FlatexDegiro has certainly kept things interesting in recent years: with founder and major shareholder Bernd Förtsch at the helm, the shareholders rebelled against the long-standing CEO Frank Niehage, who then resigned at the end of April 2024. In October, Oliver Behrens, the long-standing head of Morgan Stanley Germany, who had accompanied FlatexDegiro in his role as product provider and shareholder, took over the CEO position at the Frankfurt-based broker.

His mission: to deal with legacy issues after a special commissioner from BaFin left the company only last October – and to further develop FlatexDegiro strategically. „As you know, FlatexDegiro had to do some regulatory homework. That is now behind us. We are focussing on our operations and new products. We are back to business,“ said Oliver Behrens in an interview with Börsen–Zeitung.

What is visibly new is crypto trading – which has been a long–lasting wish of the major shareholder. Behrens is visibly proud of what FlatexDegiro has achieved. „We have launched crypto products in Germany – with a price offering significantly below the usual fee models on the market. We are also rolling out this offer in other European countries, initially in Austria, the Netherlands, France and Spain. The logic is that we want to offer all product groups in all countries, but not necessarily for all customer groups. This is because we have to make sure that the securities products are suitable for the customers.“

Behrens has another piece of the puzzle in the service portfolio, which Niehage had already planned years ago, in the pipeline for the coming months. „We will introduce securities lending for private customers, initially in the Netherlands in late autumn. This will allow our customers to earn additional interest on securities in a way that was previously only possible for institutional investors. In the Netherlands, the corresponding framework conditions are already in place, but in Germany we still need some time before we can offer securities lending.“

Even a good five years after the Degiro transaction, there are still gaps in the integration of infrastructure and processes. „Flatex and Degiro have not yet fully grown together. We have of course consolidated risk management, accounting and other important areas," he says. "Now it's all about the centrepiece, the brokerage platform. We still have a few tasks to complete over the next two years. After all, our platform must be scalable and enable economies of scale.“

FlatexDegiro is fundamentally in a flourishing market, as more and more retail investors are discovering saving via equities, which has created a new dynamic with the emergence of neobrokers. There is cut-throat competition in a growing market – which, however, is facing changes due to new regulatory settings with the abolition of rebates. „Consolidation in the broker market is not yet complete. The end of payment for order flow (PFOF) could be a trigger here, as some business models in the market rely heavily on it. This means that there may be situations next year where some providers are subjected to a real stress test.“

Behrens assumes that not all providers will be able to withstand this stress test. „Acquisition opportunities can arise in such situations. But the price must be right so that we create value for our shareholders and we must also be able to shoulder the integration. We are profitable and have the financial firepower, but we also see sufficient potential for organic growth.“

The share price performance shows that value can be created for shareholders: In October, the share was trading at around 14 euros. In mid-July it was above 25 euros – giving a 2.8 billion euro market capitalisation.

In March, FlatexDegiro was promoted to the MDax together with the DWS Group – where Behrens is Chairman of the Supervisory Board – and Renk. Such an ascent makes a share more interesting for institutional investors.

The major change in the market that is fuelling the entire securities business is the emergence of the investor class of self-determined private individuals. „The business with private investors who want to take their financial wealth planning into their own hands harbours huge growth potential," he says. "We believe that the wave of people who systematically save with securities on their own responsibility cannot be stopped. And we will cater to these customers. To this end, we are also expanding the product side with fixed-term deposit offers and, in future, individual share savings plans. We also want to diversify our sales mix and be less dependent on trading volumes.“

However, according to Behrens, there is still a lack of political support for saving with securities investments. „There are too few securities and asset owners in Germany and the interest rate on savings deposits is too low," says Behrens. "As a result, the relative wealth of Germans in Europe is shrinking. This leads to political instability – which in turn makes the country less attractive for foreign investors, who currently dominate the German stock market.“

His credo is that FlatexDegiro supports its customers in building up their assets so that they can realise their own financial dreams. „It's not about gambling, but about investing sustainably. Some political forces see this as promoting the rich, which is absurd. We need wealth creation across broad sections of the population. The idea is that everyone can develop a reasonable level of wealth with small amounts, as long as they invest over a longer period of time. I therefore hope for a new level of honesty from all parties involved.“

So far, on the political side, only one component for support exists with the early retirement scheme. „We need private pension provision as a third pillar," he says. "And we need larger amounts. An early-start pension of ten euros a month between the ages of six and 18 is a step in the right direction, but it doesn't solve the problem. We should also commit to a system of subsidisation and stick to it.“