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Best brokers for IPO for Europeans in 2022

TradeStation Logo
1st place
TradeStation
Interactive Brokers Logo
2nd place
Interactive Brokers
tastyworks Logo
3rd place
tastyworks

To help you find the best brokers for IPO investment in 2022, we went ahead and did the research for you. First, we looked at the 102 online brokers BrokerChooser has reviewed so far. Then we checked the brokers' IPO offerings, e.g. how quickly the brokers list shares after their IPO. Let's see the winners!

Our top 5 picks for the best brokers for IPO trading in 2022:

  1. TradeStation is the best broker for IPO investment in 2022.
  2. Interactive Brokers takes second place.
  3. tastyworks rounds out the top three.
  4. Trading 212 came in fourth.
  5. Alpaca Trading just made it to the list in fifth place.
Best brokers for IPO investment in 2022
Broker Access to IPOs Speed to start of trading
#1 TradeStation Great Great Visit broker
#2 Interactive Brokers Poor Great Visit broker
#3 tastyworks Poor Great Visit broker
#4 Trading 212 Poor Great Visit broker
68% of retail CFD accounts lose money
#5 Alpaca Trading Poor Great Visit broker

What makes a good broker for investing in IPOs? First of all, they need to offer access to IPOs in the US, where most global IPOs take place, and make it possible to start trading the new stock quickly after the IPO. They should have fair fees for stocks and ETFs. The broker's overall score should also be high.

These key factors are easy to list, but hard to figure out. We test brokers along nearly 500 criteria, using real accounts and real money. We speak from experience.

If you are not familiar with IPOs and IPO investments, start by reading about what an IPO is and what the IPO market looks like.

And now, let's see the best brokers for IPO investment in 2022 one by one, starting with the winner, TradeStation.

TradeStation Logo

#1 Best brokers for IPO investment
TradeStation

TradeStation is a US stockbroker founded in 1982. It is regulated by the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA). Clients are eligible for up to $500,000 investor protection per account (including cash up to $250,000).

TradeStation is considered safe because it has a long track record; transparently discloses its financials; and its parent company, the Monex Group, is listed on the Tokyo Stock Exchange.

Visit broker

#1 TradeStation
US stock fees

TradeStation US stock trading fees are low.

When you're investing in an IPO, either by taking part in the IPO itself or buying shares after they have been listed, you are basically trading the stock, which carries a fee. It's not so easy to compare trading fees for US stocks. So instead of compiling complicated fee tables, we compared brokers by calculating all the fees of a typical trade in the US.

A typical trade in this case means buying stocks for $2,000, holding them for a week and then selling them. As most IPO prices are usually well above $20 per share, this means trading less than 100 shares of a stock.

This catch-all benchmark fee includes commissions and spreads for all brokers.

Here is the verdict:

TradeStation stock trading fees
TradeStation Interactive Brokers tastyworks Trading 212 Alpaca Trading
US stock $1.0 $1.0 $0.0 $0.0 $0.0

All spreads and commissions for opening a position, holding it for a week, and then closing it.

Non-trading fees

TradeStation has average non-trading fees.

TradeStation non-trading fees
TradeStation Interactive Brokers tastyworks Trading 212 Alpaca Trading
Account fee No No No No No
Inactivity fee Yes No No No No
Withdrawal fee $0 $0 $0 $0 $0

Read more about brokerage fees in our dedicated article if you want to expand your knowledge.

Interactive Brokers Logo

#2 Best brokers for IPO investment
Interactive Brokers

Interactive Brokers, one of the biggest US-based discount brokers, was founded in 1977. The broker is regulated by several financial authorities globally, including top-tier ones like the UK's Financial Conduct Authority (FCA) and the US Securities and Exchange Commission (SEC).

Given that the broker has licenses from multiple top-tier regulators, has a long track record and publicly disclosed financials while being listed on a stock exchange; it all points towards IB being a safe service provider.

Interactive Brokers recently launched a new app for global stock trading: read our review of IBKR GlobalTrader.

In addition, Interactive Brokers also has an app you can use for ESG investing: read our review of IMPACT by Interactive Brokers.

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#2 Interactive Brokers
US stock fees

Interactive Brokers US stock trading fees are low.

When you're investing in an IPO, either by taking part in the IPO itself or buying shares after they have been listed, you are basically trading the stock, which carries a fee. It's not so easy to compare trading fees for US stocks. So instead of compiling complicated fee tables, we compared brokers by calculating all the fees of a typical trade in the US.

A typical trade in this case means buying stocks for $2,000, holding them for a week and then selling them. As most IPO prices are usually well above $20 per share, this means trading less than 100 shares of a stock.

This catch-all benchmark fee includes commissions and spreads for all brokers.

Here is the verdict:

Interactive Brokers stock trading fees
TradeStation Interactive Brokers tastyworks Trading 212 Alpaca Trading
US stock $1.0 $1.0 $0.0 $0.0 $0.0

All spreads and commissions for opening a position, holding it for a week, and then closing it.

Non-trading fees

Interactive Brokers has low non-trading fees.

Interactive Brokers non-trading fees
TradeStation Interactive Brokers tastyworks Trading 212 Alpaca Trading
Account fee No No No No No
Inactivity fee Yes No No No No
Withdrawal fee $0 $0 $0 $0 $0

Read more about brokerage fees in our dedicated article if you want to expand your knowledge.

tastyworks Logo

#3 Best brokers for IPO investment
tastyworks

tastyworks is a young, up-and-coming US broker focusing on options trading. It is regulated by the top-tier Securities and Exchange Commission (SEC), the Financial Industry Regulatory Authority (FINRA) and the Australian Securities and Investments Commission (ASIC) for Australian clients.

The people behind tastyworks are the same experts who built the thinkorswim trading platform, now operated by TD Ameritrade. tastyworks is privately owned; it was established in 2017 and is headquartered in Chicago.

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#3 tastyworks
US stock fees

tastyworks US stock trading fees are low.

When you're investing in an IPO, either by taking part in the IPO itself or buying shares after they have been listed, you are basically trading the stock, which carries a fee. It's not so easy to compare trading fees for US stocks. So instead of compiling complicated fee tables, we compared brokers by calculating all the fees of a typical trade in the US.

A typical trade in this case means buying stocks for $2,000, holding them for a week and then selling them. As most IPO prices are usually well above $20 per share, this means trading less than 100 shares of a stock.

This catch-all benchmark fee includes commissions and spreads for all brokers.

Here is the verdict:

tastyworks stock trading fees
TradeStation Interactive Brokers tastyworks Trading 212 Alpaca Trading
US stock $1.0 $1.0 $0.0 $0.0 $0.0

All spreads and commissions for opening a position, holding it for a week, and then closing it.

Non-trading fees

tastyworks has low non-trading fees.

tastyworks non-trading fees
TradeStation Interactive Brokers tastyworks Trading 212 Alpaca Trading
Account fee No No No No No
Inactivity fee Yes No No No No
Withdrawal fee $0 $0 $0 $0 $0

Read more about brokerage fees in our dedicated article if you want to expand your knowledge.

Trading 212 Logo

#4 Best brokers for IPO investment
Trading 212

Trading 212 is onboarding clients without a waiting list from the EEA region only. Customers from other eligible countries can join Trading 212's waiting list, but it may take a while until onboarding restrictions are lifted and the waiting list is scrapped.

Trading 212 is a global CFD broker, but clients can also trade stocks and ETFs free of charge. The company was founded in 2004 and is now headquartered in London. Trading 212 is regulated by the UK Financial Conduct Authority (FCA), the Cypriot Cyprus Securities and Exchange Commission (CySEC), and the Bulgarian Financial Supervision Commission (FSC).

Check out our Trading 212 review tailored to the needs of beginner investors and traders.

Trading 212 is considered safe as it is regulated by the top-tier FCA.

Disclaimer: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

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68% of retail CFD accounts lose money

#4 Trading 212
US stock fees

Trading 212 US stock trading fees are low.

When you're investing in an IPO, either by taking part in the IPO itself or buying shares after they have been listed, you are basically trading the stock, which carries a fee. It's not so easy to compare trading fees for US stocks. So instead of compiling complicated fee tables, we compared brokers by calculating all the fees of a typical trade in the US.

A typical trade in this case means buying stocks for $2,000, holding them for a week and then selling them. As most IPO prices are usually well above $20 per share, this means trading less than 100 shares of a stock.

This catch-all benchmark fee includes commissions and spreads for all brokers.

Here is the verdict:

Trading 212 stock trading fees
TradeStation Interactive Brokers tastyworks Trading 212 Alpaca Trading
US stock $1.0 $1.0 $0.0 $0.0 $0.0

All spreads and commissions for opening a position, holding it for a week, and then closing it.

Non-trading fees

Trading 212 has low non-trading fees.

Trading 212 non-trading fees
TradeStation Interactive Brokers tastyworks Trading 212 Alpaca Trading
Account fee No No No No No
Inactivity fee Yes No No No No
Withdrawal fee $0 $0 $0 $0 $0

Read more about brokerage fees in our dedicated article if you want to expand your knowledge.

Alpaca Trading Logo

#5 Best brokers for IPO investment
Alpaca Trading

Alpaca Trading is a commission-free API stockbroker founded in 2015. Alpaca is based in San Mateo, CA. It is regulated by the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA), both top-tier regulators that bolster Alpaca Trading's safety for investors and traders.

Alpaca provides access to US stock markets, historical data, and fundamental data through their API. Alpaca's founders believe their software allows retail traders to capitalize on the machine learning and automation that historically only institutional investors have been able to use. Coders have the opportunity to build their own algorithms and contribute to the Alpaca developer community. Alpaca founders have expressed interest in eventually opening up pre-made algorithms to non-coders, but for now, their platform also includes capabilities for manual order-entry and research.

 

Visit broker

#5 Alpaca Trading
US stock fees

Alpaca Trading US stock trading fees are low.

When you're investing in an IPO, either by taking part in the IPO itself or buying shares after they have been listed, you are basically trading the stock, which carries a fee. It's not so easy to compare trading fees for US stocks. So instead of compiling complicated fee tables, we compared brokers by calculating all the fees of a typical trade in the US.

A typical trade in this case means buying stocks for $2,000, holding them for a week and then selling them. As most IPO prices are usually well above $20 per share, this means trading less than 100 shares of a stock.

This catch-all benchmark fee includes commissions and spreads for all brokers.

Here is the verdict:

Alpaca Trading stock trading fees
TradeStation Interactive Brokers tastyworks Trading 212 Alpaca Trading
US stock $1.0 $1.0 $0.0 $0.0 $0.0

All spreads and commissions for opening a position, holding it for a week, and then closing it.

Non-trading fees

Alpaca Trading has low non-trading fees.

Alpaca Trading non-trading fees
TradeStation Interactive Brokers tastyworks Trading 212 Alpaca Trading
Account fee No No No No No
Inactivity fee Yes No No No No
Withdrawal fee $0 $0 $0 $0 $0

Read more about brokerage fees in our dedicated article if you want to expand your knowledge.

Best brokers for IPO for Europeans in 2022
What makes a good broker for IPO investing?

Now that you know the top 5, you're probably wondering how we arrived at this list. Let us walk you through the selection process. What are the most important factors when picking the best online brokers for IPOs?

We selected the top brokers based on the access they provide to IPOs and the speed by which they add the new stocks to their trading platforms.

How did BrokerChooser pick the best online brokers for IPOs?

At BrokerChooser, we test online brokers based on almost 500 criteria, with real accounts and real money. As we don't want to overwhelm you, we will list only the top six criteria we considered. These are:

  • Access to IPOs: The key criteria is if you can have access to IPOs in their initial phase via the broker. We grouped brokers into three categories: availability of US IPOs without any costs or constraints; availability of US IPOs with some costs or constraints; and US IPOs not available.
  • Speed to start of trading: The second most important factor is how quickly the broker lists the newly issued shares in its system, i.e. how fast you can start trading the stock. We considered a listing fast if trading of new shares after an IPO was available within 2 days.
  • Fees: The fees of a typical US equity trade can be 50 times higher at one online broker than at another. Thus, it's definitely worth checking these fees to find the best offers.
  • Account opening: Some online brokers require a minimum deposit to start investing, while others don't. Make sure to check these requirements at the best online brokers.
  • Deposit and withdrawal: At some online brokers, adding and withdrawing funds can take 5 times longer and cost much more than at others.
  • Trading platform: A user-friendly and well-equipped trading platform can significantly increase your trading comfort.

Best brokers for IPO for Europeans in 2022
What is an IPO?

So what actually is an IPO? IPO stands for initial public offering. It is a transaction when a private company offers its shares to the public for the first time in a new stock issuance. The company is “going public,” which means that its private ownership becomes public and its shares will be listed and traded on a stock exchange.

Why would a private company choose to go public? The main reasons are usually to raise funds to finance its expansion, to provide an exit for early investors, such as venture capital firms and angel investors, and to increase visibility.

The IPO market has only grown hotter and more digital in the wake of the coronavirus pandemic. The market boom is powered by investor demand for new offerings, as well as ample liquidity. Investor appetite for young growth firms seems insatiable, and dramatic price increases seen after some high-profile IPOs have only further boosted demand.

But that doesn't mean that IPOs are always good investments. They don't guarantee huge profits at little risk. If you want to invest in an IPO make sure, as always, that you are well-informed, as these offerings are considered risky and speculative investments. These stocks lack a trading history, a track record of reporting to investors and research coverage.

How can you invest in the next hot IPO? To learn more about this topic, read our detailed article on how to invest in an IPO.

Best brokers for IPO for Europeans in 2022
Bottom line

We've shown you the details, now let's zoom out again. Here are the best brokers for investing in IPOs in 2022:

Best brokers for IPO investment in 2022
TradeStation Interactive Brokers tastyworks Trading 212 Alpaca Trading
Access to IPOs Great Poor Poor Poor Poor
Speed to start of trading Great Great Great Great Great
US stock fees class Low Low Low Low Low
Account opening score 5.0 stars 3.2 stars 5.0 stars 4.5 stars 4.8 stars
Deposit and withdrawal score 2.3 stars 3.0 stars 1.9 stars 4.3 stars 1.8 stars
Web platform score 4.3 stars 4.0 stars 3.4 stars 4.4 stars 3.7 stars

TradeStation is our winner, the best broker for IPO investments in 2022. Great web and mobile trading platform. Low trading fees. High-quality research and education tools.
Pick the winner or any runner-up, and take the next step in your investment journey. Let us know what you think in the comments section.
Still unsure which broker to choose? Use our broker finder tool to find the best broker for you, or learn more about investing your money.

Author of this article

András Iván

Author of this article

Andras has over 5 years of experience in investing and trading equities, options and bonds. He believes that active trading and a more passive investing approach both have merits and everyone can find a strategy that fits their needs. He's eager to help identify the characteristics of specific brokers, so the best match can be found for each client.

András Iván

Broker Analyst

Andras has over 5 years of experience in investing and trading equities, options and bonds. He believes that active trading and a more passive investing approach both have merits and everyone can find a strategy that fits their needs. He's eager to help identify the characteristics of specific brokers, so the best match can be found for each client.

Everything you find on BrokerChooser is based on reliable data and unbiased information. We combine our 10+ years finance experience with readers feedback. Read more about our methodology

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