Flatex is a German brokerage that operates under the supervision of esteemed regulatory bodies like Germany’s BaFin. It possesses a banking license, is publicly listed on multiple stock exchanges, and benefits from robust backing by its parent company. The platform offers diverse and top-notch educational resources, making it particularly appealing for novice investors. Conversely, Flatex’s stock fees are on par with industry standards. Opening an account for non-German residents is excessively intricate and can entail a prolonged waiting period. Additionally, only bank transfers are accepted for deposits and withdrawals.
Safety
Flatex originated in 1999 in Germany under the name PRE.IPO AG. It transitioned into offering brokerage services in 2006, coinciding with its rebranding as Flatex. Operating under its parent entity, flatexDEGIRO Bank AG, Flatex is subject to stringent regulatory oversight, exceeding the standards applied to typical brokerage firms. The bank’s shares trade on the Stuttgart Stock Exchange as flatexDEGIRO AG, necessitating regular and transparent publication of financial statements—an advantageous practice.
Possessing a banking license, being publicly listed on a stock exchange, disclosing financial statements, and operating under the purview of a top-tier regulatory authority all serve as strong indicators of Flatex’s reliability and security.
Flatex offers its brokerage services through flatexDEGIRO Bank AG. This German entity ensures that all European clients receive equal investor protection under the regulatory oversight of BaFin.
| Country | Legal Entity | Regulator | Protection Amount |
|---|---|---|---|
| All Countries | flatexDEGIRO Bank AG | Federal Financial Supervisory Authority (BaFin) | €20,000 for securities €100,000 for cash |
Flatex offers negative balance protection specifically for forex spot trading, but this safeguard is exclusively available to retail clients within the European Union. Professional traders and non-EU clients do not benefit from any negative balance protection.
Account Opening Process
Opening an account with Flatex is a straightforward and fully digital process for residents of Germany and Austria. However, for clients residing elsewhere, the procedure is complex and time-consuming.
The eligibility criteria for opening an account at Flatex, particularly for residents of specific countries, lack full transparency. However, we anticipate that the majority of European clients meet the eligibility requirements. Conversely, for individuals residing outside of Germany or Austria, the account opening process is considerably more intricate. Additionally, we advise prospective clients to possess at least an intermediate level of proficiency in German, as both the account opening process and the trading platforms predominantly operate in German.
Account Types
| Account Type | Description |
|---|---|
| Individual | Account owned by an individual |
| Joint | Account owned by two individuals |
| Corporate | Account for companies |
Products
At Flatex, you have the opportunity to trade a wide range of product types, excluding options, futures, and cryptocurrencies. Additionally, there are special offerings such as warrants, certificates, and turbos. The majority of available exchanges predominantly cover EU markets.
Stocks
Flatex offers a moderate range of stocks. Alongside German exchanges, it grants access to various European and international stock markets. Furthermore, on US exchanges, you have the opportunity to trade penny stocks.
Fees
Flatex offers competitive pricing for trading mutual funds and bonds, with low non-trading fees as well. However, its stock fees are merely average, and its forex fees are comparatively high.
Average Stock Commissions
The fees for trading US stocks with Flatex are significantly above the industry average. These fees are computed as follows: a flat fee of €5.9 per trade, plus exchange fees.
| Stock Type | Commission Cost |
|---|---|
| US Stock | $6.4 |
| UK Stock | $0 |
| German Stock | $6.4 |
Withdrawal, Inactivity & Other Fees
There are no charges for account maintenance, inactivity, custody, deposits, or withdrawals. However, the FX conversion fee is notably steep, amounting to a 0.4% mark-up. This fee applies when trading assets in a currency different from your account’s currency.
| Fee Type | Fee Value |
|---|---|
| Account Fee | ❌ |
| Deposit Fee | ❌ |
| Conversion Fee | $0.6 |
| Inactivity Fee | ❌ |
| Withdrawal Fee | ❌ |
Conclusion
In conclusion, Flatex is a reputable brokerage and investment bank regulated by BaFin. With a presence on the stock exchange and a banking background, it adheres to stringent regulatory standards. However, it does not provide the widely used MetaTrader 4 platform. Instead, traders must utilize designated platforms for their chosen instruments, often incurring a monthly fee. It is worth mentioning that Flatex’s account opening process is notably complex and protracted for individuals outside of Austria and Germany.
