flatex is an online broker that operates mainly in Germany and Austria. flatex was founded in April 2006 and has its own registered office in Kulmbach. The online broker offers investors a wide range of different tradable instruments – including currency pairs. On-exchange trading gives you access to all German and many international exchanges as well as off-exchange direct trading. But the flatex vs Trade Republic comparison showed that you can't trade cryptocurrencies at flatex.
Before you can start trading Forex at flatex, you first need an appropriate trading account, which we would like to introduce to you below.
The most important at a glance
- When you open an account with flatex, you will receive a securities account and an associated cash account
- The flatex cash account is free of charge and is used to clear purchases and sales
- In some cases interest is charged in connection with the cash account
What does the flatex cash account have to offer?
If you want to trade at flatex, you need a cash account in addition to the securities account, to which the deposits and withdrawals are made. In the depot your securities are kept – on the cash account all purchases and sales are settled and your trade balance is also on this account. The cash account is automatically created when opening the account and is free of charge when opening and also when maintaining the account.
Interest on the flatex cash account
Under certain conditions, flatex cash account may accrue interest. This is the case, for example, if you apply for a so-called Lombard loan or use the overdraft facility. A Lombard loan is a short- to medium-term loan, where the loan collateral is, for example, in the form of pledges of securities. If you take advantage of this credit, you pay an interest rate of 5.90 percent p.a.
In addition, flatex cash account accrues interest on overdrafts for disposition reasons. In such a case, interest accrues in the amount of 11.75 percent p.a. Both interest rates are variable and the account is balanced quarterly.
The cash account at flatex is used for money transactions that arise in connection with the trade. It is automatically opened with the securities account and is free of charge. For a possible Lombard credit or for tolerated overdrafts corresponding interest will be charged.
How to open an account with flatex
It is not difficult to open a flatex cash account and the process is completed within a few days. You open a securities account and a cash account in one transaction. You realize an account opening as follows:
- First of all, it is necessary to fill in the opening application and sign it in the marked places. Check your details again, because if something is missing or not entered correctly, the opening process will be unnecessarily delayed.
- Go with your ID card to the nearest post office and let one of the employees legitimize you via PostIdent procedure. This procedure is free of charge and then the postal employee sends your documents to flatex.
- Once the processing is completed, you will receive a welcome letter and your personal iTAN card from flatex. Now you can already make deposits.
- A few days later you will receive your telephone and login password, which for security reasons will be sent with the iTAN card at a later date. Thereupon you can begin to place the first orders.
Is there anything to consider?
In itself, opening an account is a quick process, but there are still a few things you should know in this context. If you wish, you can open a joint account and register another account holder. It is also possible to open more than one account or to open more than one account at the same time. Open a securities account with flatex. Another account is also free of charge.
If you open an account, you need a reference account. This is used to make deposits to the flatex cash account and to receive withdrawals from the cash account. Only one reference account is allowed per account and it must be in your name. Under certain conditions it is also possible for minors to obtain a trading account with flatex.
An account opening at flatex is completed in a few steps. Fill out the application, sign it, legitimize it and wait for the confirmation from flatex. After receiving all access data you can start trading.
The cash account at flatex: Uncomplicated, fast and free of charge
The cash account of flatex you receive together with a securities account and all payment transactions are processed through this account. The application is made quickly and after a few days you can start trading at flatex. If you want to apply for a Lombard loan or use the overdraft facility, certain interest rates apply at flatex.