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Berlin company starts crypto trading
October 9, 2024 – 3:44 p.mReading time: 2 min.
Smartbroker+ is expanding its offering to include cryptocurrency trading and is catching up with other neobrokers. This is what investors can expect.
What other providers such as Trade Republic, Justtrade or Bison have been offering their users for a long time is now also available from Smartbroker+. From now on, customers can easily expand their existing portfolio with a crypto wallet and invest directly in cryptocurrencies, the Berlin-based company announced.
By offering crypto trading and access to digital assets, the so-called neobrokers are one digital step ahead of industry giants such as Comdirect, Flatex, ING and Consorsbank. This is what investors can expect from the new Smartbroker+ offering.
Low range crypto trading
Users of a Smartbroker account can trade 25 of the most important cryptocurrencies, including Bitcoin, Ether and Solana, with a spread of just 0.9 percent. Investors can monitor the currencies at any time using a watchlist and thus keep an overview of their performance.
Buying and selling cryptocurrencies is possible around the clock, including Saturdays and Sundays. Users can carry out their trading activities via market order, i.e. at the best available market price. Small amounts of just 0.01 euros or 0.0001 units can be traded.
According to Smartbroker+, the costs for purchases and sales are presented particularly transparently. For orders under 500 euros, a minimum quantity surcharge of 1 euro will be charged. All other costs are included in the spread. According to Smartbroker, this is 0.9 percent of the price regardless of the order size.
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Other providers who advertise free trading do not tell their customers about the sometimes very high spreads of over five percent. The spread has several important meanings for investors when buying and selling securities.
That’s why the spread is so important when trading securities
The spread is the difference between the purchase price (ask price) and the sell price (bid price) of a security. It represents a kind of hidden trading fee because investors pay the higher ask price when buying and only receive the lower bid price when selling.
- Hidden costs: This is how expensive the trading margin is for securities
As a rule of thumb, a good spread is 0.1 percent or less for stocks and ETFs that are often traded on the stock exchange with high capital investment. For lightly traded securities it is up to 1 percent. For example, the popular MSCI World ETF has a spread of around 0.1 percent on major German stock exchanges.
Storing the coins through our partner Tangany is free of charge. The crypto custody provider in Germany has a license from the Federal Financial Supervisory Authority (BaFin). This ensures a high level of regulation and protection.
Compared to so-called hot wallets, which store cryptocurrencies online, Tangany is said to be less vulnerable to hacker attacks and thus offers a decisive security advantage. In addition, the often cumbersome and difficult to remember 12-phrase passwords that are required for both hot wallets and cold wallets managed offline are no longer required.
The Smartbroker Group operates, among other things, the online broker Smartbroker+, which claims to be the only provider in Germany to combine the extensive product range of classic brokers with the favorable conditions of neobrokers.