Okay ladies we got it! You want to invest (smart!) but you have no idea where. If you want to invest in stocks or ETFs, the best way to do so is through an online broker or bank. A broker is a stockbroker and can refer to either a person or a company. Through a broker, you can buy and sell stocks and bonds on the stock market as an individual. But there is so much on offer, which bank or broker should you choose? What is the best choice?

Want to briefly refresh your knowledge about investing first? You can do that here!

Which bank or broker should you choose?

Nowadays there are many providers through whom you can invest, and you probably know some names: BUX Zero, Peaks, DEGIRO, Brand New Day, InDelta, Semmie, Saxo, ASN, Robeco, ABN Amro, Rabobank. Some are similar, and often they offer a little bit of the same. They are all fighting for YOU, because they know: once you make your choice, chances are you will stay. We share in this article the 4 parties we have experience with as an Elfin team. Do you enjoy investing with another party? Above all, let us know in a comment!

Psst: before we get started and share reviews of brokers and banks to invest with you, know that investing comes with risks. You know that, right! You may lose some of your deposit. So never invest with money you can’t afford to lose. Read more about the risks of investing here.

BUX Zero

BUX Zero has been around since September 2019 and entered the market as the “first app that lets you invest for free.” Meanwhile, this is no longer the case. From April 1, 2023, BUX Zero will charge a service fee of €2.99 per month for each investor. You can then perform Zero orders as many as 3x per month. Do you invest larger amounts each month, in up to 3 products? Then BUX Zero may be worth considering. Zero order means they do not charge a commission fee. So you pay only the cost of the share itself.

Cool gadget: you can transfer money directly from your account to your BUX account using a Tikkie. This makes your money available much faster to buy new shares from. At BUX, you invest protected through a deposit guarantee scheme. That means you get an account at ABN Amro where your money is guaranteed up to EUR 100,000. Read our in-depth review on investing at BUX Zero here.

Advantages of investing at Bux Zero

You can create investment plans which makes consistent investing easier
BUX Zero has an AFM license
Easy and accessible app

Disadvantages of investing at BUX Zero

BUX Zero suddenly announced in February 2023 to collect €2.99 service fee per month. So if you had gotten in as a small investor, you now come out sums. This means you pay €36 in service fee per year anyway. If you invest with small amounts then this will take too big a bite out of your returns.
BUX Zero tends to make investing a game that can trigger addiction. We don’t think that’s right, because investing is about long-term, taking as little risk as possible and not acting on emotion!
Very few analysis features in the app

Conclusion investing at BUX Zero

Would you like to invest in a mix of stocks and ETFs, in accordance with a self-designed plan? Then BUX Zero can come in very handy! Zero commission orders can also be interesting if you want to purchase multiple products each month. Note! Due to the fee changes (service fee), BUX Zero is not so suitable for the small investors who invest with small amounts per month.

DEGIRO

DEGIRO is a trading platform where you can invest in many stocks and ETFs. Through DEGIRO, you can invest on global stock markets. Through Degiro’s core selection, you can trade about 200 ETFs every month for free. In addition, transaction costs for other products are low, depending on which product and on which exchange.

Aside from the fact that you can choose to invest in a very wide range of products at DEGIRO, they also offer retirement investing. This allows you to make tax-friendly investments to supplement your retirement. DEGIRO is under regulation by Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin). Read our in-depth review on investing at DEGIRO here.

Advantages of investing with DEGIRO

You can make a free trade every month in an ETF from the core selection
Huge range of investment products available: from stocks around the world, to ETFs, to retirement investing to bonds
Good analysis and lots of news updates
Costs are low
DEGIRO is licensed by the German Bundesanstalt für Finanzaufsichtsaufsicht (BaFin)

Disadvantages of investing with DEGIRO

DEGIRO’s platform is less easy than BUX Zero and may deter novice investors
DEGIRO has been in the news negatively at times in recent years. They allegedly took too much risk with investors’ money. Read more about it here.

Conclusion investing at DEGIRO

Want to invest in stocks and ETFs? Want an advanced platform and a sea of possibilities? Then DEGIRO could be your match. View more information about DEGIRO here.

Peaks

Through Peaks, you can invest with your change which makes it very approachable because these are small amounts. At Peaks, you can start with very small amounts by investing with your change, or you can have a higher amount automatically transferred each month. From €50 to €500, depending on what is feasible for you and how quickly you want to build wealth.

Peaks allows you to open multiple accounts in 1 app to invest for multiple purposes. Peaks makes investing easy by offering you a few flavors(4 types of risk profiles) to choose from. Within these risk profiles invest in your index funds, curated by Peaks. Read our in-depth review of investing at Peaks here.

Benefits of investing at Peaks

Easy! Peaks is an easy app where you as a novice investor can get your first experience with investing if you still find it a bit exciting
Easy spreading application. With Peaks, you automatically invest in a mix of funds that includes stocks and bonds. This lowers your risk. Read along here about how important spreading is.

Disadvantages of investing at Peaks

Peaks offers few investment options. You can invest through 4 types of risk profiles, and that’s it. You cannot add stocks yourself or invest in specific ETFs. If you want that, DEGIRO or BUX Zero is a better option.
The cost is relatively high. We think the cost structure is a bit confusing anyway. You pay for an account, you pay fund fees and a spread, and again how much those fees are depends on how much you invest and how much investment account you have.

Conclusion investing at Peaks

As far as we are concerned, Peaks can be a fine app if you are a novice investor and want your first introduction to investing. Want to have more investment options at a lower cost? Then we ourselves would divert to other platforms.

Brand New Day

At Brand New Day, they invest your money based on a passive investment strategy. A long-term, science-based strategy where every euro is invested in a smart mix of great index funds. With a long horizon, wide spread and low cost, you passively follow the market. So you are not trying to beat the market. Passive index investing is called that. An investment strategy known for consistent average returns.

With Brand New Day’s investment account, you work on your financial future in a responsible way. You can also invest for retirement at Brand New Day. Read our in-depth review of investing at Brand New Day here.

Advantages of investing with Brand New Day

Easy! You can automatically transfer money to the Brand New Day account each month and your money will be invested automatically.
Easy spreading application. At Brand New Day, you automatically invest in a mix of funds where stocks and bonds are represented. This lowers your risk. Read along here about how important spreading is.
Customer Service. For real. Which is so fine at Brand New Day (that’s been our experience). They help you well.
1 place for Box 1 and Box 3 investing. In other words, you can also save or invest for retirement at Brand New Day. And how about a children’s account? Also possible at Brand New Day,

Disadvantages of investing with Brand New Day

Brand New Day offers few investment options. You can invest in different risk profiles, and that’s it. You cannot add stocks yourself or invest in specific ETFs. If you want that, DEGIRO or BUX Zero is a better option.

Conclusion investing at Brand New Day

We find Brand New Day a pleasant party to invest long term, without looking back, with minimized risk. However, do you want more? Picking your own dividend stocks or ETFs, to name a few? If so, Brand New Day is not your cookie.

So how do you choose through which party you want to invest?

The big difference between different parties often comes down to active or passive investing. So with parties like DEGIRO and BUX Zero you have to do your investments yourself, with Peaks and Brand New Day you can automate this completely.

One is not better than the other; it has everything to do with your personal investment strategy.

When you invest through BUX Zero, DEGIRO or Saxo, you are actively investing. You transfer your own money to your investment account and then buy your own securities (stocks or ETFs) there.

If you invest through Brand New Day, Peaks, Meesman or Semmie, it is often passive or managed. You transfer money to your account, but then they do the rest. They have put together funds that you automatically invest your money in.

Little we know: you can also invest with multiple parties! How about retirement investing at Brand New Day and buying dividend ETFs at DEGIRO?

Read and learn exactly what the difference is between active and passive investing here

Choice is personal

There is something to be said about all the options, and what is a good choice for you has to do with how you want to invest.

There is no right or wrong, one is not better than the other, the best in this case is what suits you.

When choosing a party to invest with, there are a number of aspects to pay close attention to:

AFM supervision: are they covered by the deposit guarantee scheme? Are they regulated by the AFM? A party offering its services in the Netherlands must be approved by the AFM. If a party you want to invest with does not have an AFM license, your risk is higher.
Costs: costs can weigh tremendously on your bottom line, we know. And often, for every transaction you make (every time you trade on the exchange) you pay fees. Preferably, you want to keep these as low as possible.
In addition, you would like to know the conditions of investing with this party. Can you withdraw your money freely? Do you have to pay to open an account? How does the party deal with regulations?

Elfin’s choice

At Elfin, we cannot determine what is right for you. This has everything to do with your investment goals and your risk appetite. In the Starting to Invest e-course(part of the Elfin membership), you’ll get tools to create your own investment strategy and choose a bank or broker that suits you.

See where Elfin members and the Elfin team itself invests here!