Scalable Capital - Detailed Review
Finance Tools
Scalable Capital - Product Overview
Introduction to Scalable Capital
Scalable Capital is a prominent digital investment platform founded in 2014 in Munich, Germany, and now operating in several European countries, including Germany, Austria, France, Italy, the Netherlands, Spain, and the UK.Primary Function
The primary function of Scalable Capital is to provide a user-friendly and cost-effective way for individuals to manage their investments. The platform combines traditional brokerage services with advanced robo-advisory capabilities, allowing users to either self-invest or opt for automated investment management.Target Audience
Scalable Capital caters to a diverse range of investors, including:Millennials and Tech-Savvy Individuals
Those who prefer digital solutions for their investment needs and are comfortable with online financial management.Young Professionals
Individuals in their 20s to 40s looking for a hassle-free way to invest.Busy Executives
Those with limited time to dedicate to managing their investments.High-Net-Worth Individuals
Seeking sophisticated investment strategies.Global Citizens
Investors with international investment needs.Key Features
1. Investment Options
Scalable Capital offers a wide range of investment products, including stocks, ETFs, bonds, funds, and cryptocurrencies. Users can trade over 8,000 stocks, 2,500 ETFs, and 3,500 funds and other exchange-traded products.2. Low Fees
The platform is known for its low and transparent fees, starting from just €1 for savings plans. It also offers unlimited trading with the PRIME subscription for orders over €250.3. Robo-Advisory Technology
Scalable Capital’s robo-advisor service uses advanced algorithms to build and rebalance ETF-based portfolios based on individual risk profiles and financial goals. This service includes a 0.75% annual management fee.4. Savings Plans
Users can set up savings plans starting from as little as €1, making long-term investing accessible to everyone.5. Transparency and Education
The platform prioritizes transparency, providing detailed information about investments and market insights. It also offers educational resources to help users make informed decisions.6. Regulatory Compliance
Scalable Capital adheres to strict regulatory standards and is authorized and regulated by financial authorities in Europe, ensuring the safety and security of users’ investments.7. Interest on Cash Balance
Users can earn interest on their uninvested cash, with rates up to 4% p.a. for PRIME subscribers. By offering these features, Scalable Capital makes investing easy, affordable, and accessible for a broad range of investors. Scalable Capital - User Interface and Experience
Scalable Capital Overview
Scalable Capital, a German robo-advisor and trading platform, is renowned for its user-friendly and intuitive user interface, which significantly enhances the overall user experience in the finance tools category.
User Interface
The user interface of Scalable Capital is characterized by its simplicity and ease of use. The platform is accessible via both a web portal and a mobile app available on iOS and Android. Here are some key features of the interface:
Personalized Dashboard
The dashboard is highly customizable, allowing users to view the most important information at a glance, including real-time portfolio performance, account balances, and transaction history.
Visual Interface
The mobile app’s home screen has been updated to provide a cleaner and more visual interface. Users can now see their portfolio value chart and access main features quickly through a new quick actions bar.
Charts and Analytics
Users can evaluate their total portfolio value and investment returns through two easily accessible charts on the home screen. They can switch between different time intervals and use the Split Tracer feature to analyze specific periods.
Ease of Use
Scalable Capital’s platform is engineered to be easy to use, even for those new to investing:
Registration Process
The onboarding process is streamlined, allowing users to scan their passport and IBAN using mobile scanning technology, which automatically fills in personal data, reducing the need for manual input and minimizing errors.
Intuitive Navigation
The platform is designed to be intuitive, with clear and simple menus that make it easy for users to set up and manage their accounts, track their portfolio performance, and make changes to their investments.
Overall User Experience
The overall user experience is highly positive due to several key factors:
Automated Portfolio Management
Scalable Capital uses advanced algorithms and data analysis to manage portfolios, which helps in minimizing risk and maximizing returns. This automation allows users to set their investment goals and let the platform handle the rest.
Regular Updates and Insights
Users receive regular updates and insights about market conditions and changes in their portfolio, keeping them well-informed and engaged.
Customer Service
The platform is supported by high-quality customer service, which adds to the overall satisfaction of the users.
Conclusion
In summary, Scalable Capital’s user interface is user-friendly, easy to navigate, and highly customizable, making it an excellent choice for individuals and institutions seeking a hassle-free and efficient way to manage their investments.
Scalable Capital - Key Features and Functionality
Scalable Capital Overview
Scalable Capital, a prominent player in the finance tools and AI-driven investment category, offers several key features that make it an attractive option for investors. Here are the main features and how they work:Robo-Advisory Service
Scalable Capital’s core offering is its robo-advisory service, which uses advanced algorithms and technology-driven investment strategies to manage portfolios. This service creates and manages personalized portfolios using low-cost ETFs, optimized for each investor’s risk tolerance and financial goals.Portfolio Management and Rebalancing
The platform continuously monitors and manages your portfolio, ensuring it remains aligned with your financial goals and risk tolerance. It regularly rebalances the portfolio to maintain the target asset allocation, preventing overexposure to any particular asset class or market segment. This automated process eliminates the need for manual monitoring and adjustments.Insights Feature
A new feature called Insights, powered by data from BlackRock, provides several analytical tools. This includes a Portfolio Check that assesses the diversification of your portfolio, though it does not evaluate the weighting. Additionally, there is a crash simulation that allows you to see how your portfolio would perform in various market downturn scenarios. The feature also analyzes your portfolio allocation in terms of sectors, regions, and other criteria.Diversification and Risk Management
Scalable Capital focuses heavily on diversification and risk management. The platform ensures that your investments are spread across different asset classes and market segments to minimize risk. This is achieved through the automated rebalancing process and the selection of a diverse range of ETFs.User Interface and Mobile App
The platform offers an intuitive user interface and a mobile app, making it easy for investors to monitor their portfolios. This user-friendly design allows for seamless access to your investment information and management tools.New Scalable Account
Scalable Capital has introduced a new account type that integrates various financial services, including brokerage, digital wealth management, and loan offerings. This new account provides access to the EIX exchange, fast payments, attractive credit conditions, and interest rates of up to 2.75% p.a. from partner banks and money market funds.AI Integration
The AI integration in Scalable Capital is primarily through its proprietary algorithms that manage and rebalance portfolios. These algorithms optimize asset allocation and risk levels based on the investor’s profile, ensuring that the portfolio remains aligned with the investor’s financial goals and risk tolerance. The Insights feature, powered by BlackRock data, also leverages AI to provide detailed portfolio analyses and simulations.Conclusion
In summary, Scalable Capital’s features are designed to provide a comprehensive, cost-effective, and user-friendly investment solution. The integration of AI through advanced algorithms and data analytics enhances the platform’s ability to optimize investment strategies and manage risk effectively. Scalable Capital - Performance and Accuracy
When Evaluating Scalable Capital
Investment Approach and Performance
Scalable Capital uses an algorithm-driven approach to manage investments, primarily through exchange-traded funds (ETFs) that replicate stock indexes like the DAX. This method is based on the premise that predicting risk is more feasible than predicting future market movements. The company’s performance data, though limited due to its relatively short operational history in the UK (since June 2016), shows varied results across different risk categories. For instance, low-risk portfolios have performed between -3.8% and -1.0%, medium-risk portfolios between -6.6% and -3.9%, and high-risk portfolios around -6.7%.Comparison with Other Robo-Advisors
When compared to other robo-advisors like Moneyfarm and Nutmeg, Scalable Capital’s performance is generally in line with industry standards. For example, its low-risk portfolios have similar or slightly worse performance compared to Moneyfarm, while its high-risk portfolios have performed better than Nutmeg’s in some periods.Algorithmic Efficiency
Scalable Capital’s algorithm is praised for its efficiency in evaluating market risks, leveraging data from the latest financial research. This approach is similar to what major institutional investors have been using for the past 15-20 years but is now made accessible to private investors. The algorithm focuses on modeling and predicting risk rather than attempting to predict market returns.Portfolio Analytics and Diversification
Scalable Capital offers advanced portfolio analytics tools, powered by BlackRock’s Portfolio 360 technology, which help in identifying risks and opportunities within a portfolio. These tools provide a detailed breakdown of the portfolio by investment instrument, asset class, sectors, and regions, and allow users to run hypothetical scenarios such as increased inflation or market downturns to assess their portfolio’s resilience.Limitations and Areas for Improvement
One of the main limitations is the relatively short history of operational data, which makes long-term performance evaluations challenging. Additionally, while the algorithm is efficient in managing risk, it does not guarantee positive returns and is subject to market fluctuations. Users should be aware that past performance is not a reliable indicator of future results.User Experience and Support
Users generally report positive experiences with Scalable Capital, highlighting fast support response times and satisfaction with the service, including the handling of tax reports. The platform is continuously improving, and user feedback suggests that it works as advertised.Conclusion
In summary, Scalable Capital’s performance is supported by its algorithmic approach to risk management and its use of ETFs to replicate market indexes. While it has its limitations, particularly in terms of historical data, the platform offers valuable tools for portfolio analysis and diversification, making it a viable option for those seeking algorithm-driven investment management. Scalable Capital - Pricing and Plans
Scalable Capital Pricing Plans
Scalable Capital offers a variety of pricing plans and features to cater to different investor needs and preferences. Here’s a breakdown of their pricing structure and the features available in each plan:
Free Broker Plan
- This plan is ideal for those just starting to invest.
- There are no subscription fees.
- You pay €0.99 per trade for stocks, ETFs, and bonds.
- Savings plans can start from as little as €1, and these are commission-free.
Prime Broker Plan
- This plan costs €2.99 per month.
- It includes free trades for order volumes over €250.
- You receive a €100 bonus when you subscribe to this plan.
- This plan does not include interest on uninvested cash.
Prime Broker Plan
- This plan costs €4.99 per month.
- It offers all the features of the Prime Broker plan.
- Additionally, you get interest on uninvested cash: 4% per year up to €1 million for the first four months, and then 2.6% on up to €100,000.
- Crypto trades incur a spread surcharge of 0.69% per trade.
Robo-Advisor Fees
- For the robo-advisor service, the fee is 0.94% of the total amount invested.
- This service includes automated portfolio management, personalized investment strategies, and diversified investment opportunities.
Additional Features and Fees
- Deposits and withdrawals are free of charge, but there is a 0.99% deposit fee for instant deposits up to €5,000.
- There are no margin loans, CFDs, options, futures, or forex trading available.
- ETFs and stocks savings plans are available with no extra order fees.
- The platform offers a wide selection of ETFs (over 2,000) and regular savings plans.
- Multicurrency accounts are not available; only EUR is supported.
Convenience and Tools
- Scalable Capital provides a mobile app for managing investments on the go.
- The platform includes market updates, research reports, and educational resources to help clients make informed decisions.
- Fractional shares are available, allowing you to buy parts of expensive ETFs or stocks.
- Customer support is available through FAQ, email, phone, and live chat.
Conclusion
In summary, Scalable Capital offers flexible and affordable plans with various features to suit different investment strategies and needs, making it accessible to a broad range of investors.
Scalable Capital - Integration and Compatibility
Integration Strategy Overview
Scalable Capital has implemented a comprehensive integration strategy to ensure seamless interaction with various financial tools and platforms, enhancing the user experience for its clients.Integration with Baader Bank
Scalable Capital continues to work closely with Baader Bank, its current custodian. Existing clients will retain access to their accounts at Baader Bank while also gaining access to the new Scalable Capital account. This dual access allows clients to manage both their old and new accounts without needing to reidentify or change their login credentials. The accounts at Baader Bank, including cash, savings plans, and other financial instruments, will be transferred to the new Scalable Capital account in the fourth quarter of 2025, ensuring a smooth transition.European Investor Exchange (EIX)
Scalable Capital has launched the European Investor Exchange (EIX), a new stock exchange specifically for retail investors, in cooperation with the Hanover Stock Exchange. This integration provides clients with immediate access to trading on EIX, in addition to other venues like gettex (Munich Stock Exchange) and Xetra (Deutsche Börse). This multi-exchange capability ensures flexibility and competitive trading conditions.Digital Wealth Management and Broker Services
The platform integrates digital wealth management (Scalable Wealth) and broker services (Scalable Broker) into a single, unified technology platform. This allows clients to choose between self-investing through the broker or opting for automated, professional portfolio management through the wealth management service. The platform supports savings plans starting from €1 and offers a wide selection of ETFs, stocks, and other exchange-traded products.Cash Management
Scalable Capital has integrated cash management features, where cash balances are safeguarded in accounts with partner banks and money market funds, including Deutsche Bank, J.P. Morgan Asset Management, DWS, and BlackRock. Clients can earn interest on their cash balances, with rates of up to 2.75% p.a. (variable) on certain accounts.Device and Platform Compatibility
The platform is accessible via both mobile apps and the web, ensuring that clients can manage their accounts and investments from various devices. The app and web interface allow easy switching between the new Scalable account and the existing Baader Bank accounts, providing a seamless user experience across different platforms.Conclusion
In summary, Scalable Capital’s integration strategy focuses on providing a unified and user-friendly experience by combining multiple financial services, ensuring compatibility across different devices, and maintaining strong partnerships with other financial institutions. Scalable Capital - Customer Support and Resources
Customer Support Channels
Phone Support
Scalable Capital provides two primary phone numbers for customer service: 44 203 750 0703 and 49 893 803 8067. The latter is noted as the most commonly used number, with 78% of consumers using it to address their issues.
Email Support
Customers can also reach out via email, with the primary contact email being support@scalable.capital. This email is used by 100% of customers to address their concerns.
Live Chat
Although not extensively detailed in the provided sources, it is mentioned that Scalable Capital offers a live chat service, which has received mixed reviews from users.
Common Reasons for Contact
Users typically contact Scalable Capital for various reasons, including:
Account-related Questions
Such as account opening, account information, and issues related to multiple account connections.
Product/Service Inquiries
Clarifications on services, doubts about withdrawals, and questions about specific products.
Shipping and Delivery
Issues related to accessing the mobile app, especially for users living abroad.
Other Questions
Including queries about two-factor authentication (2FA) and brokerage fees for buying American shares with euros.
Additional Resources
Help Center
While the specific details of the help center are not provided in the sources, it is reasonable to assume that Scalable Capital has a dedicated section on their website for FAQs, guides, and other support materials.
Website and Client Area
The Scalable Capital website allows users to manage their accounts, instruct deposits and withdrawals, and access other financial tools. Users can find information on payments, interest rates, and new account features in their client area.
Corporate Office and Other Locations
For those who need in-person support or have specific queries that require a physical address, Scalable Capital has a corporate office located in London, England.
Feedback and Reviews
It’s worth noting that Scalable Capital has received mixed reviews regarding their customer support. On platforms like TrustPilot, the average rating is 2.3 out of 5, with some users experiencing delays of up to two weeks to get a response. However, the company has also been prompt in responding to some requests.
By utilizing these support channels and resources, users of Scalable Capital can find the help they need to manage their financial activities efficiently.
Scalable Capital - Pros and Cons
Pros of Scalable Capital
Scalable Capital, a German-based robo-advisor, offers several significant advantages for investors:
1. Automated Portfolio Management
The platform uses advanced algorithms and technology to create and manage diversified investment portfolios, allowing investors to achieve a high level of diversification without constant monitoring.
2. Low-Cost Approach
Scalable Capital utilizes low-cost investment products such as ETFs, which helps keep expenses low for clients. The fee structure is competitive, with a fixed fee of 0.94% of the total amount invested.
3. Personalized Investment Strategies
The platform creates customized portfolios based on each client’s unique needs, goals, and risk tolerance. These strategies are highly efficient and continuously monitored to ensure alignment with market conditions.
4. Diversified Investment Opportunities
Portfolios include a wide range of assets such as stocks, bonds, commodities, and alternative investments, which helps minimize risk and maximize returns.
5. User-Friendly Interface
The platform is intuitive and easy to use, with a personalized dashboard that allows clients to track their portfolio performance in real-time. It also offers a mobile app for convenient monitoring.
6. Regular Updates and Insights
Clients receive regular updates and insights about market conditions and changes in their portfolios, keeping them well-informed.
7. High-Quality Customer Service
Scalable Capital is dedicated to providing high-quality customer service, with a team of experienced professionals available to answer questions and provide guidance.
8. Regulated
The platform is regulated by the German Financial Regulatory Authority (BaFin), ensuring high safety and security standards for investments.
Cons of Scalable Capital
While Scalable Capital offers many benefits, there are also some drawbacks to consider:
1. High Minimum Investment
The minimum investment amount is €10,000, which can be a barrier for investors with limited capital. However, there is an option to start with a monthly investment of €20.
2. Limited Investment Options
The platform primarily offers ETFs, which may not be suitable for investors seeking direct control over individual stocks, bonds, or alternative investments.
3. Geographical Limitations
Investing with Scalable Capital may only be available in certain countries or jurisdictions.
4. Dependence on Algorithms
The success of the platform depends on the accuracy and effectiveness of its algorithms, which can be a risk if the algorithms fail to perform as expected.
5. No Leverage or Demo Account
Scalable Capital does not offer leverage or a demo account, which might be a disadvantage for some investors.
6. Currency Limitation
The account is only available in euros, which could be a limitation for investors who prefer other currencies.
7. Investment Strategy Suitability
The investment strategy may not be suitable for all investors or all investment goals, so it’s important to assess whether it aligns with your specific needs.
Scalable Capital - Comparison with Competitors
Unique Features of Scalable Capital
- Automated Management and Risk Optimization: Scalable Capital is renowned for its automated management and risk-based allocation. It uses a proprietary algorithm created by Stefan Mittnik PhD to continuously assess and adjust portfolio risk, ensuring it remains within the client’s tolerance. This dynamic asset allocation model adjusts portfolios in real-time to maintain a balanced risk-return profile.
- Insights Feature with BlackRock Data: Scalable Capital has introduced a new feature called Insights, which leverages data from BlackRock. This includes a Portfolio Check to assess diversification, a crash simulation for various market scenarios, and sector/region allocation analysis. This feature enhances the platform’s analytical capabilities.
- Broad ETF Selection: Scalable Capital offers a wide selection of ETFs, choosing from over 1,500 UK ETFs, which provides diverse investment options for its clients.
- Prime Broker Service: The platform offers a Prime Broker service with flat rates for shares, funds, and ETFs, making it attractive for retail investors.
Competitors and Alternatives
Froots
- Customized Asset Management: Froots specializes in customized asset management and financial portfolio services, offering flexible investment plans and personal advisory services. Unlike Scalable Capital, Froots focuses more on personalized strategies rather than automated management.
Flink
- Consumer Trading Platform: Flink provides a consumer trading platform that allows incremental investing options. It is more geared towards direct consumer trading rather than the automated wealth management offered by Scalable Capital.
InvestSuite
- B2B Investment Solutions: InvestSuite operates as a B2B investment technology company, providing white-label investment solutions. This is different from Scalable Capital’s direct-to-consumer approach.
Nutmeg
- Digital Wealth Management: Nutmeg is another online investment management company that offers a range of investment products, including personal pensions. While it also uses digital wealth management, Nutmeg’s product range and target market may differ from Scalable Capital’s.
BetterWealth
- Automated Investment Advisor: BetterWealth offers an automated investment advisor using algorithm-based portfolio management. Similar to Scalable Capital, it focuses on automation, but the specific features and ETF selection may vary.
Key Differences
- Automation and Algorithmic Trading: While several competitors offer automated investment services, Scalable Capital’s use of a proprietary algorithm and dynamic asset allocation sets it apart in terms of risk management and portfolio optimization.
- Partnerships and Backing: Scalable Capital is backed by major investors like BlackRock and Tencent, which adds credibility and resources to its operations. This is a unique advantage compared to some of its competitors.
Conclusion
Scalable Capital stands out in the AI-driven finance tools category due to its advanced risk management, dynamic asset allocation, and the new Insights feature powered by BlackRock data. However, investors looking for more personalized or B2B solutions might find alternatives like Froots, InvestSuite, or Nutmeg more suitable. Each platform has its unique strengths, so it’s important to evaluate which features align best with individual investment goals and preferences. Scalable Capital - Frequently Asked Questions
Frequently Asked Questions about Scalable Capital
What are the main pros and cons of using Scalable Capital?
Scalable Capital offers several benefits, including low costs, the ability to buy fractional shares, and ETF saving plans (PAC). It is also one of the cheapest options for investors. However, there are some drawbacks: they generate revenue from payment for order flow and inducements from ETF providers, which can be seen as a conflict of interest. Additionally, they do not assist with all tax-related tasks, particularly for Italian investors.How do I open an account with Scalable Capital?
Opening an account with Scalable Capital is relatively straightforward. The digital onboarding process involves online identity verification and document upload, which typically takes 10-15 minutes to complete. Once approved, your account is activated immediately.What are the fees associated with using Scalable Capital?
Scalable Capital has a subscription model with two paid options: Prime and Prime . The Prime plan costs €2.99/month, and the Prime plan costs €4.99/month. Both plans offer free trades for amounts over €250. There are no custody, inactivity, or withdrawal fees. However, there is a 0.99% FX fee and a spread surcharge of 0.69% for crypto trades on the Prime plan. Deposits and withdrawals are generally free, except for a 0.99% fee on instant deposits up to €5,000.Does Scalable Capital offer interest on uninvested cash?
Yes, Scalable Capital offers interest on uninvested cash, but only through their paid subscription plans. The Prime plan provides a 4% interest rate on uninvested cash up to €1 million for the first four months, and then it drops to 2.6% on up to €100,000.How secure are my investments with Scalable Capital?
Your investments with Scalable Capital are held by a custodian, which is a separate entity. This means that in the event of Scalable Capital’s bankruptcy, your investments are protected and do not fall into bankruptcy proceedings. This ensures that your securities are secure and you have a claim to them.What kind of customer support does Scalable Capital offer?
Scalable Capital provides various customer support options, including live chat, email, and phone support. However, there have been mixed reviews about the effectiveness of their support, with some users reporting delays of up to two weeks to get a response. They also use automated chatbot AI for some support queries.Can I invest in derivatives through Scalable Capital?
Yes, Scalable Capital offers a wide range of derivatives products, including certificates, knock-outs, warrants, and more. These products allow you to implement various investment strategies such as long, short, and hedging positions. However, derivatives entail high risks and should be approached with caution.How do the automated savings plans (PAC) work on Scalable Capital?
Scalable Capital allows you to set up automated ETF saving plans (PAC) with a high degree of flexibility. You can start investing from as little as €1 and adjust the amount and dates of your investments as needed. You will need to choose your own ETFs to build your savings plan.What is the tax situation for Italian investors using Scalable Capital?
Italian investors using Scalable Capital will need to handle their taxes manually. Scalable Capital does not have a branch in Italy and therefore does not assist with tax declarations. They provide an annual tax report, but you will need to declare your income, capital gains, and wealth tax (IVAFE) yourself.Can I buy cryptocurrencies through Scalable Capital?
Yes, Scalable Capital does offer the option to buy cryptocurrencies, although this is not detailed extensively in the main reviews. There is a spread surcharge of 0.69% for crypto trades on both the Prime and Prime plans.How does Scalable Capital generate revenue?
Scalable Capital generates revenue through several channels, including subscription fees from their Prime and Prime plans, payment for order flow (PFOF), and inducements from ETF providers. This business model has raised some concerns, especially given the impending EU ban on PFOF.