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Best Brokers to Invest in ETFs

What is the best broker for trading ETFs?

Alfredo de Cristofaro   September 27, 2021

Author of the review
Alfredo de Cristofaro Author
Alfredo de Cristofaro
Co Founder

Graduated in Economics of Financial Intermediaries, after having worked for several years at one of the main financial brokers in Europe, he decided to make available to investors the knowledge gained over the years. On QualeBroker.com he's responsible of reviewing the stockbrokers, making sure that the highest standards of safety and transparency are guaranteed.

Best brokers to invest in ETFs:


DEGIRO  

Practice account

Minimum deposit: £0,01

Ideal for: having the largest number of ETFs available, with low commissions, especially for small amounts invested.

→ DEGIRO review


eToro

Practice account

Minimum deposit: $50

Ideal for: Investors looking for a simple platform to invest in leading global ETFs.

→ eTORO review


Visit eToro →
Your capital is at risk. Other fees apply.


TradeStation  

Practice account

Minimum deposit: £0,01

Ideal for: Investors who want to trade on a cutting-edge platform.


Fineco  

Practice account

Minimum deposit: £0,01

Ideal for: Investors who invest large capital and who want to build a pound-cost averaging on ETFs.

DEGIRO


Practice account:

Minimum deposit: £0,01

Ideale per: having the largest number of ETFs available, with low commission costs, especially for small to medium amounts invested.

eToro


Practice account

Minimum deposit: $50

Ideal for: Investors looking for a simple platform to invest in leading global ETFs.

 

Visit the website of eToro →
Your capital is at risk. Other fees apply.

TradeStation


Practice account

Minimum deposit: £0,01

Ideal for: Investors who want to trade on a cutting-edge platform..

 

Fineco


Practice account

Minimum deposit: £0,01

Ideal for: Investors who invest large capital and who want to build a pound-cost averaging on ETFs.

 

There is no doubt that exchange-traded funds (aka ETFs) have experienced a real boom in recent years, becoming one of the most attractive financial instruments for investors.

ETFs are as easy to trade as stocks and, at the same time, allow you to benefit from diversification, similar to mutual funds (but with drastically lower costs than these).
This combination of attributes has made ETFs one of the most popular financial assets in investors' portfolios.

What can ETFs be traded on?

Would you like to trade ETFs listed on the US stock exchanges? If you are a UK resident this is possible following Brexit. If you are a European resident, however, buying American ETFs is no longer available following the entry into force of Markets in Financial Instruments Directive II (MiFID II) in 2018.
This legislation prohibits European citizens from trading non-harmonized ETFs (i.e. non-compliant with European directives).

However, this is not an issue as most US ETF issuers have their ETFs home-based in Europe to harmonize them and make them available to UK and European investors.

How to invest in ETFs

As an investor, you can invest in ETFs on your own or with the help of a financial advisor. Using a financial advisor may be beneficial if you need to develop your financial planning within a general framework.

You can rely on an advisor when you don't have the time to take charge of the entire investment process, or when you don't feel you have enough skills or knowledge to invest in your own. 

In the investing world, robo-advisors are becoming increasingly popular as an alternative to traditional financial advisors. Robo-advisors are online financial consultants, whose services are a combination of both technological (algorithms and software) and human resources (dedicated financial consultants).

This hybrid model makes robo-advisors generally more efficient and less expensive than traditional financial advisors.

What are the best brokers for trading ETFs?

ETFs are financial instruments that are regulated and listed on the main world stock exchanges. As mentioned above, they are in many ways similar to stocks. One of the similarities is how you can both buy and sell on the stock exchange.

In order to invest in ETFs independently, it is therefore necessary to go through an authorized broker. Through the use of an online broker or bank, a few clicks separate you from the purchase of an ETF. But first, it is advisable to carefully consider which broker offers the best conditions for trading ETFs.

Among the many brokers and banks that allow you to trade ETFs, we have narrowed the options to those with the lowest trading fees, those who offer the most ETFs and those with the best trading platforms.

 

More specifically, among the various parameters taken into consideration we have given greatest importance to the following:

  • Trading fees: analyzed using our tool for ETF fees on the LSE and on the European exchanges
  • Cost of keeping the account: very often the ETF investor is a passive investor, who buys an ETF with the aim of keeping it in their portfolio for years. It is therefore important to choose a broker that does not have account maintenance costs, does not charge inactivity costs, and does not have costs for the custody of ETFs.
  • Ability to trade ETFs listed on the London stock exchange and on European or US stock exchanges: as previously stated, following Brexit, British investors can buy American ETFs. The most active exchanges for ETF trading are Euronext Amsterdam and Paris, Borsa Italiana, London, Xetra and Zurich.
  • Possibility of launching automatic investment plans: a practice requested by investors wishing to launch a pound-cost averaging on ETFs.

Top 4 brokers for trading ETFs:

1

DEGIRO

4,8/5

Main information

Country: Netherlands

Cost-free account

Automatic ETF investments:

ETF commissions: €2.00 + 0.03% (both ETFs on LSE and European exchanges)

Promotion: 200 zero commission negotiable ETFs

Ideal for: Those who want to have the largest number of ETFs available to trade, with low commissions, especially for small to medium amounts invested.

→ DEGIRO Official Review

 
 Pros:   Cons:
200 ETFs available at zero commissions.     Automatic investments are not offered.
Full coverage of both LSE and European listed ETFs.     Connectivity fee of €2.50 per annum for each foreign exchange used.
Real-time quotes for Euronext ETFs.     American ETFs not available.

 

1

DEGIRO

4.8/5

Main information

Country: Netherlands

Cost-free account

Automatic ETF investments:

ETF commissions: €2.00 + 0.03% (both ETFs on LSE and European exchanges)

Promotion: 200 zero commission negotiable ETFs

Ideal for: Those who want to have the largest number of ETFs available to trade, with low commissions, especially for small to medium amounts invested.

→ DEGIRO Official Review

Pros:

200 ETFs available at zero commissions.
Full coverage of both LSE and European listed ETFs.
Real-time quotes for Euronext ETFs.

Cons:

Automatic investments are not offered.
Connectivity fee of €2.50 per annum for each foreign exchange used.
American ETFs not available.

2

eToro

4,7/5

etoro

Join now →
Your capital is at risk.

Main information

Country: Israel

Cost-free account

Automatic ETF investments:

ETF commissions: Variable

Promotion: Start with $100,000 worth of virtual money

Ideal for: Investors looking for a simple platform to invest in leading global ETFs.

→ eToro Official Review

 
 Pros:   Cons:
145 global tradable ETFs.     Limited number of ETFs available.
Possibility to buy fractions of ETFs.     ETFs denominated in USD only.
Minimum deposit of $50.     Automatic investments cannot be made.

 

2

eToro

4.7/5

etoro


Join now →
Your capital is at risk.

Main information

Country: Israel

Cost-free account

Automatic ETF investments:

ETF commissions: Variable

Promotion: Start with $100,000 worth of virtual money!

Ideal for: Investors looking for a simple platform to invest in leading global ETFs.

→ eTORO Official Review

Pros:

145 global tradable ETFs.
Possibility to buy fractions of ETFs.
Minimum deposit of $50.

Cons:

Limited number of ETFs available.
ETFs denominated in USD only.
Automatic investments cannot be made.

3

TradeStation

4.6/5

Main information

Country: United States

Cost-free account

Automatic ETF investments:

ETF commissions: 0.12% (min. £1.50)

Promotion

Ideal for: Investors who want to trade on a cutting-edge platform.

 
 Pros:   Cons:
Wide variety of both European and American ETFs.     Not recommended for beginners.
Ability to short sell ETFs.     Commission-free ETFs not offered.
Sophisticated trading platform.     Inactivity costs starting after three months.

 

3

TradeStation

4.6/5

Main information

Country: United States

Cost-free account

Automatic ETF investments:

ETF commissions: 0.12% (min. £1.50)

Ideal for: Investors who want to trade on a cutting-edge platform.

Pros:

Wide variety of both European and American ETFs.
Ability to short sell ETFs.
Sophisticated trading platform.

Cons:

Not recommended for beginners.
Commission-free ETFs not offered.
Inactivity costs starting after three months.

4

FINECO

4.3/5

fineco

Main information

Country: Italy

Cost-free account

Automatic ETF investments:

ETF commissions: £2.95 - €3.95 - $3.95

Promotion

Ideal for: Investors who invest large capital and who want to build a pound-cost averaging on ETFs.

 
 Pros:   Cons:
Convenient flat fee for those who make high transactions.     Fees for real-time data.
Possibility of making automatic investments on ETFs.     Lack of some European markets for trading ETFs.
Tools on the platform simplify monitoring of the ETF portfolio.     Lack of a variable commission plan for those who invest low amounts.

 

5

Fineco

4.3/5

 

fineco


Main information

Country: Italy

Cost-free account:

Automatic ETF investments:

ETF commissions:  £2.95 - €3.95 - $3.95

Promotion

Ideal for: Investors who invest large capital and who want to build a pound-cost averaging on ETFs.

Pros:

Convenient flat fee for those who make high transactions.
Possibility of making automatic investments on ETFs .
Tools on the platform simplify monitoring of the ETF portfolio.

Cons:

Fees for real-time data.
Lack of some European markets for trading ETFs.
Lack of a variable commission plan for those who invest low amounts.

✅ Why have ETFs become so popular?

ETFs are investment funds that are easy to trade, similar to stocks. At the same time, however, they allow the investor to achieve a high level of diversification, starting with the purchase of a single ETF.
This, in addition to the extremely low management costs, makes ETFs one of the most traded financial products by investors around the world.

Risk disclosure: Investing involves risk of loss

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