Best Broker for Expats in Germany 2026 (And Which to Avoid)
Don't let German taxes ruin your investment returns. Learn which 2026 brokers automate your tax filings and which ones offer the best English support for expats! 📈
Key Takeaways
- Expats should choose between app-based Neo-Brokers, all-in-one Direct Banks, or flexible International Platforms.
- EU-wide bans on “Payment for Order Flow” by June 2026 will likely force Neo-Brokers to reintroduce fees.
- Direct Banks like ING provide automated German tax reporting and joint accounts but often lack English-language support.
- International brokers offer portability for those leaving the EU, but require manual, time-consuming German tax reporting.
- German-based brokers automatically withhold “Vorabpauschale” and capital gains taxes, a vital convenience for busy expats.
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More InformationIntroduction
Choosing a broker as an expat in Germany often feels like navigating a minefield of “Broker of the Year” awards and flashy advertisements. With almost every platform claiming to be the best, it is easy to see why so many investors feel overwhelmed. Selecting the wrong platform isn’t just a minor inconvenience; it can lead to massive tax headaches or the realization that you cannot get support in a language you understand. In 2026, the landscape is shifting again due to new EU regulations and tax laws.
We want to break down the top broker options into three clear categories—Neo-Brokers, Direct Banks, and International Platforms—to help you identify the best fit for your specific goals. Whether you are just starting your investment journey or evaluating if your current depot is still competitive, understanding these categories is the first step toward a stress-free financial future in Germany.
Navigating the Three Pillars of German Investing
To make your decision as simple as possible, we need to stop comparing individual features and look at the three main types of brokers available in Germany.
- Neo-Brokers: Category number one consists of Neo-Brokers like Trade Republic or Scalable Capital. These are app-based, incredibly cheap, and designed for a modern, mobile-first experience.
- Direct Banks: Category number two includes Direct Banks like ING or Comdirect. These provide a full banking experience, integrating your investment depot with your daily spending and savings accounts.
- International Brokers: Finally, category number three features International Brokers like Interactive Brokers or eToro. While not German companies, they are frequently the choice for “global nomads” who move between countries frequently.
Each group offers a major advantage, but also a potential dealbreaker that most expats only discover when it is already too late. Traditional banks like Sparkasse or Volksbank are excluded from our analysis because their fees are often five to ten times higher and their digital interfaces are significantly outdated.
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More InformationNeo-Brokers: The End of the "Free" Era?
Neo-Brokers are currently the most popular choice due to their clean interfaces and nearly non-existent fees. However, we are approaching a major turning point in 2026. You must ask how a broker charging €0 for a trade actually makes money. The answer lies in a system called Payment for Order Flow (PFOF). Instead of sending your order to a public exchange, these brokers send it to a private “market maker” who pays the broker a kickback for the business.
This creates a lack of transparency, as fees are often hidden in the “spread”—the difference between the buying and selling price. The European Union has officially banned this practice to protect investors, and German brokers have until June 30, 2026, to comply. After this date, the era of “everything for free” will likely end, and we may see the return of direct transaction fees or monthly subscription models.
Direct Banks: The "All-in-One" Solution
If you want to avoid hidden games and keep your financial life organized in one place, Direct Banks are the reliable foundation. Platforms like ING or Comdirect allow you to manage your salary, emergency fund, and ETF savings plan through a single login. They also offer essential features that Neo-Brokers often lack, such as joint accounts for couples or “Junior Depots” for children.
While a single trade at a direct bank is more expensive—potentially €5 compared to €1 at a Neo-Broker—they offer a loophole: most ETF savings plans are now free of charge. Features like ING’s “Kleingeldsparen,” which rounds up transactions to invest the change, can easily offset the higher costs of occasional manual trades. The significant dealbreaker for many is the language; these are traditional German institutions where apps, tax documents, and customer support are almost exclusively in German.
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More InformationInternational Brokers: Flexibility vs. Tax Headaches
For expats who don’t plan on staying in Germany forever, International Brokers like Interactive Brokers (IBKR) provide unmatched flexibility. Most German brokers will force you to close your account if you move outside the EU, but international giants allow you to simply change your address and maintain your portfolio. They offer 100% English support and access to global markets that local banks cannot match.
However, there is a massive catch: they are not based in Germany and therefore do not handle your taxes. While a German broker automatically withholds the required taxes and sends them to the Finanzamt, with an international broker, you are responsible for every single calculation. In 2026, this includes the complex Vorabpauschale (preliminary tax on unrealized profits), which can turn into a ten-hour administrative headache every year.
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More InformationThe Tax Advantage of Local Brokers
The primary reason we often recommend a German-based broker over an international one is the automation of the German tax system. Germany has a complex set of rules regarding capital gains and the “Abgeltungsteuer” (withholding tax). If you use a local platform, they manage the Freistellungsauftrag (tax exemption order) for you, ensuring the first €1,000 of your investment income is tax-free. They also provide a “Jahressteuerbescheinigung” (annual tax certificate) that you can simply copy into your tax return.
International brokers leave you to navigate these laws alone, which increases the risk of errors and potential audits by the Finanzamt. For most expatriate professionals who are already busy navigating a new career and language, the time saved by local tax automation is far more valuable than the slight increase in market access provided by foreign platforms.
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More InformationDecision Guide: Which Investor Are You?
So, which broker should you actually choose for 2026? If you want a clean, simple, and 100% digital experience, go with a Neo-Broker like Scalable Capital, but keep an eye on the shifting fee structures after June. If you prioritize peace of mind and want your banking and investing integrated, a Direct Bank like ING is the winner—provided your German is strong enough to navigate the app.
Finally, if you are a “Global Nomad” who moves countries every few years, an International Broker is your best bet for portability, as long as you are prepared to handle the manual tax reporting or hire a professional to do it for you. No matter which path you choose, the goal is to stop procrastinating and get your money working in a way that aligns with your residency plans.