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Scalable Capital Review & Rating [yyyy]

Scalable Capital Review & Rating 2022

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If you're looking for help with your first steps in buying and selling ETFs, you've probably heard of Scalable Capital.

Scalable Capital is committed to using modern technology to give a broad range of investors access to a form of investing previously reserved for high net worth investors. Scalable Capital also includes a newly developed neo-broker. You can easily trade stocks, ETFs and funds with it.

In our Scalable Capital review, you'll find everything you need to decide if Scalable Capital could be right for you.

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Full review for Scalable Capital will be Live soon!

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Overview

Company
8/10
Trust
8/10
Account Types
8/10
Costs
8/10
Customer Support
8/10
Regulation
8/10
Cryptocurrency
8/10

Company

8 /10

Scalable Capital was founded in 2014 by Erik Podzuweit, Florian Prucker, Adam French, and Prof.Dr. Stefan Mittnik. It is a leading fintech in Europe that aims to democratize investing. She has a team of 230 employees and is characterized by a strong understanding of the capital markets and the financial industry; with research expertise in risk modeling, digital business models and technical and legal knowledge.

In the digital wealth management space, a large group of investors has been given access to profitable ETF-based investments since 2016. In addition, customers have the option of choosing between 2 investment models:

  • Financial investments with dynamic risk management
  • Sustainable investment with intelligent rebalancing based on the capital share (ETFs that invest according to ESG criteria).

In addition, this broker also offers trading in stocks, ETFs and funds;

So you can create your own portfolio with a fixed set of real and economic market trades. In addition, Scalable Capital offers interest-bearing overnight and time deposits from banks in Europe for short and medium-term investments without capital market risk.

Trust

8 /10

Is Scalable Capital good? This broker claims to combine an extensive knowledge of the capital markets and the financial industry. The company has research experience in risk modeling, expertise in digital business models and legal knowledge.

Scalable Capital's level of service may have earned a lot of accolades, but there's no shortage of negative Scalable Capital opinions online. Below you will find out more about the services provided by Scalable Capital and what you can expect from the company. The goal of this Scalable Capital review is to give you neutral and objective information. This way you can better assess who you can trust with your investments.

Account Types

8 /10

With this broker you can choose between two types of products:

  • Exchange Traded Fund (ETF) Portfolio,
  • Individual Savings Accounts (ISAs)

In addition, Scalable Capital allows you to open a call or time deposit account with up to 1.50% interest per year. With this broker you will have access to daily and fixed offers of flexible money from many banks in Europe, with interest rates without capital market risk, suitable for short and medium-term investments.

This offer is currently valid for wealth management customers with a custody account at Baader Bank and a place of residence in Germany.

How do you identify your account?

The identification must be done via Postident, whereby you can choose between the video identification process (online identification function (eID) and identification in a post office.

The eID procedure is the quickest and easiest way to complete the account opening process with Scalable Capital. Just install the Postident app on your mobile phone and follow the steps above. Please note that the following technical requirements are required to complete the process:

  • Smartphone with NFC interface (from iPhone 6 or most Android devices).
  • German identity card (issued after March 1, 2013)
  • Activated ID function for ID card (since July 2017 the function has been automatically activated for newly issued ID cards)
  • 6-digit PIN for the eID function. Alternatively, the 5-digit transport PIN can also be used to reset a 6-digit PIN in the Postident application.

After the identification has been completed, this data is transmitted to Scalable Capital, so that the account opening and the escrow account can take up to 3 banking days, as our Scalable Capital review team found.

Deposit and withdrawal

To make a deposit, please note the following points:

  • Making deposits and withdrawals: You can request a one-off payment at any time via the "Payments" item in the customer area, which will be debited from your reference account (current account) by SEPA direct debit. Or transfer the desired deposit to the clearing account belonging to the respective portfolio (scalable account: there are no fees for deposits and withdrawals).
  • Minimum Deposit Amount: When registering, you must select an amount for the first deposit. This must be at least 1 euro and the existing balance can be paid out in whole or in part at any time. The broker recommends a higher deposit to start trading stocks, ETFs and funds right away.
  • Account opening: Registration is online and only takes a few minutes. You can also do this from the iOS or Android mobile app. Remember to register via Postident (this process is not necessary for existing wealth management customers with a custody account at Baader Bank).

In addition, the account opening by the custodian bank can take one to two working days. As soon as the account is opened and the first deposit is made, you can start trading.

Cryptocurrency

8 /10

Scalable Capital review

At Scalable Capital, you can trade crypto as easily and securely as shares or ETFs. Currently, you can trade the following cryptocurrencies at Scalable Crypto:

  • Bitcoin
  • Ethereum
  • Litecoin
  • Polkadot
  • Ripple
  • Tezos

Crypto trading is based on exchange-traded crypto products (ETPs). Hence, trading takes place on regulated exchanges such as gettex or Xetra. Your coins are physically deposited with a regulated crypto custodian.

Features such as real-time crypto prices and comprehensive information on individual currencies make trading in cryptocurrencies even more intuitive. In addition, the product costs (TER) associated with the crypto ETPs of their PRIME partner CoinShares are credited to you.

Costs

8 /10

Is Scalable Capital good in terms of trading fees? It might interest you to know that this broker charges a fee of 0.75% per annum on the total amount invested. This fee is deducted monthly from the amount invested. In addition, Scalable Capital charges an ETF fee of 0.15% per annum on average. This puts the company in the middle of the robo-advisor market in terms of price.

Scalable Capital does not have a graduated fee structure, which means that the service does not get cheaper the more funds you hold. This is quite unusual for an online financial assistance service like this one and is one of the drawbacks that the company should be aware of.

In addition, it is good to know the requirements for investing with Scalable Capital: The company requires a minimum investment of 10,000 euros. This makes Scalable Capital a more expensive broker than the European average, where you can find offers from competitors even between 1,000 and 5,000 euros minimum investment.

Customer Support

8 /10

Scalable Capital provides customers with the basic contact options on its website you can use for sales enquiries and to get technical support. The company also provides an extensive FAQ you can use to get answers to common questions.

Support options include telephone, a message form, email and live chat. Their phone line is answered by staff between normal UK business hours of 9 a.m. to 6:00 p.m. Monday through Friday, so there is no phone support on the weekends.

Remember that customer support staff can help you with service-related matters, but they cannot give financial advice, so you will want to make an appointment to speak to a financial advisor for that purpose.

Regulation

8 /10

Is Scalable Capital Safe? Absolutely! It is a safe fund for investors with a large product portfolio. Also, it has a track record of more than 7 years in the market; a very complete and reliable account opening procedure, and protection of personal data.

Guarantee fund

As a financial services institution, Scalable Capital has no authority to acquire possession or ownership of any client's assets. In this case, the client's assets are held by the partner bank. Therefore, in the event of Scalable Capital's insolvency, the client's assets held in custody would not fall into that broker's bankruptcy estate.

In the event of insolvency of the partner bank, however, the clearing account is protected by the EdB's statutory deposit insurance up to a deposit amount of EUR 100,000 and with a certain amount by the BdB's deposit insurance fund.

There is also the right to deliver the securities in the portfolio if the Custodian becomes insolvent. Compensation protection is capped at 90%, but with a maximum of EUR 20,000 per investor.

Broker Regulation

Scalable Capital is a financial services institution with regulatory approval from the Federal Financial Supervisory Authority (BaFin) for financial portfolio management (asset management) in accordance with Section 32 KWG. It is also subject to supervision by the Federal Financial Supervisory Authority and the Deutsche Bundesbank.

Conclusion

 

To conclude this Scalable Capital review, we think this broker offers a diverse portfolio of products and services for its investors. The web platform is very complete and you will be able to resolve any doubts you may have about a specific financial product. As for the disadvantages of Scalable Capital, like other brokers in the financial market, we find only one disadvantage and that is the risk that the investor has to take when working with cryptocurrencies; a risk associated with investing in the stock market.

We hope our Scalable Capital broker review cleared all your doubts about this company.

Reviewed By

Financial Market Analyst
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