Is Davy Select free?
Davy Select does charge a commission for real stock trading on US markets, so in this sense it is not a free-to-trade broker. However, it might still be a reasonable choice for some of you, as there are many other aspects other than commissions that are important when you choose a broker. If you wish to stick with Davy Select though, then you will find the fees they charge below. Alternatively, you could check our article detailing the best zero commission brokers and how their apps scored in our test.
We should note that the payment-for-order-flow model, which is used by some zero-commission brokers to generate income (rather than relying on commissions), could potentially create a conflict of interest between you and your broker. This could result in trade execution (like routing your orders to specific market makers) that might be unfavorable for you under certain market conditions, especially when using market orders (as opposed to limit orders, which seem to be less affected).
Davy Select fees
Overview of Davy Select fees and charges
Davy Select's fees are considered high. This is because of high fees across multiple fee types. It's important to be aware of this and to decide whether other advantages of Davy Select can still make it a good choice for you. Such features may include its research tools, education section or the general user experience you get on its trading platforms.
Here's a high-level overview of Davy Select's fees
| Assets | Fee level | Fee terms |
|---|---|---|
| US stock fee | High | 0.06% of trade value plus €25 flat settlement fee |
| EURUSD fee | - | Not available |
| US mutual fund fees | Average | 0.5%of trade value with a minimum of €14.99 |
| Inactivity fee | High | €50 per quarter, but all commissions you paid are deducted from this amount |
Davy Select fees
Davy Select fees explained
Online brokerages in general charge much lower brokerage fees than traditional brokerages do - this is largely because online brokerages' businesses can be much better scaled: from a purely technical standpoint, it doesn't make that much of a difference for them if they have 100 or 5,000 clients.
This is not to say, however, that they don't charge any fees at all. They make money by charging you various rates for various actions or events. Usually you need to keep an eye on the following three types of fees:
- Trading fees - these are brokerage fees that you pay when you actually carry out a trade, like buying an Apple share or an ETF. What you pay is either a commission, a spread or a financing rate. Some brokers apply all of these.
- A commission is either fixed or based on the traded volume.
- A spread is the difference between the buy price and the sell price.
- A financing rate or overnight rate is charged when you hold your leveraged positions for more than one day.
- Non-trading fees. These are usually related to some operations you carry out in your account, such as depositing money, withdrawing money, or not trading for an extended period.
We compare Davy Select fees with its closest competitors, DEGIRO and Interactive Brokers.
Davy Select fees
Davy Select trading fees
We consider Davy Select's trading fees high, as they exceed those of most competitors.
Let's break down trading fees according to the different asset classes available at Davy Select.
Trading fees
Davy Select's trading fees are high.
Stock fees and ETF fees
Davy Select has high stock trading fees.
| Davy Select | DEGIRO | Interactive Brokers | |
|---|---|---|---|
| US stock | $28.0 | $2.1 | $1.0 |
| UK stock | $16.0 | $3.4 | $3.7 |
| German stock | $28.0 | $5.2 | $3.2 |
Fund fees
Davy Select fund fees are average.
| Davy Select | DEGIRO | Interactive Brokers | |
|---|---|---|---|
| Mutual fund | $16.0 | $4.2 | $15.0 |
| EU mutual fund | - | $10.3 | $4.4 |
Bond fees
Davy Select has high bond fees.
| Davy Select | DEGIRO | Interactive Brokers | |
|---|---|---|---|
| US Treasury bond | $133.8 | - | $5.0 |
| EU government bond | $107.0 | $3.2 | $10.0 |
Currency conversion fee
Davy Select will charge a Currency Conversion Fee for all trades on instruments denominated in a currency different to the currency of your account. The fee is charged as the following: 1% mark-up.
Davy Select fees
Davy Select non-trading fees
Some of Davy Select's non-trading fees are average.
Non-trading fees include various brokerage fees and charges at Davy Select that are not related to buying or selling assets. This can be a withdrawal fee, deposit fee, inactivity fee or account fee.
| Davy Select | DEGIRO | Interactive Brokers | |
|---|---|---|---|
| Withdrawal fee | $0 | $0 | $0 |
| Deposit fee | $0 | $0 | $0 |
| Inactivity fee | Yes | No | No |
| Account fee | No | No | No |
Davy Select fees
Davy Select deposit fee
Usually, brokers don't charge anything for deposits, and Davy Select is no different.
| Davy Select | DEGIRO | Interactive Brokers | |
|---|---|---|---|
| Bank transfer | Yes | Yes | Yes |
| Credit/debit card | No | No | No |
| Electronic wallets | No | No | No |
| Deposit fee | $0 | $0 | $0 |
Davy Select fees
Davy Select withdrawal fee
Davy Select generally doesn't charge a withdrawal fee.
| Davy Select | DEGIRO | Interactive Brokers | |
|---|---|---|---|
| Bank transfer | Yes | Yes | Yes |
| Credit/debit card | No | No | No |
| Electronic wallets | No | No | No |
| Withdrawal fee for bank transfer | $0 | $0 | $0 |
Davy Select fees
Davy Select inactivity fee
Davy Select does apply an inactivity fee and it is €50 per quarter, but all commissions you paid are deducted from this amount. Keep this in mind to avoid getting charged after a longer idle period. The fact that Davy Select charges an inactivity fee makes it less ideal for you if you are a buy-and-hold investor.
The inactivity fee charged by Davy Select is high.
| Davy Select | DEGIRO | Interactive Brokers | |
|---|---|---|---|
| Inactivity fee | Yes | No | No |
| Inactivity fee | €50 per quarter, but all commissions you paid are deducted from this amount | No inactivity fee | No inactivity fee |
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