Security | Scalable Capital (2024)

FAQs

What happens if scalable capital goes bust? ›

What happens if Scalable Capital fails? Your investments are secure as they are held by the custodian which is a separate entity. In the event of bankruptcy of the custodian bank, you have a claim to your securities. These do not fall into bankruptcy proceedings and are therefore protected.

TL;DR Scalable Capital Review in short:

Scalable Capital offers a highly competitive range of investment options, including stocks, ETFs, and bonds, with low fees starting at just €0.99 per trade. 4% interest is guaranteed to new users on paid plans. Trustpilot reviews are not all positive about the customer service.

Scalable Capital arranges loans from the lender, Baader Bank AG, Weihenstephaner Str. 4, 85716 Unterschleissheim, Germany, which also manages your brokerage account. The custodian bank uses your securities as collateral for the loan. These securities can fall in value or become worthless.

Buy stock fractions: You cannot buy fractions directly. However, with all savings plans we also buy fractions of stocks for you so that your savings amount can be fully invested.

In the event of insolvency of Scalable Capital or of the depositary bank, your cash is protected up to €100,000 by the statutory deposit protection of the EdB. Your securities are also protected.

Overview. Typically, when a brokerage firm fails, the Securities Investor Protection Corporation (SIPC) arranges the transfer of the failed brokerage's accounts to a different securities brokerage firm. If the SIPC is unable to arrange the accounts' transfer, the failed firm is liquidated.

Scalable Capital was founded in 2014 by Erik Podzuweit, Florian Prucker, Adam French and Prof. Dr. Stefan Mittnik.

You can rest assured that Scalable Capital is not a scam but a legitimate entity. This broker is regulated by the top-tier BaFin in Germany..

Fees in the Scalable Broker. Choose the broker plan that suits you and trade stocks, ETFs, crypto, derivatives and funds. From only €0.99 per trade or in the flat rate from €4.99 per month. Crypto fees, product costs, spreads and/or allowances may apply.

Trade Republic and Scalable Capital are both very popular neo brokers in Europe and in Germany. The main difference is that Trade Republic offers free broker access, 1 € for any transaction and no annual fees, while Scalable Capital offers two levels of Prime monthly subscription that includes everything.

How big is scalable capital? ›

With more than €2bn Assets Under Management, the company is Europe's leading automated investment platform.

The Data Controller within the meaning of the General Data Protection Regulation ("GDPR") is Scalable Capital GmbH, Seitzstraße 8e, 80538 Munich, Germany (hereinafter "Scalable Capital" or "we").

Savings plans can be set up in the Scalable Broker from as little as €1.

The only way to sell fractional shares is through a major brokerage firm, which can join them with other fractional shares until a whole share is attained. If the selling stock does not have a high demand in the marketplace, selling the fractional shares might take longer than hoped.

If you choose to invest in fractional shares, you could still earn dividends proportional to the value of the share you own. So if you own 50% of a specific share and that company pays a dividend, you'd be in line for a dividend payment of 50% of the per-share amount.

Liquidation involves the sale of all of a fund's assets and the distribution of the proceeds to the fund shareholders. At best, it means shareholders are forced to sell at a time, not of their choosing. At worst, it means shareholders suffer a loss and pay capital gains taxes too.

If something ever happens to our company, for example, we enter into a state of insolvency or experience bankruptcy, your investments will remain in the SPV and will not be recoverable by creditors. And for your money, flatexDEGIRO Bank AG is part of the German Deposit Guarantee Scheme.

Answer. When investors are more risk-averse, the SML will have the same intercept but a steeper slope, leading to lower stock prices as the required rate of return increases.