CapTrader is a reputable stock broker based in Germany that is perfect for investors as well as more experienced traders. They cover a wide range of tradable assets and instruments, well-developed trading platforms, and numerous excellent research tools. CapTrader is recommended for more experienced traders, due to the complex account opening process as well as a high-tech trading platform, which is quite challenging to use. That said, if you are a less experienced trader looking for a broker, there might be better options out there.
Safety
CapTrader was established back in 1997, giving it a long track record, which is one of the major factors when considering a broker since they have been able to survive financial crises that have occurred in the past. They are covered by top-tier regulators, granting most of their clients very strong protection. However, it is worth mentioning that there is no backing background on CapTrader.
As CapTrader is an introducing broker of Interactive Brokers, they are also covered by a reputable regulator, IBIE, which is the Irish entity of Interactive Brokers. This would mean that your deposited cash and assets are held by Interactive Brokers. IBIE, on the other hand, is regulated by the Central Bank of Ireland.
| Country | Legal Entity | Regulator | Protection Amount |
|---|---|---|---|
| All Clients | Interactive Brokers Ireland Limited (IBIE), CapTrader GmbH | Central Bank of Ireland | €20,000 |
Keep in mind that CapTrader provides negative balance protection for Forex spot and CFD trading only for clients from the European Union. Clients based outside of Europe and Professional clients will not be covered by any negative balance protection.
Account Opening Process
CapTrader’s account opening process is extremely complicated. The only positive thing is that it is fully digital. On the other hand, the account verification takes very long and there is a minimum deposit amount of €2,000, which is converted to an equivalent amount if you want to choose a different base currency.
As you complete your online registration, your account verification takes around 10 business days, which is quite above average when compared to some of the leading brokers within the industry. The registration process is long and consists of 4 stages, which can take up to a full hour of your time. After successfully completing it, the only thing remaining is to verify your identity and residency by uploading your personal documents and a bank statement or utility bill.
Account Types
CapTrader provides numerous account types to choose from, which are sorted by ownership and the provided services. They are generally sorted between accounts for individual traders and investors and accounts for companies.
| Account Type | Description |
|---|---|
| Individual | Account owned by an individual |
| Joint | Account owned by two individuals |
| Friends & Family | Account for a group of up to 15 members |
| Family Office | Account for a Family Office Manager |
| Trust | Account held by a separate legal entity |
| Small Business | Account for small companies |
| Advisor | Account for minor clients |
| Money Manager | Account for an individual managing client administration and client funds |
Products
Using CapTrader, you gain entry to an extensive array of markets encompassing nearly every conceivable product type. With an impressive lineup, CapTrader boasts a diverse selection, notably excelling in ETFs and bonds while also offering some less common assets like warrants and structured products. Its FX pair and CFD options are slightly less extensive than those of its competitors. CapTrader grants access to approximately 150 global exchanges, complemented by alternative services like Interactive Advisors, a hybrid robo-advisory and social trading platform.
Stocks
CapTrader provides access to a broader range of stock markets compared to its rivals. This encompasses major exchanges like NASDAQ, the New York Stock Exchange, and the London Stock Exchange, as well as smaller ones such as the Warsaw Stock Exchange or Mexican markets. Alongside regular stocks, penny stocks are also accessible through CapTrader. Additionally, it also offers a functionality that enables the purchase and sale of fractional shares of stocks. This feature empowers traders to invest modest sums while maintaining a diversified portfolio.
Fees
CapTrader has low stock fees and margin rates. However, when it comes to trading fees for other tradable assets, they are quite high.
Low Stock Commissions
CapTrader’s US stock fees are relatively low compared to the industry’s average. They are calculated as $0.01 per share, between a minimum of $2, and a maximum of 1% of the trade value.
| Stock Type | Commission Cost |
|---|---|
| US Stock | $2 |
| UK Stock | $10 |
| German Stock | $4.3 |
Withdrawal, Inactivity & Other Fees
In most cases, there are no monthly minimum turnover fees or any other running costs while trading with CapTrader. The only instance where a monthly fee will be charged is if you have opted for real-time packages. Additionally, an inactivity fee is only charged if you are not actively trading and the total value of your trading account balance is less than $1,000. This fee of $1 will be charged once per month only if you haven’t executed any trades in the past month.
| Fee Type | Fee Value |
|---|---|
| Account Fee | ❌ |
| Deposit Fee | ❌ |
| Conversion Fee | 0.04% |
| Inactivity Fee | $1 per Month (If inactive in the past month and portfolio value below $1,000) |
| Withdrawal Fee | ❌ |
Conclusion
In conclusion, CapTrader is a regulated brokerage firm that provides competitive trading terms, access to a diverse array of financial instruments, and advanced trading platforms. The company offers advantageous pricing and commissions, along with narrow spreads across various trading activities, making it appealing to traders of all types. Being an introducing broker of Interactive Brokers, renowned for its high-quality trading conditions, CapTrader provides a competitive trading atmosphere suitable for traders with different levels of expertise. While regarded as a reputable broker, its relatively high minimum deposit requirement may make it more suitable for seasoned traders.
