How to Find Stocks Trading in Germany

Learn about German stocks and trading activity from the comfort of your desk.

Find stocks trading in Germany by reading the international financial press, such as the daily stock reports provided by the Financial Times or Wall Street Journal. Additional sources of information about German equities include pan-European brokerage or trading firms, German banks and stock exchanges, including the seven German stock exchanges and German Boerse Group, a holding company that serves marketplace organizer and transaction services provider.



Traders using the National Association of Securities Dealers Automated Quotation System (commonly known as NASDAQ) Levels 1 or 2 can find German and other international equities markets with monthly add-on subscriptions, such as the German Stock Bundle.

Things You'll Need

• Computer
• Internet connection
• Financial press, such as Financial Times and The Wall Street Journal
• Trading interface and programs, such as NASDAQ Levels 1 and 2, with add-on subscriptions for German equities markets
• Research reports from Germany's Central Bank, Deutsche Bank and other primary German banks in the capital markets

Instructions

Fundamentals of the German Equity Markets

1. 

   Familiarize yourself with the German stock markets before trading shares.

   Learn about the German stock markets, exchanges and the interconnectedness of European and global equity markets. Excellent reference materials exist for free on line. Refer to the Financial Times, Handelsblatt, Deutsche Welle and Yahoo! Finance's Germany site. The Wall Street Journal also provides global markets information and the closing prices of many companies in Germany and around the world.

   The Frankfurt Stock Exchange handles 90 percent of Germany's equity trading. In addition, the Berlin, Dusseldorf, Munich, Stuttgart, Hamburger, and Bremen trade other German and world markets shares. For example, the Berlin exchange also makes markets in more than 6,000 listings for U.S. shares also trading on the NYSE Euronext, NASDAQ, pink sheets and others.

   Gruppe Deutsche Boerse, founded in 1993, manages the operations and clearing activities of the exchanges. The Boerse also owns other clearing and trading operations in Europe, such as Clearstream, a Luxembourg-based clearing firm.

2. 

   Compare relationships between German and U.S. financial assets, currency and trade, and their affects upon equity markets.

   Review additional reports published by the German Central Bank, the CIA World Fact Book-Germany, and the global trade reports to obtain foundational information about Germany and its financial system.

   In "Macroeconomics: Principles and Policy" by Baumol and Blinder (2007), relationships between demand for German and American financial assets, currency and trade are concisely outlined.

3. 

   Germany's largest banks and other significant dealers research German stocks for their clients.

   Obtain fundamental and technical research about German stock trading from large banks and dealers. Buy and sell recommendations from these sources have the power to move the markets:

   Deutsche Bank, widely established as a global powerhouse, participates actively in the capital markets and the trading of Germany's stocks. Deutsche Bank's private client group provides equities research free of charge to clients.

   Commerzbank, ranked second to Deutsche Bank in Germany, also has U.S. offices. With a smaller global focus, Commerzbank's focus remains on the German securities markets.

   Execution Noble, an investment bank and private trading group headquartered in London, United Kingdom with offices in the U.S., supplies German and international equities research to its clients.

4. 

   Trading programs and interfaces help individual investors in the U.S. to access German stock markets.

   Track daily data about German stock trading from information services such as DataStream by Thomson Reuters, Bloomberg and NASDAQ Level 1 and 2.

   In 2010, a number of large German and European firms, such as Daimler, have delisted from the New York Stock Exchange (NYSE) Euronext. One of the reasons suggested for the delistings is direct market access through information and trading services.

5. 

   American Depository Receipts allow investors to trade German stocks on domestic exchanges in U.S. dollars.

   Investigate German American Depository Receipts (ADRs) if investment in European currency and potential changes in currency value concern you. Review the list of German ADRs at Top Foreign Stocks.

Tips & Warnings

• Learn as much as you can about the German stock market before committing capital to any investment.

• Consult your adviser about investing in foreign securities, such as German stocks.

• Understand the dual risks of currency change and capital losses when making an investment in German stocks.

• This is not a solicitation to buy or sell securities. This article is for information purposes only.

References

• Financial Times: ...
• Financial Times: ...
• Handelsblatt: ...
• Yahoo Finance German: ...
• Deutsche Welle: ...

Resources

• CIA World Fact Book: Germany
• "Macroeconomics: Principles and Policy"; William Baumol, Alan Blinder; 2007
• "German Stock Market Facts and Trends"; Bayerische Landesbank Girozentrale; 2005
• "Common Risk Factors in the German Stock Market"; Daniel Bathe; 2009
• "Alternative Analysis Methods Applied to the German Stock Market"; Timo Schlichting; 2009