If you take a look at the offer at flatex, you will quickly find that it is not only classic trading with the broker that is possible here. A loan is also advertised on the website. But what exactly is it about? The flatex bank is not a bank in the classic sense. Anyone expecting an account opening and an EC card here will be disappointed. However, the broker works with biw AG and can thus offer its customers special conditions and even a securities loan. If you are interested in taking out the loan, it may be helpful to know more about flatex Bank.
The most important facts about flatex Bank
- No current account on offer
- Securities loan up to EUR 50,000
- biw AG as partner bank of flatex
- Regulation by the German BaFin
- Deposit guarantee according to legal requirements
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Find out more about flatex as a discount broker
flatex is not an unknown entity on the broker market. Instead, the discount broker has been making its offer available online since 2006. As one of the first discount brokers to open online, flatex is targeting a very specific target group. First and foremost, it is about addressing private investors who would like to be active in the market even with little capital. For a long time it was not so easy for private investors to invest money with as little effort as possible. The purchase of securities on the stock exchange was only possible in connection with a stockbroker. However, this sometimes resulted in high fees, which have significantly reduced returns. If you only wanted to try with little money, whether this investment was something for you, you had little chance. However, a lot has happened in recent years and private investors can now also do business in a relaxed manner from home. This has become possible thanks to providers such as flatex.
The discount broker is a German provider and has its headquarters in the town of Kulmbach. This is an important point for investors, because the information tells them that the broker is subject to German deposit insurance and is regulated by BaFin. Two security aspects, which will be discussed again later.
The first quick look at the retail offer makes it clear that flatex is a provider with a solid selection of products that can be used, Classic securities trading is supplemented by trading in CFDs and foreign exchange. Loans can also be drawn on. This is possible through a cooperation with biw AG.
Learn more about biw AG as partner bank
The flatex bank can only provide a loan because of a cooperation with biw AG exists. Biw Bak for Investments and Securities Ltd has been active since 2005 and acts as a full bank with a focus on white label banking. This means that biw AG is not a bank in the classic sense. Already a look at the website time that customers can not just open a current account here. Instead, the offer is aimed at companies that would like to offer financial services but do not themselves have a banking license and do not want to receive or apply for it. Here, biw AG is the right point of contact.
The bank provides all the necessary technical tools and its services under the banking license via White Label Banking. Biw AG works in accordance with the German Banking Act. The broker flatex therefore has access to banking technology and can provide its customers with flatex securities loans. Customers benefit from the customer protection provided by the bank, which operates in the background. This also has its advantages for flatex itself. The offer is more diverse, but the broker has the opportunity to focus on securities trading and thus take care of his core competence.
Customers should be aware that flatex Bank is not is a private customer bank. Opening an account via the website enables the creation of a trading account. This means that the customer can then start trading via this account. The clearing account is linked to a checking account. In addition, the cooperation with biw AG enables flatex Bank to offer the securities loan.
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Flatex Review 2019 - Pros and Cons Uncovered
A look at deposit insurance and offers related to Security at the flatex bank
The biw AG and flatex were again and again the subject of deposit insurance in 2015 and 2016. Biw AG is a German bank based in Frankfurt am Main. It was founded in Willich. However, biw AG now belongs to XCOM Finanz GmbH and has moved. Since the bank is based in Germany, it is subject to statutory deposit insurance. Until 2016, biw AG, and thus the broker flatex, was a member of the voluntary deposit insurance fund of German banks. This secured customer funds even higher. While the statutory deposit guarantee amounts to up to EUR 100,000, the voluntary deposit guarantee for flatex Bank customers was set at more than EUR 3 million.
However, this was not entirely free of charge for the banks. As members of the voluntary deposit guarantee fund, these are obliged to pay a contribution. The amount of the contribution is based on equity. In the case of flatex Bank, this contribution was around EUR 1 million annually. However, this was not profitable for flatex Bank. In addition to the negative interest rates that are increasingly incurred for high customer deposits, it has also been shown that a large proportion of customers have no more than 100,000 euros in their clearing account with flatex. With this, the voluntary deposit guarantee provided security, but it was not needed at all. In the meantime, the withdrawal has taken place and customers now only benefit from the statutory deposit guarantee in the amount of EUR 100,000.
The regulation by BaFin also offers security. The German financial regulator is responsible for flatex and can intervene if there are any ambiguities in the processes. Traders also have the opportunity to report problems with the broker to BaFin. Basically, BaFin is there to check whether the laws are complied with. This check is carried out after the establishment of a company and then at irregular intervals. For traders, regulation is an important indicator to determine whether a broker is working properly.
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The loan from flatex Bank
Often, the loan that is offered on the flatex website is particularly interesting for customers. Flatex Bank is able to provide a loan. However, this does not mean a classic consumer loan, but a securities loan that can be called up at any time. If you have a securities account with the broker, you can also use the loan. However, the amount varies greatly. The flatex bank provides up to 50,000 euros. Customers can find the exact amount in their personal area. The amount depends on the portfolio value. It should be noted that the credit value and the deposit value are not equal 1: 1. If the deposit has a value of 30,000 euros, traders are still not entitled to a loan of this amount.
The interest rate is currently 3.90% p.a. and is calculated quarterly from the amount used. So, for example, anyone who receives a securities loan of 15,000 euros from flatex Bank and draws 5,000 euros thereof, only pays the interest for the 5,000 euros. The interest is not fixed, but variable and can be adjusted again and again. In addition, there is no fixed term for the loan. Repayment can also be made at any time. However, customers should be aware that the flatex Bank can cancel at any time. Customers also have the option to cancel.
The loan is not earmarked and flatex Bank does not require proof of what the money will be used for.
What trading options does flatex offer?
The trading offer at broker flatex was briefly touched upon at the outset. In comparison to other brokers on the net, the offer is kept quite clear. However, flatex's claim is not to provide a high quantity, but to offer the customer quality and good prices. This gives traders the opportunity to be active both on and off the stock exchange. Over-the-counter direct trading can be carried out, for example, with ETFs, funds and shares or warrants. At the same time, the broker also offers forex trading.
The fixed price for trading is particularly interesting for investors in the discount broker. This means that you can always directly estimate how high the costs are. For over-the-counter direct trading, a flat rate is used, which is available after opening the account. 5.90 euros per order. The prices for trading can be viewed on the website.
The broker flatex is known for making trading even cheaper with special offers. So there is the possibility to trade with the premium partners for 3.90 euros per order from a monthly order volume of 1,000 euros. In addition, 0-euro trading is possible from a certain trading volume. The conditions can also be found on the website.
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Invest money with savings plans
The flatex bank not only scores highly with investors the securities loan, but also by being able to set up savings plans. There are many traders who are looking for a trading opportunity with as little effort as possible and who do not want to spend a large amount in their hand. The savings plans of flatex Bank can take effect here. A solid portfolio can be built up with funds or ETFs. Every month, the trader pays at least 50 euros into the savings plan via a standing order . Shares are bought from this money. The debit can also be made quarterly or annually, for example. The risk is manageable. So course changes can lead to losses. At the most, the investor loses the money invested.
Customer support - availability and language
flatex is a German broker who of course also works with a German customer service. The support of flatex Bank is particularly easy to reach via a hotline. However, the hotline is not available around the clock. Office hours are limited to Monday through Friday. Here the employees can be reached from 8 a.m. and can be called until 10 p.m.. If questions and problems arise outside of office hours, investors can use the contact form on the website. Customers can specify how they want support to respond to them. This can be done in writing or by call back. Experience has shown that support is particularly competent and works quickly. The employees are very easy to reach and offer quick solutions to problems.
Conclusion: flatex Bank as the lender
The flatex Bank should become interesting for customers primarily through the loan, Many traders bundle their balances in the custody account and if money is then needed for purchases, the custody account must be made liquid. This is particularly easy with the securities loan from flatex Bank. The advantage is that traders do not have to sell their securities, but only lend them. This is definitely worthwhile, especially with high returns.
The broker himself offers a solid trading offer at very favorable conditions. It is not for nothing that he is considered a discount broker with a very good reputation and great success. Even if the trading offer is quite manageable, beginners and experienced traders belong to the target group and can find a good basis for trading here. The friendly customer service is another plus. The deposit guarantee of up to 100,000 euros is prescribed by law and offers the broker's customers additional security.
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