The cheapest broker in the country
There are numerous providers who allow anyone to trade stocks. But the fees are so different that a comprehensive comparison is worthwhile.
IIt already exists in America; the free broker. We’re talking about the American fintech Robinhood, founded in 2003. The idea or “mission” – as the founders called it – was to democratize the markets and enable everyone to act. There is still no completely free broker in Germany. In the future, however, there will be a provider who at least comes very close to the concept of free trading.
For each order placed, users of the online broker Trade Republic should only pay 1 euro; no matter how high the order volume is. In addition, customers do not pay any commission fee either. For comparison: Postbank charges a fee of around EUR 30 for an order of EUR 5200 or more. Christian Hecker, one of the three founders of Trade Republic, emphasizes in an interview with FAZ.NET that the 1 euro is “not a commission”, but only the flat rate for third-party costs, i.e. simply the costs that are really for the order is incurred. “In fact, these are the transaction costs,” says Hecker. In America, on the other hand, more favorable trade regulation would prevail, which would keep the processing costs as low as possible. “We could have offered the trade in Cyprus or Bulgaria,” says Hecker. That would be cheaper under certain circumstances, but it would not offer the German reliability and security. That is also the reason why users still have to pay 1 euro per order in contrast to the American broker Robinhood, who has long enjoyed cult status in the local trader scene and especially among younger traders.