Born in Herne, Schröder began his acting career at the nearby Bochum Theatre in 1934, under the director Saladin Schmitt.

After working at Bielefeld and Wuppertal, he moved to the Schiller Theatre in Berlin in 1938, which became his artistic home and the location of his greatest triumphs, particularly after the Second World War.

He achieved broader popularity in the 1970s, appearing more frequently on television, particularly in crime shows like Derrick and Der Alte.

In 1980, his daughter, the actress Christiane Schröder (18 January 1942 – 17 September 1980), committed suicide by jumping off the Golden Gate Bridge in San Francisco.

Amongst others, he provided the voices for Charles Boyer, James Cagney, William Conrad, Rex Harrison, Herbert Lom, Spencer Tracy and Peter Ustinov.