top of page
Writer's pictureÈric Lluch

Comparison of 14 best ETF brokers in Europe 2024: is Degiro still the best?

Choosing the Best Broker for Long-Term Investment in Europe: A Comprehensive Guide


Welcome to BYOBanking! I'm Dr. Èric and I've written a guide to the best brokerage options for long-term investors based in Europe.


Over the past 10 years, I've been dedicated to passive ETF investing, growing a substantial portfolio towards the path of becoming financial independent. Throughout this journey, I've explored numerous brokers, aiming to find the best fit for European investors. Back until 2023 Degiro was free for a huge range of ETFs but it then changed. Moreover, there is a lot of competition on ETF and stock investments in Europe out there. Today, I’m excited to share my insights on 14 different brokers, highlighting their pros and cons to help you make an informed decision for your investment journey.




Key Features of a Good Long-Term Broker


When selecting a broker for the long haul, especially for buy-and-hold ETF investors like myself, certain non-negotiables are crucial:


  1. Regulatory Oversight: Preferably by a financial regulator in Central Europe.

  2. Currency Compatibility: Ability to buy shares in euros without conversion fees.

  3. Low Fees: No account, inactivity, or deposit/withdrawal fees.

  4. Transferability: Ability to transfer stocks or ETF shares to another broker.

  5. No Share Lending: To minimize risks associated with broker insolvency.


Top Picks for European Investors


Based on my experience and research, here are my top picks:

  1. Finanzen.net (ref code): Best for low cost and high variety of ETFs at 0 cost. My wife and I are using that one because it can create a plan that invests for you automatically at no costs. Moreover, the referral program gives you 10€ and 1 random stock.

  2. Trade Republic (ref code): Best for low cost. Great for simplicity, low costs, and the added bonus of earning interest on uninvested euros (3.75%). The referral code gives you 10€.

  3. Interactive Brokers: Best overall for security, low fees, and extensive market access. Ideal for serious long-term investors who can handle a complex interface.

  4. Degiro (ref code): Still a solid low-cost option despite some drawbacks, such as mandatory share lending and minor fees.

  5. Scalable Capital: Flexible pricing models and low fees make it a strong contender, especially for those in Germany.


Comparison of 14 best ETF brokers in Europe 2024: Best Brokers for Long-Term Investment


Here's a summary table comparing the key features of 14 brokers for long-term investment in Europe:

Broker

Account Fees

Trading Fees

Share Lending

Regulatory Body

Transferability

Special Features

Interactive Brokers

None

Low (e.g., €1.3 for €1,000)

Opt-in

US (SEC, FINRA)

Yes

Broad market access, multi-currency accounts

Trade Republic

None

€1 per trade

No

Germany (BaFin)

No

2% interest on uninvested euros

Scalable Capital

None (Free)

€0.99 (Gettex), higher (Xetra)

No

Germany (BaFin)

Yes

Three pricing models, 2.3% interest (Prime+)

Degiro

None

€1 handling fee, €2.5 exchange fee/year

Yes

Germany (BaFin)

No

Low-cost, wide European availability

Saxo Bank

Yes (Custody Fees)

High

No

Denmark (FSA)

Yes

High fees, solid regulation

Trading212

None

None

Yes

UK (FCA)

No

Investment pies, planned interest payments

Lightyear

None

Low

No

Estonia (FSA)

No

Interest on uninvested cash, new broker

Freedom24

$7

Low

No

Cyprus (CySEC)

Yes (High fee)

IPO investments, US ETFs, daily interest

eToro

Yes (Inactivity)

None (Stock/ETF), High (CFD)

Yes

Cyprus (CySEC)

No

Copy trading, high currency conversion fees

XTB

None

None

No

Poland (KNF)

Yes

Focus on CFDs, some physical stocks/ETFs

Flatex (Germany)

None

€5.9 per trade, €1.5 for saving plans

No

Germany (BaFin)

No

Tax-efficient, no share lending

Justtrade

None

Low

No

Germany (BaFin)

No

Low-cost, limited personal experience

None

Low

No

Germany (BaFin)

No

Low-cost. You can make an ETF plan that invests automatically at 0 cost.

Smartbroker

None

None (Gettex orders > €500)

No

Germany (BaFin)

Yes

Moving to Baader Bank, 0.2% fee for saving plans

Specialized Options for German Investors


For investors based in Germany, tax-efficient brokers like Finanzen.net or Smartbroker (Germany) can save you time and hassle with tax management.


Brokers for Short-Term and Speculative Trading


For more speculative trading, brokers like Trading212, Lightyear, Freedom24, eToro, and XTB offer unique features but come with limitations that make them less suitable for long-term investments.


Conclusion


Choosing the right broker is crucial for your investment journey. Evaluate your needs, consider the features and fees, and select a broker that aligns with your long-term investment goals.


If you found this guide helpful and would like to support BYOBanking, consider registering with the brokers through the affiliate links mentioned above. Your support helps keep this content free and informative.


Thank you for reading and happy investing!


By Dr. Èric BYOBanking.com

66 views

Comments


💌 Subscribe to FinNotes

"Your emails never fail to make my day."

Become part of an expanding community of awesome readers! Every week, I drop a little dose of inspiration into your inbox—packed with practical hacks to save and invest using new technologies. Don't miss out!

Thanks for submitting!

bottom of page