The discount broker flatex is a popular partner for many German investors for trading. The fact that this is a German broker that is regulated by BaFin also plays a role. The German financial regulator is responsible for the control of financial companies in Germany. However, this has nothing to do with deposit insurance. If you want to know the amounts up to which your money is protected in the event of a possible bankruptcy of the broker and the full bank biw, you should take a detailed look at the deposit protection.
The most important facts about flatex deposit protection
- flatex works together with biw Bank as a full bank
- This is subject to statutory deposit protection
- For a long time, there was also voluntary deposit protection for customers of flatex
- Regulation by BaFin
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The broker flatex: Information about the provider
The German discount broker flatex with its headquarters in Kulmbach is a very popular contact point for beginners in the area of online trading. Thanks to the favorable conditions and the low minimum deposit, customers with little capital are a large target group. This was also the broker's ambition from the beginning when it went on the market in 2006. At that time, a platform was to be created on which beginners had the opportunity to test the trade themselves on favorable terms. Customers from Germany and Austria in particular should be reached with this philosophy. Due to the more than 10 years of experience that have accumulated in the meantime, the broker also has a wide range of knowledge and knows exactly what customers want. For a long time, private investors who were generally interested in becoming active themselves in trading could not really do this. Instead, they were reliant on working with a stockbroker, which brought additional costs. Today it is also possible without a broker and this is not least due to brokers like flatex.
A look at the retail offer quickly shows that customers can choose from various options here. From foreign exchange trading to CFDs to investing in ETFs, everything is possible. Even loans are granted by flatex in cooperation with the biw bank.
Succesfull forex trading with a $25 account
Detailed information on deposit insurance for the broker
These are all important points, of course, because the seat in Germany alone is for many Trader is already a sufficient indication of the seriousness of a broker. Nevertheless, it is important to see which aspects still play a role in security. This includes deposit insurance. Anyone who opens a bank in Germany is also subject to the statutory deposit guarantee with his offer for customers. This means that customer funds are protected up to an amount of EUR 100,000 per customer. In addition, for a long time, flatex customers were able to enjoy the voluntary deposit guarantee scheme, which was worth several million. This voluntary deposit guarantee was founded by the Federal Association of German Banks. Banks from Germany have the opportunity to join here and thus offer customers a higher level of security.
The deposit insurance system in Germany is made up of two pillars. There is statutory deposit insurance here. A bank cannot escape this. This means that customers can always bet on this € 100,000 if the bank goes bankrupt. For many investors at flatex, 100,000 euros is also a sufficient amount. You don't have that much capital in your customer account and are therefore well protected.
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But what about customers who bring higher amounts? These also didn't have to worry for a long time. Over 3 million euros per customer were covered by the voluntary deposit guarantee scheme. The only problem is that the biw bank has decided to leave it. Since flatex is a broker who does not have a banking license, he can only offer trading if he works with a full bank. biw Bank is therefore the partner of flatex. The voluntary deposit guarantee scheme has existed since 1976. Since this year the offer has also been financed by the contributions of the banks. This means that the bank has to pay fees to ensure that customer deposits are secured.
The amount of this security depends on the bank's own funds. Of these, it is 20%. This is a very good approach and means that customer funds are protected at least up to 1 million euros. There is no upper limit for the backup. Participation was no longer justifiable for biw Bank. The amount of the fees for the banks can prompt them to leave the deposit guarantee fund. Customers naturally ask themselves why banks should no longer be interested in protecting customer funds. This question can also be answered quite easily. As a result, banks no longer need large customer deposits. Instead, the negative interest rates can even result in additional fees.
For investors, this means that the deposits with the broker flatex are now only protected up to an amount of € 100,000.
But: This does not apply to the securities or funds. If you fill your account with it, you can approach the topic more relaxed. These run under the special fund and are therefore always protected if bank failures should occur.
Regulation by BaFin for more security
The security in relation to customer funds is also an issue for regulation by BaFin. As a German broker, the broker flatex is subject to financial supervision and is regulated by it. For many traders, this is already a sufficient aspect in terms of security when trading, because BaFin has a very good reputation and is considered strict and very attentive to compliance with the conditions. If a broker does not comply with the requirements for regulation, BaFin is able to take consequences. These can go as far as a trade ban. For the broker himself, this would be a huge loss in costs.
If you have problems trading with the broker flatex, you can also contact the authority. This is open to complaints and examines them upon receipt. Some of the complaints are also investigated. This brings together important points relating to the broker at BaFin.
The brokers in Germany are subject to special laws and compliance with these laws is the basis for being able to get regulation at all. The Banking Act applies to banks, the Insurance Supervision Act applies to all providers who provide insurance for your customers and the Securities Prospectus Act and the Securities Trading Act come first for securities providers.
If a broker is newly founded, BaFin is on the spot and checks whether the requirements are met. Checks are always carried out even during the term of the provider. How often these occur depends on various aspects. The regulation by BaFin is also available for the broker flatex.
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The flatex offer - what does the broker offer?
Who can get a complete picture about the broker flatex, who should also take a look at the trading offer. Due to the large number of different brokers that can be found on the Internet, there is of course usually a provider that has more to offer than flatex. In fact, the broker's trading offer can also be described as clear, but beginners and experienced investors alike will find a large selection of options. So you can choose between trading on the stock exchange or outside the stock exchange. Investing in funds is also not a problem. If you prefer to set up a real savings plan, you are in good hands with flatex. Starting at a savings rate of 50 euros per month, you can build up a credit and invest in ETFs.
But that's not all. So the broker offers the possibility to take out a loan. When opening an account via flatex, customers receive an order flat. With this you can try your luck per order for € 5.90. So the offer is wide and offers the right investment opportunities for every taste.
Which trading platform is there for trading?
So that the investment works well and there are no problems with trading a broker needs a good trading platform. Here, of course, every trader has an individual taste. However, most investors expect the broker to provide a simple and clear trading platform. With a few simple steps, the investment should be intuitive. At flatex, customers have the option of choosing the web branch. This can be called up from all devices, so that it is not even necessary to select a separate app. With the flatex login, customers have the opportunity to get a first overview with the Watchlist and then carry out the trade. In addition, the branch adapts to any device.
If you would like an even more professional interface, you can opt for the flatex trader 2.0. This software is loaded onto the PC and can then be used. There is a free test for four weeks so that customers can first get to grips with the topic and test the trading platform.
The customer service of the broker
There can always be questions or problems with Trade comes and in this context, of course, every trader would like to find the right contact quickly and easily. Therefore, customer service at flatex also plays an important role. However, live chat is deliberately avoided here. However, this does not mean that customers have to wait a long time for answers to their questions. Instead there is a hotline that can be called. This is available within the week. On weekends, customers can then use the online form to contact customer service and ask questions. The answers are quick and the staff are very competent. This also compensates for the lack of live chat.
Tip: The 0 euro trade for frequent traders
Especially for frequent traders, the aspect that flatex also offers should be interesting Possibility to trade free of charge. The so-called 0-euro trade is an offer for all customers who place 500 orders and more per month. With this sales volume, up to 1,000 free orders can be used. However, traders should first look at the conditions for free trading before opening an account. Of course, the 500 orders must first be reached. Until then, the costs can be viewed on flatex's website. For the order on German stock exchanges, 5 euros are due, plus the fees for trading on the stock exchange. Trading on foreign stock exchanges is even more expensive. As a discount broker, however, flatex pays attention to low prices and can score points compared to other providers.
Conclusion: Solid provider with classic deposit insurance
Flatex is not just a small broker, which does not stand out from the mass of providers. Rather, this is a provider who knows how to draw attention to itself with its many years of experience, its solid range and its fair prices. The close cooperation with the biw bank is another advantage for many customers, because this is how the 0-euro trade can be realized. Nevertheless, of course, there remains a bitter aftertaste in relation to deposit insurance. By leaving biw Bank's voluntary deposit insurance scheme, customers could get the feeling that the security of their money is not important to the provider. However, if you are satisfied with the deposit guarantee of up to 100,000 euros per customer and are looking for a broker who advertises with very good customer service and manageable prices, you could still be in good hands with flatex. The versatility of the offer is not only attractive for beginners, so a second look at the provider can be worthwhile.
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