The broker landscape in Germany has split: On one side, neo-brokers like Trade Republic and Scalable Capital with minimal fees. On the other, direct banks like ING, comdirect, and Consorsbank with full service. Who wins?

What Are Neo-Brokers?

Neo-brokers are purely digital securities dealers that stand out through radically reduced costs and mobile-first design. Their business model is based on Payment for Order Flow (PFOF) — they route your orders to market makers and receive compensation. This enables 0-1 euro order fees.

What Do Direct Banks Offer?

Direct banks like ING or comdirect are full-service banks with depot offerings. You get a checking account, credit card, depot, and customer service from one provider. Order fees are typically 4.90-9.90 euros plus exchange fees.

Comparison by Criteria

Costs

Neo-broker wins clearly. 0-1 euro vs. 5-10 euros per trade is an enormous difference, especially with many trades per month. With 50 trades/month, you save 250-500 euros compared to a direct bank.

Product Range

Direct bank wins. ING and comdirect offer access to all German exchanges (Xetra, Frankfurt, Stuttgart etc.) plus foreign trading venues. Neo-brokers usually trade only through one partner exchange.

Trading Hours

A surprising advantage of neo-brokers: Extended trading hours. Trade Republic offers trading from 7:30-23:00, while Xetra is only open until 17:30. For after-hours trading (e.g., after US earnings), a real plus.

Analysis Tools

Direct bank wins. comdirect offers the comdirect Informer with comprehensive charts, screening tools, and real-time quotes. Neo-brokers often have only basic charts.

Customer Service

Direct bank wins significantly. Phone support, personal advisors, branches (for some). Neo-brokers usually offer only email or chat — wait times of days are not uncommon.

Savings Plans

Tie. Both offer free ETF savings plans. Trade Republic has over 4,000 plan-eligible stocks and ETFs, ING over 1,000.

Who Should Choose What?

Choose neo-broker if:

You make many trades per month (costs dominate)
You trade mobile-first
You only trade standard securities (DAX, S&P 500, popular ETFs)
You are young and looking for a simple entry

Choose direct bank if:

You need access to all exchanges
You want professional analysis tools
You value personal customer service
You want to bundle your depot with checking account and credit card

The Hybrid Strategy

Many experienced traders use both: Neo-broker for active trades (low costs) and direct bank for long-term depot (security, service, exchange access). This costs nothing extra and combines the advantages of both worlds.

Bottom Line: There is no clear winner. Neo-brokers democratize access to capital markets, but direct banks offer the depth and service that active traders need. The smart choice depends on your profile — or simply take both.