Broker Account – Smartbroker

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According to Finanztest, Smartbroker is the cheapest broker on the market in Germany. The DAB BNP Paribas manages the depot. Therefore, the German Banking Regulators and authorities (BaFin) closely monitor the broker. Compared to other brokers in the market, Smartbroker offers fairly decent and lucrative services, products and prices. Investors can have the following advantages when they open an account with Smartbroker.

• Investors can easily trade stocks, bonds, funds and ETFs under a single depot without any barriers.
• Trade stocks and derivatives at a lucrative price offer; zero euros per order.
• Invest with experienced financiers who have a deep understanding of the needs and demands of the German financial community.
• Invest on a safe platform with competent customer service.

With a proper understanding of the German financial community, the broker seeks to offer tailor-made services that cater for every investor. Furthermore, According to the Finanztest of the Stiftung Warentest group, Smartbroker is the cheapest provider in the market. For instance, the price of Aktiv-Depot of the Berliner Volksbank is € 886 in a model calculation for the medium-sized depot. However, Smarbroker only charges € 55 for the same service that was included in the review.

How to Sign Up

The process takes about five minutes and involves five steps to complete.

1. Click on the button, “Open depot now.”
2. Follow the stated guidelines and fill in the required details.
3. Follow the PostIdent or VidIdent procedure to identify yourself.

Swiss and Austrian residents can also open a Smartbroker account. However, they must provide the FATCA form from the custodian bank and an official registration certificate for tax purposes. The forms must be signed, and the letter must not be older than three months.

Pricing and Fees

Smartbroker offers competitive and transparent prices. There are also no hidden costs. The prices are relatively low as compared to other brokers operating in Germany.

• Free transfer of securities.
• No fees for dividend payments and distributions from ETFs or funds.
• Free management of the portfolio.
• Limitation, cancellation, non-execution and change of order are all free of charge.
• Free keeping of clearing accounts, currency accounts and call money accounts.
• No credit interest paid.
• No negative interest if the cash quota in the account does not exceed 15% of the deposit balance. Otherwise, a custody fee of 0.5% is charged and billed quarterly.
• Trading securities and derivatives cost € 0. However, that depends on the selected providers and the order amount:

• Costs € 0 with Gettex.
• Costs € 1 with Lang and Schwarz.
• € 4 with all other stock exchanges.

• ETFs costs 0.00657% of the purchase value, a minimum of € 0.82 and a maximum of € 65.69 per order.
• Certificates and warrants cost € 0 in direct trading from the three premium partners; Morgan Stanley, HSBC and Vontobel. However, the minimum transaction should be € 500 in volume.
• International orders cost € 9 onwards.

Benefits of Using Smartbroker.

• The exclusive partner of Smartbroker, DAB BNP PARIBAS, provides the statutory minimum protection to investors. The bank is also a member of the deposit protection fund of the Federal Association of German Banks. Therefore, investors’ funds are protected and safe.
• Smartbroker provides cheap rates and affordable offers.
• German investors can gain fully from the products and services that are tailored to meet their needs and demands.
• Investors can utilize the various trading venues provided on the platform.
• Trade the various financial instruments, including stocks, bonds, funds and ETFs.

Smartbroker can process for their clients through various trading venues, which include German trading venues, over-the-counter trading venues and foreign trading venues. Even though the broker provides several benefits to their users, they fail to meet customer needs in many ways. For example, the broker does not support trading of certificates based on US underlying, lacks the following: a demo account, mobile app, professional trading software, seminars, customer chat, and personal advice. Furthermore, they do not offer CFDs, futures, options and forex trading.

Mobile Apps and Other Platforms

Smartbroker does not provide mobile app trading. The platform is only available online through the website. Registered traders can access the site by logging in using their credentials and following the mobile transaction authentication procedure (mTAN) to authorize financial transactions.

Documentation Needed.

When opening the Smartbroker account, specific details and documents are required. The information includes personal data such as name, email, phone number, nationality, tax domicile country and German Tax Identity Number. Information about work and physical address is also required.

The PostIdent or VideIdent procedure requires users to have a passport or a government-issued national identity card. Swiss or Austrian nationals must have the signed FATCA form and official registration certificate.