Best ETF broker?

[kingdiamond9]

Hi everyone,
Im looking for an ETF broker as the one Im currently with has high fees. Which would you recommend?

I’ve heard not to go to eToro, but that Scalabe, Interactive Brokers and Trading 212 are good. Which would you recommend? I tend to buy just a few ETFs a year (Im a student so don’t have much money to invest) and leave them to sit for a long time. I’d also need to easily be able to transfer my current portfolio into the new one.

Thank you for your help!

 

[pepperbites]

@kingdiamond9 I've been a Scalable Capital user since 2021; living in the EU.

Would whole heartedly recommend that if you're a retail investor. As and when you have larger sums to invest, maybe find another broker.

 

[leigh262]

@kingdiamond9 IB is probably the best option if you can invest larger lump sums of money, but it is bad for small sum investing. If you are only able to buy smaller amounts or are more comfortable that way or then go with Trading212. Trading212 holds your assets at IB so it should be reasonably save and they even allow you to transfer it out Now to another broker which was the biggest issue they used to have (not allowing that until recently). They also have much nicer UI for beginners to work with.

 

[qman0011]

@leigh262 Why is IBKR bad for small amounts?

They removed the fees for accounts under 100k.

 

[leigh262]

@qman0011 Lump sum fee for trade is still there. Even on non pro tier (3€) you still have to pay around 1.5€ per trade when you buy VWCE for example (even more for some other ETFs) depending on a country per trade. This is way more than what you pay on spreads on higher spreads on Trading212 where trade itself is free of charge if you want to buy only smaller fractional shares or spread it and invest weekly instead of monthly/bi-monthly or whatever. You break even at like 500+ euro per trade and then it is cheaper on IKBR which may not be a lot of money for a lot of people but too much money for a lot of other people. 1.5$ fee per trade + some spreads of course (althought smaller than T212) is a lot of money for people who want to invest like 100$ weekly/monthly for example.

 

[resjudicata]

@leigh262 Save 100$ every month and invest 300$ every 3 months.

 

[qman0011]

@leigh262 Ah, that makes sense.
Although for a long term strategy it shouldn't be that much relevant (?).

 

[jodebrode]

@leigh262 don't you have hidden feeds on T212? namely on SPREAD? buying is expensive and selling cheap

 

[leigh262]

@jodebrode Every exchange has spread, IB is not different. T212 has just higher spreads than IB. But then again for smaller amounts it does not matter and it is still cheaper.

 

[jodebrode]

@leigh262 the problem with T212 is that it is very hard to measure. At least I'm having difficulties with it

 

[ddgator]

@kingdiamond9 Any love for degiro? Or reasons to stay away?

 

[nishan]

@ddgator I love it.

Some people might point out they had some issues with the regulator a couple of years ago, but that doesn't deter me. In fact it makes me think they are probably now being very careful

 

[necrosect]

@ddgator I'm using Degiro, everything is good. Great broker!

 

[koof]

@ddgator Higher fees than most other brokers, and probably the only broker that still pays zero for uninvested cash. Also they lend your shares without sharing profits with you. There are many better options around.

 

[necrosect]

@koof It's just 1€ per trade if the ETF is from the core collection with a minimum of 1000€ positions and the same direction as previous (if you bought SXR8, now you should BUY again, not sell).
Why letting your money sit around. Throw them in the VWCE for example.
You are right they do lent your shares. Not the end of the world in my opinion.

 

[koof]

@necrosect So it's €1 more expensive per trade than savings plans on Trade Republic and Scalable Capital. And you're restricted to a select few ETFs, otherwise you pay €3 per trade. Newcomers would rather just select a broker with free savings plans on any asset instead of having to learn broker-specific restrictions ("core" lists) imo.

 

[necrosect]

@koof TR offer 4% for uninvested cash on your account but the vastly majority of quality ETF's makes more or less double, so 1€ it's not even a thing. Even 100€ wouldn't be a thing. Moreover, especially for newcomers as you mentioned, they only need the core list. VWCE or SXR8 for example. Everything else is just noise. Trade Republic is great not gonna lie. The 4% is very tempting. I just choose Degiro.

 

[koof]

@necrosect You're evaluating stuff emotionally because you have an existing Degiro account. For newcomers, there is nothing that Degiro has that is better than other options in the market right now. Also, your "not even a thing" assumes that all readers of this sub invest large amounts, which is not accurate. So for people that invest €100 a month, that €1 difference is a 1% hit they take without any need for it, since they have cheaper (free) alternatives around.