How to buy stocks & shares in Germany (2026)

Germany is the Eurozone’s largest economy, with its residents enjoying a high level of disposable income. With money to allocate, the natural question is how to make the most of it. One of the most accessible ways to build and preserve wealth over time is through the stock market.

In this article, we look at how German residents can select stocks, buy shares on international markets, gain exposure to the national stock market, choose a suitable stock broker, and understand the German tax treatment that applies to investment income. We also cover opportunities for foreign investors looking to gain exposure to German shares.

Choose a stock to buy

With tens of thousands of listed companies worldwide, there is no single formula for choosing a stock. That said, companies are broadly categorised in two ways:

• Value stocks: companies that appear attractively priced on metrics such as price-to-earnings or price-to-book, but typically face slower growth prospects;
• Growth stocks: companies offering a higher long-term growth rate, but which are more expensive on near-term valuation measures.

You can favour one style or diversify across both, using value companies to support medium-term goals while growth companies work toward longer-term objectives. It is worth noting that neither style consistently outperforms the other across all market cycles, which is one reason many investors hold both.

Resources you can use include:

• Stock screeners such as Finviz;
• Company annual reports (Geschäftsberichte), quarterly filings, and investor presentations;
• Macroeconomic and industry publications;
• Regulatory disclosures via the Bundesanzeiger, Germany’s official federal gazette for company filings.

Whatever your approach, evaluate several companies, compare their performance against direct competitors, and assess whether the current price reflects a reasonable expectation of future earnings. Bear in mind that individual stock picking carries meaningfully higher concentration risk than diversified funds – a point we return to in the ETF section below.

How to buy shares on the international markets (Step-by-step guide)

1. Choose a good stock broker

Once you have identified the stock you want to invest in, you need a broker to execute the purchase. Germany is well integrated into global financial markets, so there is no shortage of options. Below we highlight five brokers available to German residents, all of which are regulated by top-tier authorities and passported into Germany under MiFID II.

One consideration specific to Germany is worth flagging before you choose: German brokers and banks act as sostituto d’imposta equivalents (in German terms, they apply Abgeltungsteuer at source), automatically withholding the 25% flat tax plus solidarity surcharge and, where applicable, church tax. Foreign brokers generally do not, meaning you must declare investment income yourself in your annual Steuererklärung using Anlage KAP. This is not a reason to avoid foreign brokers, but it does add an administrative step worth factoring in.

2. Open and fund your account

Once you have weighed the pros and cons of each broker, you are all set to open an account. The process usually takes a few days as the broker verifies your identity. After the process is finalised, you must deposit money into your account.

3. Place a “Buy Order”

If you have found an online broker that suits your needs, managed to open an investment account, and made the initial deposit, you are all set to buy your stock. All you have to do is find the share within your chosen broker and place a buy order. For this example, we will use eToro:

1 – Search for the chosen stock (we will use Apple, ticker “AAPL”):

2 – Click “Trade”:

3 – Choose the order details. Now, it’s time to choose how to invest:

• Amount: You choose the amount you want to invest in Apple instead of the number of shares. In this way, your investments may be fully or partially in fractional shares.
• Units: As opposed to “Amount,” here you define the number of shares you want to purchase (note: you can buy using either “Amount” or “Units,” up to you!)
• Leverage: You can choose the level of leverage. “X1” means no leverage (if it were “X2” or above, you would not be trading real stocks, but CFDs on Apple stock instead). That’s why you see “you are buying the underlying asset.”
• Stop Loss: Define the maximum you are willing to lose before closing your position automatically;
• Take profit: Define the profit amount that makes you close your position automatically (if reached)

Stop Loss and Take Profit are not guaranteed and trading with leverage involves high risk.

Only the “Amount” (or “Units”) and “Leverage” are mandatory fields.

4 – Place the order:

Finally, click “Open Trade”, and a new window will show up where it says “order filled,” your exposure and lets you share your trade with other people.”

ETFs – an alternative way to gain exposure

ETFs (exchange-traded funds) allow you to gain exposure to dozens or even hundreds of companies through a single investment. ETFs can be a strong option if you:

• Are unsure which individual stock to choose;
• Want to limit portfolio volatility – ETFs typically hold companies across multiple sectors driven by different factors, reducing exposure to any single company’s idiosyncratic risk;
• Want to follow a specific theme (German equities, technology, real estate, dividend-paying companies, and so on);
• Prefer a low-maintenance, systematic approach via a Sparplan (savings plan), which most German brokers support with monthly contributions from as little as €1 or €25.

Some ETFs German investors may want to consider:

• Amundi DAX UCITS ETF (formerly Lyxor DAX, following Amundi’s acquisition of Lyxor) tracks the 40 constituents of the DAX index. This is an accumulating ETF, meaning dividends are reinvested rather than paid out;
• Vanguard Germany All Cap UCITS ETF Distributing (VGER) is broader than a DAX tracker, covering roughly 160 companies across the large, mid, and small-cap spectrum. This is a distributing ETF, paying dividends to your account.

Beyond German-focused funds, you can choose from thousands of UCITS ETFs investing worldwide. For investors prioritising diversification, a broad global index fund tracking the MSCI World or FTSE All-World provides exposure across developed markets in a single holding, reducing the home-country concentration that comes with DAX-only exposure.

One German-specific tax note: since the 2018 Investmentsteuerreform, equity ETFs holding at least 51% in stocks benefit from a Teilfreistellung (partial exemption) of 30% on taxable gains and distributions, which effectively reduces the applicable tax rate. Accumulating ETFs are also subject to the annual Vorabpauschale, a notional advance lump-sum tax – worth understanding before choosing between accumulating and distributing share classes.

Buying shares on Börse Frankfurt

The process of buying shares directly on the local market is very similar to that outlined above for international securities. The exchange even provides a detailed beginner section to get you started. Frankfurt is one of several trading venues operated by Deutsche Börse Group – alongside Xetra, which handles the majority of German equity turnover and is where most brokers route German share orders. You can find a list of members active on German markets here.

There are over 1.6 million securities available to trade on Börse Frankfurt, including shares, bonds, ETFs, derivatives, and other instruments.

The main advantage of buying on the local market is avoiding foreign exchange conversion costs, since shares on Börse Frankfurt trade in euros. If you buy Apple stock on the US market, you would need to:

• Sell EUR and buy USD to open the position;
• Sell USD and buy EUR to close it.

That means incurring an FX cost twice. Depending on your broker, this can range from around 0.20 basis points (Interactive Brokers) to 0.15% (Trading 212) or 0.50% and above at some providers – a difference that compounds significantly if you trade frequently or hold large positions.

Some very large companies, including Apple and Tesla, are dual-listed on Börse Frankfurt and can be traded in euros rather than dollars, avoiding the FX cost entirely. The trade-off is that dual-listing bid-ask spreads tend to be wider and turnover is generally well below the primary listing, so execution quality can be poorer – particularly for larger orders. For most investors, the wider spread on a thinly traded dual listing may cost more than the FX conversion it avoids, so it is worth comparing both routes for the specific stock and size you have in mind.

Beyond dual-listed names, the limitation of focusing solely on the local market is that German-listed instruments are heavily correlated with Germany’s economic fortunes, particularly its export-driven industrial and automotive sectors. If your goal is genuine geographic diversification, investing internationally – or through a globally diversified ETF – is the more reliable route.

Accessing German equities as a foreigner

If you are an investor based outside Germany and want exposure to the country’s industrial base, export strength, and stable institutions, the most straightforward route is through an ETF, as outlined above.

As a highly developed financial market, Germany is well served by low-cost ETF options. Beyond German-only funds, note that German companies already represent a meaningful weighting within broader European indices such as the MSCI Europe and EURO STOXX 50, so you may already hold German exposure through existing regional or global funds – worth checking before adding a dedicated country allocation.

If you want to buy a specific German company, the most practical approach is to open an account with one of the international brokers listed above, most of which offer direct access to Xetra and Börse Frankfurt. The main drawback is foreign exchange costs, which apply if your base currency is not the euro. This is worth quantifying: converting to EUR and back at 0.50% each way costs 1% round-trip, which is a material drag on a short holding period and a reason to favour brokers with competitive FX pricing.

A small number of German large caps also maintain secondary listings or ADR programmes on US markets. As with dual listings on Börse Frankfurt, the trade-off is wider bid-ask spreads and lower liquidity, so it is worth comparing the total cost of the ADR route against the FX cost of buying directly on the home market for the position size you have in mind.

One further consideration for non-residents: Germany applies a 26.375% withholding tax on dividends paid by German companies (25% plus solidarity surcharge). Depending on your country of residence, a double taxation treaty may reduce this rate or allow you to reclaim part of it, though the reclaim process can be administratively demanding. UCITS ETFs domiciled in Ireland or Luxembourg often handle withholding more efficiently at the fund level, which is another practical argument for the ETF route.

Bottom line

To summarise, here is what you need to do:

1. Choose a stock or ETF to buy: if you are investing outside Germany, carefully consider which company or fund to select, given the sheer number of options available. The local market offers thousands of German and international instruments – more than enough to build a diversified portfolio. If you are unsure where to start, a broadly diversified ETF is generally a more reliable foundation than individual stock selection;
2. Find a suitable stock broker: verify the broker accepts German residents, is regulated by BaFin or another top-tier authority with MiFID II passporting, and offers access to the venues you need (Xetra, Börse Frankfurt, and international markets). Compare total costs – commissions, FX fees, custody charges, and any inactivity fees – rather than the headline commission alone. Also check whether the broker handles Abgeltungsteuer at source or whether you will need to declare via Anlage KAP;
3. Open an account and deposit funds: complete the account opening and identity verification process (typically fully online via VideoIdent or PostIdent), then fund your account. SEPA transfers in euros avoid conversion costs entirely;
4. Place your order: this is the most straightforward step. Search for the company or ETF by name or ISIN, select your order type (a limit order gives you price control, particularly useful on less liquid instruments), and confirm the trade;
5. Review periodically and keep records: for long-term investors, resist the urge to trade frequently. Do keep clear records of purchase prices and dates, since you will need them for tax reporting – particularly if you are using a foreign broker that does not report to German authorities.

We hope this guide has addressed the main questions around buying shares in Germany. Do your own research to identify the investing approach that suits your goals, time horizon, and risk tolerance.

The above is provided for informational purposes only and should not be construed as investment or tax advice. Consider consulting a qualified Steuerberater for guidance on your specific tax situation.