We received numerous exciting questions and comments from our visitors, so we sat down to collect answers to everyone's questions!
Below, we summarized the most frequently asked questions, as we believe that the answers are useful for everyone.
The questions we collected were updated as of 2021. 05. 13. 14:00 GMT / 09:00 EST
If you have any further questions, feel free to comment under this article, or drop us an email at [email protected] We plan to update this page regularly in the future.
Stay safe! :)
The BrokerChooser Team
FAQ - Frequently asked questions
General questions about brokers
Question: How can I rank or filter the brokers by safety?
- Broker transparency - is it listed on an exchange and does it provide public financial reports?
- Broker's Background - does the broker have a banking license?
- Broker customer insurance - Are customers protected against fraud or negative balances?
- Broker's regulation - Is the broker regulated through global licenses and authorities like the ASIC or FCA.
Question: Is there a broker that provides portfolio management services to customers?
BrokerChoosers's answer: It depends on which brokers are available in your country. We would recommend checking the following brokers as they are available in many countries and provide asset management services:
- Interactive Brokers's Asset Management service - you can read here more (bottom of the section): Interactive Brokers Review
- Saxo Bank's Saxo Select service - you can read here more (bottom of the section): Saxo Bank Review
Question: Do you have any suggestions for a Broker who educates beginner investors?
BrokerChoosers's answer: We would recommend checking our article, Best broker for beginners. It's a general list, therefore certain brokers might be not available in your country. Also, we recommend checking our How to invest section, where you can find educational articles.
Question: Could you please share the best-discounted broker in Europe who also provides free API trading?
BrokerChoosers's answer: We have shortlisted 5 brokers that are the best free APIs trading platforms. Other than Alpaca, the other brokers are available in Europe. Within the article, you will find links to the brokers we have recommended.
Question: Do you have any suggestions for a good broker with cryptocurrencies?
BrokerChoosers's answer: We would recommend checking the following article on the Best brokers for crypto trading. We provide five of the best-certified brokers for cryptocurrencies taking into consideration aspects like security and returns.
Question: Could you please offer a broker who allows after-hours trading in the UK?
BrokerChoosers's answer: We would recommend checking the following brokers as they provide after-hours trading and available in the UK:
Question: Do you have a specific list of brokers that do offer ISA accounts for UK residents and a comparison between those?
BrokerChoosers's answer: We are working on including ISA availability in our reviews. Until then, we have gathered all the UK brokers that have ISA accounts:
- Saxo Bank: Saxo Bank is a Danish investment bank, providing global services. It has a great platform and access to plenty of markets/products, but the minimum deposit is high resting at $10,000 for individuals. Their ISA offer is available here.
- AJ Bell Youinvest: AJ Bell is one of the biggest discount brokers in the UK. The account opening is fast, and the platform is easy to use. The product selection is limited to UK, USA, and other European exchanges. Their ISA offer is available here.
- Interactive Investor: Interactive Investor is one of the major brokers available only for UK residents. The platform is user-friendly, with excellent customer service. On the other hand, their product portfolio is also quite limited, and they charge a monthly account fee. For ISA info, click here.
- Charles Stanley Direct: Charles Stanley Direct might be good for you if you look for low fund fees and great customer service. However, the research tools and the product portfolio are limited to UK products. For more ISA info, click here.
- Freetrade: Freetrade is a unique broker on this list. It is considered a new-wave, fintech (financial technology) broker. Stock trading is free, but ISA accounts have a GBP 3 monthly fee. It is only available via their mobile app. Read more about their ISA offer here.
- Hargreaves Lansdown: Lastly, Hargreaves Lansdown is one of the more established brokers in the UK. The trading platforms are easy to use, with great customer service. On the other hand, GBP is the only account currency, and there's a conversion fee if you have another currency. For ISA info, click here.
Question: Which is the best alternative to a Trading212 ISA account?
BrokerChooser's answer: The following brokers can be alternatives to Trading 212's ISA account:
- Freetrade - provides commission-free stock/ETF investments. The ISA account has a monthly 0.10% (min £8). They have no website, so you will have to use the mobile app.
- Saxo Bank - has average trading fees (e.g. a trade on LSE costs 0.10% with a min of £8). The trading platform has an excellent user interface making it easy to use. One consideration for potential customers is that Saxo Bank charges a custody fee and an inactivity fee.
- IG - has also great trading platform and average trading fees (e.g. £8 per trade if you did 0-2 trades in the previous month). However, there is a £24 quarterly custody fee, which is charged if you hold share-dealing or ISA investments at the end of the quarter.
- Interactive Investor - has average trading fees. (e.g. a trade on LSE costs £7.99 per trade in Investor package) However, there is a monthly fee of £9.99. .
- AJ Bell Youinvest - has average trading fees. (e.g. a trade on LSE costs £9.95 per trade if you didn't trade ). However, there is a monthly fee of £9.99.
You can check these brokers in this comparison table.
Question: Which brokers are available for Nigerians?
BrokerChooser's answer: These brokers can be used in Nigeria:
Question: What is the funding minimum?
BrokersChooser's answer: We recommend a minimum amount of $2,500 for a cash account; however you are able to fund with less. For margin accounts, the required minimum to maintain is $2,000." You can find it here.
Question: Which brokers in UK available for GME stocks?
BrokerChooser's answer: There are many brokers through which you can purchase GME stock in the UK:
- Freetrade - provides commission-free stock/ETF investments. There is only a mobile platform, and they have no minimum deposit. However, Freetrade charges heavy conversions rates for GBP to USD transactions.
- DEGIRO - has low fees and no minimum deposit. Also, the research tools and trading platform are well designed for ease of use..
- Saxo Bank - has average trading fees (e.g. a trade on LSE costs 0.10% with a min of £8). Saxo's trading platform is well built facilitating your trading. They do charge an inactivity fee and a custody fee.
- Interactive Investor - has average trading fees. (e.g. a trade on LSE costs £7.99 per trade in Investor package) However, there is a monthly fee of £9.99. The trading platform is intuitive and easy to use.
- AJ Bell Youinvest - has average trading fees. (e.g. a trade on LSE costs £9.95 per trade if you didn't trade ). However, there is a monthly fee of £9.99. The trading platform is well designed making your life simple.
You can find a detailed analysis here.
FAQ - Frequently asked questions
Questions about brokerage accounts
Question: Can I have a second profile to invest some of my children's money on my behalf and then pass the profile on to them upon completing 18 years?
BrokerChooser's answer: The account type you're looking for is called custody/minor account type. Unfortunately, most brokers in Europe don't allow this account type. For example, DEGIRO used to provide this account type but then cancelled it. I would recommend checking Hargreaves Lansdown, a UK-based stockbroker. It accepts mainly UK clients but can serve non-UK clients as well. Hargreaves Lansdown provides custody/minor accounts, you can click here for more information.
Question: Can a UK resident open a USD account at Saxo and hold USD to trade US stocks?
BrokerChooser's answer: Yes, a UK resident can open a USD account at Saxo - if you'd like to open an account in another currency, you have to look for something called a "sub-account". They can be added to your main account: You can read more about this here.
Question: Does Interactive Brokers offer a demo account to view the platform?
BrokerChooser's answer: Yes, Interactive Brokers provides a demo trading service. However, it is only available once you have applied for a real account. Feel free to read this guide, where IB details where to apply for a demo - aka. 'Paper Trading' - account within your real account.
Question: Does ChoiceTrade offer a demo account to view the platform?
BrokerChooser's answer: Yes, ChoiceTrade provides a demo trading service
Question: Could you recommend UK brokers that provide demo account?
BrokerChooser's answer: Hi there, there are many brokers available in the UK and providing demo/paper account. Here are brokers and a few descriptions about them:
- Interactive Investor - one of the biggest stockbrokers in the UK. One quick note, it gives access to non-UK stocks/ETFs.
- Hargreaves Lansdown - is quite similar to Interactive Investor. The platform is suitable for long-term investors. Remember, you can access non-UK stocks/ETFs.
- Interactive Brokers - is more suitable for traders. You can use a demo/paper account only for a desktop trading platform. The user interface is complicated, so using the demo is a great way to get started.
- Saxo Bank - provides a demo account for 20 days, but it has a well-designed trading platform with advanced trading tools. Through Saxo Bank, you can check assets from many markets, not limited to US, UK, and EU...
- TradeStation - provides a demo account, but you can only access the US market.
There are other platforms that focus primarily on CFDs with demos:
- IG - has a user-friendly trading platform, suitable for all traders. Besides CFDs, you can access real stocks.
- XTB - is similar to IG, but the trading platform is more complex.
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FAQ - Frequently asked questions
Questions about investing
Question: What are your thoughts on eToro for long-term investing? My plan is to invest in ETFs. Do I have other options?
BrokerChooser's answer: Hi there, it depends on your country of residence which broker you can open an account with. eToro has great tools for investments, e.g. an easy platform or commission-free stock/ETF options. However, there are a limited number of ETFs, and you can hold your cash in USD only. The last problem is that there is an inactivity fee. If you don't like these terms, the following brokers are available globally and suitable to long term investors:
- Zacks Trade - is an Interactive Brokers clone that is subject to US laws, therefore the US investor protection is applicable ($500k securities, including a limit of $250k cash). This situation results in no investor insurance charges.
- Firstrade - is also a US-based company, providing a US investor protection scheme. You won't have to pay any fees when trading with Firstrade. However, it provides access only to the US market.
- TradeStation Global - is similar to Interactive Brokers therefore it accepts customers from the whole world. You won't have to pay inactivity fees and the other charges are minimal. However, the desktop trading platform has a complicated user interface.
You can find more analyses here. If you have any questions, please send us a comment or email.
Question: Are there commission-free brokers in the EU? Are there any alternatives to eToro and Revolut?
BrokerChooser's answer: Yes! In Europe, while limited, there are a number of zero-commission brokers. Besides the brokers you mentioned, the following brokers are available in the EU and charge zero commission:
- Passfolio - is a US-based stockbroker, providing the US investor protection scheme ($500k for securities and $250k for cash). Unfortunately, it provides only stocks for EU customers.
- tastyworks - is a US stockbroker, providing stocks/ETFs investments for no commission. Also, the US protection scheme applies to tastyworks ($500k for securities with a limit of $250k for cash). The broker's design is focused on options trading. That emphasis makes tastywork complex for regular stock investing. Also, only the US market is available.
- Firstrade - it's a US stockbroker. Similar to Passfolio and tastyworks, Firstrade provides a US investor protection scheme. However, your options are limited to the US markets.
You can find detailed analyses here. Please keep in mind that even if they're zero-commission brokers, there are other costs that exist, like fees for withdrawal or fees due to potential lower-quality executions (we've found that in the US, brokers selling PFOF provide much worse execution quality/price improvement.). Please leave any comments or questions below, and we will be sure to get back to you.
Question: Do you think Interactive Brokers is good for long-term investing?
Absolutely! However, if you're not trading much, Interactive Brokers's inactivity fee of $10/month could be problematic for you. In that case, I'd have a look at DEGIRO which doesn't have an inactivity fee. Also, I'd highlight that the account opening process is very easy with DEGIRO. See how they compare here.
Question: How can I start investing?
To trade first, you have to be over your local legal age, which often reaches 21. Sadly up until that point, you won't be able to open a real account, but you can try out demo accounts, which is a great way to start your first steps in trading. If you are still interested, I'd recommend you check out our 'How to invest' articles here. There are quite a few articles on basic financial knowledge which can help you guide in this world. Take a look at 'How to buy shares' or 'How to invest in stocks' especially.
Question: Which broker do you think is suitable for trading gold, copper, and other metals in Italy?
There are different forms you can trade gold and other commodities, such as ETF/ETC, futures, or CFD. If you plan to buy ETFs/ETCs, I would recommend checking the following brokers as they low ETF/ETC fees and available in Italy:
If you plan to trade futures, We would recommend checking the following brokers as they have low futures fees and are available in Italy:
If you plan to trade CFDs, We would advise looking at these brokers as they offer a wide range of CFDs and are available in Italy:
Please send us an email if you have any questions or comments. We love to hear back from our clients and help in any way possible with your investment journey.