost Stock Broker With Access to US Markets 

DEGIRO is another trusted platform to consider when deciding on where to buy stocks in Germany. This platform specializes in offering low fees to its 2 million clients.

For instance, those wondering how to buy US stocks in Germany can use DEGIRO for this purpose without paying any trading commission. The only fee that applies is a 0.5 EUR external handling charge.

DEGIRO also offers a hand-picked selection of commission-free ETFs, which are updated every month. Other markets offered by the broker include options and futures, both of which can be traded at just 0.75 EUR per contract.

There is no minimum deposit or withdrawal threshold to meet at DEGIRO, which will suit those on a budget. We also like that the broker does not charge any inactivity fees. The main drawback with DEGIRO is that the KYC process can take several days.

5. Trading 212 – Convenient Broker App With Low Fees     

Trading 212 is a growing brokerage app that can be downloaded free of charge to iOS and Android devices. As such, this option will suit investors that wish to trade on the move.

At Trading 212, it is possible to invest in stocks without paying any commission. Moreover, the minimum stock trade requirement is just 1EUR. This is the case regardless of the underlying share price.

There are more than 7,000 stocks and ETFs supported by Trading 212, which covers markets in Germany, the UK, the US, the Netherlands, France, Spain, and Austria.

In terms of safety, Trading 212 is regulated by CySEC for European traders. Client funds are kept in segregated bank accounts and are protected up to 20,000 EUR.

6. XTB – Buy and Sell Over 1,500 Stock CFDs With 0% Commissions   

XTB is a CFD broker that enables investors to trade more than 1,500 stocks. Supported markets include Germany, the UK, France, Denmark, Switzerland, and the US.

German retail clients will have access to leverage of up to 1:5 on stock CFDs, and higher limits on other assets like forex and gold. Execution speeds at this platform are notably high and no commissions are charged on stocks.

With that said, XTB does require high minimum trading stakes when compared to other platforms. For instance, German stocks require a minimum stake of 50 EUR. UK stocks come with an even higher minimum, at 100 GBP.

Nonetheless, XTB is regulated by multiple bodies, including CySEC, the FCA, and KNF. There is no minimum deposit to meet at XTB. But, do remember that the deposit will need to cover the minimum trade requirements.

7. TradeStation – Trade European Stocks at 0.12% Per Slide

While TradeStation is a popular US-based stock broker, it also has an international branch that accepts German traders. When using this broker, investors will have access to thousands of stocks.

In terms of pricing, TradeStation allows German investors to buy European stocks at a commission of just 0.12% per slide. The minimum trade requirement per order is just 1.75 EUR.

UK stocks can also be purchased at a commission of 0.12%, albeit, the minimum trade is set at £1.50 GBP.US stocks can be traded at $0.007 per share, at a minimum of $1.50.

Supported European markets at TradeStation include Germany, Austria, Portugal, Italy, and more. In addition to stocks, TradeStation also supports options, futures, forex, and CFDs.

8. AvaTrade – Regulated Stock Trading Platform for Seasoned Pros 

The final provider to consider when learning how to buy shares in Germany is AvaTrade. Just like Capital.com and XTB, AvaTrade specializes in CFD markets.

Users of this platform can trade hundreds of stocks at 0% commission and tight spreads. There is, however, a very strong focus on US-listed stocks at AvaTrade.

As such, this platform won’t be suitable for those that wish to diversify into different markets. We like AvaTrade for its advanced trading tools and support for technical indicators and custom charts.

AvaTrade users can also access their accounts via third-party platforms like MT4, MT5, and DupliTrade. In addition to stocks, AvaTrade also supports forex, commodities, indices, and crypto – and the minimum deposit requirement is 100 EUR.

Popular Germany Stock Brokers Compared

The below table will help determine where to buy stocks in Germany for each individual requirement:

The table above is correct as of writing. Be sure to check important metrics before choosing a broker.

The Basics of Buying Stocks in Germany

Stocks refer to companies that are publicly listed on an exchange. In Germany, the primary market is the Frankfurt Stock Exchange. With that said, it is also possible to buy stocks in markets listed overseas – such as the US, UK, and other European exchanges.

Either way, when buying stocks in a company, the investor becomes a part-owner of the respective firm. This entitles the stockholder to voting rights and if payable, a share of any dividends. Crucially, in addition to dividends, investors will look to buy stocks and then have the opportunity to cash out at a higher price at some point in the future.

For example, if the investor buys BMW stocks at 60 EUR per share and sells them at 100 EUR per share a few months later, this would translate into a profit of 40 EUR for each share that is owned. In order to buy stocks in Germany, it is a requirement to go through a regulated online broker – such as those that we discussed earlier.

The broker essentially sits between the investor and the respective stock exchange. There are tens of thousands of stocks listed on German and international exchanges, so creating a diversified basket of equities from a variety of markets and sectors has never been more convenient.

How do I Find the Popular Shares to Buy in Germany?

Once a stock broker account has been found, the investor will then need to look for the most popular shares to invest in.

Beginners should avoid picking stocks without doing adequate research on the company from an investment perspective. This will give the investor a chance of creating a profitable, long-term portfolio.

In order to determine what shares to watch in Germany, consider the factors discussed below:

Look for Undervalued Stocks

One place to start is to search the market for undervalued stocks. These are companies that are subjectively trading below their actual value. And therefore, undervalued stocks allow investors to purchase shares in their favorite companies.

• In order to find undervalued stocks, it is first worth considering the health of the broader market.
• For example, 2022 has been disastrous for most stocks to date, with solid companies like Amazon and Tesla down 30-50% from their prior highs.
• Another way to find undervalued stocks is to look at the P/E ratio of the company – which can be extracted from Google.

Compare this to the industry average and if the company has a lower P/E ratio than its peers, this could indicate that it is undervalued.

Focus on Staple Sectors

Beginners might also consider sticking with stocks that operate in stable sectors. These are sectors that typically perform well even when the broader economy is on the decline.

Examples here include pharmaceutical companies such as Johnson & Johnson and GlaxoSmithKline, as well as retailers like Walmart. Stable stocks sell products and services that are always in demand, so they offer stability to an investment portfolio.

Add a Basket of Growth Stocks 

While stable stocks offer stability to a portfolio, it is also worth exploring growth companies. These are firms that are still at the very start of their journey and thus – are likely to only have been listed on a stock exchange recently.

As a prime example, those that bought Tesla shares when the firm first went public in 2010 are now looking at growth of over 16,000%.

10 Popular Stocks to Watch in Germany

In the sections below, we discuss 10 stocks to watch in Germany. We cover a variety of domestic and international companies, from a selection of sectors and industries.

1. Deutsche Telekom – One of the Most Popular shares to Watch in Germany in 2023

We found that one of the most popular shares to watch in Germany in 2023 is Deutsche Telekom. While the firm does not offer the most attractive returns in the market, this telecommunications giant offers consistency and defense against economic uncertainty. While the broader markets are down in 2022, Deutsche Telekom is still in the green at 4% as of writing.

With growing exposure to the 5G sector, Deutsche Telekom has the financial resources to expand in the coming years. In the meantime, we like that Deutsche Telekom offers a running dividend yield of over 3.45% as of writing. Furthermore, the firm is trading with a P/E ratio of just 12 times.

Your capital is at risk. 68% of retail investor accounts lose money when trading CFDs with this provider.

2. Puma – High-Growth Momentum Stock With 5-Year Gains of Over 90%

Puma is a German athletic and sporting brand that is the third-largest in this space globally, behind Nike and Adidas. While the broader apparel market has been stagnant in recent years, this hasn’t been the case for Puma. In fact, over the prior five years, Puma stock has increased in value by over 90%.

Crucially, over a 12-month period, the stocks are down over 32%. However, this is the case with most stocks as per rising inflation levels and supply chain issues. Puma also offers a running dividend yield of just over 1% as of writing. The key drawback with this stock is that at 30 times, its P/E ratio is somewhat high.

Your capital is at risk. 68% of retail investor accounts lose money when trading CFDs with this provider.

3. Amazon – Buy This Stock While it is Still Cheap

Another high-grade stock that has suffered from a much broader market sell-off is Amazon. Over the prior 12 months, Amazon stock has declined by nearly 40%. Over a five-year period, however, the stock is up over 110%. Amazon is a market leader in many of the industries it operates in, most notably its e-commerce division.

Amazon is also a dominant force in cloud computing via its AWS framework. Amazon Prime – its streaming service, is closing in on Netflix in terms of subscription numbers too. Unlike Netflix, Amazon has a robust balance sheet and plenty of free cash flow to hand. Plus, Amazon has and likely never will pay dividends to stockholders, which further increases its financial strength.

Your capital is at risk. 68% of retail investor accounts lose money when trading CFDs with this provider.

4. Tesla – Invest in the Future of Electric Vehicles

Tesla is yet another US-listed stock that can be purchased right now. Once again, the temporary fall of Tesla’s stock price is due to broader market conditions that are dominated by fear and uncertainty. As of writing, Tesla stock is trading at 45% lower compared to its prior 52-week highs.

As such, never before has there been a better chance to invest in the world’s largest car manufacturer. Nonetheless, over a five-year period, Tesla stock has generated returns of nearly 750% for its shareholders. Since the firm went public in 2010, the stock has increased in value by over 16,000%.

Your capital is at risk. 68% of retail investor accounts lose money when trading CFDs with this provider.

5. Coinbase – Growth Stock Trading 85% Lower Than its IPO Price

Coinbase is a high-risk growth stock that might appear to those that wish to target a much higher upside. The firm is one of the largest and most popular crypto exchanges globally, which means that a Coinbase stock purchase will see the investor wager on the growth of Bitcoin and other digital assets.

Not only does Coinbase offer exposure to the crypto market via stocks, but it is trading at a considerably low price. In fact, since its IPO in mid-2021, Coinbase stock has declined by 85%. The medium-to-long-term target with this stock will be a strong revival if and when the wider crypto markets recover.

Your capital is at risk. 68% of retail investor accounts lose money when trading CFDs with this provider.

6. Bank of America – Popular Banking Stock for Portfolio Diversity     

Those looking to build a diverse portfolio of stocks from a variety of sectors might consider the Bank of America. This is one of the most popular banking stocks in recent years and it also offers a competitive running dividend yield of over 2.6% as of writing. 

Over the prior five years, this stock has increased in value by nearly 40%. This outperforms most other banking stocks in this space. Over the past 12 months, the Bank of America has declined by almost 20% as per broader market conditions. 

Your capital is at risk. 68% of retail investor accounts lose money when trading CFDs with this provider.

7. BMW – Popular  Stock to Buy in Germany for Dividends     

Luxury vehicle maker Bayerische Motoren Werke (BMW) is one of the most popoular stocks to buy in Germany for those seeking dividends. As of writing, the firm is offering a huge running dividend yield of over 7%. 

Furthermore, BMW is carrying a minute P/E ratio of just 2.6 based on prices as of writing. With that said, the stock price of BMW has struggled in recent years. Over the prior 12 months, for instance, the stocks are down 15%. Over a five-year period, losses stand at nearly 6%.   

Your capital is at risk. 68% of retail investor accounts lose money when trading CFDs with this provider.

8. Walmart – Solid Staple Stock With Consistent Dividends    

Walmart is another staple stock that is worth considering for those that wish to invest in the financial markets in a conservative manner. The firm is the largest grocery and wholesaler in the US and many investors will hold Walmart stock during times of economic uncertainty. 

With that said, Walmart stock has outperformed the broader markets in recent years. In fact, over the past five years, the stock is up 58%. In comparison, the Dow Jones is up nearly 40% over the same period. Walmart is also a consistent dividend payer. As of writing, the firm is offering a running yield of almost 1.9%.  

Your capital is at risk. 68% of retail investor accounts lose money when trading CFDs with this provider.

9. Apple – Global Brand With High Growth and a Strong Cash Position     

Apple is a stock that has also suffered in 2022 due to wider market conditions. As of writing, the firm is trading at nearly 30% less than its 2021 highs. Apple has, however, generated huge returns over the prior five years at almost 260%.

What we really like about Apple – in addition to its trusted global brand, is that it continues to diversify into new products and services. This includes its growing streaming service, as well as exposure to fitness, games, music, and news. 

Your capital is at risk. 68% of retail investor accounts lose money when trading CFDs with this provider.

10. NVIDIA – More Than 300% Growth Over the Prior 5 Years     

The final company to consider from our list of popular stocks to watch is NVIDIA. This firm is a global leader in graphics processing units (GPUs). It is also involved in robotics, autonomous vehicles, cryptocurrency mining equipment, and accelerated computing.  

Over the prior five years, NVIDIA has generated returns of over 300% for its stockholders. This makes NVIDIA an option for those looking to invest in stocks that carry strong momentum. NVIDIA is also a dividend payer, but as of writing, the running yield stands at just 0.1%. 

Your capital is at risk. 68% of retail investor accounts lose money when trading CFDs with this provider.

How to Buy Penny Stocks in Germany?

Those wondering how to find penny stocks in Germany are advised to carefully research the market due to its high volatility and speculative nature. 

Even the most popular penny stocks historically have suffered from ultra-low liquidity levels. This means that trying to cash out a profitable penny stock trade can be challenging. 

Rather than search for the most popular penny stocks to buy, beginners could perhaps focus on high-grade equities with an established track record. This is especially the case in today’s uncertain market. 

Your capital is at risk. 68% of retail investor accounts lose money when trading CFDs with this provider.

Are Shares Taxed in Germany?

Brokerage firms in Germany will likely withhold a tax of 25% from capital gains and dividends. 

Whether or not international brokers are required to do this remains to be seen, but the gains will be liable for tax nonetheless. 

Moreover, there is also a solidarity surcharge of 5.5% to consider. 

German investors do, however, get an annual capital gains allowance of 801 EUR, or 1602 EUR for married couples filing together. 

How to Buy Stocks for Beginners in Germany – 

Wondering how to buy stocks online in Germany and need a little guidance? If so, this section of our guide will explain how to invest in stocks.

Step 1: Open a Regulated Broker Account 

The first step when learning how to invest in shares in Germany is to register a new account. The broker will collect some basic information from the new user, such as their first and last name, residential address, and cell phone number.

Users will also need to create a username for their login credentials. Finish the registration process by confirming the cell phone number and email address given.

Step 2: Verify Account

To get verified, provide a copy of a passport or driver’s license.

Step 3: Deposit Funds

Choose from a debit or credit card, Paypal, Skrill, or any other supported e-wallet for the payment to be processed instantly.

Traditional bank wires take 4-7 working days, so this payment method should be avoided if the investor wishes to buy stocks in Germany straightaway.

Step 4: Search for Stock

In the search box at the top of the page, begin typing the name of the stock. In our example below, we are searching for Deutsche Telekom.

After clicking ‘Trade’ next to the name of the stock, an order box will appear.

Step 5: Buy Stock

To complete an order in real-time, simply type in the size of the stock investment.

Finally, to confirm the stock investment, click on the ‘Open Trade’ button.

Tips for Buying Stocks in Germany

Before proceeding with an investment, consider the following stock trading tips – which are aimed at beginners.

Start With a Demo Account

Novice stock traders might consider starting off with a free demo account that mirrors live market conditions.

Check Out a Stock Index Fund

Another way to start without having any prior experience is to opt for an index fund. Examples here include the DAX Performance, which tracks the 40 largest companies listed in Germany.

The Dow Jones and S&P 500 are also worth considering for those looking to gain exposure to US stocks.

Set Stop-Loss Orders

When buying stocks, not all investments will return a profit. To ensure that inevitable losses are capped, consider deploying a stop-loss order.

For instance, if the stop-loss order on a stock trade amounts to 3%, the broker will automatically close the position if it declines in value by 3%.

Conclusion 

The step-by-step process of how to buy stocks in Germany takes less than 10 minutes.

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