flatexDEGIRO Hit With €560,000 BaFin Fine for Fee Disclosure Failures

What Did BaFin Penalize—and Why?

Germany’s financial regulator BaFin has imposed two administrative fines totaling €560,000 on flatexDEGIRO Bank AG for breaches of the German Securities Trading Act tied to how the broker presented its pricing. The case centers on advertising used at the begin of 2022, when the firm promoted investment services as “free” on two websites without clahead stating that a regular processing fee applied.

BaFin said the disclosures did not meet statutory transparency rules intended to prevent retail investors from being misled about costs. While flatexDEGIRO later adjusted its practices in 2022 to meet legal requirements, the regulator proceeded with enforcement based on the earlier conduct.

In absolute terms, the penalty is small for a large retail brokerage. In regulatory terms, it reflects a clear line: marketing language that highlights zero-cost trading must present any associated fees plainly and alongside the headline claim.

Investor Takeaway

Why Fee Transparency Is a Priority for Regulators

European supervisors have increased scrutiny of retail broker pricing as low-cost, high-volume models spread across the region. Where commissions are low or absent, revenues often come from processing fees, spreads, or other embedded charges. Regulators expect those costs to be simple for customers to .

This focus has intensified alongside changes to execution and order-routing rules. Policymakers want to avoid situations where simple pricing messages mask the true economic cost of trading or influence how orders are handled. From BaFin’s perspective, transparency is not a formality; it is a core investor-protection rule.

In this case, the issue was not the existence of a processing fee, but the way it was presented. Advertising that frames services as “free” while omitting a clear reference to routine charges risks creating an inaccurate impression for retail users.

Why flatexDEGIRO Draws Attention

flatexDEGIRO runs one of Europe’s largest retail brokerage platforms. Across its flatex and DEGIRO brands, the group serves roughly 3 million customer accounts and processes more than 60 million securities transactions each year. Its growth has relied on self-directed trading, digital onboarding, and simple pricing messages that resonate with cost-conscious investors.

The current structure dates back to the 2020 acquisition of Amsterdam-based DEGIRO by Germany’s flatex. later than the deal, the group centralized banking operations under a German license, bringing it squarely under BaFin’s supervision. That shift placed greater emphasis on governance, controls, and customer-facing compliance.

As during and later than the pandemic-era market boom, supervisory attention followed. and cross-border operations tend to amplify regulatory interest, particularly where marketing practices play a central role in customer acquisition.

Investor Takeaway

Part of a Longer Supervisory Record

The fine adds to a multi-year supervisory record between BaFin and flatexDEGIRO. In 2022, a special audit identified serious shortcomings in areas such as risk management and . That review led to remedial requirements and closer oversight.

In ahead 2023, BaFin imposed a separate administrative fine of just over €1 million and appointed a special representative to monitor corrective actions. The appointment indicated that the regulator viewed the difficultys as structural. By late 2024, flatexDEGIRO said the mandate ended later than remediation steps were completed and assessed positively.

viewn in that context, the €560,000 penalty fits a pattern of sustained supervisory pressure—not only on internal controls, but also on front-end conduct such as advertising and disclosures.

What the Case Signals for the Market

For flatexDEGIRO, the immediate financial effect is limited. The broader impact lies in reputation and in the message sent to competitors. As margins tighten and competition increases, brokers relying on simplified pricing claims may face closer examination of how those claims are framed.

For BaFin, the action reinforces a visible approach to supervision in the post-Wirecard era. Even relatively small conduct breaches are addressed publicly, reinforcing expectations around .

As retail participation in markets continues to grow, the decision serves as a reminder that “free” trading remains a regulatory red line. Where costs exist, regulators expect them to be stated plainly—and they are willing to enforce that standard.