Securities loan comparison & guide

in the Securities loan comparison let's take a look at those Securities loan conditions different providers. Important criteria when comparing the terms of securities loans is next to a low interest rate also the question of whether the loan earmarked is whether one Report to the Schufa takes place and in particular whether the Provision of credit free of charge is. I have compared numerous depot providers with each other and in this one Securities loan comparison & guide summarized. One more thing about naming before we start with the Securities loan comparison & guide start:

Securities loan comparison: conditions at a glance

Here you will find the best broker for a securities loan that offers you more than cheap interest rates!

Offererinterest rate paSmallest Securities LoanLargest Securities Loanloan-to-value limitsReport to the Schufa or a similar credit agency?Free useTo the provider

Captrader (IBKR)


Captrader Logo



recommendation


Smart broker alternative


2.5 % pa



from €100,001: 2 %
minutes: without limitMax: 900.000 €Up to 50 % of the depot.Schufa report: no Without earmarking: Yes
To the provider:
captrader.com

Interactive Brokers Ireland (IBKR)



IBKR Ireland is the successor to IBKR Luxembourg, which no longer operates within Europe.

1.5 % pa



from €100,001: 1.0 %
from €1,000,001: 0.5 %

other (higher) interest rates apply to other currencies such as USD

Complex tax return


minutes: without limitMax: without limitUp to 50 % of the depot.Schufa report: no Without earmarking: Yes
Further information from the provider directly

Lynx (IBKR)


Lynx Logo

3.5 % pa



0 ≤ 90,000: 3,500 %
90,000 ≤ 900,000: 3,000 %
900,000 ≤ 44,000,000: 2,750 %
44,000,000 ≤ 180,000,000: 2,750 %
> 180,000,000: 2.750%
minutes: without limitMax:without limitUp to 50 % of the depot.Schufa report: no Without earmarking: Yes
To the provider:
Lynxbroker.de

degiro

3 % pa


No free deployment



Rate hike to 3 % from November 2021

minutes: without limitMax: without limitActive profile: up to 33%
Trader profile:
Stocks: up to 70%
Equity funds: up to 50%
Bonds: up to 50%
Certificates: 0%

The bank can reassess lending values


DeGiro lends securities to third parties



Schufa report: Yes

Without earmarking: Yes
To the provider:
DEGiro.de

Maxblue

3.5 % pa


minutes: without limitMax: without limitShares: up to 60%
Bonds: up to 90 %
Fund: up to 90%
Schufa report: Yes Without earmarking: Yes
To the provider:
maxblue.de

Flatex


Flatex Logo

3.9 % pa



No credit, but share CFD

minutes: without limitMax: 50.000 €Stocks: up to 50%
Bonds: up to 70%
see more detailed overview below
Schufa report: Yes Without earmarking: Yes
To the provider:
flatex.de

S brokers


SBroker Logo

4.6 % pa


minutes: 10.000 €Max: without limitShares: up to 60 %
Bonds: up to 80 %

see more detailed overview below

The bank can reassess lending values

Schufa report: no Without earmarking: Yes
To the provider:
Sbroker.de

Comdirect


5.55 % pa


minutes: 3.000 €Max: without limitStocks: up to 50%
Equity funds: up to 80%
Bonds: up to 80%
see more detailed overview below
Schufa report: no Without earmarking: Yes

Comdirect has no earmarking for the securities loan. However, the bank makes an exception to this: the purchase of real estate is not permitted. Renovation of existing properties, on the other hand, does.


To the provider:
comdirect.de

Onvista


4.25 % pa


minutes: 5.000 €Max: 750.000 €Stocks: up to 70%
Fund: up to 50%
Bonds: up to 90%
Certificates: 0%
Schufa report: no Without earmarking: Yes
To the provider:
onvista.de

consor bank


consorsbank Logo

5.4 % pa


minutes: without limitMax: without limit
Stocks: up to 70%
Bonds: up to 80 %
Funds: up to 80%
Certificates: up to 60%
physical gold : up to 40%
Schufa report: Yes Without earmarking: Yes
To the provider:
consorsbank.de

ING


ING Logo
no offersTo the provider:
ING.de

DKB


DKB Logo
no offersTo the provider:
DKB.de

smart broker


Smartbroker_Logo




currently not available


minutes:25.000 €Max: without limitShares :up to 70 %
Bonds: up to 80 %
Funds: up to 80 %
Certificates: up to 80 %
Precious metals: up to 80 %
Schufa report: Yes Without earmarking: Yes
To the provider:
Smartbroker.de

Securities loan comparison

1.) Securities Lending via Interactive Brokers

Interactive Brokers offers the best interest rate on securities loans. If you want to borrow up to €100,000 via a securities loan, you only pay interest of 1.5 %. For amounts up to €1 million you only pay 1 % interest and above that only 0.5 %.

But Interactive Brokers has compared to other brokers 2 disadvantages:

  1. On the one hand, the broker can only be operated via the somewhat cumbersome Trader Work Station (TWS). But you can still get in there.
  2. More serious is that of the broker has no German approval, which affects tax payments on profits and dividends. the You must therefore pay taxes manually to the tax office via the KAP system.

The effects of the lack of German approval are even more far-reaching. That's how it is no deposit transfer possible, as is now customary in Germany between depot providers.

You can still transfer your papers to IBKR, but doing so will Entry prices not transferred. If you have to sell the shares later, you must be able to prove the purchase price to the tax office.

In the worst case, the tax office will otherwise assume a purchase price of €0, which leads to taxation of the sales price and not the profit made. This puts you at risk of paying significantly more taxes.

As a non-German broker, Interactive Brokers does not ask a Schufa query. In addition, there is no earmarking at Interactive Brokers. So the broker is not interested in what the borrowed money is spent on, as long as the loaned securities are kept in the custody account.

Due to this problem, the Interactive Brokers securities loan is only recommended for people who are willing to deal intensively with the subject and would like to borrow large sums of money over a longer period of time. For a securities loan in the low 5-digit euro range, the effort for the interest rate advantage is not worth it and you are with it Captrader Wertpapierkredit* better advise.

2.) Securities loan from Captrader

Captrader is a subsidiary of Interactive Brokers (IBKR). In fact, Captrader is a reseller of IBKR. This means that the broker resells the IBKR offering to customers in Germany at a premium. In the case of the securities loan, the reseller premium at Captrader amounts to 1 % interest pa. This means that the interest rate of 2.5 % is slightly higher than at IBKR directly.

However, in contrast to IBKR Ireland, the broker has a German license, which is why the disadvantages described above do not apply.

3.) Securities loan from Lynx

Lynx is also a German branch (reseller) of Interactive Brokers (IBKR). The broker has a German license. Lynx offers a non-earmarked securities loan. In addition, the Lynx securities loan is granted without a Schufa query. The reseller surcharge at Lynx on the IBKR interest rate is 2 % interest pa This results in an interest rate for the Lynx securities loan of a maximum of 3.5 % interest pa

4.) Degiro securities loan: The offer in the securities loan comparison

Degiro offers one Securities Loan for one interest rate from 1,25 % 3 % at. This means that the provider is no longer in the top range in terms of price. For an interest rate of 3 %, you can also get an unsecured installment loan if you have one credit comparison try from the internet. For example, the ING, 1822direkt and HypoVereinsbank Interest of 2.x percent to at least 2/3 of your customers for an installment loan without collateral. After all, the securities loan can be taken out by Degiro in any amount. However, Degiro no free credit provision. The entire allocation of the securities loan is payable with interest. So explicitly not just the part of the loan that is actually used in the end. This is a significant disadvantage compared to other providers such as Smartbroker, which offers provision completely free of charge (keyword: credit line).

DeGiro securities loan fees increase to 3 % from November 2021

On November 1st, 2021, the fees for the DeGiro securities loan will be increased 1.25% + EONIA increased to 3 %. With the updated price list from November 1st, 2021, DeGiro has increased the costs in many areas of securities trading by over 100% in some cases. Unfortunately, under the umbrella of Flatex, DeGiro is no longer what it used to be: a cheap broker with “wholesale prices. The broker is doing it in a similar way to the mother Flatex: After an initial favorable phase in which many customers are lured, price increases of sometimes over 100 % follow. Here is an excerpt from DeGiro's updated list of prices and services, explaining to customers that interest rates will increase from 1.25 % to 3 % on November 1st, 2021. That's it Smartbroker Securities Loan clearly the better offer.

Degiro securities loan interest from 11-2021: 3 % instead of previously only 1.25 %
Degiro security loan interest from 11-2021: 3 % instead of only 1.25 %. source

the loan-to-value limits of the Degiro securities loan can be found in the section Which loan-to-value ratio is allowed for which asset classes. Degiro forgives one Securities loan only with SCHUFA Entry.

Before approving the securities loan, Degiro conducts a Schufa query and retains the loan negative credit bureau information not to approve. In addition, there is no earmarking for the Degiro securities loan. So the broker is not interested in what the borrowed money is spent on, as long as the loaned securities are kept in the custody account.

5.) Maxblue securities loan

The German bank subsidiary Maxblue offers a securities loan with almost 4 % interest. This means that the Maxblue securities loan is comparable to the offer from smart broker* quite unattractive. The provider makes a request to the Schufa before the loan is approved, but does not require earmarking and has acceptable loan-to-value limits. Because with the Maxblue securities loan, shares can be loaned for up to 60 %.

6.) Flatex securities loan:

Flatex does not offer securities credit in the actual sense, but allows trading in stock CFDs. Leveraging the return on shares is also possible here, which is why we have included the offer in the securities loan comparison.

7.) Comdirect securities loan: The offer in the securities loan comparison

the comdirect offers one Securities Loan from €3,000 for one Interest rate of 5.55 % at. This puts the provider at the upper limit in terms of price. After all, the securities loan from the Comdirect can be taken up in any amount.

the loan-to-value limits at the Comdirect securities loan you will find in the section Which loan-to-value ratio is allowed for which asset classes. In the securities loan comparison, comdirect was one of the few banks that did Securities loan without SCHUFA entry awarded. Against the background of the collateral deposited, this appears to be fair, but is nevertheless unusual in comparison with other providers.

At comdirect, the securities loan is granted without a Schufa report

In addition, the Comdirect no earmarking for the securities loan. This means that the securities loan not earmarked is. However, the bank makes an exception to this: the purchase of real estate is not permitted. Renovation of existing properties, on the other hand, does.

Offererinterest rate paSmallest Securities LoanLargest Securities Loanloan-to-value limitsReport to the Schufa or a similar credit agency?Free useTo the provider

Comdirect


5.55 % pa


minutes: 3.000 €Max: without limitStocks: up to 50%
Equity funds: up to 80%
Bonds: up to 80%
see more detailed overview below
Schufa report: no Without earmarking: Yes

Comdirect has no earmarking for the securities loan. However, the bank makes an exception to this: the purchase of real estate is not permitted. Renovation of existing properties, on the other hand, does.


To the provider:
comdirect.de
Offererinterest rate paSmallest Securities LoanLargest Securities Loanloan-to-value limitsReport to the Schufa or a similar credit agency?Free useTo the provider

degiro

1.25 % pa


No free deployment


minutes: without limitMax: without limitActive profile: up to 33%
Trader profile:
Stocks: up to 70%
Equity funds: up to 50%
Bonds: up to 50%
Certificates: 0%

The bank can reassess lending values


DeGiro lends securities to third parties



Schufa report: Yes

Without earmarking: Yes
To the provider:
Degiro.de

8.) Consorsbank securities loan: The offer in the securities loan comparison

the consor bank offers one Securities Loan for one Interest rate of 5.4 % at. This means that the provider is priced among the more expensive providers. However, the securities loan can be taken out by the Consorsbank in any amount.

the loan-to-value limits of the Consorsbank securities loan can be found in the section Which loan-to-value ratio is allowed for which asset classes. Degiro forgives one Securities loan only with SCHUFA Entry.

Consorsbank grants the securities loan without earmarking. In order to protect itself, the bank makes a Schufa query before allocating the securities loan.

Offererinterest rate paSmallest Securities LoanLargest Securities Loanloan-to-value limitsReport to the Schufa or a similar credit agency?Free useTo the provider

consor bank


consorsbank Logo

5.4 % pa


minutes: without limitMax: without limitStocks: up to 70%
Bonds: up to 80 %
Funds: up to 80%
Certificates: up to 60%
physical gold : up to 40%
Schufa report: Yes Without earmarking: Yes
To the provider:
consorsbank.de

9.) ING securities loan: No offer

the ING is not currently offering Securities Loan at.

10.) Smartbroker securities loan: The offer in the securities loan comparison

The Smartbroker securities loan is temporarily suspended. The information has now been officially confirmed by Smartbroker. It is currently not known when and whether the Smartbroker securities loan will be resumed. The reason for this is the partner bank DAB BNP Paribas. It has been rejecting all applications for securities loans since February 2022. However, credit lines that have already been approved are not affected. If you are looking for a cheap securities loan, we recommend taking a look at the Securities loan comparison.

The sudden shutdown of the securities loan in connection with the non-transparent communication about it (information on the conclusion of a securities loan can still be viewed on the Smartbroker website) does not reflect well on the Smartbroker. Rather, the matter is reminiscent of the miserably failed smartphone app, which was announced for 2021 and is still not available.

Securities credit: advice and information

What is a securities loan?

Similar to one real estate loan can you with one Securities Loan increase your investment through leverage. The maximum amount of the securities loan depends on the values in loaned deposit away. The depot serves as security for securities loans and is therefore comparable to Mortgage on the real estate loan. The “safer” the im Brokerage account papers are kept, the sooner the bank is willing to give you a loan. For example, while with most brokers you have a Lombard loan for a AAA rated Dividend Aristocrat the broker will hardly accept a penny stock as collateral for a loan.

This is how securities lending works

In the case of the large German and European stocks, the loan-to-value ratio can be up to 70 % of the market value, as shown in the table loan-to-value ratios shows later in the article. Also can also bonds, ETFs or Investment funds be encumbered. A good rating of the security (e.g. AAA) is usually a prerequisite for the loan or at least increases the possible loan-to-value limit (70 % in the example above).

You can claim the amount that is determined by the loan value of the deposit currently results. If the value of the deposit falls below the lending value, the bank has the right to request the missing security in the form of a transfer within a relatively short period of time. If the investor does not do this, the securities are sold directly by the bank in order to limit a possible loss for the bank. This procedure will also margin call called and is therefore so spicy because the securities are always sold at a very unfavorable time.

Example: 70 % loan-to-value means that for shares worth EUR 1,000 up to EUR 700 in securities credit can be transferred to your account.

This €700 can be used to buy more shares, for example. If these are also encumbered again, the financial scope is further increased.

At most financial institutions (Comdirect, Smartbroker, DEGiro,...) you can use the securities loan flexibly. So there is no earmarking.

Securities loan: A comparison of interest rates and costs

As opposed to one installment loan are on a securities loan no ongoing installments to pay. Instead, she stays Loan amount constant and only the interest has to be paid. With many brokers, interest rates are increased at the end of a year every quarterly cleared and collected by the bank. Due to the elimination of the repayment the monthly expenses for a securities loan are therefore significantly lower.

Interest rates on securities loans are currently roughly in a corridor of effective 2.25 % to 5.67 % per year. However, he is Interest rate for securities loans variable and may change at runtime. the Interest charges for a securities loan cheaper than with the dispo or installment loan, but not quite as cheap as one real estate loan. Banks are simply more used to traditional business!

Securities loan comparison: loan-to-value ratios of providers

The brokers accept the following loan-to-value ratios for the securities loan. In the case of dynamic limits (→ ⚠️ Degiro), the provider can adjust the loan-to-value ratio. This represents an additional risk for the investor, since one does not know how the adjustment will turn out.

Offererloan-to-value limits
degiroUp to 75 % of the depot. dynamic limits
smart brokerShares :up to 70 %
Bonds: up to 80 %
Funds: up to 80 %
Certificates: up to 80 %
Precious metals: up to 80 %
An overview was made here posted in the securities forum.
captraderUp to 50 % of the depot.
S brokersShares:
DAX, Euro Stoxx 50: up to 60%
MDAX, Dow Jones, FTSE 100, S&P 100 and all major European indices: up to 50%
Tec Dax, Nasdaq 100 and Nikkei 225: up to 40%

open funds
Money Market Funds: up to 80%
Retirement Fund: up to 60%
Equity and bond funds: up to 60%
Real Estate Fund: 0%
Index Fund (ETF): up to 60%

pensions and bonds
Pensions: 50 to 80%:
ComdirectShares
Domestic Stocks
up to 50 % of the course value
Foreign Stocks
up to 30 % of course value
bonds

Euro bonds from domestic issuers
up to 80 % of course value
Euro bonds from foreign issuers
up to 60 % of course value
foreign currency bonds
up to 50 % of the course value

profit participation certificates
Equity-Like Participation Certificates
up to 50 % of the course value
Annuity-Like Participation Certificates
up to 80 % of course value

fund
equity funds
up to 60 % of the redemption price
pension fund
up to 80 % of the redemption price
Mixed funds
up to 60 % of the redemption price
money market funds
up to 80 % of the redemption price
Open real estate funds
up to 50 % of the redemption price
Other securities
Warrants and Certificates
0 %
OnvistaShares: up to 70%
fund: up to 50%
bonds: up to 90%
certificates: 0%

Complete list of loan-to-value ratios
consor bankShares: up to 70%
bonds: up to 80 %
fund: up to 80%
certificates: up to 60%
physical gold: up to 40%
Other Asset Classes (such as warrants): 0 %
FlatexShares: up to 50 % (EURO STOXX 50 and/or DAX 30, DAX 100, MDAX)
Shares: up to 30 % from other common indices
Federal Treasury Notes: up to 90 %
bonds: between 30 % and up to 70 %
DKBA securities loan is not available at the DKB
INGA securities loan is not available at ING
MaxblueShares: 40 – 60 %
bonds: up to 90%
money market funds: up to 90%

Securities loan checks

In the case of securities lending, the deposited securities as collateral. This protects the bank. Nevertheless, many providers also make an inquiry to a credit agency or rating agency such as SCHUFA. Only the three providers: onvista bank, comdirect, S Broker offer one Securities loan without Schufa check at. These three providers also refrain from registering the securities loan with the Schufa.

DeGiro

The cheap provider DeGiro does not refrain from asking a rating agency. However, DeGiro leaves it with a credit check. DeGiro does not register the securities loan. In the securities conditions at DeGiro it says in chapter 4.4:

DeGiro securities loan not without Schufa exam

Translated, this means: DeGiro asks the credit bureau or a comparable provider for the creditworthiness, but then does not report back to the credit bureau that the securities loan has been taken out.

smart broker

The creditworthiness of the customer is also checked at the Smartbroker. The provider also reserves the right to take a closer look at the financial situation from a security loan of €500,000.

Smartbroker securities loan not without Schufa exam

Translated this means: Smartbroker asks the creditworthiness of the Schufa or a comparable provider. The description does not reveal whether the provider then reports back to the Schufa that the securities loan has been taken out. So I asked Smartbroker. Smartbroker reports the establishment of a credit line back to the Schufa. The broker replied:

A Schufa entry takes place as soon as a credit line is set up and made available.

Smartbroker when asked whether and when a SCHUFA entry will be made for the securities loan.

Securities loan earmarking: Is the Lombard loan tied to securities in the custody account or freely available?

With most providers, a securities loan is not tied to securities in the custody account. The banks have started to offer securities credit with free use. Accordingly, the securities loan can also be used for other purchases.

An exception is the Comdirect securities loan This means that you cannot decide freely about the capital: the purchase of real estate is not permitted with it. But renovating a property is.

As opposed to one car loan the securities loan is often cheaper. Apparently, banks value securities as better security. which Pros and cons of loan collateral have, you will find in a separate article.

Have money paid out in cash with the securities loan?

If there is no earmarking, you can "cash out" in the meantime. After all, your securities serve as security for the bank. However, it should be noted that the interest rate for a securities loan is not fixed, but flexible. The bank can therefore adjust the interest rate at any time at short notice and without much advance notice.

Use a securities loan for consumption? Use a securities loan for consumption? The conditions can speak for it
Use a securities loan for consumption? The conditions can speak for it

Securities loan and the Schufa: What effects does a Lombard loan have on the Schufa score

The providers Smartbroker, Flatex, Maxblue, Consorsbank and Captrader do not refrain from asking about creditworthiness before concluding a securities loan. Only the three providers: onvista bank, comdirect, S Broker offer one Securities loan without Schufa check at. These three providers also do without one Registration of the securities loan with the Schufa.

Margin Call: How quickly do you have to make additional payments if the portfolio value falls below the loan-to-value ratio?

If the deposit value falls below the loan amount, you have to add money very quickly. It's called the event margin call. The bank would like to margin call the collateral approximately in the period of a banking day to have. It is therefore advisable not to conclude the securities loan via a foreseeable price setback. I advise against a loan of more than 30 %.

The deadlines for the margin call are too tight to make a portfolio transfer from another broker in time. Therefore, when it comes to securities lending, you should have a plan on how to get money in less than 24 hours. When it comes to smaller sums, you could cushion the margin call via the overdraft facility.

Provider securities lending makes the strategy more risky

That lending securities to third parties is an additional risk securities accounts. Even if that counterparty risk has nothing directly to do with securities loan (brokers lend securities even without securities loan) so it is an additional risk. This risk is amplified by a securities loan. Securities lending is operated by Interactive Brokers (Captrader) and DeGiro. Therefore, I advise against these brokers for securities lending. At the smart broker however, no securities lending is carried out.

Securities Loan: "FAQ"

What is the deadline for adjusting interest rates on securities loans?

Interest rates can be adjusted at short notice. An advance notice from the bank may only be given one day in advance. Interest rates have continued to fall in recent years. As a result, there were no sudden jumps in interest rates on securities loans either.

Can I claim the loan interest on a securities loan for tax purposes?

The loan interest cannot be deducted from tax as a private individual. However, with an asset-managing GmbH, there is the possibility of claiming the interest on the loan as an expense for tax purposes. It goes without saying that this construct involves administrative work and other costs for establishment and maintenance. I refer to with-tailwind, where the topic of asset accumulation in the asset-managing GmbH is dealt with in detail.

What are the hedging options for margin call risk on short dips?

When buying stocks on credit, you should have a plan to get money in less than 24 hours in the case of the margin call. When it comes to smaller sums, you could cushion the margin call via the overdraft facility. For larger sums, you can talk to your house bank about the short-term granting of one installment loan to speak.

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Disclaimer: This is well researched but non-binding information.

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