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Finding the right discount broker in EU is a hassle for a foreigner, especially to the complex banking system between different countries. Here is the list of 15 trading platforms I explored and then my final verdict on the one I chose.
1. eToro
I like 3 things about this website:
- CFDs at a relatively lower cost than its competitors Plus 500 and Market X
- Copy Trading: The social trading platform is the unique selling point (USP) of eToro. You can place your trade and build your portfolio based on the success of other investors.
- Fractional Shares: You can buy fractional shares of a company, making it convenient for beginners to invest in shares with high rates. Not all brokerages offer this facility.
You can also trade cryptocurrencies, gold, and somewhere around 750 stocks. What I don’t like about this website:
- Flat withdrawal fee of $5
- Inactivity fee of $10 for no trading on the platform for 12 months
- High exchange rate for currency conversion. For a deposit of €500, I was charged $12.50 (nearly €11.60). eToro charges 250 pips for conversion from Euro to USD, which is quite high compared to other trading platforms. This large amount of fees charged makes up for the so-advertised “zero-commission” for the stock trades without leverage. So, while I deposited €500, I have only €488.40 to trade, already at a loss of €11.60. You will also be charged 250 pips (or €0.025 per dollar to Euro conversion) while withdrawll as well. That’s a lot indeed.
- Minimum deposit amount of $200
- Limited number of stocks available on the platform. New York Stock Exchange (NYSE) has over 3200 stocks listed. BSE Sensex in India has over 5000 stocks listed. eToro gives you the opportunity to invest in only a few 750 odd stocks. However, most of these stocks are well known Bluechip companies.
- Spread Fee: eToro charges a spread fee of 0.09% for buying and selling positions. This is again a commission for eToro.
2. DeGiro
This is one of the top 3 popular online trading platforms used in the EU because of its commission-free transactions. However, but it has a very long waiting list. At the time of writing this article, I am at the 9132 rank in the waiting list and the progression in the queue is extremely slow.
DeGiro has faced some criticisms regarding its lending strategy for margin trading.
3. ETFmatic
It is kinda a Robo-advisor. I’m not sure what it exactly does, or if you can buy specific ETFs or stocks.
4. Interactive Brokers
5. Nordnet
6. Trade Republic
7. Trading 212
It is a zero-commission based stock trading platform.
8. Flatex
9. Coinbase Pro
It’s mostly used for low fee crypto investments
10. TradeStation Global
11. Plus 500
12. Revolut
13. Oanda
14. Onvista
15. Firstrade
Conclusion
There are several popular zero commission discount brokers like Robinhood, Upstox and Zerodha. While Robinhood is currently available only for US citizens, Upstox and Zerodha are exclusively operational in India
Background:
After graduating in Mechanical Engineering from IIT (BHU) Varanasi, India, I pursued a dual degree Master's program in Europe (MS in Biomedical Engineering at RWTH Aachen, Germany and MS in Bioengineering at Trinity College Dublin, Ireland). I am currently working as a 'Manufacturing Engineer' in a MedTech company in Ireland.
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