smartbroker Review
Our take: Smartbroker represents a hybrid model in the German brokerage landscape, combining traditional broker foundations with modern digital capabilities through its new Smartbroker+ platform. It falls into the typical Tier 2 category description – quite good from a user perspective, but uncertain future as it’s been unprofitable for over 3 years, which creates some risks when investing above the guarateed amounts.
Our assessment: Smartbroker scores 3.8 in its category driven mainly by low fees and decent platform. On an absolute basis, the lack of profitability reduces the score to 3.6. Here are key highligts:
- Passive Investors: Smartbroker offers an attractive proposition for long-term investors with its zero-custody fee model and competitive trading costs. The platform provides access to a comprehensive range of ETFs across multiple exchanges, making it suitable for building diversified portfolios. However, the primarily German-language interface may be a barrier for non-German speakers.
- Semi-Active Investors: May find value in Smartbroker’s multi-exchange access and competitive fee structure. The platform offers trading on all major German exchanges and international markets.
- Advanced Investors: the platform may not offer the sophisticated investing that they need.
Pros & Cons and suitability
Pros & Cons
- Competitive fee structure with zero custody fees
- Good Choice of Exchanges
- German-language platform may be challenging for non-German speakers
- Relatively Heavy Reliant on Single Market Maker Exchanges & PFOF
- Unprofitable Parent Company which creates business risks
- No Advanced Features
Suitability
Suitable
Good Choice of ETFs, low fees but problematic for higher amounts
Suitable
Good choice of exchanges buT but problematic for higher amounts
SOMEWHAT suitable
Lack of Advanced Options, unsuitable for larger amounts
Availability
Smartbroker is primarily Available In Germany.
Some users have reported successfully opening accounts from other EU countries (such as Switzerland, which—while not in the EU—is a common example for non-German residents).
Broker Snapshot
Why Is Smartbroker A Tier 2 Broker?
Smartbroker qualifies as a Tier 2 broker due to its market positioning and operational scale. The platform is operated by Smartbroker Holding AG (formerly wallstreet:online Capital AG) in partnership with Baader Bank AG, which serves as the clearing and custody bank. With approximately €9 billion in client assets across 180,000 accounts, its scale places it below Tier 1 brokers. The company’s focus on the German market and its ongoing digital transformation with Smartbroker+ reflects its position as a growing but not yet dominant player in the European brokerage landscape.
Listed but unprofitable since 2021, strong dependency on Baader
Smartbroker operates under wallstreet:online AG, which is listed on the Frankfurt Stock Exchange. However, the company is not profitable. It has an untested business model similar to other Tier 2 brokers. The broker is regulated by BaFin, Germany’s federal financial supervisory authority.
Company Info
| Characteristic | Smartbroker |
|---|---|
| Inception Date | 🛈 2019 |
| Headquarters | 🛈 Berlin, Germany |
| Key Owner | 🛈 Smartbroker Holding AG (formerly wallstreet:online Capital AG) |
| Bank Affiliated | ✅ Yes (Baader Bank AG) |
| Listed on Stock Exchange | ✅ Xetra (Parent) €177.9 m |
| Rating (Parent) | ❌ No |
| Net Income (2023) | ✅ €6.22 mil (Parent) |
Regulation
| Feature | Smartbroker |
|---|---|
| EU Entity | 🛈 Smartbroker Holding AG |
| UK Entity | 🛈 N/A |
| Key Regulators | ✅ BaFin |
| EU Regulator | BaFin |
| UK Regulator | N/A |
| EU Guarantee | €20,000 |
| UK Guarantee | 🛈 N/A |
No custody fees and Commission-Free on Gettex but heavy reliance on PFOF practice
Smartbroker does not charge custody fees and offers commission‑free transactions on the Gettex exchange. It incentivizes trading on single market maker venues and relies heavily on payment for order flow (PFOF). However, it does not offer a multicurrency account, and its FX fees are average.
Features
| Feature | Smartbroker |
|---|---|
| Base Currencies | EUR |
| ETF Availability | ✅ Very High (8,000+) |
| Multicurrency | ✅ Yes ¹ |
| Cash Interest | ✅ Yes |
| Margin Loans | ✅ Yes |
| Exchanges | ✅Major European and US plus local German exchanges |
| Security Transfer | ✅ Yes |
| External PFOF Reliance | ⚠️ High |
Fee Structure
| Feature | Smartbroker |
|---|---|
| Custody Fees | ✅ None |
| Inactivity Fees | ✅ None |
| ETFs Dealing Fees | ⚠️ €0 via Gettex, €1 via L&S, €4 via the others |
| FX Fees | ✅ 0.25 |
| Deposit Fees | ✅ None |
| Withdrawal Fees | ✅ None |
| Security Lending | 🛈 Not Available |
I. Company
Smartbroker is a German online broker founded in 2019, with 180,000 accounts and €9 billion in assets. The company’s parent, Smartbroker Holding AG, is publicly listed on Xetra but as of 2023 has an operating loss of €6.22 million. It has been unprofitable since 2021.
Business Profile
Smartbroker is a German online broker established in 2019, operating under Smartbroker AG, a subsidiary of Smartbroker Holding AG. The platform serves approximately 180,000 accounts with €9 billion in assets under custody. While currently operating at a loss (€6.22m operating loss in 2023), the company is investing heavily in digital transformation, including the launch of its new Smartbroker+ platform. They moved to Smartbroker+ platform in late 2023 and this expanded their product offering, including crypto trading. They also improved their app and have said their infrastructure is more scalable.
Ownership and Transparency
Smartbroker Holding AG, listed on Xetra (ISIN: DE000A2GS609), serves as the parent company, with its subsidiary Smartbroker AG handling the operational aspects of the brokerage business.
Safety Considerations
Smartbroker Holding AG, while publicly listed, does not carry a credit rating from major rating agencies. The company maintains relatively low leverage with a debt-to-capital ratio of 0.15 and decent liquidity. However, the company is currently operating at a loss for over 3 years (€6.2m operating loss in 2023), which should be considered when assessing overall financial stability.
Regulation & Investor Compensation Schemes
Smartbroker is regulated by the German Federal Financial Supervisory Authority (BaFin) and provides investors with a protection amount up to €20,000. Specifically, the scheme covers up to 90% of an investor’s claims, with a maximum limit of €20,000 per investor. This level of protection – while standard among most EU brokers – is considered low. Cash held at Smartbroker is protected by the German Compensation Scheme up to €100,000, though it is pooled unless held in your name.
Share & Cash Custodians
- Securities Custody: Baader Bank AG acts as the primary custodian. German securities held via Clearstream Banking Frankfurt
- Cash Management: Baader Bank AG
Reputation
There are no known regulatory or major reputational issues at Smartbroker currently.
II. Fee structure
Smartbroker generally provides low explicit trading commissions on Gettex and Tradegate exchange, and trading on Xetra has marginally higher commissions but could have lower spreads. Based on NCA studies, small trades on Single Market Maker Exchanges – like Gettex or Tradegate Exchange – can be assumed to be executed in line with other exchanges, however trades above €500 may be executed in a way that increases overall execution cost. FX fees are average.
Platform fees
Smartbroker has no platform fees.
Trading Commisions
- Gettex/Munich Exchange : €0 from orders from €500
- Xetra: €4 flat fee + 0.01% (min. total €4, max. €29)
- Lang and Schwarz/ Tradegate: €1
- Frankfurt, Stuttgart, Berlin, Hamburg, Dusseldorf : €4 flat fee
- International Exchanges: €4 flat fee + 0.01% (min. total €4, max. €29)
Overall Fee Simulation vs Competitors
Most of our readers have simple Index portfolios. Using our Broker Total cost calculator, you can estimate the total cost of holding ETFs throughout the investment period. For our simulated scenarios, Smartbroker comes out as very competitive but just if you use the single market maker exchanges and this is misleading.
⚠️ SINGLE MARKET MAKER EXECUTION COSTS
The below simulation only takes into account direct visible commissions. As an investor you also face less visible costs including spreads. Smartbroker incentives trades on Gettex and other single market makers exchanges. Single market maker exchanges are opaque and according to numerous NCAs in Europe have worse execution (spreads) as compared to traditional exchanges like Xetra, particularly for trades above €500. While Smartbroker also offers Xetra exchanges, users’ choice may be incentivised by the apparent low visible commissions. Read more about our research on this 👉🏻
Fee Simulation For General Accounts
We have used the below simulation on general accounts showing the difference in fees between Smartbroker against 2 of its competitors, IBKR and Scalable Capital. You can see below that Smartbroker has a €0 fee, Scalable Capital also has a €0 charge and IBKR has a €731 cost. However, both Scalable Capital and Smartbroker simulations assume the use of the Gettex exchange that may higher spread.
Investor assumptions
| Model Feature | Assumption |
|---|---|
| Investor | German |
| Instrument | ETF |
| Account | General |
| Initial Investment | € 100,000 |
| Monthly | € 1,000 |
| Time Horizon | 20 years |
| Gross Return | 8% |
Trading Commissions
Currency Exchange fees
Smartbroker applies a currency exchange fee of 0.25% on all trades requiring currency conversion.
Other fees
Transferring securities within Germany is free of charge, but fees may apply for transfers from abroad.
III. Platform & Features
Smartbroker provides basic features for investors, such as a wide selection of ETFs and regular savings plans. However, its business model encourages customers to trade on single market market exchanges, where spreads may be higher.
Account Opening Process
Smartbroker offers a fully digital account opening process, though it’s only available in German. The verification is conducted through video identification or PostIdent, typically taking 2-3 business days to complete. Required documents include proof of identity, proof of address, and German tax identification number. Non-German residents from Austria and Switzerland may need to provide additional documentation.
account Features
- Large Range of ETFs including Amundi, iShares and Xtrackers;
- Multicurrency: Smartbroker allows clients to hold and manage multiple currencies, including CHF, NOK, GBP, USD, CAD, AUD, and JPY. Foreign currency accounts can be opened via the “Finances” menu. They must be funded internally through transfers from the main settlement account (in euros). Transactions are processed directly if the account holds enough funds; otherwise, they are converted into euros. Without a foreign currency account, all transactions default to euro conversion.
- Apps for Android and iOS.
- Customer Service: it is available trough mail, phone and chat although it has mixed review indication room for improvement.
- Reviews: Smartbroker also maintains a mixed reputation in the market, reflected in its Trustpilot rating of 2.6 out of 5 (based on 1,911 reviews), with 31% five-star and 45% one-star reviews. Significant criticism emerged during the 2023 transition to Smartbroker+. Common complaints focus on technical platform stability, customer service response times, and the German-only interface limitation. Recent reviews indicate gradual improvements in platform stability and service responsiveness, though users continue to report challenges with documentation processing times, tax reporting delays, and mobile app performance.
Internalisation and PFOF
Smartbroker’s order execution model includes both direct exchange trading and partnerships with market makers, particularly through venues like Gettex and Lang & Schwarz. While the broker offers commission-free trading on certain venues (such as Gettex for orders over €500), this may involve Payment for Order Flow arrangements where the broker receives compensation from market makers for order routing. As their figures are not disclosed, it is not known what percentage of trades at Smartbroker are done using PFOF.
Cash Interest
Smartbroker offers 2.5% p.a. interest on balances up to €100,000, but funds must be manually transferred into a Zinskonto (Cash Interest Account). A Smartbroker settlement account (Verrechnungskonto) is required.
If cash in the main account exceeds 15% of the total portfolio, a 0.5% annual fee applies to the excess. No interest is paid on amounts over €100,000.
To avoid penalties, you need to transfer extra cash into the Zinskonto or invest in securities.
Advanced Features
Smartbroker does not offer advanced features. Smartbroker does not directly offer derivatives, but like many German brokers, it provides access to leveraged products and certificates from market makers
Features
| Investment Type | Availability |
|---|---|
| ETFs | ✅ |
| Stocks | ✅ |
| Bonds | ✅ |
| Funds | ✅ |
| Options | ❌ |
| Derivatives | ❌ |
| Futures | ❌ |
| CFDs | ❌ |
| Forex | ❌ |
| Crypto | ✅ |
| Commodities | ❌ |
IV. Taxes
Tax Wrappers
Smartbroker automatically calculates and withholds taxes on dividends and capital gains according to German regulations. It also provides detailed annual tax reports to assist German residents in filing their tax returns, although customers remain responsible for submitting their own tax filings.
Tax Reporting
Smartbroker provides comprehensive tax documentation and reporting:
- Annual tax statement (Jahressteuerbescheinigung) provided automatically
- Realized gains/losses statement available for download
- Pre-filled tax forms for German tax residents
- Digital access to all tax-relevant documents through the platform
- Transaction history with tax-relevant information
- Automatic calculation of acquisition costs and holding periods
Good Luck and Keep’em* Rolling!
(* Wheels & Dividends)
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