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Frequently Asked Questions
Getting Started With Investing
New to investing? These answers will help you understand the basics, common terms, and the first steps many investors take when getting started.
1. What is investing?
Investing means putting money into assets such as ETFs, stocks, or bonds with the goal of growing your wealth over time.
2. What is an ETF?
An ETF (Exchange-Traded Fund) is a fund that holds a collection of investments and can be bought and sold on a stock exchange like a regular stock.
3. Are ETFs suitable for beginners?
Many beginners choose ETFs because they provide diversification and are generally easier to understand than selecting individual stocks.
4. How much money do I need to start investing?
Many brokers in Germany allow investors to start with monthly contributions as low as €25–€50.
5. Is investing risky?
All investments involve risk. The value of investments can go up and down over time.
ETF Investing
Learn why ETFs have become one of the most popular investment tools among long-term investors worldwide.
1. Why do investors choose ETFs?
ETFs offer diversification, transparency, low costs, and easy access to global markets.
2. What is the difference between accumulating and distributing ETFs?
Accumulating ETFs automatically reinvest dividends, while distributing ETFs pay dividends directly to investors.
3. Can I lose money investing in ETFs?
Yes. ETF prices can fluctuate with the market, and short-term losses are possible.
4. How often should I invest?
Many investors prefer regular monthly investing through a Sparplan.
5. Which ETF is best for beginners?
There is no single ETF suitable for everyone. The right choice depends on personal goals, risk tolerance, and investment horizon.
Investing In Germany
Common questions about investing, brokers, taxes, and financial planning for expats living in Germany.
1. Can expats invest in Germany?
Yes. Many expats living in Germany open investment accounts and invest through German or international brokers.
2. What is a Sparplan?
A Sparplan is an automated investment plan that regularly invests a fixed amount into an ETF or other investment product.
3. Do I need a German bank account?
Many brokers require a linked bank account, though requirements vary by provider.
4. Which brokers are popular in Germany?
Popular brokers include Trade Republic, Scalable Capital, Interactive Brokers, and others.
5. Can I invest if I don't speak German?
Yes. Many brokers provide English-language platforms and resources.
Taxes And Regulations
Understanding taxes is an important part of investing in Germany.
1. Do I pay taxes on ETF investments in Germany?
Tax obligations depend on your personal circumstances and tax residency status.
2. What is the German tax-free allowance?
Germany provides an annual tax-free allowance for investment income, subject to current regulations.
3. Do I need to report ETF investments on my tax return?
In some situations, investment income may need to be reported.
4. Are taxes automatically withheld?
Many German brokers automatically handle certain tax obligations.
Personal Consultation
Questions about working with Dmitry Romanchuk and private consultations.
1. Who is a consultation suitable for?
Consultations are suitable for beginners, expats, and investors looking for independent educational guidance.
2. Can you review my portfolio?
Portfolio reviews may be discussed during a consultation depending on your goals and situation.
3. Do you provide investment advice?
Consultations focus on education, understanding options, and helping investors make informed decisions.
4. How can I book a consultation?
You can request a consultation through the website contact form.
5. What can we discuss during a consultation?
Topics may include ETFs, investing in Germany, financial planning, broker selection, and portfolio structure.
Popular Questions From Expats
The most common questions asked by people who recently moved to Germany.
1. I just moved to Germany. Can I start investing?
Many expats begin investing after establishing residency and opening the necessary financial accounts.
2. What should I do before buying my first ETF?
It is important to understand your goals, risk tolerance, and investment timeline.
3. Is it better to invest monthly or all at once?
Both approaches are used by investors. The most suitable option depends on personal circumstances.
4. How much should I invest every month?
The appropriate amount depends on your financial situation and long-term objectives.
5. What happens if the market falls?
Market declines are a normal part of investing. Long-term investors typically focus on their strategy rather than short-term movements.
Investing is not a one-time action. It is a long-term journey built on education, discipline, and informed decisions
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