To help you find the best discount brokers in 2022 for citizens in Germany, we went ahead and did the research for you. So what did we focus on? Fees, fees and fees. We don't like them and surely you don't either. After carefully checking 101 brokers for fees, 5 made it to the top. And now, without further ado...
The top 5 picks for the best discount brokers for German citizens in 2022:
- DEGIRO is the best discount broker in Germany in 2022. Low trading and non-trading fees, one free ETF trading per month.
- Interactive Brokers takes second place. Low trading and non-trading fees, free stock and ETF trading for US customers.
- tastyworks rounds out the top three. Low trading and non-trading fees, no inactivity fee.
- Alpaca Trading is ranked fourth. Free stock and ETF trading, low non-trading fees.
- Firstrade just made it to the list at number five. Low trading and non-trading fees, free stock, ETF, fund and options trading.
| Broker | Info | Fees score | |
|---|---|---|---|
| #1 | DEGIRO | German-Dutch discount broker | 4.6 stars |
| #2 | Interactive Brokers | International broker providing all asset classes | 4.5 stars |
| #3 | tastyworks | US options and stockbroker | 4.3 stars |
| #4 | Alpaca Trading | US API broker | 4.9 stars |
| #5 | Firstrade | US discount broker | 4.5 stars |
What makes a good discount broker? Well, did we mention low fees? This includes commissions, financing rates, and, let's not forget, non-trading fees like inactivity or withdrawal fees. The table above gives you a good hint; the scores include all fees, with 5.0 being the best. Besides low fees, a good discount broker should also offer access to a lot of markets and products, because providing low fees in more than one asset class is not an easy job. All brokers in our list offer real stocks, but we also looked into whether you can trade currencies, options or mutual funds.
These features may sound obvious and easy to list, but they're hard to figure out. We are testing brokers based on close to 500 criteria, using real accounts and real money. We know what's going on.
For a tailored recommendation, check out our broker finder tool. Answer 4 simple questions and get a list of the most relevant brokers.
And now, let's see the best discount brokers for German citizens in 2022 one by one, starting with the winner, DEGIRO.
#1 Best discount broker
DEGIRO
DEGIRO is a German-Dutch online discount broker. It was established in 2008 by former employees of another brokerage company in the Netherlands. DEGIRO merged with flatexDEGIRO Bank AG in early 2021, creating the biggest online execution-only broker in Europe with its own banking license.
Check out our DEGIRO review tailored to the needs of beginner investors and traders.
DEGIRO is regulated by top-tier financial authorities such as the Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht, or BaFin) in Germany.
Disclaimer: Investing involves risk of loss.
Disclaimer for UK clients: Deemed authorised and regulated by the Financial Conduct Authority (FCA). The nature and extent of consumer protections may differ from those applicable to firms based in the UK. Details of the Temporary Permissions Regime, which allows EEA-based firms to operate in the UK for a limited period while seeking full authorisation, are available on the FCA's website.
#1 DEGIRO
Fees
DEGIRO has low trading fees for all asset classes. Non-trading fees are also low, as there are no inactivity or withdrawal fees. On the negative side, trading US options or futures will come with a €5 monthly fee. If you need currency conversion, a 0.25% fee will apply.
| Pros | Cons |
|---|---|
| • Low fund fees | • €5 monthly fee for trading US derivatives (options and futures) |
| • No inactivity fee | • 0.25% FX conversion fee |
| • Low stock and ETF fees |
| DEGIRO | Interactive Brokers | tastyworks | Alpaca Trading | Firstrade | |
|---|---|---|---|---|---|
| US stock | $0.6 | $1.0 | $0.0 | $0.0 | $0.0 |
| UK stock | $3.2 | $4.2 | - | - | - |
| EURUSD benchmark fee | - | $10.4 | - | - | - |
| US stock index options | $7.5 | $6.5 | $7.5 | - | $0.0 |
| Mutual fund | $4.7 | $15.0 | - | - | $0.0 |
| DEGIRO | Interactive Brokers | tastyworks | Alpaca Trading | Firstrade | |
|---|---|---|---|---|---|
| Account fee | No | No | No | No | No |
| Inactivity fee | No | No | No | No | No |
| Withdrawal fee | $0 | $0 | $0 | $0 | $0 |
#1 DEGIRO
Markets and products
At DEGIRO, you can access many markets and trade a lot of different products. CFDs and forex are not available, though.
| DEGIRO | Interactive Brokers | tastyworks | Alpaca Trading | Firstrade | |
|---|---|---|---|---|---|
| Stocks | Yes | Yes | Yes | Yes | Yes |
| ETFs | Yes | Yes | Yes | Yes | Yes |
| Forex | No | Yes | No | No | No |
| Funds | Yes | Yes | No | No | Yes |
| Bonds | Yes | Yes | No | No | Yes |
| Options | Yes | Yes | Yes | No | Yes |
| Futures | Yes | Yes | Yes | No | No |
| CFDs | No | Yes | No | No | No |
| Crypto | No | Yes | Yes | No | No |
#2 Best discount broker
Interactive Brokers
Interactive Brokers, one of the biggest US-based discount brokers, was founded in 1977. The broker is regulated by several financial authorities globally, including top-tier ones like the UK's Financial Conduct Authority (FCA) and the US Securities and Exchange Commission (SEC).
Given that the broker has licenses from multiple top-tier regulators, Interactive Brokers is considered safe. The fact that it has a long track record and publicly disclosed financials while being listed on a stock exchange all point to IB being a safe service provider.
Interactive Brokers recently launched a new app for global stock trading: read our review of IBKR GlobalTrader.
In addition, Interactive Brokers also has an app you can use for ESG investing: read our review of IMPACT by Interactive Brokers.
#2 Interactive Brokers
Fees
Interactive Brokers has low trading fees and the best margin rates in the industry. For US clients, stock and ETF trading is free if they choose the Lite plan.
| Pros | Cons |
|---|---|
| • Low trading fees | None |
| • Free stock and ETF trading for US clients | |
| • Low margin rates |
| DEGIRO | Interactive Brokers | tastyworks | Alpaca Trading | Firstrade | |
|---|---|---|---|---|---|
| US stock | $0.6 | $1.0 | $0.0 | $0.0 | $0.0 |
| UK stock | $3.2 | $4.2 | - | - | - |
| EURUSD benchmark fee | - | $10.4 | - | - | - |
| US stock index options | $7.5 | $6.5 | $7.5 | - | $0.0 |
| Mutual fund | $4.7 | $15.0 | - | - | $0.0 |
| DEGIRO | Interactive Brokers | tastyworks | Alpaca Trading | Firstrade | |
|---|---|---|---|---|---|
| Account fee | No | No | No | No | No |
| Inactivity fee | No | No | No | No | No |
| Withdrawal fee | $0 | $0 | $0 | $0 | $0 |
#2 Interactive Brokers
Markets and products
At Interactive Brokers, you have access to an extremely wide range of markets and all product types are available.
| DEGIRO | Interactive Brokers | tastyworks | Alpaca Trading | Firstrade | |
|---|---|---|---|---|---|
| Stocks | Yes | Yes | Yes | Yes | Yes |
| ETFs | Yes | Yes | Yes | Yes | Yes |
| Forex | No | Yes | No | No | No |
| Funds | Yes | Yes | No | No | Yes |
| Bonds | Yes | Yes | No | No | Yes |
| Options | Yes | Yes | Yes | No | Yes |
| Futures | Yes | Yes | Yes | No | No |
| CFDs | No | Yes | No | No | No |
| Crypto | No | Yes | Yes | No | No |
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#3 Best discount broker
tastyworks
tastyworks is a young, up-and-coming US broker focusing on options trading. It is regulated by the top-tier Securities and Exchange Commission (SEC), the Financial Industry Regulatory Authority (FINRA) and the Australian Securities and Investments Commission (ASIC) for Australian clients.
The people behind tastyworks are the same experts who built the thinkorswim trading platform, now operated by TD Ameritrade. tastyworks is privately owned; it was established in 2017 and is headquartered in Chicago.
#3 tastyworks
Fees
tastyworks has low trading fees and there is no inactivity fee. On the other hand, you have to pay a high withdrawal fee for wire transfers and margin rates are quite high.
| Pros | Cons |
|---|---|
| • No inactivity fee | • High margin rates for stock trading |
| • Free stock trading | • Withdrawal fee for bank (wire) transfers |
| • Low options fees |
| DEGIRO | Interactive Brokers | tastyworks | Alpaca Trading | Firstrade | |
|---|---|---|---|---|---|
| US stock | $0.6 | $1.0 | $0.0 | $0.0 | $0.0 |
| UK stock | $3.2 | $4.2 | - | - | - |
| EURUSD benchmark fee | - | $10.4 | - | - | - |
| US stock index options | $7.5 | $6.5 | $7.5 | - | $0.0 |
| Mutual fund | $4.7 | $15.0 | - | - | $0.0 |
| DEGIRO | Interactive Brokers | tastyworks | Alpaca Trading | Firstrade | |
|---|---|---|---|---|---|
| Account fee | No | No | No | No | No |
| Inactivity fee | No | No | No | No | No |
| Withdrawal fee | $0 | $0 | $0 | $0 | $0 |
#3 tastyworks
Markets and products
At tastyworks, you can trade US stocks, ETFs, options and some futures. Other popular asset classes like mutual funds or bonds are missing, as are international assets.
| DEGIRO | Interactive Brokers | tastyworks | Alpaca Trading | Firstrade | |
|---|---|---|---|---|---|
| Stocks | Yes | Yes | Yes | Yes | Yes |
| ETFs | Yes | Yes | Yes | Yes | Yes |
| Forex | No | Yes | No | No | No |
| Funds | Yes | Yes | No | No | Yes |
| Bonds | Yes | Yes | No | No | Yes |
| Options | Yes | Yes | Yes | No | Yes |
| Futures | Yes | Yes | Yes | No | No |
| CFDs | No | Yes | No | No | No |
| Crypto | No | Yes | Yes | No | No |
#4 Best discount broker
Alpaca Trading
Alpaca Trading is a commission-free API stockbroker founded in 2015. Alpaca is based in San Mateo, CA. It is regulated by the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA), both top-tier regulators that bolster Alpaca Trading's safety for investors and traders.
Alpaca provides access to US stock markets, historical data, and fundamental data through their API. Alpaca's founders believe their software allows retail traders to capitalize on the machine learning and automation that historically only institutional investors have been able to use. Coders have the opportunity to build their own algorithms and contribute to the Alpaca developer community. Alpaca founders have expressed interest in eventually opening up pre-made algorithms to non-coders, but for now, their platform also includes capabilities for manual order-entry and research.
#4 Alpaca Trading
Fees
Alpaca Trading offers zero-commission stock and ETF trading and low margin rates. Non-trading fees are also competitive as no fee is charged for inactivity or most withdrawals.
| Pros | Cons |
|---|---|
| • Commission-free Stock and ETF Trading | None |
| • No inactivity fee | |
| • No withdrawal fee |
| DEGIRO | Interactive Brokers | tastyworks | Alpaca Trading | Firstrade | |
|---|---|---|---|---|---|
| US stock | $0.6 | $1.0 | $0.0 | $0.0 | $0.0 |
| UK stock | $3.2 | $4.2 | - | - | - |
| EURUSD benchmark fee | - | $10.4 | - | - | - |
| US stock index options | $7.5 | $6.5 | $7.5 | - | $0.0 |
| Mutual fund | $4.7 | $15.0 | - | - | $0.0 |
| DEGIRO | Interactive Brokers | tastyworks | Alpaca Trading | Firstrade | |
|---|---|---|---|---|---|
| Account fee | No | No | No | No | No |
| Inactivity fee | No | No | No | No | No |
| Withdrawal fee | $0 | $0 | $0 | $0 | $0 |
#4 Alpaca Trading
Markets and products
Alpaca Trading currently only provides access to US stocks and ETFs. Other asset classes, like options or bonds, as well as international market coverage, are not available.
| DEGIRO | Interactive Brokers | tastyworks | Alpaca Trading | Firstrade | |
|---|---|---|---|---|---|
| Stocks | Yes | Yes | Yes | Yes | Yes |
| ETFs | Yes | Yes | Yes | Yes | Yes |
| Forex | No | Yes | No | No | No |
| Funds | Yes | Yes | No | No | Yes |
| Bonds | Yes | Yes | No | No | Yes |
| Options | Yes | Yes | Yes | No | Yes |
| Futures | Yes | Yes | Yes | No | No |
| CFDs | No | Yes | No | No | No |
| Crypto | No | Yes | Yes | No | No |
#5 Best discount broker
Firstrade
Firstrade is a US discount stockbroker regulated by the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA). The company was founded in 1985 under the name First Flushing Securities.
Firstrade is considered safe because it has a long track record and is overseen by top-tier regulators.
#5 Firstrade
Fees
Firstrade has low fees. It offers free stock, ETF, funds, and options trading with low non-trading fees. However, margin rates are high.
| Pros | Cons |
|---|---|
| • Low trading fees | • High margin rates |
| • Low non-trading fees | |
| • Free stock, ETF, fund and options trading |
| DEGIRO | Interactive Brokers | tastyworks | Alpaca Trading | Firstrade | |
|---|---|---|---|---|---|
| US stock | $0.6 | $1.0 | $0.0 | $0.0 | $0.0 |
| UK stock | $3.2 | $4.2 | - | - | - |
| EURUSD benchmark fee | - | $10.4 | - | - | - |
| US stock index options | $7.5 | $6.5 | $7.5 | - | $0.0 |
| Mutual fund | $4.7 | $15.0 | - | - | $0.0 |
| DEGIRO | Interactive Brokers | tastyworks | Alpaca Trading | Firstrade | |
|---|---|---|---|---|---|
| Account fee | No | No | No | No | No |
| Inactivity fee | No | No | No | No | No |
| Withdrawal fee | $0 | $0 | $0 | $0 | $0 |
#5 Firstrade
Markets and products
Firstrade offers a good variety of asset classes, from stocks to options. However, the products cover only the US market and you cannot trade futures or forex.
| DEGIRO | Interactive Brokers | tastyworks | Alpaca Trading | Firstrade | |
|---|---|---|---|---|---|
| Stocks | Yes | Yes | Yes | Yes | Yes |
| ETFs | Yes | Yes | Yes | Yes | Yes |
| Forex | No | Yes | No | No | No |
| Funds | Yes | Yes | No | No | Yes |
| Bonds | Yes | Yes | No | No | Yes |
| Options | Yes | Yes | Yes | No | Yes |
| Futures | Yes | Yes | Yes | No | No |
| CFDs | No | Yes | No | No | No |
| Crypto | No | Yes | Yes | No | No |
Best discount brokers
What makes a good discount broker?
You're probably wondering how we came up with this list. To get a better understanding, let's discuss the following three points:
- What is a discount brokerage?
- Why do we think these brokers are reliable?
- What were the most important criteria when we picked the best discount brokers?
What is a discount broker?
A discount broker is a brokerage company that executes your buy and sell orders at a low trading fee. Discount brokers can afford to charge lower fees because, unlike full-service brokers, they usually don't provide extra services such as research, personal investment advice, tax planning or robo-advisory.
The difference between full-service brokers and discount brokers has blurred somewhat in recent years. Discount brokers started to offer extra services as well, like research; while full-service brokers started to lower their fees. The traditional brokerage and wealth management industry is under fee pressure from increasingly cost-effective online broker companies.
Many US brokers have slashed their fees to zero and now promote commission-free trading, following in the footsteps of brokers such as Robinhood. Drawbacks for some of these commission-free brokers include the limited number of assets you can trade (for example, mutual funds are less likely to be offered), so some investors and traders still prefer traditional discount brokers, where order execution also tends to be better compared with zero-commission brokers.
Are these brokers reliable?
These brokers are all considered reliable. They are regulated by at least one top-tier financial authority. We at BrokerChooser distinguish between mid-tier and top-tier regulators, based on various factors with the most important being the investor protection amount.
How did BrokerChooser pick the best discount brokers?
We tested brokers based on almost 500 criteria, using real accounts and real money. When we selected the best discount brokers, the primary selection criteria were fees. Importantly, we only included brokers where you can trade real stocks. This means that we excluded brokers where stocks were only offered through CFDs.
We calculated the rankings based on trading fees for all asset classes, such as stock fees; as well as fees not directly related to trading, such as withdrawal fees. We also assigned a higher score to brokers that offer a wide range of asset classes, because providing low fees in more than one asset class is not an easy job and definitely a big plus for investors.
Lastly, we incorporated additional criteria to measure the overall quality of the broker: if the account opening process, customer service and other aspects of the broker are high quality, they all boosted the overall score.
Best discount brokers
Bottom line
You saw the details, now let's zoom out. Here are the best discount brokers in 2022 for citizens in Germany:
| DEGIRO | Interactive Brokers | tastyworks | Alpaca Trading | Firstrade | |
|---|---|---|---|---|---|
| Fees score | 4.6 stars | 4.5 stars | 4.3 stars | 4.9 stars | 4.5 stars |
| Stock and ETF fee scores | 4.8 stars | 4.8 stars | 5.0 stars | 5.0 stars | 5.0 stars |
| Markets and products score | 3.6 stars | 5.0 stars | 3.1 stars | 2.0 stars | 2.5 stars |
| Deposit and withdrawal score | 3.3 stars | 3.0 stars | 1.9 stars | 1.8 stars | 2.0 stars |
| Account opening score | 5.0 stars | 3.2 stars | 5.0 stars | 4.8 stars | 4.2 stars |
| Visit broker | Visit broker | Visit broker | Visit broker | Visit broker |
DEGIRO is our winner, the best discount broker in Germany in 2022. Low trading and non-trading fees, one free ETF trading per month.
All of these brokers are considered a great choice. Pick the winner or any runner-up, and save a lot of money on fees. Let us know what you think in the comment section.
Still unsure? Check out our broker finder tool and find the best broker for you, or learn more about how to invest your money.
