Please note that the following answer only applies to clients of our German broker offering.
Credit is an individual credit line up to which the broker account may be overdrawn (so-called "granted overdraft"). This means you can borrow money in order to trade or to make a withdrawal - even when you don’t have a positive balance in your broker account. The exact amount available at a given point in time depends on the securities in the securities account.
Establishing your credit line costs nothing. Interest only accrues over time on the amount actually borrowed. These are calculated quarterly and are variable. They are based on the 3-month Euribor® interbank rate plus 3% p.a. (6.55% p.a. variable borrowing rate, as of September 2024).
Scalable Capital arranges loans from the lender, Baader Bank AG, Weihenstephaner Str. 4, 85716 Unterschleissheim, Germany, which also manages your brokerage account. The custodian bank uses your securities as collateral for the loan. These securities can fall in value or become worthless. This may require repayment of the loan and/or the sale of securities. Please consider the special risk of credit-financed investments.
Establishing your credit line costs nothing. Interest only accrues over time on the amount actually borrowed. These are calculated quarterly and are variable. They are based on the 3-month Euribor® interbank rate plus 3% p.a. (6.55% p.a. variable borrowing rate, as of September 2024).
Scalable Capital arranges loans from the lender, Baader Bank AG, Weihenstephaner Str. 4, 85716 Unterschleissheim, Germany, which also manages your brokerage account. The custodian bank uses your securities as collateral for the loan. These securities can fall in value or become worthless. This may require repayment of the loan and/or the sale of securities. Please consider the special risk of credit-financed investments.