Trade Republic and Scalable Capital are the top neobroker picks. Trade Republic offers free Sparplane on thousands of UCITS ETFs from 1 EUR/month with automatic Vorabpauschale handling and full English support. Scalable Capital PRIME+ (4.99 EUR/month) adds a broader ETF universe and a desktop platform. Smartbroker+ (backed by Baader Bank) is the Finanztip-recommended alternative for cost-conscious German-speaking investors who want free Sparplane without a subscription fee. All three handle Vorabpauschale automatically — the key advantage over IBKR and DEGIRO.

Vorabpauschale is an annual prepayment tax on the notional return of accumulating ETFs, applied each January — even if you sold nothing. The calculation uses the German Basiszins, your fund’s opening value, and a factor of 0.7. For 2026, the Basiszins is 3.20% (BMF, January 2026), giving an effective Basisertrag of 2.24% of your fund’s opening value. A 10,000 EUR VWCE position generates a Basisertrag of approximately 224 EUR — typically covered by the Freistellungsauftrag for smaller portfolios, but a growing cash buffer requirement for larger ones. The 2026 Vorabpauschale will be deducted from your cash balance in January 2027. Trade Republic, Scalable Capital, and Smartbroker+ calculate and withhold it automatically, applying your Freistellungsauftrag first. With IBKR or DEGIRO you declare it yourself in your annual Steuererklarung or via a Steuerberater.

Smartbroker+ is a BaFin-regulated German broker backed by Baader Bank. It offers free ETF Sparplane and commission-free trades on Gettex for orders of 500 EUR or more — no monthly subscription required. Vorabpauschale is handled automatically. It is recommended by Finanztip, Germany’s most trusted independent financial advice platform, and is the strongest option for cost-conscious German-speaking investors who want free trades without a subscription. The main limitation: it operates primarily in German, so it is less suitable for expats who need English-language support.

The EU PFOF ban took effect 30 June 2026, ending the Lang and Schwarz arrangement that used to power Trade Republic’s pricing — brokers used to receive rebates from market makers in exchange for routing orders. For German investors, all five brokers reviewed here have adapted. Trade Republic now runs on two execution models: Best Price (1 EUR, the default, Trade Republic acting as counterparty) and Direct Price (2 EUR, choose from 30 exchanges); Sparplane stay free either way. Trade Republic holds a BaFin MTF licence to operate this model. Scalable Capital PRIME+ uses a subscription model that is structurally PFOF-independent. Smartbroker+ routes via Gettex on an exchange-cost basis. IBKR and DEGIRO are unaffected. The practical impact for passive ETF investors is minimal — Sparplane remain free or near-free at all three neobrokers.

Trade Republic, Scalable Capital, IBKR, and DEGIRO all offer full English-language apps, websites, and customer support. Smartbroker+ operates primarily in German. For expats who may eventually relocate, IBKR is the strongest long-term option due to its global reach and account portability — you can keep the same account across most countries without closing your Depot.

Yes. DEGIRO’s parent company is flatexDEGIRO Bank AG, a fully BaFin-regulated German bank, providing deposit insurance up to 100,000 EUR. The main drawback for most passive investors: no ETF Sparplane and no automatic Vorabpauschale handling. Note the difference between DEGIRO’s Basic and Custody account types — they have different asset protection structures and it is worth understanding this before opening. Full guide: DEGIRO Basic vs Custody.

Yes. IBKR is fully available to German residents. The practical challenges for passive investors: no Sparplan support, and Vorabpauschale is not handled automatically — you must declare it in your annual Steuererklarung. IBKR provides an annual consolidated tax statement to help. For passive ETF investors running a monthly Sparplan, Trade Republic or Scalable Capital are more practical. IBKR is the better long-term infrastructure for investors who may move countries, trade complex instruments, or need multi-currency accounts.

The Freistellungsauftrag applies your Sparerpauschbetrag — the 1,000 EUR annual saver’s allowance (2,000 EUR for jointly assessed couples) — before any Kapitalertragsteuer or Abgeltungsteuer is withheld on investment gains. Trade Republic, Scalable Capital, and Smartbroker+ all handle this digitally in-app in under a minute. You can split the allowance across multiple brokers, but the combined total across all brokers must not exceed 1,000 EUR per person. With IBKR or DEGIRO you typically claim the allowance in your annual Steuererklarung rather than setting it on the platform.