FAQ

Find answers to the most frequently
asked questions about Scalable Capital.

The Broker offering of Scalable Capital GmbH is addressed at customers residing in Germany.

Account opening

What are the requirements to sign up for the Scalable Broker?
 

Our service is aimed at persons resident in Germany, Austria, Italy, Spain, metropolitan France and the Netherlands. In addition, the following requirements must be met:

  • You are over 18 years of age.
  • You are not subject to US taxation (not a “US person” under US tax law).
  • You have a current account that is kept at a credit institution based in the SEPA area.
  • You use our service as an offer from a foreign provider.

Please also note that the custodian bank only pays taxes for customers who are taxable in Germany. If you are subject to tax abroad, you must carry out the correct taxation of all securities transactions yourself. We provide you a tax reporting for this purpose.

How does the registration process work?
 

The registration is completed online and only takes a few minutes. Registration via iOS or Android mobile app is also possible. Then, you complete the identification via POSTIDENT (Please note: This step is not necessary for existing customers of our wealth management product with custody account management at Baader Bank).

The account opening by the custodian bank usually takes up to three working days. As soon as your custody account has been opened and the initial deposit has been made, you can start trading.

Is there a minimum deposit?
 

You will select an amount for your initial deposit during the registration process. This amount must be at least 1 Euro. Your available balance can be paid out in full or in part at any time. A high deposit is recommended in order to be able to start trading stocks, ETFs, and funds immediately.

Is it possible to transfer a portfolio to Scalable Broker?
 

You are welcome to transfer your portfolio to Scalable Broker. You can find all information here (in German).

Custody account transfers initiated by your house bank cannot be accepted. Please note that the entire process may take several weeks until the transfer is complete.

Why do I need to provide my bank details?
 

Deposits and monthly savings plans are collected from your current account via SEPA direct debit. In addition, all withdrawals are transferred there by your Scalable Broker.

The current account must be in your name and must be held at a bank in the SEPA area. It must also be an account for payment transactions. For example, savings and overnight money accounts are not permitted. If your current account is a joint account, you must be registered as the beneficial owner.

Why do I need to verify my identity?
 

The Money Laundering Act (MLA) requires us to identify our customers. This identification is also in your interest, as it ensures a higher level of security in the customer relationship.

An MLA-compliant identification is carried out conveniently via POSTIDENT video, online identification using your ID (eID), or in the traditional way at your post office.

Do you have an NFC-enabled smartphone and a new ID card with a PIN? Then we recommend online identification with your ID (eID). With this option, you can identify yourself around the clock and in less than two minutes.

What is the identification process?
 

The identification is done by our partner, POSTIDENT. With POSTIDENT, you can choose between POSTIDENT video, online identification using your ID (eID), and identification in person at a post office branch.

Identification via online ID (eID) is the fastest and easiest way to open an account with Scalable Capital. You can find all information about the eID procedure here.

You can also identify yourself through our partner POSTIDENT with your foreign identity card or passport. A list of the ID cards supported by POSTIDENT-Video can be downloaded here (German only).

If your ID document is not supported for POSTIDENT-Video, you can carry out identification in person at a post office. You can find a list of the ID cards accepted in branch offices here (German only).

You can start the identification process conveniently in our app or online by logging in to your Scalable Capital account after completing the registration.

Once you have successfully completed the identification, you do not need to do anything else. The identification data is transmitted to Scalable Capital, and the opening of both the clearing account and the custody account is initiated. It can take up to three working days to open the accounts. You will be informed automatically as soon as the account opening is completed.

If any questions arise from the transmitted identification data, we will contact you proactively.

Do I have to provide my tax ID?
 

If you are only liable for taxation in Germany, providing your tax ID at sign-up is optional. If you do not have your tax ID at hand, the custodian bank will automatically request it for you from the German Federal Central Tax Office. Your capital gains tax will therefore be paid out correctly and automatically for you even if you do not provide your tax ID.

If you are liable for tax in a country other than Germany, it is mandatory to provide your tax ID, also known as Tax Identification Number or "TIN," This also applies if you pay taxes in several countries, including Germany.

Does Scalable Capital have a demo account?
 

There is no demo account; however, with our FREE Broker all important functions are already available to you. In this plan, there are no monthly fees or minimum investment period.

Can I open an account for my underage children?
 

The minimum age for using Scalable Broker is 18 years. However, you are welcome to use Scalable Capital's wealth management service on behalf of your children.

Are joint accounts offered?
 

The Scalable Broker is only offered as a single account.

Can I open a business account?
 

The Scalable Broker and wealth management are only offered to private individuals.

Can I open an account with a foreign currency?
 

Trading via Scalable Broker is only possible in Euros.

Is it possible to have multiple accounts?
 

In the Scalable Broker, you can manage one portfolio in your name. However, with our portfolio groups feature, you have the ability of grouping your brokerage account according to your own preferences.

If you use the FREE Broker, one portfolio group can be created. In PRIME and PRIME Broker flex, up to 50 personalised groups are available to you.

Please note that in portfolio groups only the group performance since buy can be displayed.

Referral Program

Can I recommend the broker and/or the wealth management as part of a referral program?
 

As a broker and/or wealth management client you can recommend both products to your friend(s) and receive a reward.

For a successful recommendation of our wealth management product you will receive 50 Euro, and for a successful recommendation of the broker you will receive 25 Euro as a thank you.

How can I invite my friends?
 

Click on "Invite" in our app or online by logging in to your Scalable Capital account. There you will see your individual invitation link that you can share with your friends via email, SMS, WhatsApp, or other messenger services.

How and when will I receive my reward?
 

First, share the invitation link with your friends.

After the referred person has successfully opened a brokerage account based on your link and has made one or more purchase orders or savings plans executed with a total volume traded of €25 or more, you will receive your bonus. The referred person needs to remain a client, with a positive cash balance, of the corresponding brokerage securities account, for 6 months after successful opening.

The bonus will be paid to your clearing account in the following month after the referred person has made a one-off purchase or started a savings plan.

Can I receive multiple rewards?
 

You will be credited with 50 euros or 25 euros for each friend who successfully opens an account based on your link.

For a successful recommendation of our wealth management product, you will receive 50 euros. For the successful recommendation of the broker, you will receive 25 euros.

Securities account management

How can I make deposits and withdrawals?
 

Deposit
Deposits to your clearing account can be made in several ways.

The fastest way is real-time payment via Instant. Payments via Instant are available within a few seconds for the purchase of securities. The deposit amount is collected by SEPA direct debit from your reference account. For more information, please refer to the customer documents. Fees apply for payment via Instant.

Alternatively, you can transfer the desired amount or deposit by SEPA direct debit. The IBAN for the transfer to your clearing account can be found in your personal customer area under "Payments" and "Transfer". Please enter your name as the recipient. Transfers have to be made from your deposited reference account. Deposits that cannot be assigned clearly to you (e.g. PayPal, Transferwise) are not permitted.

Withdrawal
You can request a withdrawal via the menu item "Payments" in your customer area. Please note that deposits made by SEPA direct debit or Instant may not be paid out or used for the purchase of derivatives until after eight weeks. This is because direct debits can be revoked within the first eight weeks. After these eight weeks, cash balances from direct debits can be paid out at any time.

Please also note that your clearing account is generally not a payment transaction account and is used exclusively for the settlement of securities transactions.

Why is real-time payment via Instant not available for me?
 

The availability or maximum amount of Instant deposit depends on individual factors. You can increase the likelihood of Instant availability by, for example, instructing deposits via regular SEPA direct debit or by executing savings plans.

Why can't I pay out my entire balance?
 

You can find details on your individually available cash balance in your personal customer area.

Sale proceeds can be used immediately to purchase securities, but are generally not available for payment until two banking days later. This is because the actual exchange of securities for payment (known as settlement) does not take place until two days after the transaction has been concluded on the stock exchange.

The cash balance available for withdrawal may be reduced for a few bank working days after deposits by SEPA direct debit in order to avoid an overdraft of the settlement account due to possible returned direct debits.

In addition, it may not be possible to pay out the full cash balance within the first eight weeks after deposits by SEPA direct debit or Instant.

Can I overdraw my clearing account?
 

The broker account is managed on a credit basis and cannot be overdrawn in the course of normal daily business. If there are not enough funds available on the broker account for a prepared order and no corresponding deposit has been instructed via instant, the order cannot be placed.

Should the broker account still show a negative balance, the custodian bank will charge interest for this. Please find the current overdraft interest rate in the special conditions to the price and service list of Baader Bank.

Do I have an overview of my individual transactions?
 

All transactions can be viewed at any time in our app or online by logging in to your Scalable Capital account. In addition, the custodian bank will provide you with a monthly account statement in your mailbox. There you will see a summary of all transactions made.

Why is my return not displayed in percentage?
 

In addition to the real-time valuation of your portfolio, we also show you the absolute return in Euros. A percentage return on a portfolio basis is in many cases misleading, as it depends heavily on the timing of trading activities and their size.

It is possible to calculate the percentage return in relation to the total deposits made (minus withdrawals); however, this figure offers limited information as this example illustrates:

Assume you invest 10,000 Euros once through Scalable Broker. After one year your investments have generated an absolute return of 700 Euros. This would now result in a relative return of 7.0% and would be a meaningful indication. However, if you invested another 10,000 Euros on the same day, your percentage return would be halved - without changing the value of your investments (700 / 20,000 = 3.5%).

The time-weighted yield which we also use in wealth management can offer little help here. This is adjusted for incoming and outgoing payments thus allowing a direct comparison with a benchmark or another portfolio.

In wealth management, it is important to show the performance of the wealth manager transparently and independently of the client's investment dates. When evaluating one's own investment decisions, on the other hand, timing in particular plays a very decisive role in investment success. Therefore, the time-weighted return is not suitable in the context of Scalable Broker.

Can I export information about my portfolio such as a CSV file?
 

You can export a daily updated extract of your portfolio data as a CSV file in your customer portal at Baader Bank. You received the necessary access data from Baader Bank in an e-mail during the registration process at Scalable.
If you do not have this email, you can request a new password at any time. To do so, you will need the first seven digits of your securities account number as well as your date of birth. This link will take you to the Baader Bank customer portal, where you can click on "Reset Link".

Is there a minimum investment period for my account or a minimum term for my contract?
 

There are no minimum investment periods or minimum terms of contracts. Individual securities can be bought and sold at any time. Our service can also be cancelled at any time free of charge. It is also possible to switch between the price models offered (FREE Broker, PRIME Broker and PRIME Broker Flex) at any time free of charge.

Can I switch between the offered broker plans?
 

You can switch between the different pricing plans (FREE Broker, PRIME Broker and PRIME Broker Flex) at any time free of charge. To do this, go to "Profile" in the web view of your account. Under "Products" you will find the option to change your broker plan.

How can I add and remove securities to my watchlist?
 

To add a security to your watchlist, click on the desired security. Then, click on "Add to watchlist" (appears as a star in the app) in the upper right corner of the overview page of the security. The security will now appear in the watchlist on your home page. Securities for which you have already instructed orders or set up a savings plan are automatically added to your portfolio list.

To remove a security from your watchlist, click on the desired security. Then, click on "Remove from watchlist" (appears as a star in the app) in the upper right corner of the overview page of the security. When you buy a security from your watchlist, or set up a savings plan, it is automatically transferred from the watchlist to the portfolio list.

Can I sort or filter my portfolio and watchlist?
 

Currently all entries are sorted alphabetically.

Can I set up a power of attorney for my portfolio?
 

If you want to set up a power of attorney for your Scalable Capital account and custody account, the authorized person must identify themeself using the POSTIDENT procedure of Deutsche Post. Please contact our customer service by email so that we can send you the corresponding access.

The authorized person may receive information about the securities account by telephone or in writing within the scope of the power of attorney.
There is no possibility to receive the access data to the Scalable customer area. The access to the Scalable customer area is only possible via the deposited e-mail address and the password chosen in the course of the registration.

After your successful identification, please complete the form "Power of attorney for accounts/custody accounts for an individual" in the Baader Bank Form Center. Please send the completed form directly to Baader Bank:

Baader Bank Aktiengesellschaft
Kundenservice
Weihenstephaner Straße 4
85716 Unterschleißheim
Germany

How does a securities account transfer from Scalable Broker to another broker work?
 

An outgoing securities account transfer (from Scalable Capital Broker) must be submitted to Baader Bank via the receiving bank's form by mail. Any fractional shares will not be transferred and will not be sold automatically. If you are submitting a securities account transfer including the closure of your account, we ask that you independently initiate the sale of any remaining fractional shares and terminate your account after the securities have been transferred.

Click on "Profile" in the menu bar for the termination. Via the submenu "Products" you can use the button "Cancel Broker" to initiate the cancellation. After successful termination, your available balance will be automatically transferred to your reference account.

What happens if the account holder dies?
 

Since the existing contracts cannot be rewritten, the accounts of the deceased must be dissolved.

Please send the following documents by mail to the address below:

  • Death certificate (original or certified copy)
  • Authenticated opening of will or original certificate of inheritance
  • Order to close the clearing account and securities account, indicating the IBAN to which the credit balance is to be paid, signed by all heirs.

The documents should be sent to the following address:
Scalable Capital GmbH
Kundenservice Broker
Seitzstraße 8e
80538 München
Germany

How can I cancel the Scalable Broker?
 

You can cancel or change your broker online or via the Scalable Capital app under "Profile", "Products". Cancellation is free of charge and possible at any time.

After your termination, you may continue to log into your personal area until 1st August of the following year and retrieve documents from your mailbox until the applicable retention periods expire before access is deactivated. However, if necessary, access to your personal area can also be deactivated ahead of time. To do so, please send us an e-mail.

Trading

Which financial products can I invest in?
 

In principle, all ETFs, stocks, funds and crypto ETPs that are traded on gettex or Xetra are available to you. Additionally you can trade more than 375,000 derivatives by Goldman Sachs, HSBC and HypoVereinsbank onemarkets. You can easily find out whether a security can be traded by using the search function of the broker screen in our app or online. Simply enter the name, the security identification number (WKN), or ISIN.

You can also buy registered shares via Scalable Broker. The custodian Baader Bank will take care of the registration for you. You will not incur any costs for the registration performed by Baader Bank.

You can trade more than 375,000 derivatives in Scalable Broker. You can choose between derivatives by Goldman Sachs, HSBC or HypoVereinsbank onemarkets. To be able to trade derivatives, you have to successfully conduct the suitability test. This test is designed to assess your knowledge and experience with regards to derivatives. This is required since trading in derivatives can result in high and quick losses.You can check the availability of a specific derivative with our Derivatives Search.

In the Scalable Capital Broker you have various financial products at your disposal with which you can invest in the gold market. For example, you can invest in ETCs that invest in physical gold.

Bonds cannot currently be traded with Scalable Broker. All ETFs, shares, and funds that are traded on the gettex exchange are available to you.

New initial public offerings (IPOs) cannot currently be subscribed to via Scalable Broker.

Which order types are available?
 

Limit order: With this order a limit price can be defined. The order will only be executed at this predefined price or better. This way you can protect yourself against sudden price jumps. Due to the limit there is a possibility that the order can be executed only partially or not at all.
The limit order is valid for 360 days. During this period, it can be canceled at any time, provided that not all ordered items have been executed.

Stop order: With this order a stop price can be defined. When the stop price is reached, your order will be activated as a market order and executed at the best possible price during trading hours. Under certain circumstances, this price can deviate significantly from the stop price due to price jumps. It may happen that the order is never activated and therefore not executed.

The stop order is valid for 360 days. During this period, it can be cancelled at any time, provided that not all ordered items have been executed.

Stop limit order: As a combination of the two preceding order types, with this order both a limit and a stop price are specified. When the stop price is reached, your order will be activated as a limit order and then executed only at the limit price or better. This way you can protect yourself against sudden price jumps. On the other hand, it may happen that the order can only be partially executed or not at all.
The stop limit order is valid for 360 days. During this period, it can be cancelled at any time, provided that not all ordered items have been executed.

Market order: Is only offered for sell orders. For buy orders for which no limit price is defined (see above), a security limit is automatically set (max. 5% above the last ask price). This protects you against significant price jumps when buying.

Sell orders can also be placed as market orders. In this case, the order is executed at the next possible price during trading hours. Due to price jumps, this may differ significantly from the last price at the time the order was placed. The market order is only valid for the trading day on which it was placed.

Scalable Broker currently does not offer an OCO order (One-Cancels-Other).
Please note: If you enter both a stop and limit price in the order screen, this does not constitute an OCO order. A stop-limit order works as follows: When the stop price is reached, your order is activated as a limit order and then executed exclusively at the limit price or better. This way you can protect yourself against sudden price jumps. In return, it may happen that the order can only be partially executed or not at all.

How can I trade a security?
 

Trading orders can only be accepted in our app or online by logging in to your Scalable Capital account. Telephone orders in particular are not possible.

Select the desired security in our app or online by logging in to your Scalable Capital account. Navigate to your broker portfolio, and use the buttons "Buy" or "Sell" to start the order process. The put option is only available if you already hold shares of the security.

Is there a minimum order value?
 

There is no minimum order value for trading in the Scalable Broker. An exception is derivatives trading, which is possible from a minimum order volume of 250 euros.

However, for all trades below 250 euros, 0.99 euros per trade are charged on gettex. This applies to all price models of our broker. Trades from 250 euros are included in the trading flat rate in PRIME Broker and PRIME Broker flex.

Can I trade fragments?
 

You cannot buy fractions directly. However, with all savings plans we also buy fractions of ETFs for you so that your monthly savings rate can be fully invested. As long as the savings plan is running, these fractions are repeatedly combined to form whole number securities.

If you want to sell an ETF that has been saved and therefore contains fractions, you can of course also sell the resulting fractions again. Beyond that, no fractions can be sold.

Can I change or cancel an order that I have already placed?
 

A placed order can be cancelled free of charge under "Transactions" if it has not yet been fully executed. A direct modification of an order is not possible. If you want to change an order that has not yet been executed, cancel it and set it again.

According to the Conditions for Transactions on the Munich Stock Exchange (IV. Section), trades can be cancelled retroactively by the exchange under certain conditions. This applies in particular to so-called mistrades. Mistrades can, for example, be caused by technical malfunctions or an obviously deviating reference price. In the event of a cancellation of your already executed order, you will be informed by e-mail. Limit or stop orders will not be reactivated. Therefore, if necessary, please place the corresponding order again.

When will my order be executed?
 

When your order is executed depends on the selected order type and the price development of the security. With Smart Predict however, a feature available in PRIME Broker, you can see the probability of a limit or stop order being executed within the next hour. Read more details in the blog (in German).

Why can't I find a security?
 

The security you're looking for isn't available? When searching for a security in the security search, simply send us your request for a stock, ETF or funds if it isn’t available yet. If the trading conditions are met, we can have the security added for you. We look forward to your suggestions!

Will I receive financial or investment advice from Scalable Capital?
 

If you have any questions about our service, please contact us by email, chat, or telephone. However, we do not provide financial or investment advice.

How much money should I invest?
 

Investing in the capital market comes with risks. We therefore advise our clients to keep an immediately available emergency reserve for unforeseen events which should cover all of your current expenses and obligations for at least six months.

Which stock exchanges are available?
 

Orders can be placed on gettex, a stock exchange of Bayrische Börse AG, or Xetra, operated by Deutsche Börse AG. In principle, neither brokerage fees nor exchange fees are charged on gettex. The public law structure guarantees the neutrality that is indispensable for safeguarding the interests of market participants, investors, and issuers.

The order fee on Xetra is a flat rate of 3.99 euros, including for customers using the PRIME Broker and PRIME Broker Flex plans. In addition to that, there is an exchange fee for Xetra. For Scalable Broker this is only 0.01 % of the executed volume (minimum 1.50 euro). The trading platform fee covers all third-party costs for trading and settlement. The settlement is carried out by the custodian bank.

An overview of all costs can be found here.

What are the trading hours of gettex and Xetra?
 

On gettex, you can usually trade ETFs, shares, and funds Monday through Friday from 8:00 a.m. to 10:00 p.m. Stock exchange holidays are excluded. You can find gettex's trading calendar here.

On Xetra, you can trade Monday through Friday from 9:00 a.m. to 5:30 p.m. Stock exchange holidays are excluded. You can find Xetra's trading calendar here.

On trading days, Scalable Broker allows orders to be placed around the clock. From 12:15 a.m. to 11:30 p.m., you can place or cancel orders in our app or online by logging in to your Scalable Capital account. Stop and limit orders created outside trading hours are executed at the next possible time during trading hours. Market orders are generally only valid for the day on which they are created. If they are created before the opening of the exchange, they are executed at the next possible time during trading hours. Market orders placed after trading closes expire.

Please note that different trading hours may apply to certain derivatives. Further information you can find in the “Key Investor Information Document” or on the providers’ websites.

Is intraday trading possible?
 

You can buy and sell securities on the same day. You can also see real-time prices of the securities.

Can I trade over-the-counter?
 

Scalable Broker only offers exchange trading. This offers additional security for the investor. Stock exchange trading is strictly regulated and compliance with stock exchange rules is monitored by the Exchange Supervisory Authority.

In addition, each stock exchange has its own trade monitoring center. Their tasks are defined by law. It ensures proper trading and offers protection against any price manipulation. Investors can contact the Trading Surveillance Office as the exchange's supervisory body if they have any concerns about price fixing during execution. Scalable Capital is happy to assist you in clarifying the facts of the case.

Who are the PRIME partners and what advantages do they offer?
 

With our exclusive partners DWS Xtrackers, Invesco, and iShares by BlackRock, we provide low cost access to numerous high-quality ETFs. In addition to the purchase of ETFs from an order size of 250 euros, we provide many additional features and data on the ETFs of the PRIME partners.

An overview of all available ETFs can be found here.

Can I pay out or reinvest sales proceeds immediately after selling securities?
 

Proceeds from sales are available as a credit balance immediately after execution after deducting a safety margin for any taxes and can be used again directly for the purchase of securities. After booking, the full sales proceeds are available on the following day.

However, they are only available for withdrawal once the trades have been booked by the custodian bank. This is because securities transactions are not actually booked until two trading days after the trade has been concluded on the stock exchange (so-called settlement).

Why is my order only partially executed?
 

Trading on an exchange is determined by supply and demand. In principle, it can therefore happen with many types of orders that only a part of the ordered quantity can be executed, or nothing at all. Partial executions do not incur additional costs.

What happens if trading is suspended?
 

In very volatile market phases or in the case of announcements that strongly influence the price of one or more securities, the Exchange Supervisory Authority may suspend trading in individual securities. In extreme situations, the entire exchange trading may also be suspended. During this time, trading in the securities concerned is not possible.

In addition, securities may also be suspended from trading for an extended period of time for other reasons. For example, since summer 2019, Swiss shares may no longer be traded on trading venues in the EU. The suspension and resumption of price determination in individual securities will be announced on the website of the stock exchange gettex.

How do I set up a price alert?
 

You can set up price alerts for all securities and adjust them at any time.

To do so, click on the security that you want to set a price alert for. On the overview page of the security, click on the bell icon in the upper right corner. You can create multiple price alerts for the security. The number of active price alerts is indicated by a number on the bell icon.

In FREE Broker you can set one price alert for a security. In PRIME Broker or PRIME Broker Flex you can set as many price alerts as you like.

What is Smart Predict?
 

Smart Predict is a feature used when placing limit or stop orders. It shows the probability of a limit or stop order being executed within the next hour. The probabilities displayed update automatically and in real time when changing the desired price, or if the price of the security fluctuates. Smart Predict is available to PRIME Broker clients.

Savings plan

Which securities are eligible for savings plans?
 

Savings plans can be set up on ETFs, shares, crypto ETPs and funds.

All ETFs and crypto ETPs offered by Scalable Broker are eligible for savings plans. An overview of all available ETFs can be found here.

Many stocks and funds that are available in the Scalable Broker can also be purchased through savings plans. There are no restrictions regarding the size of the company or the location of its headquarters. If you cannot find the company you are looking for, please write to us at service@scalable.capital. We will gladly take your feedback into account and constantly expand our offer.

How can I set up a savings plan?
 

All savings plans can be set up starting from an amount of 1 euro, with no order fee. This applies to all Scalable Broker plans (FREE Broker, PRIME Broker, PRIME Broker Flex).

Find the security you want through the search function and click on "Set up a savings plan" on the overview page.

To set up a plan, select:

  • The amount you wish to invest
  • The frequency of the savings plan.
  • The execution date, which is the day of the month you want to execute the plan.
  • Inflation protection: You have the option to automatically adjust the amount according to inflation, increasing the amount by 2, 3, 5 or 8 % per year, and the adjustment is applied proportionally after each execution of the savings plan
  • Deposit method: Deposits to fund your savings plans can be made by direct debit or from your Scalable account cash balance. If your cash balance is your method of choice, but you do not have a sufficient amount, your deposit will be withdrawn automatically by SEPA Direct Debit.

Important: In case you have selected direct debit, the withdrawal will be made 3-4 business days before the execution date.

How can I adjust or cancel a savings plan?
 

To adjust a savings plan, click on the security with the savings plan that you want to adjust. On the overview page of the security, click on the current savings plan displayed below the chart (in the app) or on the top right of the screen (in the web browser). Change your desired amount, execution date, frequency and inflation protection and click on "Set up savings plan" to confirm.

To adjust the execution date and frequency of a savings plan, click on the security with the savings plan that you want to adjust. On the overview page of the security, click on the current savings plan displayed below the chart (in the app) or on the top right of the screen (in the web browser). Change the execution date and frequency, and click on "Set up savings plan" to confirm.

To suspend a savings plan, click on the desired security.
On the overview page of the security, click on the displayed savings plan, e.g. "50 euros monthly".
If you are in the mobile app, your savings plan will be displayed below the chart, in the desktop version you will find it at the top right.
Click on "Delete savings plan" here to deactivate the savings plan. A very short-term deactivation of a savings plan may no longer be processed. Of course, you can reset the savings plan at any time.

To add inflation protection, click on the security with the savings plan that you want to adjust. On the overview page of the security, click on the current savings plan displayed below the chart (in the app) or on the top right of the screen (in the web browser). Add a percentage value by which the savings plan rate should increase over time and click on "Set up savings plan" to confirm.

What execution dates and investment frequencies are available for savings plans?
 

Savings plans can be executed monthly, bi-monthly, quarterly, semi-annually or annually on nine different days (1st, 4th, 7th, 10th, 13th, 16th, 19th, 22nd and 25th of a month).

Can I adapt my savings rates to inflation?
 

Inflation adjustment is available. You can determine an adjustment rate in percent (2 %, 3 %, 5 % or 8 %) by which your savings rate should increase each year. The adjustment is made proportionally after each savings plan execution.

Why does the savings rate not increase my balance?
 

Once credited to your broker account, the savings amount will not increase your cash balance, as it is reserved for the automatic purchase of the savings plan's corresponding security.

Details on your personally available credit can be found in the customer area. Click on your credit balance on the overview page of your portfolio. Afterwards, you can see your currently available cash amount for investments or withdrawals.

When will my savings plan be invested?
 

Your savings plans are invested at the most appropriate time during the execution day you choose when setting it up). You will see the purchase of securities on the following day in our app or online by logging in to your Scalable Capital account.

Why has my savings plan not yet been debited?
 

Debit by direct debit: The savings plans are debited from your checking account by SEPA direct debit, depending on the specified execution day and interval. If you have set up several savings plans for the same execution day, only one direct debit will be collected for all savings plans. For example, if you save for three securities of 100 euros each on the 2nd of the month, we will collect 300 euros from your checking account in one collective posting. We will order the payments in good time before the desired execution date. Once credited to your brokerage account, the savings amount does not increase your available balance, as it is reserved for the savings plan. The purchase is automatically instructed by us, you do not need to do anything else.

Debit from the settlement account: Savings plans are debited from your clearing account depending on the specified execution date and interval. Make sure that your clearing account is sufficiently funded at the time of savings plan execution. If your clearing account is not sufficiently funded, the amount will be automatically debited from your current account.

Why isn't my entire savings plan invested?
 

In order to reach your desired savings plan amount, we also buy fractional shares of ETFs, stocks, crypto ETPs and funds. However, fractional shares can only be traded up to the third decimal place. To ensure that the savings rate is not exceeded, the fractional shares bought through your savings plan may therefore be rounded down.

Savings plan not invested at all: This can occur with very small savings rates combined with very high security prices. Example: If you set up a savings plan of 1 euro and the securities price is 1,500 euros, we would have to buy 0.0007 shares. However, since fractional shares can only be purchased up to three decimal places and the savings rate should not be exceeded, this is rounded down to 0.000 shares. The savings rate can therefore not be invested and will subsequently be credited to your cash balance.

Savings rate only partially invested: You have set up a savings plan of 100 euros on a security, which costs exactly 150 euros at the time of purchase, for example. If your savings plan buys 0.667 shares of this security for you, the purchase price would be higher than your savings plan at 100.05 euros. Therefore, only 0.666 shares are bought and thus 99.90 euros are invested. The remaining 0.10 euros will be credited to your cash balance.

What happens if the price of the security is above or below my savings plan amount?
 

With all savings plans, we also buy fractional shares of securities so that the determined savings plan amount can be reached. For example, if you have a savings plan of 50 euros on an ETF that trades at 100 euros at the time of purchase, your savings plan will buy 0.5 units. As long as the savings plan is active, these fractional shares are repeatedly combined into whole securities.

If you want to sell a security that was purchased with a savings plan and you therefore hold fractional shares, you can of course also sell the fractional shares again without additional costs. However, it is not possible to trade only a part of the held fractional shares. The entire position must always be sold.

Why can't I sell the savings plan on the day of investment?
 

Pieces purchased with savings plans cannot be sold again immediately due to the investment in fractions, but only after complete booking by the custodian bank. This is usually the case on the day after the investment.

Can I use capital-formation benefits (Vermögenswirksame Leistungen; VL) for a savings plan?
 

Capital gains cannot be invested through Scalable Broker.

Processing & Taxes

Are fees taken into account for tax purposes with Scalable Broker?
 

Depending on your tax situation, you may be able to claim Scalable Capital's fees for tax purposes. However, this does not happen automatically. Rather, you can claim expenses incurred as part of your income tax return. Our fees are clearly shown on your account statement and can thus be proven to the tax office, for example. Transaction costs are shown as a separate entry on the monthly account statement provided by the custodian bank.

With Scalable Broker you are using the services of two different companies: the contract brokerage of Scalable Capital GmbH (Scalable Capital) and commission trading, account and custody management of Baader Bank AG (custodian bank). The two companies invoice the services they provide separately.

The custodian bank is responsible for tax accounting. When determining the profit from a sale transaction, fees charged by the custodian bank are automatically deducted. These are fees for securities trading in accordance with the custodian bank's list of prices and services and the special conditions agreed with you.

Scalable Capital, as an acquisition broker, cannot deduct any taxes and therefore cannot automatically deduct the acquisition brokerage fees from your profit. Please note that Scalable Capital does not provide tax advisory services. Please consult your tax advisor if you have any detailed questions.

How are crypto ETPs treated for tax purposes?
 

When considering the tax treatment of transactions in crypto ETPs, several factors play an important role. Among other things, taxation depends on the type of transaction and the holding period of the crypto ETP.

If transactions in crypto ETPs are classified as private sales transactions(private Veräußerungsgeschäfte), any price gains realised after a holding period of more than one year are generally tax-free. When trading within the one-year speculation period, any price gains accrued must be taxed at the personal income tax rate. You must declare the gains or losses from private sales transactions yourself in your personal tax return, as the taxes are not withheld by Baader Bank in this case. However, gains achieved with a holding period of less than one year also remain tax-free in accordance with section 23 (3) sentence 5 EStG if the sum of the gains achieved (total gain) from all private disposal transactions in the calendar year is less than €600.

In the case of crypto ETPs, which are not classified as private sales transactions, any gains are subject - analogous to shares or ETFs and independent of the holding period - to capital gains tax of 25%, plus solidarity surcharge and church tax, if applicable. These are automatically paid to the tax office by the custodian bank or offset against your exemption order. It is therefore also possible to offset losses against gains from other securities transactions.

The tax classification of a product can be found in the securities statement of the corresponding sale, which is prepared by the custodian bank.

Please note that Scalable Capital has no influence on the tax classification of a product and that this may change over time. Scalable Capital accepts no liability for the accuracy of the information.

Please note that Scalable Capital does not provide tax advice. If you have any questions regarding your individual tax situation, please contact your tax advisor or your tax office.

How are gold ETCs considered for tax purposes?
 

Scalable Broker offers you various financial products with which you can invest in the gold market. Via ETCs, which invest in physical gold, you can participate in the development of the gold price.

Please note that the various products may differ especially regarding the handling in terms of taxation.

  • Classification as a certificate:

Capital gains arising from trading in certificates (ETCs) are also taxed at a flat rate of 25% capital gains tax plus solidarity surcharge and church tax, if applicable.

The taxes incurred are settled and paid directly by the custodian bank.

  • Classification as a private sale transaction:

If this class is sold, it is a private disposal transaction (Section 23 EStG). The profit is tax-free after one year between acquisition and sale/redemption. If the holding period is shorter, income must be taxed at the personal income tax rate.

There is no taxation at Baader Bank level, regardless of the holding period.

If you have any questions regarding taxation (at the Baader Bank level) of a specific gold ETC, please feel free to contact us at service@scalable.capital. In addition, you can always find the tax classification of a product in the securities statement of the corresponding sale.

Please note that we have no influence on the tax classification of a product and that it may change over time.

Please also note that Scalable Capital does not provide tax advice. If you have any questions regarding your individual tax situation, please contact your tax advisor or your tax office.

How are derivatives considered for tax purposes?
 

Capital gains arising from trading in derivatives are also taxed at a flat rate of 25% plus solidarity surcharge and church tax, if applicable. The accrued taxes are settled and paid directly by the custodian bank.

Section 871(m) of the U.S. Internal Revenue Code requires a U.S. withholding tax on dividend equivalent payments. Therefore, this provision also applies to certificates and warrants relating to dividend-paying U.S. equities. As dividend payments are often included in the price of the derivative by the issuer and lead to an increase in value, a withholding tax of 30% is charged on dividend payments of this kind. This amount is withheld by the issuer of the derivative as part of the so-called issuer solution. You do not have to do anything else in this regard.

How does the final withholding tax work?
 

The final withholding tax on investment income (capital gains tax, solidarity tax, and, where applicable, church tax) is paid on a transaction-by-transaction basis. The respective levies are withheld by the custodian bank after each sale, taking into account tax allowance and loss pots where applicable, and forwarded to the tax office.

This only applies to customers subject to taxation in Germany. Customers who have a tax residence outside of Germany are obliged to determine and pay the applicable taxes themselves. Please note that Scalable Capital can not provide tax advice in this regard. If you have any questions regarding your individual tax situation, please contact your tax advisor or your tax office.

You can find the amount of withholding tax paid by you in your personal customer area. To do this, please log into your Scalable Capital account on our website, open the menu item "Profile" and click on "Taxes".

Please note that crypto ETPs classified according to §23 are not subject to capital gains tax. You can find more information on this below under "How are crypto ETPs treated for tax purposes?".

How does the payment of the church tax work?
 

After your registration, Baader Bank automatically queries your church tax status at the Federal Central Tax Office (Bundeszentralamt für Steuern). If you are liable to pay church tax, the church tax will be paid directly to the tax office together with the capital gains tax and the solidarity tax on a transaction basis.

Please note that Baader Bank only checks your church tax status once a year in September for the following year. If your religious affiliation changes after this date, the change cannot be made during the year. The change will not be made until the next check in the following tax year. However, you can claim back any excess church taxes that have been paid when you file for your tax return. Please contact your tax advisor for this.

You can find the amount of church tax paid by you in your personal customer area. To do this, please log into your Scalable Capital account on our website, open the menu item "Profile" and click on "Taxes".

When will the advance flat rate be debited?
 

Broker: The advance fee is debited by the custodian bank at the beginning of the year. The debit will be made from your clearing account. Please ensure that there are sufficient funds in your account. If the booking of an advance fee results in a negative balance, the custodian bank may charge interest of 6.00% p.a. in accordance with the "List of Prices and Services" (p. 65).

Wealth management: The advance fee is debited by the custodian bank at the beginning of the year. The debit will be made from your clearing account. We will ensure that there are sufficient funds for you. You do not have to worry about anything in this regard.

What information does the annual account statement contain?
 

You will receive your annual account statement at the end of the year. This contains the balance of your custody account, but not the assets in your clearing account. If you are taxable in Germany, you will receive your annual fiscal certificate for your account by April 12 in your account inbox.

To get an overview of your portfolio including cash, please log in at scalable.capital/login. All relevant information about your account and custody account is always available.

Will I receive a tax certificate at the end of the year?
 

If you are liable to pay tax in Germany, you will receive an annual tax certificate for your securities account and your clearing account. This will be provided to you electronically in the spring of the following year. You will find it in your mailbox in our app or online by logging in to your Scalable Capital account.

How do I obtain a loss statement?
 

To apply for a loss statement for an existing securities account, please complete the form "Application for the issue of a loss statement" in the Baader Bank form center. Please send the completed form directly to Baader Bank.

Please note that the application must be received by 15 December of the current year in order for the loss certificate to be issued.

For a securities account that has already been closed, a possible loss statement will be provided to you automatically in the spring of the following year.

How can I set up or change my tax allowance?
 

With an exemption order, you instruct your bank to exempt accruing investment income from automatic tax deduction. Without this order, the bank will pay 25% capital gains tax as well as 5.5% solidarity surcharge and, if applicable, church tax to the tax office.

The statutory maximum limits are 801 euros exemption order of an individual and 1,602 euros joint exemption order of a married couple or registered partner.

To set up or change an exemption order, please log into your personal customer area on our website and open the "Profile" menu item. In the "Taxes" section, you can set up or change your exemption order.

The exemption order applies at bank level. So, for example, if you have asset management with us with custody account management at Baader Bank, the exemption order set up for this also applies to Scalable Broker.

Please submit your exemption order before the end of the current year. Exemption orders are always valid from 01 January of the current year or from the beginning of the business relationship.

How do I know my tax allowance is already used?
 

To see how much of your tax allowance has already been used, please log into your Scalable Capital account on our app or online and go to "Profile." In the "Taxes" section you can find all relevant information.

Will capital gains taxes already paid be refunded as soon as I set up an exemption order?
 

If an exemption order is set up retrospectively, taxes already paid (capital gains tax, solidarity surcharge and church tax, if applicable) will be refunded. Please note that the exemption order must still be set up in the current calendar year.

Is it possible to be exempted from US withholding tax in advance or to have it reduced?
 

In the case of US withholding tax, our custodian bank (Baader Bank) can grant a lower tax rate as a qualified intermediary. Baader Bank is able to reduce the withholding tax from 30% to 15% if you are subject to tax in Germany.

In accordance with the double taxation agreement between the USA and Germany, the US withholding tax is automatically reduced for non-US persons provided they have German citizenship, German residence and tax liability in Germany.

For foreigners living in Germany, a registration must be completed using the W-8BEN form in order to benefit from the lower tax rate. To do so, send us the completed form by e-mail to service@scalable.capital. Please make sure that you provide complete information when submitting the form.

If you are not taxable in Germany, the US withholding tax is regulated in the country-specific double taxation agreement between the USA and your tax country.

For all other countries, an advance exemption from the respective withholding tax is not possible.

Where can I find information about distributions?
 

Distributions (e.g. dividends or interest) are credited to your clearing account at Baader Bank. You can see the current status in our app or online by logging in to your Scalable Capital account. Distributions can either be reinvested or withdrawn.

When do I receive a dividend?
 

For shares of German companies you are entitled to a dividend if you hold the share in your securities account on the day of their Annual General Meeting (AGM). From the first trading day after the AGM, the share is traded "ex-dividend", as from then on there is no longer any entitlement to dividends. When you receive a dividend, it is automatically credited to your clearing account. However, the actual distribution of the dividend does not have to take place immediately after the AGM.

For dividends from foreign companies, some of which pay out a dividend several times a year, please refer to the quarterly reports or the investor relations page of the respective company.

Can I participate in an annual general meeting?
 

If the possibility of participating in an Annual General Meeting exists, the custodian bank will inform you about this. This applies to companies with headquarters in the European Economic Area (ARUG II). The announcement will be made available to you in your Scalable mailbox in the corresponding document "Annual General Meeting". The fees for the issuance of admission tickets to an Annual General Meeting can be found in the Special Conditions to the List of Prices and Services (p. 68) of Baader Bank. When ordering admission tickets for a foreign Annual General Meeting, please note that third-party fees of the depositary bank of up to EUR 150.00 may be incurred (Bundesgesetzblatt, BGBl I 2019, p. 2637).

Note: Your right to participate may lapse in whole or in part if you change your position shortly before the Annual General Meeting.

Taking into account the re-registration deadline, please send us the reply from the "Annual General Meeting" document with your instructions as a completed PDF by e-mail to corporateaction@scalable.capital. Please ensure that the information contained in this document is complete and readable when sending it. Instructions that are not sent in the defined format (PDF) cannot be processed.

Can I participate in a corporate action?
 

As a shareholder you are entitled to participate in corporate actions. Baader Bank will inform you about possible corporate actions. We will make the announcement available to you in your mailbox in our app and online.

Costs

What are the total costs of Scalable Broker?
 

You have the choice between three plans:

FREE Broker:
In FREE Broker, order fees of 0.99 euros are charged for each executed trade. You can trade all ETFs from our PRIME partners DWS Xtrackers, Invesco and iShares free of order fees for trades with an order size of 250 euros or more. All savings plans are free of order fees, whether on ETFs, stocks or crypto. Crypto ETPs are additionally subject to a spread surcharge in trading and savings plans.

PRIME Broker:
For only 2.99 euros per month (billed annually at 35.88 euros) you get, in addition to fee-free savings plans on stocks, ETFs and other exchange-traded products (ETP), unlimited trades without order fees from 250 euros order volume (Xetra trades excluded). Trades below 250 euros cost 0.99 euros on gettex. Crypto ETPs are additionally subject to the spread surcharge in trading and savings plan.
You can cancel PRIME Broker at any time or switch to another model.

PRIME Broker flex: With PRIME Broker flex, you enjoy all the benefits of the PRIME Broker with a flexible monthly payment at just 4.99 euros per month.

Regardless of the model you choose
gettex trades:
All trades on gettex below 250 Euros are charged with 0.99 Euros. This applies to all our broker plans.

Xetra trades:
For order executions via the Xetra exchange, all clients incur a fee of 3.99 euros per trade plus a trading venue fee (0.01% of the order volume, min. 1.50 euros), regardless of the pricing model. The latter covers all third-party costs for trading and settlement. Partial executions are not charged more than once.

Crypto spread surcharge:
In addition to the above fees, the spread surcharge applies for each execution of a savings plan or trade in a crypto ETP. This amounts to 0.99 % of the executed savings plan or order volume for FREE Broker clients or 0.69 % of the executed savings plan or order volume for PRIME Broker and PRIME Broker flex clients.
Any spread surcharges incurred will be displayed to you under "Cost information" prior to the placement of trading orders or when setting up or changing a savings plan.

Product costs for crypto ETPs
Ongoing product costs are incurred for trading in crypto ETPs.
The product costs for CoinShares ETPs can be found here: https://coinshares.com/etps/physical.

Real-time payments via Instant:
Real-time payments via Instant cost 0.99% in the FREE Broker model, and only 0.69% of the deposit amount in PRIME Broker and PRIME Broker flex. The following applies to every deposit: From 5,000 euros, every additional euro is free of charge.

Derivatives
In PRIME Broker and PRIME Broker flex, derivatives trading is included and trades are executed without additional fees.
In the FREE Broker, a fee of 0.99 euros per trade is charged for derivatives trading.

There are no additional costs such as custody account fees, flat-rate third-party fees, or issue surcharges. It is also possible to switch between the price models at any time: To do so, go to the "Profile" tab of your broker. Under "Products" you will find the option to change your broker plan at any time.

Please note: There is a reference in the customer documents to an administration fee of 0.75 % p.a. This refers exclusively to our separate product, "wealth management." If you only use our broker, this fee is not relevant for you.

Here you will find a list of all possible fees of the Scalable Broker by model: https://de.scalable.capital/en/trading-costs

Where are the fees debited from?
 

The fees for using PRIME Broker or PRIME Broker flex are debited annually or monthly from your reference account (current account).

All other fees, for example for executed trading orders, the spread surcharge for Crypto ETPs or fees for real-time payments via Instant will be debited directly from your Broker account at our custodian bank.

Do I have to pay negative interest or a custody fee on my cash balance?
 

No interest is charged on the balance of the clearing account. The current conditions can be found in the special conditions of the price and service list of Baader Bank.

Crypto

Trading

How does trading in cryptocurrencies work at Scalable Crypto?
 

With Scalable Crypto you trade cryptocurrencies as easily as stocks or ETFs on regulated trading venues (Xetra, gettex) in Germany. An investment is possible as a one-time purchase and as a savings plan from 1 euro per month. No separate account, wallet or re-identification is required for this.

Click on the search and search for the desired cryptocurrency. After clicking on the desired cryptocurrency, you can both set up a savings plan and make purchases/sales in the cryptocurrency.

If you already hold cryptocurrencies, they will be displayed in the Crypto section of your portfolio overview.

The purchased securities are safely held in your custody account at Baader Bank. The equivalent value of your investment in the corresponding cryptocurrency is held in custody for you at a regulated crypto custodian. In contrast to trading via crypto exchanges, there is no need for you to hold your investment independently in your own crypto wallet.

What cryptocurrencies can I trade at Scalable Crypto?
 

You can find an overview of all currently available crypto ETPs here.

Are physically backed crypto ETPs offered for trading at Scalable Crypto?
 

The products available through Scalable Crypto from CoinShares are physically backed by the underlying cryptocurrencies without exception.

Where are my cryptocurrencies stored?
 

Your Crypto ETPs are securely held in your custody account at Baader Bank, just like your shares or ETFs.

You do not need your own wallet to trade with Scalable Crypto and you do not need to hold the cryptocurrencies on your own wallet. The custody of the cryptocurrencies is taken over for you by the issuer of the respective crypto security. In this case, the underlying cryptocurrencies are physically deposited with regulated crypto custodians in professionally secured cold wallets based on the latest technology.

Blockchain analytics firm "Glassnode" estimates the number of lost Bitcoin in independent custody to be around three million. This represents nearly 15 % of the bitcoin ever in circulation.

Can I withdraw cryptocurrencies to my private wallet?
 

Some ETP issuers offer a transfer of the deposited cryptocurrency to a private wallet. In this case, the issuer may charge fees and additional documentation (identity check, money laundering check) must be taken into account.

Why does the estimated order volume differ from my input?
 

With us you trade Crypto as easy and secure as stocks and ETFs as a Crypto ETP on a regulated exchange in Germany. Crypto ETPs trade between 15 euros and 150 euros per unit. Your entry will therefore be rounded down to whole pieces, but at least to 1 piece.

Why does the number of my coins decrease over time?
 

Crypto ETPs incur annual product costs on the part of the issuer for managing the securities. This is how issuers cover their costs related to transactions on the crypto network, custody of the coins, etc. The costs are charged directly against the crypto entitlement of the ETP units you hold, so it decreases slightly over time.

For certain crypto ETPs, the crypto entitlement may increase as a result of staking rewards received. See the section "Which cryptocurrencies are currently being staked?" for more information.

Staking

Which cryptocurrencies are currently being staked?
 

You can find an overview of all currently available crypto ETPs here.
The crypto EPTs that are being staked are marked accordingly.

How are staking rewards shared with investors?
 

The issuer can reduce the management fee as well as increase the respective coin entitlements of the physically backed crypto ETPs within the scope of Staking Rewards.

The Staking Rewards for CoinShares crypto ETPs will be shared with investors both in the form of a reduction of the management fee to 0% and on the basis of a daily increasing coin subscription entitlement. The amounts can be found here by clicking on "Details" for the respective crypto ETP.

The crediting of Staking Rewards is done automatically by the issuer. Thus, you do not need to do anything further to receive your Staking Reward. Your current coin entitlement for existing positions can be found in Scalable Crypto under "Your Position".

What are the risks of staking?
 

Participation in the staking process may require a lock-up period during which cryptocurrencies cannot be used for other purposes for a certain period of time. With regard to the coins staked by the issuer, liquidity risks (i.e. restrictions with regard to the transferability of the staked coins) and risks of loss (e.g. through penalties against participants who incorrectly validate transactions due to errors, technical problems or hacking) may occur.

Further risks in connection with Crypto ETPs, in particular possible risks in the context of Staking, can be found in the base prospectus and the respective base information sheet of the issuer.

Derivatives

Trading

How is the price and leverage of a derivative formed?
 

The performance of a derivative depends on the performance of the respective underlying and the structure of the respective product. Depending on the structure, factors such as dividend payments, interest rates, exchange rates, or volatility may affect the value of the derivative.

To calculate the unit price of a derivative, the issuer uses the theoretical fair value based on financial mathematical models. Any difference between the calculated theoretical value and the actual unit price may result, for example, from the issuer's margin, any distribution fees, and the costs of structuring, pricing, settling, and hedging the product. Accordingly, the buying and selling prices (bid and ask prices) set by the issuer during the term are not based directly on supply and demand for the respective product, but rather on the issuer's pricing models.

Leveraged products can participate more strongly in the performance of the underlying instrument through so-called leverage. Due to the influence of factors such as the performance of the underlying, (remaining) term and volatility on the price of the leveraged product, the price is in direct proportion to the underlying, but is usually significantly below it. This means that the buyer of the leveraged product can participate in price changes of the underlying to a greater extent in percentage terms than in the case of a direct investment in the underlying. This effect is also called "leverage".

With regard to the pricing of derivatives and the influence of volatility, maturity and demand, please also obtain additional information from the issuers, e.g. in the FAQs of HSBC or on the websites of HypoVereinsbank onemarkets and Goldman Sachs.

Where can I find the term, knockout and strike price of a product?
 

Open the overview page of the desired derivative, for example using the search function. On the overview page, you will find a link to the "Key Investor Information" under key data. All the key features of the financial product are described there.

We are working on continuously improving the display of data in the customer area and will in future already display this data for you on the overview page of the product.

What happens when a derivative reaches the end of its term or is knocked out?
 

At the end of the term, the instrument is derecognized and, depending on the product type and the market value of the underlying, a cash settlement (cash settlement for claims of the warrant holder) or the corresponding security is booked. Derecognition and settlement take place within a few banking days. You do not have to do anything else in the process.
The conditions for settlement at the end of the term are described in the "Key Investor Information" of the respective product.

If a knock-out event occurs, the product reaches its final maturity early. Depending on the product type, the derivative may expire worthless or be redeemed by the issuer at the respective residual value. In addition, trading is often suspended when the knock-out threshold is reached. Some products can still be redeemed on the day of the knock-out event. For further information, please refer to the "Key Investor Information" of the respective product.
A derecognition and settlement will take place within a few banking days. You do not have to do anything else.

Trading

Which derivatives can I trade with the Scalable Broker?
 

In general, all derivatives of the issuers Goldman Sachs, HSBC and HypoVereinsbank onemarkets are tradable via the gettex exchange and can be traded with Scalable Broker, with the exception of bond certificates.

The offer consists of investment certificates, knock-out products and warrants on all known indices, individual stocks, currencies and commodities. Derivatives on bonds are not available.

You can easily find out whether a particular derivative is available by using our derivatives search. Simply enter the security identification number (WKN) or ISIN.

Additional helpful information regarding certificates, warrants and trading strategies you can find at our partners HSBC, HypoVereinsbank onemarkets and Goldman Sachs.

When are new issues available for trading?
 

The issue day or start of sale refers to the date on which the derivative is first offered for sale to the public for the first time. This differs from the first exchange trading day, from which the derivative can be traded via the gettex exchange and is thus also available for trading in the Scalable Broker. You can find the first exchange trading day on the issuers' websites.

New products will be available on the trading day after the initial listing. New instruments which were not yet available at the opening of trading ("intraday listing") will therefore only be available in the broker on the following trading day.

Can I also use the real-time payment via Instant to buy derivatives?
 

For derivatives trading, real-time payments via Instant may only be available after 8 weeks. For derivatives trading, it is best to use deposit via bank transfer.

How can I trade derivatives?
 

The trading of certificates, leveraged products, warrants, short or leveraged ETPs and other complex financial instruments involves special risks and therefore requires appropriate knowledge and experience. For this reason, information on knowledge and experience is required before trading for the first time.
This information can be specified or updated at any time under Profile > Products > Broker. Please also refer to our risk information on derivatives.

Is it possible to leverage products on US equities?
 

In general, all leveraged products on US underlyings are available in our broker, including 871m-relevant products.

Which products are affected by the US tax regulation (871m)?
 

The 871m tax regulation is a US tax regulation that regulates the payment of US withholding taxes for non-US persons. The purpose of this regulation is to collect withholding taxes from non-US persons holding certain derivative positions on US equities. Prior to the introduction of the 871m regulation, US withholding tax was only due on cash dividends. Since 2017, this has now been extended to "dividend equivalent payments".

In general, the regulation applies to derivative financial instruments that have U.S. equities as underlying assets and a delta close to 1. The affected products include, for example, knock-out products and mini futures on U.S. equities or U.S. equity indices.

Complaint

How do I make a complaint?
 

We take complaints seriously as each and every one of our clients are important to us. We believe you have a right to a fair, swift and courteous service at all times. We are a regulated entity, we treat our clients fairly and adhere to the regulations on transparency and protections related to financial services.

A complaint is any expression of dissatisfaction made by a client or potential client (complainant) to an investment services firm in connection with the latter's provision of an investment service or ancillary investment service. The term "complaint" does not necessarily have to be used. A complaint does not require a specific form.

Complaints can be made free of charge orally, in writing or electronically to the address below or to our other contact details, which can be accessed under https://de.scalable.capital/kontaktdaten in German and under https://de.scalable.capital/en/contact-details in English in their most current version.

Scalable Capital GmbH
Seitzstr. 8e,
80538 Munich,
Germany

Scalable Capital has established a complaints management function that is responsible for investigating complaints. This is the compliance department. You can reach it as follows:

Scalable Capital GmbH
Compliance Department
Seitzstr. 8e,
80538 Munich,
Germany

Please also see the “Complaints and disputes” section of our client documentation.

Scalable Capital Complaints Procedure
 

After the (potential) client has submitted the complaint, the complaint will be transferred to the client relationship management system (CRM).

The content of the complaint will be assessed (this may also include questions to the client), it will be determined whether the client's dissatisfaction is justified as regards its substance and, if necessary, a proposal for a solution will be developed. This is followed by consultation with a superior. Depending on the type, content and scope of the complaint, it may be necessary to involve the complaint management function at an early stage. Finally, feedback is provided to the (potential) client, in which Scalable Capital communicates its position regarding the complaint. The processing period between the submission of a complaint and the provision of feedback should normally not exceed five (5) business days. If no response can be provided within this period, Scalable Capital will inform the complainant of the reasons for the delay and the expected processing time.

If the client is not satisfied with our final feedback then they may contact the arbitration board of the Association of Independent Asset Managers Germany. The arbitration board of the Association of Independent Asset Managers Germany is responsible for any monetary disputes arising from or in connection with financial services contracts: VuV Ombudsman's Office, Stresemannallee 30, 60596 Frankfurt am Main, Germany, http://vuv-ombudsstelle.de/. Scalable Capital is a member of the Association of Independent Asset Managers Germany and is obliged under the latter's articles of association to participate in dispute resolution proceedings of the VuV Ombudsman's Office. The (potential) client therefore has the option of referring a complaint or other dispute to the VuV Ombudsman's Office.

Scalable Capital is not affiliated with any other recognised private consumer arbitration board.

The European Commission provides a platform for online dispute resolution for consumers who reside in the EU (in accordance with Article 14 (1) of the ODR Regulation) at http://ec.europa.eu/consumers/odr/. Scalable Capital does not participate in the online dispute resolution.

Irrespective of the option of appealing to the VuV Ombudsman’s Office, the (potential) client is free to file a civil action at their discretion.

In addition, clients may contact the complaints body of the national competent supervisory authority which may also provide for an arbitration procedure:
France: Autorité des marchés financiers – AMF
Italy: Commissione Nazionale per le Società e la Borsa – CONSOB
The Netherlands: Autoriteit Financiële Markten – AFM
Spain: Comisión Nacional del Mercado de Valores – CNMV
Austria: Finanzmarktaufsichtsbehörde – FMA.

Security and privacy

Is Scalable Capital an independent and regulated company?
 

Scalable Capital is an independent securities institution with the regulatory permission of the German Federal Financial Supervisory Authority (BaFin) to provide securities services pursuant to section 15 WpIG. Scalable Capital offers in particular the service of contract brokerage ("brokerage"). We are subject to supervision by the German Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht) and the German Federal Bank (Deutsche Bundesbank).

BlackRock (Netherlands) B.V. is (indirectly) a minority shareholder in the parent company of the securities institution. In the context of asset management, Scalable Capital makes the selection of ETFs for the investment universe as an operational decision exclusively on the basis of objective criteria aligned with customer interests. There are therefore no economic incentives to favour certain ETFs, whether from BlackRock. or another provider.

How secure are my money and my investments? What happens in the event that Scalable Capital or your partner bank becomes insolvent?
 

As a financial services institution, we are not authorized to obtain possession or ownership of the customer's assets. The customer's assets are held in the custody of our partner bank(s). In case of insolvency of Scalable Capital GmbH, the customer's assets contained in the custody account will therefore not fall into the insolvency estate of Scalable Capital GmbH.

In the event of the insolvency of the partner bank, your clearing account is protected by the statutory deposit protection of the Compensation Scheme of German Banks (Entschädigungseinrichtung deutscher Banken) up to a deposit amount of 100,000 euros (see details on this at www.edb-banken.de/en) and beyond that up to a certain amount by the deposit protection fund of the Association of German Banks (Bundesverband deutscher Banken). In addition, there is a claim to surrender of your securities in the portfolio in the event of insolvency of the custodian bank. This last aspect is particularly important for your investment with Scalable Capital GmbH, because your money is predominantly invested in securities with us and thus predominantly does not fall under the topic of deposit protection (like the cash on the clearing account).

As a regulated financial services institution, Scalable Capital GmbH is assigned to the Compensatory Fund of Securities Trading Companies (Entschädigungseinrichtung der Wertpapierhandelsunternehmen; EdW). The EdW provides compensation if an institution is no longer able to fulfill its "liabilities from securities transactions" to its customers for reasons directly related to its financial situation (and BaFin has determined the compensation case). For this compensation, the protection is limited to 90 %, up to a maximum of 20,000 euros per investor. Such a compensation case can only arise in special constellations for a financial services institution without permission to accept possession or ownership of assets of the customer (such as Scalable Capital GmbH); for example, the acceptance of customer funds despite the lack of the corresponding regulatory permission could be considered. Secondary claims (such as damages due to faulty investment) are generally not compensable.

How does Scalable protect my account?
 

At Scalable we want to ensure that your account is protected against any type of attack. Therefore, the Scalable Login utilises leading edge technology to scan the Web and track large security breaches that occur on third-party sites (unrelated to Scalable). If the Scalable Login identifies that any of our users’ credentials were part of such external breach it will notify you via your registered email and ask you to change your password.

How can I change my password?
 

To change your password, click on "Forgot your password?" under the input mask on the login page or on "Reset" in the Scalable customer area in the menu item "Profile" in the section "Password".

After entering your email address, you will receive an email from us with a link to change your password.

Why does a browser window open when logging in via the app?
 

For security reasons, we conduct the login process to your personal customer area via web browser. This guarantees a higher security standard when logging in and reduces the risk of falling victim to a phishing or fraud attempt.

The login to your Scalable client area is always done via a secure subdomain. Customers with a custody account at Baader Bank use secure.scalable.capital/login, customers with a custody account at ING can log in via ing-secure.scalable.capital/login.

Why can’t I log in?
 

If you have made sure that the combination of your e-mail address and password is correct, but you are still unable to log in, please check if you are using the correct login form for your custodian bank. For technical reasons, we use separate entry forms for customers with clearing accounts at Baader Bank and ING Bank.

To switch between the login forms, click either "To ING login?" or "Not an ING customer?" on the login page. In the app, you have the option to enable or disable the ING login before opening the login page.

If your account does not hold any active portfolios, we will block it after a few months of inactivity for security reasons. A blocked account can be manually unlocked by our customer service. In this case or in case of technical problems, please contact our customer service at service@scalable.capital.

How do I enable or disable two-factor authentication?
 

Activation
Log in to your Scalable Capital account in our app. Go to "Profile" and then select "Two-factor authentication" in the menu. During the activation process, you will receive an email with an activation link that you will need to confirm on the mobile device that you want to link.

Deactivation
Log in to your Scalable Capital account in our app. Go to "Profile" and then select "Two-factor authentication" in the menu. Select the option to disable two-factor authentication. You may reenable two-factor authentication in the same way again at any time.

As part of the activation process, you will receive a backup code. Keep this in a safe place that is only accessible to you. You may need the backup code in case you change or lose your smartphone.

Deactivation with backup code
Log in to your Scalable Capital account in our app. Go to "Profile" and then select "Two-factor authentication" in the menu. Select "I don't have access to my linked device", and then enter your backup code.

If you do not have access to you linked device or backup code, please contact our customer service at service@scalable.capital.

How can I switch between my Baader Bank and ING portfolios?
 

Due to security reasons, we offer separate login forms for each custodian bank. This means you have to select the custodian bank for your account in the login process in order to successfully login. For customers with accounts at both Baader Bank and ING Bank, it is therefore necessary to log out and log in again using the login form of the other bank.

The function of switching between your Baader Bank and ING accounts within your personal customer area can therefore no longer be offered.

How secure is my personal data?
 

Data protection is very important to us. We use modern IT infrastructure to ensure the security of your data. Your personal data (e.g. address, account data, financial circumstances) is transmitted in the course of registration as well as contract conclusion, and your data is always encrypted and stored in a data center in Germany.

Please refer to our privacy policy in this context.

How can I change my personal data?
 

To change your personal data, such as your address, reference account or phone number, please log in to your personal customer area via our website or app.

You can change your data under "Profile". Please activate two-factor authentication in the Scalable Capital app before making any changes.

As an ING customer, please contact our customer service by email at service@scalable.capital.

How can I download a copy of my personal data?
 

In accordance with Art. 15 GDPR, you can request a copy of the personal data processed about you. To do so, please log into your personal customer area on our website and go to "Profile". Under the "Personal Information" section, you can request your data at any time. Confirm your request via two-factor authentication (2FA) in the Scalable Capital app. Please note that access is only available via the web browser. It is not possible to make a request via iOS or Android app.

The scope as well as the manner of processing your personal data depends on which of our offers you use. For example, if you have only subscribed to a newsletter from us, the processing of your personal data is different than if you are a customer of our wealth management or brokerage offering. For more information, please also refer to our privacy policy.