If you want to invest in stocks or ETFs, it is best to do so 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 shares and bonds on the stock exchange. In this article we share the best 3 brokers to invest.
Before we deepdive: Investing involves risk of loss ladies! Only invest with money you can miss for a few years and never invest with money you need in the short term.
What are the best 3 stock brokers to invest?
Nowadays there are many providers through whom you can invest, and you probably know some names: BUX Zero, DEGIRO, Interactive Brokers, eToro, 212 Trading and more. Regarding the country you live in, there are different providers.
How do you choose which party you want to invest with? Below we list 3 criteria that are important. But the first step is to decide what kind of investing you are into.
Active or passive investing?
The big difference between different parties often comes down to active or passive investing.
You have banks and brokers where you can invest.
At a bank, you often invest in funds compiled by them (passive investing) and with brokers you can invest in securities selected by you (stocks or ETFs).
With a broker you trade actively, that is called active investing. One is not better than the other, it all has to do with your personal investment strategy.
If you invest via BUX Zero or DEGIRO, then you invest actively. You transfer money to your investment account yourself and then buy your securities (shares or ETFs) yourself.
If you invest through your personal bank, this is often done passively or under management. You transfer money to your account, they do the rest. Banks have put together funds in which you automatically invest your money.
Choice is personal
There is something to be said about both 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 you choose a party to invest with, there are a number of aspects you should pay attention to. What makes a good stock broker?
- Fees: First, they need to have fair fees. It is important that their commissions, inactivity fees and withdrawal fees are low or close to zero.
- Selection: they should also offer a great selection of exchanges, ETFs and stocks.
- Finally, it counts for a lot if the overall quality of the broker – platforms, safety or the account opening process – is super.
In addition, you want to know what the conditions are for investing with this party. Can you withdraw your money freely? Do you have to pay to open an account? How does the bank deal with regulations? Before you make a decision, do some research and ask other women in the ELFIN community about their experience!
Because costs are important, take this into account when choosing a provider, it’s important to check the transaction-, fund-, and management costs. A lot of brokers want to make investing with them as attractive as possible and seduce you with low costs. Be sure the cost actually are low, and there are no hidden costs. This information should be available on their websites. If a broker or bank is not transparant about its costs, move on.
Our top 3 stock brokers
About: BUX is Europe’s fastest growing neobroker and has been making it easy and affordable for Europeans to do more with their money since 2014.
For who: for beginner investors who would like to get inspiration with their personal investment plan and want to invest on a monthly basis without commission fees.
Minimum deposit: €10
Pro’s: commission free trading, personal investment plans, fractional stocks, easy to use app
Con’s: only a selection of stocks & ETFs available
More information about BUX Zero here
About: DEGIRO is a discount broker that merged with flatexDEGIRO Bank AG and is supervised by the German financial regulator. Wide availability of stocks and ETFs from exchanges all over the world.
For who: for investors who want to invest in stocks from all over the world with low fees and/or monthly want to invest in fixed ETFs without transaction fees.
Minimum deposit: €10
Pro’s: really low fees and possible to invest in ETFs each month without paying transaction costs (terms and conditions apply, check them out here), wide range of exchanges, stocks and ETFs
Con’s: platform can be overwhelming for beginner investors
More information about DEGIRO here
About: eToro is a global social trading broker. It is regulated by top-tier authorities such as the UK FCA or Australia’s ASIC.
For who: investors interested in social trading (i.e. copying other investors’ trades) and zero commission stock trading.
Minimum deposit: €50
Pro’s: free stock and ETF trading, inspiration from other investors via social trading
Con’s: they focus a lot on super high risk investments like CFDs
More information about eToro here
Best 3 stock brokers to invest?
What the best stock broker is for YOU, depends on your investment goals. We recommend to make a solid financial plan first and choose a broker when you know what kind of investments suit your goals. Join the free ELFIN community to talk about investment goals!