The European Broker Landscape
Europe's broker market looks nothing like it did five years ago. Neo-brokers (Trade Republic, Scalable Capital) have slashed fees to near-zero, traditional brokers (Flatex, Consorsbank) have been forced to drop prices, and international players (Interactive Brokers, DEGIRO) provide access to global exchanges.
The right broker depends on what you need: a simple ETF Sparplan (savings plan)? Access to US options? Multi-currency accounts? Automatic tax reporting in your country? No single broker is best at everything — but one of these five is probably right for you.
Quick Comparison Table
| Feature | Trade Republic | Scalable Capital | DEGIRO | Interactive Brokers | Flatex |
|---|---|---|---|---|---|
| Sparplan Fee | €0 | €0 | N/A (no Sparplan feature in most countries) | N/A (manual recurring orders via API possible) | €0 |
| Trade Fee | €1 flat per trade | €0.99/trade or €4.99/mo flat (Prime+) | €1-3 depending on exchange | From €1.25/trade (tiered) or 0.05% (tiered) | €5.90 flat + exchange fees |
| Sparplan ETFs | 2,000+ | 2,500+ | N/A | N/A (but access to all UCITS ETFs) | 1,500+ |
| Fractional Shares | Yes (via Sparplan) | Yes (via Sparplan) | No | Yes (US stocks only) | Yes (via Sparplan) |
| Cash Interest | 3.25% on uninvested cash (as of early 2026) | 2.6% on Prime+ plan (as of early 2026) | 0% (cash moved to money market fund) | Variable, benchmark rate minus spread | 0% (negative interest abolished in 2023) |
Trade Republic
2015 (Berlin) | HQ: Berlin, Germany
Key Details
Countries: Germany, France, Italy, Spain, Netherlands, Austria, and more
Sparplan Fee: €0
Trade Fee: €1 flat per trade
Exchanges: Lang & Schwarz (primary), Hamburg exchange
Tax Reporting: Automatic in Germany (Abgeltungsteuer withheld)
Best For
Beginners, Sparplan investors, mobile-first traders
Drawbacks
Single exchange only, limited order types, no desktop platform for years (web version now available)
Scalable Capital
2014 (Munich) | HQ: Munich, Germany
Key Details
Countries: Germany, Austria, UK, select EU countries
Sparplan Fee: €0
Trade Fee: €0.99/trade or €4.99/mo flat (Prime+)
Exchanges: Gettex (primary), Xetra
Tax Reporting: Automatic in Germany
Best For
ETF power users, those who want Xetra access, robo-advisor option
Drawbacks
Free plan limited to Gettex, Prime+ cost adds up if trading infrequently
DEGIRO
2013 (Amsterdam) | HQ: Amsterdam, Netherlands (owned by Flatex AG)
Key Details
Countries: 18 EU countries
Sparplan Fee: N/A (no Sparplan feature in most countries)
Trade Fee: €1-3 depending on exchange
Exchanges: Euronext, Xetra, LSE, NYSE, NASDAQ, and more
Tax Reporting: Annual tax report provided; no automatic withholding in most countries
Best For
International exchange access, Dutch/EU investors outside Germany
Drawbacks
No Sparplan, no fractional shares, tax reporting is manual in most countries
Interactive Brokers
1978 (Connecticut, USA) | HQ: Greenwich, CT — EU entity in Ireland/Luxembourg
Key Details
Countries: Global (200+ countries)
Sparplan Fee: N/A (manual recurring orders via API possible)
Trade Fee: From €1.25/trade (tiered) or 0.05% (tiered)
Exchanges: 150+ exchanges in 33 countries
Tax Reporting: Detailed reports; no automatic withholding in EU
Best For
Serious investors, multi-currency portfolios, options traders, global access
Drawbacks
Intimidating platform for beginners, no Sparplan, complex fee structure
Flatex
2006 (Frankfurt) | HQ: Frankfurt, Germany
Key Details
Countries: Germany, Austria
Sparplan Fee: €0
Trade Fee: €5.90 flat + exchange fees
Exchanges: Tradegate, Xetra, Frankfurt, and more
Tax Reporting: Automatic in Germany and Austria
Best For
Buy-and-hold investors who want a traditional-style broker with Sparplan
Drawbacks
Higher trade fees than neo-brokers, dated interface compared to TR/Scalable
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What to Look for in a European Broker
Sparplan Support
If you plan to invest a fixed amount monthly (you should), you need a broker with free or low-cost Sparplan execution. Trade Republic and Scalable Capital are the leaders here with €0 Sparplan fees on thousands of ETFs.
Tax Reporting
Does the broker automatically withhold and report taxes in your country? German brokers do this seamlessly. DEGIRO and IBKR provide reports but do not withhold — you handle tax filing yourself. This matters enormously for convenience.
UCITS ETF Selection
EU investors can only buy UCITS-compliant ETFs. Most brokers offer 1,000-2,500+ UCITS ETFs. For most people, this is more than enough. If you need access to niche international markets, Interactive Brokers has the widest selection.
Regulatory Protection
All EU brokers must comply with MiFID II and hold client assets separately from company assets. Deposit protection varies: German banks cover €100,000 in cash; securities are held in segregated accounts and are not at risk if the broker goes bankrupt. IBKR offers SIPC protection (US entity) for US securities.
Glen's Honest Take
As someone who has used American brokers (Fidelity, Schwab, Interactive Brokers) for over a decade, here is my honest assessment of the European broker landscape:
For 90% of European investors: Trade Republic or Scalable Capital. Set up a Sparplan, pick a global ETF, and forget about it. The fees are effectively zero and the apps are excellent.
For power users who want global access: Interactive Brokers. The platform is intimidating but once you learn it, nothing else comes close for market access, margin rates, and multi-currency support.
The uncomfortable truth: Your broker choice matters far less than your investment behavior. A person using the “worst” broker on this list who invests €200/month consistently for 20 years will dramatically outperform someone who spends months optimizing broker selection and then invests inconsistently.
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Frequently Asked Questions
What is the cheapest broker for ETF investing in Europe?
For ETF Sparplan (savings plans), Trade Republic and Scalable Capital both offer free execution on thousands of ETFs. For individual trades, Trade Republic charges €1 flat and Scalable Capital charges €0.99 per trade (or unlimited free trades for €4.99/month on Prime+). DEGIRO charges €1-3 per trade depending on the exchange. Interactive Brokers charges from €1.25 per trade but offers the widest market access.
Can I buy US ETFs like VOO or VTI in Europe?
Generally no. EU regulations (PRIIPs/KID) prevent European retail investors from purchasing US-domiciled ETFs that do not provide a Key Information Document in a local EU language. Instead, you buy UCITS-compliant equivalents — for example, iShares Core S&P 500 UCITS ETF (SXR8) instead of Vanguard's VOO. These UCITS ETFs track the same indices but are domiciled in Ireland or Luxembourg.
Do European brokers handle tax reporting automatically?
It depends on the country and broker. German brokers (Trade Republic, Scalable Capital, Flatex) automatically withhold Abgeltungsteuer and report to the Finanzamt. DEGIRO does not withhold taxes automatically in most countries — you receive an annual tax report and handle filing yourself. Interactive Brokers provides detailed tax reports but does not withhold in most EU jurisdictions. Always check your specific country's requirements.
What is a UCITS ETF?
UCITS (Undertakings for Collective Investment in Transferable Securities) is an EU regulatory framework for investment funds. UCITS ETFs comply with EU rules on diversification, transparency, and investor protection. They are the only ETFs most EU retail investors can buy. UCITS ETFs are typically domiciled in Ireland (for tax treaty advantages) or Luxembourg. You can identify them by 'UCITS' in the fund name.
Which broker is best for investors outside Germany?
DEGIRO is available in most EU countries and offers low fees across the board. Interactive Brokers is the best choice for serious investors who want access to global markets (US, EU, Asia) with professional-grade tools. Trade Republic has expanded beyond Germany to France, Italy, Spain, and other EU countries. Scalable Capital is available in Germany, Austria, the UK, and select other markets.
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