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

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.

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.

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

Our service is aimed at persons resident in Germany, Austria, Italy, Spain and metropolitan France. 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.

Do I have to provide my tax ID?
 

German Tax Liability:
No. Providing your tax ID at sign-up is optional if you are only liable for taxation in Germany. If you do not have your tax ID at hand, the custodian bank will automatically request it for you from the 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.

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

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.

Which identification methods are available?
 

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.

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

I have already completed the identification. What happens next?
 

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.

Can I verify my identity with a foreign identity card?
 

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).

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

How long does it take to open an account?
 

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.

Does Scalable Capital have a demo account?
 

No. 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.

Are joint accounts offered as well?
 

The Scalable Broker is only offered as a single account.

Can I open an account for my underage children?
 

No. 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.

Can I open a business account?
 

No. Scalable Broker is only offered to private individuals.

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

Yes. 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.

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

Can I open an additional Broker portfolio?
 

You can only have one brokerage account with a custody account in your name. However, as a broker client you have the option of adding an automated, ETF-based asset management portfolio. To do this, click on the "plus" in the app in the customer area after logging in ("Home") or on "Add product" in the web browser.

Can I open an account with a foreign currency?
 

Trading via Scalable Broker is only possible in Euros.

Securities account management

How can I make deposits and withdrawals?
 

Deposit
By clicking on the menu item "Payments", you can order a deposit at any time in our app or online. This will be debited from your current account via SEPA direct debit.

Alternatively, you can transfer the desired amount to your clearing account at Baader Bank. You will find the IBAN of your clearing account by selecting the desired product on the home screen and clicking the IBAN below the product title on the broker details screen. You can enter your name as the recipient, since the clearing account is in your name. Transfers to your clearing account at Baader Bank have to be made through your regular reference account. Payments that cannot be clearly associated with you (such as payments made through PayPal, Payward or Wise) are not allowed.

Please note that deposits via SEPA direct debit may only be withdrawn or used for trading derivatives after eight weeks.

Withdrawal
By clicking on the menu item "Payments", you can order a withdrawal at any time in our app or online. We will transfer your desired amount this to your reference account."

How long does it take until a deposit is available?
 

Deposits are available as soon as the amount has been credited to your settlement.

Direct debits are usually available within 3-4 days. Cash transfers will be available much faster. The actual during depends on when the payment was instructed and the processing speed by your bank. Transfers instructed before noon are often already available on the same day.

Why can't my entire balance be paid out?
 

Please find details of your cash balance in your client area. Click on the available cash balance on the overview page of your portfolio.

Proceeds from sales
Proceeds from sold securities can be used immediately for purchase trades. However, they are usually not available for withdrawal until 2 banking days later. This is because the actual exchange of securities for payment (so-called settlement) does not take place until two days after the trade has been concluded on the exchange.

Available cash from SEPA direct debits
You can instruct your bank to revoke any SEPA direct debit within the first 8 weeks. This may result in an overdraft of your broker account. Deposits made via direct debit can therefore only be withdrawn in full via the customer area after the first 8 weeks.

Note: You can easily deposit any amount via bank transfer. Those deposits can be withdrawn at any time.

As a customer, do I have an overview of the 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?
 

No. An export is not possible at this time.

How can I add securities to my watchlist?
 

First, 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.

How can I remove securities from my watchlist?
 

First, 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?
 

No. Currently all entries are sorted alphabetically.

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 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 cancel the Scalable Broker?
 

You can cancel or change your broker online or via the Scalable Capital app under "Profile", "Products".

After your cancellation, you can still log into your personal area and retrieve documents in your mailbox. There you will receive important documents, such as your annual tax certificate. You can access these documents in your mailbox until the applicable retention periods expire. However, if necessary, access to your personal area can also be deactivated. To do so, please send us an e-mail.

Are cancellations free of charge?
 

Yes. Cancellation is free of charge and possible at any time.

What do I have to consider when transferring my securities account (from Scalable Capital Broker to another broker)?
 

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

Trading

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 costs on Xetra?
 

Xetra trades are not included in the flat rate of our PRIME or PRIME Broker flex. For all customers, order execution on Xetra therefore costs 3.99 euros. The fee is collected from your clearing account after order execution. Partial executions are not charged more than once.

Furthermore, the trading venue fee applies. This amounts to only 0.01% of the executed volume (minimum 1.50 euros). It covers all third-party costs for trading and settlement. The settlement is done by the custodian bank and is also collected from your clearing account at Baader Bank.

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.

Can I trade outside trading hours?
 

gettex offers trading outside the trading hours of reference exchanges such as Xetra. You can trade ETFs, shares, and funds Monday to Friday from 8:00 a.m to 10:00 p.m. Stock exchange holidays are excluded. You can find the gettex 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 orders in our app or online by logging in to your Scalable Capital account. Orders created outside trading hours will be executed at the next possible time during trading hours.

Can I also 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.

Do I own the securities?
 

When you buy a security, you acquire ownership rights to that security. The financial instruments are held in a securities account maintained in your name with Baader Bank.

Which financial products can I invest in?
 

In principle, all ETFs, stocks, funds and krypto-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 check the availability of a specific derivative with our Derivatives Search.

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!

What are ETFs?
 

Exchange-traded funds (ETFs) are investment funds that replicate the performance of a stock market index, such as the DAX, without a fund manager making active investment decisions. They are therefore also known as passive index funds. Like an investment fund, an ETF gives you access to a broader set of securities. such as stocks. Unlike actively managed investment funds, however, they are much more cost-effective, because they do not require expensive management fees or premiums that eat up your return. Since ETFs are traded on stock exchanges, they also offer daily liquidity. In short: ETFs enable broadly diversified and cost-effective investments.

An overview of all available ETFs can be found here.

What are stocks?
 

Stocks are securities issued by companies to raise equity capital and represent a share in the equity capital of a company. A shareholder is therefore not a creditor as with a bond, but a co-owner of the company. The shareholder is involved in the economic success and failure, and the shareholder participates in it through profit distributions known as dividends as well as through the price development of the share.

What are funds?
 

Investment funds are vehicles for collective investment in accordance with the regulations of the German Investment Code. A distinction must be made between open investment funds, which are open to an unlimited number of investors, and closed investment funds, which are open to a limited number of investors. A capital management company determines the investment strategy of an open-ended investment fund and manages the fund assets professionally.

Who are the PRIME partners and what are the benefits of the partnerships?
 

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 the ETFs - which is free of order fees - we provide many additional features and data on the ETFs of the PRIME partners.

Which ETFs of the PRIME Partners are free to buy or set up a savings plan for?
 

You can trade all ETFs from DWS Xtrackers, Invesco and iShares by BlackRock free of charge for orders of 250 euros or more and save free of charge at any time via a savings plan. In PRIME Broker, in addition to the 2.99 euros per month (with annual payment), there are only order fees of 0.99 euros for trading stocks, ETFs and funds with an order size of less than 250 euros.

Can I buy or sell fragments?
 

Buy fractional shares: You cannot buy fractional shares directly. However, with all savings plans, we will buy fractional shares of ETFs for you, so that your monthly savings rate can be fully invested. As long as the savings plan is running, these fractional shares will be reassembled into whole securities over time.

Sell fractional shares: If you want to sell an ETF that has a savings plan and therefore contains fractional shares, you can of course sell the fractional shares again without additional costs. Beyond that, no fractional shares can be sold.

Is intraday trading possible?
 

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

Can I invest in gold?
 

Yes, 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.
In order to benefit from the tax exemption for an appropriate holding period, you can choose a product that allows physical delivery. Examples of such ETFs are WisdomTree Physical Swiss Gold (WKN: A1DCTL) and Gold Bullion Securities (WKN: A0LP78).

For ETFs and ETCs, you can also set up a savings plan and invest your desired amount in your favourite product every month.

Can I trade bonds?
 

No. Bonds cannot currently be traded with Scalable Broker. All ETFs, shares, and funds that are traded on the gettex exchange are available to you.

Can I trade derivatives?
 

Yes. 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.

Can I subscribe to new shares (IPOs) via Scalable Broker?
 

No. New initial public offerings (IPOs) cannot currently be subscribed to via Scalable Broker.

Can I exchange funds?
 

No. A direct fund exchange is currently not possible. You can always sell a fund and invest the proceeds in a new fund. With the exception of a possible withholding tax on investment income, neither PRIME Broker nor PRIME Broker Flex charge any fees for this.

Can I pay out sales proceeds immediately after selling securities?
 

Earnings from executed sales can be used directly to buy securities again. However, they are only available for payment once the trades have been booked by the custody bank. This is due to the fact that securities transactions are only actually booked two trading days after the trade was concluded on the stock exchange (also known as settlement).

Can I reinvest sales proceeds immediately after selling securities?
 

Proceeds from sell orders will become available immediately after order execution less a deduction to account for possible taxes. After booking, the full proceeds are available on the following trading day. Savings plans have no impact as they are debited from your current account and invested directly.

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.

What are orders?
 

Orders are instructions to buy or sell securities. By submitting your order in our app or online, you instruct Scalable Capital to place the corresponding order with Baader Bank for execution on gettex. The order is valid when the corresponding confirmation is displayed. You can follow the progress of your order live by checking the transaction list.

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.

Can I set up a One-Cancels-Other (OCO) order?
 

No, Scalable Broker currently does not offer an OCO order.

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.

Is there a minimum order value?
 

Trading starts at 0 Euro. This applies to trading via gettex and Xetra.

What are the conditions for the order value below 250 Euros?
 

All trades on gettex below 250 Euros are charged with 0.99 Euros. This applies to all our broker plans.

How can I buy or sell 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.

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.

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.

How do I set up a price alert?
 

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.

Can I set up and change price alerts for shares, ETFs, and funds?
 

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

How many price alerts can I set up?
 

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.

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).

Is it possible for my order to be cancelled following its execution?
 

Yes, according to the Conditions for Transactions (German) 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.

Savings plan

How can I set up a savings plan?
 

Search for the desired stock or ETF that you want to set up a savings plan for using the search function. On the overview page of the ETF or stock, click on "Set up savings plan". Enter an amount of choice, choose an execution date and frequency. Confirm by clicking on "Set up savings plan." You can choose if the savings rate should be debited from your current account or taken from your cash balance. It is then automatically invested for you.

Is there a minimum savings plan rate?
 

No. The amount of the savings plan rates can be determined individually.

How much does a savings plan cost?
 

All savings plans are free of order fees. This applies to all our pricing plans.

What execution dates are available for savings plans?
 

There are nine different execution dates for savings plans (1st, 4th, 7th, 10th, 13th, 16th, 19th, 22nd, 25th of a month).

What investment frequencies can I choose for my savings plans?
 

Savings plans can be executed monthly, bi-monthly or quarterly.

Can I adapt my savings rates to inflation?
 

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

Which ETFs are eligible for savings plans?
 

All ETFs offered by Scalable Broker are eligible for savings plans.

An overview of all available ETFs can be found here.

Which stocks are eligible for savings plans?
 

Many stocks 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 adjust or cancel a savings plan?
 

To adjust a savings plan, click on the stock or ETF with the savings plan that you want to adjust. On the overview page of the stock or ETF, 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 stock or ETF with the savings plan that you want to adjust. On the overview page of the stock or ETF, 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 ETF or stock.
On the overview page of the ETF or the share, 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.

Can I also set up a crypto savings plan?
 

Yes. Savings plans on cryptocurrencies are possible. You can find out more about the cryptocurrencies available in our broker here (in German).

Can I set up a fund savings plan?
 

No. A savings plan on funds that are not ETFs is not currently available.

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 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 ETF or stock.

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.

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 isn't my entire savings plan invested?
 

In order to reach your desired savings plan amount, we also buy fractional shares of ETFs, stocks and crypto ETPs. 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.

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?
 

No. Capital gains cannot be invested through Scalable Broker.

Processing & Taxes

Where can I find information about taxes?
 

For all questions regarding the annual tax certificate, tax allowance, or the final withholding tax, there is a separate "Taxes" section in our FAQs. Please note that Scalable Capital cannot provide tax consulting services.

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.

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.

Under which circumstances will I receive a dividend for held stocks?
 

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.

How 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 kapitalmassnahme@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 corporate actions?
 

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.

Can I buy registered shares?
 

Yes. 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.

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.

Can I overdraw my clearing account?
 

The clearing account is managed on a credit basis and cannot be overdrawn in the course of normal daily business. If there is not enough credit available on the clearing account for a prepared order, the order cannot be placed.

Should the clearing account nevertheless have a negative balance, the custodian bank will charge interest on this. Please refer to the special conditions in Baader Bank's list of prices and services for the current overdraft interest rate.

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.

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

  • Xetra trades:
    For order executions via the Xetra exchange, all customers incur a fee of 3.99 euros per trade plus a trading venue fee (0.01% of the order volume, min. 1.50 euros).


  • Spread surcharge (Crypto ETPs):
    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 customers or 0.69 % of the executed savings plan or order volume for PRIME Broker and PRIME Broker flex customers.


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.

Are there any additional trading costs?
 

No. There are no additional costs apart from the above-mentioned costs in FREE Broker, PRIME Broker, and PRIME Broker Flex, such as custody account fees, flat-rate third-party fees, or issue surcharges.

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.

Where are the fees debited from?
 

Possible order fees for one-time buys and sells will be debited directly from your settlement account at our custodian bank.

All other fees, including for instance the PRIME Broker fee, will be debited from your reference account (current account).

Crypto

General

What are cryptocurrencies?
 

Cryptocurrencies are digital assets that are not created or guaranteed by a central bank or authority and do not need to be linked to legal tender. Similar to central bank currencies, cryptocurrencies can be used as a medium of exchange. They are transferred, stored, and traded electronically. Examples of well-known cryptocurrencies are Bitcoin (BTC), Ether (ETH), Ripple (XRP) and Litecoin (LTC).

What are crypto ETPs?
 

Crypto Exchange Traded Products, or "Crypto ETPs" for short, is a collective term for all products that track the value of an underlying cryptocurrency. For example, a Bitcoin ETP, minus the issuer's product costs, offers the opportunity to participate in the performance of the cryptocurrency Bitcoin. In addition to the designation "ETP", product manufacturers sometimes use the designations Exchange-Traded-Note (ETN) or Exchange-Traded-Cryptocurrency (ETC). At Scalable Crypto, all crypto ETPs are 100% physically collateralised. When investing in physically collateralised crypto ETPs, the issuer deposits the equivalent value of the investment in the corresponding cryptocurrency with a regulated depositary.

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.

Clicking on the "Crypto" button will take you to your personal crypto area. Here, all tradable cryptocurrencies are clearly displayed for you. After clicking on the desired cryptocurrency, you can both set up a savings plan and make purchases/sales in the cryptocurrency.

Are there any savings plans for cryptocurrencies?
 

Yes, just like shares and ETFs, savings plans on cryptocurrencies are also possible from a savings rate of 1 euro. You can flexibly determine your savings rates, execution days and savings intervals at any time.

How much does crypto trading cost at Scalable Capital?
 

We have published the conditions for trading cryptocurrencies for you here.

You will continue to benefit from our reimbursement of ongoing product costs for PRIME Crypto ETPs from our partner CoinShares. For Bitcoin, for example, these costs currently amount to 0.98 % annually. The reimbursement is made to your settlement account in the following calendar year.

In addition, there are still no custody or network costs for trading cryptocurrencies. In addition, as part of a promotion, we have not charged any spread surcharges to date. With the expiration of this promotional campaign on April 04, 2022, the agreed spread surcharges will apply for trading and savings plans with cryptocurrencies:

  • PRIME Broker and PRIME Broker flex: 0.69 % of the executed volume
  • FREE Broker: 0.99 % of the executed volume.

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.

What are the trading hours for trading at Scalable Crypto?
 

For trading at Scalable Crypto, the trading hours of gettex and Xetra apply, just like for shares and ETFs:

gettex: On trading days, Monday to Friday, from 8 am to 10 pm. Stock exchange holidays are excluded. Exchange trading ends at 2 p.m. on Dec. 30. There is no trading on December 31 and January 1.

Xetra: On trading days, Monday to Friday, from 9 a.m. to 5:30 p.m.. Stock exchange holidays are excluded. Trading ends at 2 p.m. on Dec. 30. There is no trading on December 31 and January 1.

On trading days, orders can even be placed around the clock. From 0.15 a.m. to 11.30 p.m. you can create or cancel orders via the customer area. Stop and limit orders placed outside trading hours will be executed at the next possible time during trading hours.

What cryptocurrencies can I trade at Scalable Crypto?
 

Currently, you can trade the following cryptocurrencies at Scalable Crypto:

  • Bitcoin
  • Ethereum
  • Litecoin
  • Polkadot
  • Ripple
  • Tezos
  • Cardano
  • Solana

We are constantly improving the offering together with our partner CoinShares. You can find all available crypto ETPs here.

What are the differences between trading at Scalable Crypto and trading through crypto exchanges?
 

When you buy cryptocurrencies through Scalable Crypto, you buy exchange-traded crypto securities on regulated trading venues (Xetra, gettex) in Germany.

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.

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

The products available through Scalable Crypto from our PRIME partner 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. The custody of the underlying cryptocurrency is carried out at regulated crypto custodians. The cryptocurrencies are held in professionally secured cold wallets based on the latest technology.

Do I need to keep cryptocurrencies on a separate wallet?
 

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 on a cold wallet.

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, fees on the part of the issuer as well as additional documentation efforts (KYC/AML) have to be considered.

What order types are offered for cryptocurrencies?
 

For Crypto ETPs, you can use the familiar order types from Scalable Broker: Limit order, stop order, stop-limit order and market order.

Here, the stop or limit price is converted with the daily conversion factor (so-called coin-entitlement) of the ETP.

Where do cryptocurrency prices come from?
 

The displayed prices are real-time prices calculated using gettex data on the crypto subscription ratio of the respective Crypto ETP.

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.

The product costs of the PRIME Crypto ETPs of our partner CoinShares are calculated on a daily basis and credited to your settlement account in the following calendar year in each case.

Processing & Taxes

How are crypto ETPs treated for tax purposes?
 

Crypto ETPs are taxed in the same way as ETFs. Therefore 25 % capital gains tax plus solidarity surcharge and church tax, if applicable, is due on the sale of crypto ETPs. These are automatically paid to the tax office by the custodian bank or offset against your exemption order. Losses can also be offset against other securities. Thus, when purchasing Crypto ETPs, you benefit from a regulated, simple taxation that can be offset against other financial instruments.

This type of taxation also applies to crypto ETPs with a staking feature, which stakes a part of the deposited coins and thus generates additional rewards in the respective cryptocurrency for investors.

Staking

What is a consensus mechanism?
 

Blockchain technology makes it possible to verify transactions in a trustworthy and transparent manner without central instances. Consensus mechanisms are used to ensure that all participants have an identical copy of the distributed database.
Consensus mechanisms can reach agreement in various ways, e.g., via the "proof-of-work" or "proof-of-stake" procedure.

The proof-of-work procedure is used, for example, by the Bitcoin blockchain. In order to append new blocks with entries to the blockchain, participants must solve complex tasks that are computationally and time intensive.

What is staking?
 

Some digital currencies do not require a "proof-of-work" to reach consensus on their blockchain. Instead, they use a method known as "proof-of-stake."

Significant resources in the form of energy and computing power are required to run a blockchain with proof-of-work, whereas with the proof-of-stake mechanism, digital currency holders can provide their holdings to validate transactions on the network.

Individual participants can contribute their assets to create a large pool and share in the rewards or validating transactions. This process is referred to as "staking."

A random algorithm is used for consensus building. This randomly selects a participating person who then has the right to validate the next block. Users with a higher stake (more assets in the pool) have a higher probability of being selected and receiving a reward.

Which cryptocurrencies are currently being staked?
 

From the universe of Scalable Crypto, the cryptocurrencies Polkadot (DOT), Tezos (XTZ), Cardano (ADA) and Solana (SOL) are currently being staked.

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 in the following amounts:

CoinShares Physical Staked Polkadot: 5% p.a.
CoinShares Physical Staked Tezos: 3% p.a.
CoinShares Physical Staked Cardano: 3% p.a.
CoinShares Physical Staked Solana: 3% p.a.

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

What are derivatives?
 

A derivative is a financial instrument whose price depends on the price development of an underlying asset. Underlyings are stocks, bonds, interest rates, commodities or foreign exchange, for example. Derivatives include futures, swaps, options or certificates. Derivatives can be used to hedge against price losses or for speculation.

What is the difference between the various derivatives?
 

Detailed information on the differences between individual product types such as investment certificates, warrants or knock-out products can be found at the issuers, e.g. in the FAQs of HSBC or on the websites of HypoVereinsbank onemarkets and Goldman Sachs.

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.

Trading

Which derivatives can I trade with the Scalable Broker?
 

You trade derivatives from the issuers Goldman Sachs, HSBC and HypoVereinsbank onemarkets with Scalable Broker.

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.

Are all derivatives of the issuers tradable with Scalable Broker?
 

As a rule, 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.

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

Can derivatives be traded on the issue date?
 

The issue date refers to the date on which the derivative is first offered for sale to the public. This differs from the first exchange trading day, from which the derivative can be traded on the gettex exchange. You can find the first exchange trading day on the issuers' websites.

Are instruments which have been listed intraday instantly available for trading?
 

New products will be available on the trading day after the initial listing. New instruments which were not yet available as trading commenced will only become available on the subsequent trading day.

Do special trading hours apply to derivatives?
 

The regular trading hours of gettex apply to derivatives: Monday to Friday, from 08:00 to 22:00, excluding stock exchange holidays. Please note that different trading hours may apply for individual derivatives. For more information, please refer to the "Key Investor Information" and the websites of the issuers.

Which derivatives should I trade?
 

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

What does derivatives trading cost?
 

In PRIME Broker and PRIME Broker flex, derivatives trading is included and you can trade for no additional order fees. In FREE Broker there is a order fee of 0.99 euros per trade for derivatives trading.

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.

Why did the price of a particular derivative move against my expectations?
 

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.

Is it possible to leverage products on US equities?
 

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

What is the 871m tax regulation?
 

It 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".

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

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.

Processing & Taxes

What happens when a derivative reaches the end of its term?
 

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.

What happens if a derivative is knocked out?
 

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.

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 distribution of a dividend affect the option price?
 

You can find information regarding the impact of dividends at the issuers, e.g. in the FAQs of HSBC or on the websites of HypoVereinsbank onemarkets and Goldman Sachs.

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 contact details listed below.

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

Email
Germany & Austria: service@scalable.capital (for clients resident in Germany, Austria and all residences not explicitly mentioned hereafter)
France: support-fr@scalable.capital (for clients resident in France)
Italy: support-it@scalable.capital (for clients resident in Italy)
Spain: support-es@scalable.capital (for clients resident in Spain)

Phone
Germany: +49 (0) 89 / 380 380 67 (for clients resident in Germany and all residences not explicitly mentioned hereafter)
Austria: +43 720 / 882033 (for clients resident in Austria)
France: +49 (0)89 / 215 292 790 (for clients resident in France)
Italy: +49 (0)89 / 215 292 740 (for clients resident in Italy)
Spain: +34 91 / 949 711 3 (for clients resident in Spain)

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 documents.

Scalable Capital Complaints Procedure
 
  1. After the (potential) client has submitted the complaint, the complaint will be transferred to the client relationship management system (CRM).


  2. 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.


  3. If the client is not satisfied with our final feedback then they may contact the following relevant third parties:


a) 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.

b) France: clients resident in France may contact the mediator (Médiateur) of the Autorité des Marchés Financiers (AMF) at the following address: Mme le Médiateur de l’AMF, Autorité des marchés financiers, 17 place de la Bourse, 75082 PARIS CEDEX 02, France.

c) Spain: clients resident in Spain may contact the CNMV’s Complaints Service (Servicio de Reclamaciones) at the following address: Edison, 4, 28006 Madrid, Spain.

d) Austria: clients resident in Austria may also contact the Joint Conciliation Board of the Austrian banking industry (Gemeinsame Schlichtungsstelle der Österreichischen Kreditwirtschaft) at the following address: Wiedner Hauptstr. 63, A-1045 Wien, Austria.

e) Europe: 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.

  1. Irrespective of the option of appealing to these arbitration boards, the (potential) client is free to file a civil action at their discretion.