What is Scalable Capital?
Scalable Capital is a Munich-based online broker that aims to help European investors start investing in a user friendly way. The platform offers a broad range of financial products, including stocks, ETFs and commodities (via ETCs). Investors can open a Scalable Capital account with a minimum investment of just one euro. With its free broker plan, clients can set up a savings plan or invest in individual stocks and various asset classes at low cost.
Compared to other investment platforms, Scalable Capital offers a simpler trading platform that may suit those new to the stock market. The platform also provides fractional shares via the saving plan and access to three of the german stock exchanges, gettex, EIX and Xetra.
Scalable Capital Features
Simplified Investing Through a Single Account
Scalable Capital offers a user friendly, mobile-first trading app (downloaded by more than 1 million people) that aims to simplify the investment process for European investors looking to start investing in a broad range of financial products. The platform offers the following investment products:
One of the key benefits is its ability to accommodate different types of investors: From those looking to create a diversified portfolio through a stock-picking strategy (find here the list of stock available at Scalable Capital) to those who want to invest completely passively in ETFs (here the list of ETFs).
Low and Transparent Fees
Scalable Capital makes its fees simple and easy to understand, so you always know what you’re paying for. They offer two main pricing options: the Free plan and the Prime+ plan.
The Free plan has no monthly fee, which makes it a great option for anyone wanting to keep costs low.Savings plans starting at just €1 are completely free. If you trade amounts over €250, there’s a small fee of €0.99 per trade. The Prime+ plan costs €4.99 per month and is perfect for investors who trade on a steady basis. Savings plans remain free, and trades over €250 have no fees at all.
Both plans are flexible, allowing you to switch or cancel anytime. With no hidden costs and clear pricing, Scalable Capital ensures you’re always in control of your investment expenses.
However, for trades below €250, a €1 fee applies regardless of whether you’re on the free plan or the Prime+ plan, as detailed below:
Previously, only two stock exchanges were available: Gettex and Xetra. However, since December 10, 2024, a new stock exchange, EIX, has been added. EIX provides a comprehensive selection of securities, including over 8,000 stocks, 2,500 ETFs, ETCs, and ETNs, as well as more than 3,500 funds. The great news is that the fees for EIX are the same as those for Gettex, giving you access to a wider range of financial instruments without additional costs.
When you look at the fee structure, one downside is the Xetra stock exchange, which remains quite expensive (see below). You’ll pay €3.99 per trade, plus a minimum trading venue fee of €1.50, regardless of your chosen plan! The only real advantage of Xetra is access to a broader range of instruments, particularly most German-listed companies.
Besides that, Scalable Capital does not provide direct access to U.S. stock exchanges. However, you can invest in U.S. stocks through European exchanges like Gettex and Xetra, which list numerous American companies. This setup allows you to include U.S. equities in your portfolio, though trades are executed in euros.
If you’re considering Scalable Capital, its flexible approach to market conditions, transparent fee structure, and the convenience of managing investments online or through its app are key highlights. Scalable Capital strives to serve a broad range of investor profiles while maintaining a focus on low fees, accessibility, and simplicity.
Accessible Savings Plans
As stated before, Scalable Capital differs from others is through its user friendly investing platform, which provides regular updates and support. The platform also gives you access to robo advisors, which help you invest according to your financial goals, time horizon, and risk level. With the scalable capital saving plan, you can invest in a full range of ETFs (up to 2100 ETFs available now) depending on you strategy. You can also choose or adjust your investment schedul monthly, quarterly… and the invested amount as well.
Interest on uninvested cash
At the time of writing, Scalable Capital offers 3% interest per year on uninvested cash. This rate applies to balances up to €50,000 for Free plan users and up to €500,000 for Prime+ plan users. Interest is forwarded from partner banks (Deutsche Bank, J.P. Morgan Asset Management, DWS and BlackRock) and money market funds, ensuring your cash earns while staying secure.
Comparing Costs and Features
If you compare scalable capital to popular investment platforms, you’ll find that scalable capital account holders enjoy a broad range of financial products, from individual stocks, commodities, and to ETFs savings plans. For investors who want to invest carefully, scalable capital safe features and regular updates can help handle different market conditions and time horizon goals.
Whether you’re using the website or the mobile app, it’s simple to navigate. Clear guidelines make everything straightforward, so you can focus on your investments without any hassle.
How Scalable Capital Works
Getting Started with a Scalable Capital Account
Opening a Scalable Capital account is simple and designed to prioritize compliance and security. To qualify, you need to be a resident of Germany, Austria, Italy, Spain, metropolitan France, or the Netherlands. You must also meet specific criteria, such as being at least 18 years old, not being subject to U.S. tax laws, having a valid SEPA-based bank account, and providing a phone number from one of the supported countries.
The onboarding process involves verifying your identity, a requirement of the Money Laundering Act (MLA). You can choose from several options: video identification, online ID verification, or in-person verification at a post office.
Once your identity is verified, your account will be set up within a few working days. You’ll receive a notification as soon as it’s active, so you can start investing immediately.
Safety and Security
Regulated Broker and Trusted Bank
Scalable Capital is a trusted and well-regulated online broker for European investors. It is supervised by the German Federal Financial Supervisory Authority (BaFin), ensuring strict rules and regular updates. Your money is held at Baader Bank (if registration date before 9th of Dec 2024. After this date, the partner banks are different.) a respected custodian bank in Germany. If you choose to open a Scalable Capital account, you can be confident that your funds are protected up to €100,000 under the German deposit protection scheme.
Keeping Your Assets Safe and Secure
Scalable takes the safety of your assets seriously, using advanced technology and strict security measures to protect them. Your account is secured with powerful encryption (TLS/SSL), which keeps your personal information safe from hackers and ensures it’s transmitted securely. On top of that, to keep your account even safer, Scalable offers two-factor authentication (2FA). Here’s how it works: when you log in, you’ll need both your password and your smartphone to access your account.
With these measures, Scalable ensures your assets are well-protected and gives you peace of mind about your money.
User Experience
Easy-To-Use Platform
When you open a Scalable Capital account, you will find a simple, user friendly interface. The platform makes it easy for investors to navigate different asset classes, like stocks, ETCs and ETFs. Scalable Capital works to provide regular updates so you can quickly check your portfolio performance. The design is clear, and there are helpful menus to guide you through its financial products and services.
In September 2024, Scalable Capital changed slightly the app design. You can see the updates/changes here.
Helpful Tools for Investors
the Portfolio analytics tool
In October 2023, Scalable Capital came up with a new tool. The Portfolio analytics tool, offers retail investors powerful technology previously reserved for professionals. This tool leverages BlackRock’s advanced portfolio analytics to help users identify risks, optimize diversification, and simulate portfolio performance under various scenarios like rising inflation or stock market crashes. With “Insights,” investors gain a clear overview of their portfolios, including breakdown of the portfolio by investment instrument, the portfolio diversification in regards to regions and sectors. Unfortunately, this tool is only available for those under the PRIME+ Plan.
The distribution tracker
If you’re like me and focus on income producing assets this will be super useful. The Total Payments section gives you a quick and full view of all your distributions, including dividends and interest earned. I find it great for tracking the income streams at a glance and comparing to previous years. The monthly breakdown is an added bonus, makes it so much easier to see how my portfolio is performing and growing over time. If you’re all about consistent cash flow this is a great tool! This is also available only under the PRIME+ Plan.
Why Consider Scalable Capital for Your Financial Goals?
Whether you have no minimum investment or need a savings plan for your money, scalable capital can help you create a strategy that matches your financial goals. With scalable capital, you pay fair cost, gain interest on certain products, and benefit from a investing platform that lets you trade, invest, and explore the stock market worldwide.It’s worth mentioning that Scalable Capital’s advanced investment tools, such as the portfolio analytics and distribution tracker (more info below), along with reliable portfolio performance tracking, can help users grow their investments while working with a trusted broker backed by strong regulations and services.
Who Is Scalable Capital Best Suited For?
Scalable Capital offers a free broker plan and a user friendly way to start investing. It is often a good fit for European investors (available in Germany, Austria, Italy, Spain, metropolitan France and the Netherlands). who want a simple investment platform to buy stocks, ETFs, crypto ETPs, or funds. In other words, Its trading platform lets you invest in a broad range of asset classes, including individual stocks listed on the gettex, Xetra and the European Investor Exchange. For those who prefer investing completely passively in ETFs, without the need for active management, there is the savings plan that allows you to invest on a steady basis.
Ideal Users and Features
Scalable Capital is made for modern investors who like easy-to-use, affordable, and digital tools. it’s great for young professionals and people who want to save money while growing their investments steadily. It’s perfect for those interested in automated strategies and diversified portfolios, especially using ETFs.
this platform is built for users who value simple access, clear information, and efficient ways to manage their money.
Worth Mentioning : Client Reviews on Trust Pilot
Scalable Capital is rated 3.6 on Trustpilot, which is considered average. While some Trustpilot reviews highlight negative experiences, the majority of user (67% of reviews are rated 4 stars or higher) finds the platform reliable and consider Scalable Capital safe to use.
Conclusion
On this Scalable capital review, you see that this broker is a great choice for investors who want a simple, affordable, and smart way to grow their money. It offers an all-in-one platform with low fees and helpful tools, making it easy to manage your investments. With just one account, you can access multiple services, enjoy transparent pricing, and take advantage of savings plans. Plus, you even earn interest on cash that isn’t invested yet.
Getting started is quick and easy. Most of users say they love how simple the platform is to use. Tools like the portfolio analytics tool and distribution tracker make managing investments even easier. Safety is another big priority for Scalable Capital. It uses strong security features, works with trusted banks, and is a fully regulated broker. This means you can trust it to keep your money safe.
If you’re someone who prefers a passive, hands-off approach to investing in ETFs or other options, Scalable Capital is a great fit. It’s ideal for people who value convenience, clear information, and smart tools to help them reach their financial goals.
Ready to take the first step in growing your investments? Start investing today with Scalable Capital!
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