Table of contents:
- 1 Scalable Capital – What is behind it?
- 1.1 Regulation of the Online Broker
- 1.2 Press comments on Scalable Capital and previous awards
- 1.3 Scalable Capital – Well-known Robo-Advisor in Germany
- 1.4 Scalable Capital and the range of asset management services
- 1.5 Which tradable instruments are available at Scalable Capital?
- 1.6 Which stock exchange is available?
- 1.7 Deposits and withdrawals at Scalable Capital
- 1.8 What are the options available at Scalable Capital?
- 1.9 Opening a securities account with Scalable Capital
- 1.10 Available order types at Scalable Capital
- 1.11 The Scalable Capital Affiliate Program
- 1.12 Demo account available?
- 1.13 Customer Service at Scalable Capital
- 1.14 Previous experience with the Online Broker on the Internet
- 1.15 Is Scalable Capital A Regulated Broker?
- 1.16 What Can I Trade With Scalable Capital?
- 1.17 Is Scalable Capital A Safe Broker?
- 1.18 How Do I Withdraw Money From Scalable Capital?
Scalable Capital user-ratings: 1€
Asset varierity - 10/10
Trading platform - 10/10
Support - 9.5/10
Fees - 8.5/10
Deposit/Withdrawal - 8.5/10
Facts about the company
- Type: Online Broker and Robo-Advisor
- Regulation: BaFin (DE), FCA (UK)
- Minimum deposit: 1 Euro
- Demo account: Not available
- Markets: 4000+ Shares, EFT’s, CFD’s
- 1 Euro minimum deposit
- Completely automated trading
- Sustainable EFT’s
- Trading without limits
- Possibility to also trade non-automated
- No demo account available
Scalable Capital – What is behind it?
Scalable Capital is an online broker and technology leader among the Robo-Advisors in Germany. The company was founded in 2014 by Erik Podzuweit, Florian Prucker, Adam French, and Prof. Dr. Stefan Mittnik. The declared goal of the founders was to “democratize asset management”.
With more than €2 billion in client assets under management, Scalable Capital is currently the largest digital asset manager in Europe. The team of the Online Broker currently consists of more than 100 employees, who have extensive knowledge of the capital markets and the financial industry in general.
In addition, Scalable Capital is also in cooperation with established companies such as ING and Siemens Private Finance.
While these services were previously only available to wealthy investors, Scalable Capital has been providing access to these services to the broad mass of private investors since the beginning of 2016.
Regulation of the Online Broker
Before taking a closer look at the range of services offered by Scalable Capital, we would like to take a look at the regulation of online brokers. The headquarters of the provider is located in Munich. Accordingly, the company is regulated by the responsible German financial supervisory authority BaFin (Bundesanstalt für Finanzdienstleistungsaufsicht), which is known for its strict guidelines.
Customer deposits are managed by Baader Bank. These are kept at the partner bank in segregated individual accounts, which protects them from creditors in the event of insolvency.
|Headquarter location:||Munich, Germany|
|Regulation institution:||BaFin (Bundesanstalt für Finanzdienstleistungsaufsicht)|
|Management of customer deposits:||Baader Bank|
Besides the German BaFin, Scalable Capital is also regulated by the FCA.
Press comments on Scalable Capital and previous awards
Since its inception in 2014, the Robo-Advisor has been mentioned in the press several times. In this context, press articles from renowned newspapers and magazines like Süddeutsche Zeitung, Handelsblatt, Wirtschaftswoche, and others should be mentioned. A complete list of all press articles can be found directly on the website of Scalable Capital.
In addition, the online broker has already won several awards for its services in the past. Only on August 1, 2019, Scalable Capital was awarded the highest mark in the Robo-Advisor-Test of Capital magazine for the third time in a row. A few months earlier, the company was named “Innovator of the Year 2019” with top marks by brand eins. The complete list of all awards received can also be found on the provider’s website.
Scalable Capital – Well-known Robo-Advisor in Germany
As already mentioned several times, Scalable Capital is one of the best-known Robo-Advisors in Germany. The idea behind the Robo-Advisor concept is basically to automate certain trading processes in order to simplify the investment process for private investors.
For this purpose, Scalable Capital provides its clients with different predefined portfolios, which spread the invested capital of investors broadly on the financial markets. In the course of this, private investors are enabled to invest in numerous markets without having to analyze and examine each one individually.
A corresponding algorithm ensures the creation, control, and management of the respective portfolios. In many cases, the automatic execution of these processes leads to a reduction in fees while simultaneously increasing efficiency.
Apart from that, the Robo-Advisors always have the advantage of “Technology over emotion”. In the field of trading, many investors often act out of their own emotions and often buy or sell assets at the wrong time. Robo-Advisors, on the other hand, are based on a rationally well-thought-out technology, which guarantees an emotion-free investment.
Scalable Capital and the range of asset management services
As Germany’s leading Robo-Advisor, Scalable Capital offers interested investors an opportunity to invest their capital profitably in the medium and long term with comparatively high returns in addition to its brokerage services.
According to its own statements, the company uses its technologies and know-how to promote the capital of its clients. In this context, Scalable Capital invests exclusively in ETFs, with which up to 12,500 individual securities from around 90 countries are represented.
The provider promises an ultra-modern and scientific investment concept, which is especially characterized by dynamic risk management. In the following video, the functionality of the concept behind it is presented briefly and simply.
At the current time of consideration, more than 2 billion Euros of client assets of over 80,000 clients are already being managed by Scalable Capital for the purpose of asset management.
With the so-called Time-Machine as a pension calculator, a financial planning can be carried out in advance.
Which tradable instruments are available at Scalable Capital?
Let us now finally come to the actual offers and services of Scalable Capital. The first question is which tradable assets are available at the Online Broker. The provider basically focuses on trading with stocks on the one hand and ETFs and funds on the other hand.
With a number of more than 4,000 shares from the world’s most important and largest indices, Scalable Capital is relatively broadly positioned. A search function simplifies the search for specific securities. All you have to do is enter the name, the security identification number (WKN), or the ISIN of the corresponding security.
Furthermore, it is possible to filter according to different criteria (see screenshot below).
In addition to trading in shares, Scalable Capital also offers around 1,300 ETFs. A corresponding search function with various filter criteria was also available for this.
Which stock exchange is available?
The shares, ETFs, and funds available at Scalable Capital can be traded on the gettex exchange. Trading is possible between 08:00 and 22:00 o’clock every trading day.
The placement of transactions, therefore, takes place directly on gettex, the stock exchange of Bayerische Börse AG. Advantageous for Scalable Capital customers is the fact that neither brokerage fees nor exchange fees are payable on gettex.
Deposits and withdrawals at Scalable Capital
Once an investor has chosen Scalable Capital, the next step is to capitalize on the customer account with a deposit. Although the minimum deposit amount is only 1 euro, a higher deposit amount is recommended, as the minimum order size is set at 500 euros.
Inpayments can be initiated quickly and easily in the customer area and are made either by SEPA direct debit or alternatively by transfer to the corresponding clearing account at Baader Bank.
Withdrawals can also be requested in the customer area without any problems. Once the amount of the payout has been determined, it is made to the customer’s own current account within 4-7 banking days.
Neither deposits nor withdrawals are subject to charges.
|Inpayments:||SEPA direct debit / transfer to account at Baader Bank|
|Withdrawals:||To be requested in the customer area|
|Payout arrival:||Within 4-7 work days|
What are the options available at Scalable Capital?
As a potential client of Scalable Capital, there are basically three different offers from which you can choose the one that seems most suitable for you:
- Free Broker
- prime broker
- Prime Broker Flex
However, regardless of the brokerage service selected, there are also asset management costs. With custody account management at Baader Bank, these costs amount to 0.75% of the custody account volume per year, whereas at ING they are only 0.325% (but at least EUR 75 per year).
Let us now take a closer look at the above-mentioned offers:
The offer Free Broker is not associated with any monthly costs. As an investor, you pay a fee of 0.99 Euro for each trade. In addition, you receive a savings plan free of charge, each additional savings plan costs 0.99 Euro per month.
This offer is primarily aimed at those investors who are still unsure and would like to try out the provider without obligation.
However, it is also possible to use the Prime Broker offer initially without obligation for a period of three months free of charge. Within this offer, trading is basically free of charge. And all available savings plans are also available here without fees.
The costs here amount to a monthly fee of 2.99 euros; with an annual payment method, the customer saves a whole 40%. Accordingly, payment is made annually and always in advance.
Prime Broker Flex
As a third option, Scalable Capital offers trading via the Prime Broker Flex package. In principle, the same services are included as in the Prime Broker mentioned above. This means that clients can trade for free for an unlimited period of time and have access to all available savings plans. However, there is the option of a monthly payment method without incurring further liabilities. As a result, the monthly fees of EUR 4.99 are slightly higher than those of Prime Broker.
Together, all three offers at Scalable Capital have a minimum order volume of EUR 500. Deposit fees are also not charged for any of the above packages.
Finally, a clear tabular overview of the cost composition of the various offers of the Online Broker.
|Free broker||Prime Broker||Prime Broker Flex|
|None||2,99 Euros||4,99 Euros|
Opening a securities account with Scalable Capital
Opening a Scalable Capital account usually takes only a few minutes. Opening a portfolio is also possible on mobile devices via iOS or Android. Subsequently, an identification via POSTIDENT is carried out (not, however, for existing clients of the asset management with a security account at Baader Bank).
Experience shows that it takes 1-2 working days for the custodian bank to open an account. After the successful opening of the custody account, you can deposit directly and start trading.
Available order types at Scalable Capital
Scalable Capital’s clients can choose from four different order types.
The classic market order is executed immediately during trading hours at the best possible price.
With a limit order, a certain limit price is set at which the order is to be executed. This means that the order execution is only triggered and executed when the specified price is reached. In many cases, this allows you to protect yourself against unexpected price jumps. A limit order placed with Scalable Capital is valid for a period of 360 days – during which time it can be canceled at any time.
Similar to the limit order, a stop price is set in advance, upon which the order is to be executed. The stop order is also valid for 360 days and can be canceled at any time.
Stop Limit Order
The stop-limit order combines the two types of orders mentioned above. This means that a limit price is set on the one hand and a stop price on the other.
The Scalable Capital Affiliate Program
Furthermore, the Scalable Capital website also offers the option to benefit from an affiliate program. By registering with the partner network financeAds as well as providing digital advertising space one can sign up for the affiliate programs of the online broker.
In this context, the advertiser receives extensive advertising material directly from Scalable Capital, which can be used optimally for the desktop as well as for mobile devices. For the generation of new customers, you will then receive a corresponding compensation. More information can be found on the Scalable Capital website.
Demo account available?
While many online brokers offer interested investors the possibility of a non-binding demo account, this is not the case with Scalable Capital. It is therefore not possible to try out the offers and services of the Online Broker with a virtual credit account and without financial risk.
For this reason, the provider recommends the Free Broker offer, in which all relevant functions are already available. As already mentioned, the offer is not associated with any ongoing fees, but each order placed costs 0.99 euros.
Customer Service at Scalable Capital
An important aspect that should not be ignored in the search for a suitable online broker is customer service. If questions or problems arise, there are several ways to contact the support of Scalable Capital.
Firstly, there is the option of contacting customer service via email. There is a form provided for this purpose, in which you can express your concern and attach your own e-mail address.
Also, the classical way via phone call is an alternative for Scalable Capital. The German telephone number can be used for questions without costs, the working hours of the service team are from Monday to Friday from 09:00 – 19:00 o’clock.
Last but not least, there is also the possibility to use the integrated chat function of the provider. Here you can usually get quick and reliable answers from support staff.
|Support available:||10 hours / working day|
|Telephone:||+49 89 380 380 67|
Previous experience with the Online Broker on the Internet
Finally, a brief look at previous experiences with Scalable Capital on the Internet is to be taken. As a regulated broker, you do not need to worry about the seriousness of the online broker. In the field of German Robo-Advisors, the provider definitely plays at the top.
The portfolios provided are based on comparatively cheap ETFs, which spread the capital invested over numerous individual stocks. This high degree of diversification offers private investors in particular a profitable investment opportunity.
While the minimum deposit was EUR 10,000 some time ago, it is now only EUR 1.
Most asked questions:
Is Scalable Capital A Regulated Broker?
Frankly speaking: Yes. The company is regulated by the BaFin (Bundesanstalt für Finanzdienstleistungsaufsicht) which is the responsible German financial supervisory authority. It is known for its exceptionally strict guidelines. Besides that, Scalable Capital is regulated by the FCA.
What Can I Trade With Scalable Capital?
You are able to trade shares with this broker as well as ETF’s that can be held on a savings account for a small fee if you wish. The company has access to more than 4000 shares and also offers roughly 1300 ETF’s.
Is Scalable Capital A Safe Broker?
To open a security account at Scalable Capital requires an identification using POSTIDENT, also if you want to open a portfolio using a mobile device such as an Android smartphone. As a regulated broker, the trading service can be considered safe and the high diversification guarantees especially private investors a seemingly profitable investment opportunity.
How Do I Withdraw Money From Scalable Capital?
A withdrawal request can be made in the customer area. After defining the amount that one wishes to withdraw, the transfer to the customer bank account takes place within 4-7 workdays. In this case, charges do not apply.