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Tag: ETF

  • What Is an ETF? A European Investor’s Guide for 2026

    What is an ETF? An ETF (exchange-traded fund) is a basket of investments that trades on the stock exchange like a single stock. You buy one share and own a slice of dozens, hundreds, or thousands of companies. If you invest from Europe, though, there is more to know than most beginner guides cover: UCITS rules, accumulating versus distributing structures, synthetic replication, and how to decode those long, confusing fund names.

    Key Takeaways

    • An ETF is a fund that tracks an index (like the S&P 500 or MSCI World) and trades on a stock exchange. You buy and sell it through your broker, the same way you would a stock.
    • European investors must buy UCITS ETFs: funds that comply with EU investor protection rules. You cannot buy US-domiciled ETFs (like SPY or VOO) due to the PRIIPs regulation.
    • The choice between accumulating and distributing ETFs matters for taxes. Accumulating ETFs reinvest dividends automatically; distributing ETFs pay them out as cash. In most European countries, accumulating is more tax-efficient.
    • ETFs cost a fraction of what active funds charge. A typical UCITS index ETF charges 0.07%–0.25% per year. The average actively managed European fund charges 1.5%–2.0%. Over 30 years, that difference compounds into tens of thousands of euros.
    • You can start buying ETFs from a European brokerage account with as little as €1 (fractional shares) or around €50–100 for a full share of most broad index ETFs.

    How an ETF Works

    Think of an ETF as a container. Inside the container sit the actual investments: stocks, bonds, commodities, or a mix. The container itself is listed on a stock exchange with its own ticker symbol and price. You can buy or sell it anytime the exchange is open.

    Most ETFs are index funds. They do not try to pick winners. Instead, they copy a specific index, a predefined list of companies weighted by market capitalisation. The MSCI World index, for example, contains around 1,300 companies from 23 developed countries. An ETF tracking the MSCI World holds shares in all of those companies in the same proportions. When the index changes its composition, the ETF adjusts automatically.

    This is different from an actively managed fund, where a fund manager decides what to buy and sell. The manager charges higher fees for this service. The track record is poor: the S&P SPIVA Europe scorecard shows that over 15 years, more than 70% of active European equity funds fail to beat their benchmark index. ETFs remove the fund manager and the fees that come with them.

    The creation and redemption mechanism

    Large institutional players called Authorised Participants (APs) can create new ETF shares by delivering baskets of the underlying stocks to the fund provider, or redeem ETF shares in exchange for those stocks. This arbitrage mechanism keeps the ETF’s market price aligned with the value of its holdings (the net asset value, or NAV). When the ETF price drifts above NAV, APs create new shares and push the price down. When it drops below, they redeem shares and push it up. The practical effect: you pay close to fair value for an ETF at any given moment.

    Why European Investors Must Buy UCITS ETFs

    If you are based in the EU or EEA, you need to know one acronym: UCITS. It stands for Undertakings for Collective Investment in Transferable Securities, which is as opaque as it sounds. In practice, UCITS is the EU’s regulatory framework for investment funds sold to retail investors. It sets rules on diversification, transparency, and investor protection.

    A UCITS ETF must:

    • Publish a Key Information Document (KID) in the local language of each country where it is sold
    • Limit single-stock exposure to no more than 10% of the fund, and all positions above 5% combined cannot exceed 40%
    • Hold fund assets separately from the provider’s own assets (so if iShares or Vanguard went bankrupt, your money in the ETF would be ring-fenced)
    • Report regularly on holdings, costs, and performance

    The EU’s PRIIPs regulation requires that any “packaged” investment product sold to retail investors comes with a KID. US-domiciled ETFs (like SPY, VOO, or QQQ) do not produce KIDs. European brokers are legally required to block you from buying them.

    Every major US index has a UCITS equivalent. The S&P 500 has the iShares Core S&P 500 UCITS ETF (CSPX) and the Vanguard S&P 500 UCITS ETF (VUAA). The NASDAQ-100 has the iShares NASDAQ 100 UCITS ETF (CNDX). For global exposure, there is the Vanguard FTSE All-World UCITS ETF (VWCE). These funds are domiciled in Ireland or Luxembourg, comply with all EU rules, and trade on European exchanges like Xetra, Euronext, and Borsa Italiana.

    Our guide on how to buy US stocks in Europe covers this distinction further, including why individual US stocks are not affected by PRIIPs.

    Accumulating vs Distributing ETFs

    This is the most European-specific decision you will make as an ETF investor. Most global guides skip it because it barely matters in the US.

    When companies inside an ETF pay dividends, the fund collects them. What happens next depends on the ETF structure:

    • Distributing ETFs (sometimes marked “Dist” or “D”) pay those dividends out to you as cash, typically quarterly or semi-annually. You see the money arrive in your brokerage account.
    • Accumulating ETFs (marked “Acc” or “C”) reinvest the dividends back into the fund automatically. No cash hits your account. Instead, the ETF’s share price grows slightly faster because the dividends are compounding inside the fund.

    The reason this matters is taxation.

    In most European countries, dividends paid out to you are taxed as income in the year you receive them. If you hold a distributing ETF that pays €500 in dividends and your country taxes dividends at 26% (Italy), 30% (Belgium, France via the PFU), or 26.375% (Germany including Solidaritätszuschlag), you owe that tax immediately. Even if you plan to reinvest the dividends yourself, you pay tax first, then reinvest what is left.

    An accumulating ETF avoids this drag in most countries. The dividends never reach you. They stay inside the fund. You only face tax when you eventually sell your shares, and that is typically taxed as a capital gain, which may carry a lower rate or qualify for exemptions depending on your country and how long you held.

    There are exceptions. Germany applies a Vorabpauschale (advance lump sum) to accumulating funds, creating a small annual tax even without distributions. Belgium as of January 2026 taxes capital gains on financial assets at 10% above a €10,000 annual exemption. But the general principle holds: accumulating ETFs offer tax deferral, which means more of your money compounds for longer.

    Our view: If you are investing for the long term (10+ years) and do not need dividend income now, choose accumulating. If you want regular cash flow, perhaps in retirement, distributing makes sense. Check your country’s specific tax treatment before deciding.

    Physical vs Synthetic Replication

    An ETF can hold the investments it tracks in two ways.

    Physical replication (also called “direct” replication): The ETF buys and holds the actual stocks or bonds in the index. A physically replicated S&P 500 ETF owns shares of Apple, Microsoft, Amazon, and every other company in the index. Most large ETFs use this method. A variant called optimised sampling holds a representative subset of the index (useful when the full index has thousands of tiny positions).

    Synthetic replication: The ETF does not hold the underlying stocks directly. Instead, it enters into a swap agreement with a counterparty bank. The bank promises to deliver the index return, and the ETF holds a basket of collateral. This introduces counterparty risk: if the swap counterparty defaults, the ETF relies on its collateral. UCITS rules limit uncollaterlised swap exposure to 10% of NAV.

    When does synthetic make sense? For hard-to-access markets, for certain commodity exposures, or when it can reduce tracking error and withholding tax drag. Some synthetic ETFs on US indices achieve better after-tax returns than physical ones because the swap structure avoids the 15% US dividend withholding tax that even Irish-domiciled physical ETFs pay at the fund level.

    For most European beginners: physical replication is the default choice. It is simpler, more transparent, and the counterparty risk question does not apply. Look at synthetic only if you understand why it might deliver a better net return for your specific situation.

    How to Read an ETF Name

    ETF names look like alphabet soup. They follow a pattern, though. Take a real example:

    iShares Core MSCI World UCITS ETF USD (Acc)

    • iShares — the provider (BlackRock’s ETF brand)
    • Core — the product line (iShares uses “Core” for its cheapest, broadest funds)
    • MSCI World — the index the ETF tracks
    • UCITS — confirms compliance with EU regulation
    • ETF — it is an exchange-traded fund
    • USD — the fund currency (the currency in which the fund’s NAV is calculated, not necessarily the currency you buy it in)
    • (Acc) — accumulating structure (dividends reinvested)

    What is an ETF: IBKR mobile app showing VWCE ETF quote on Xetra with ticker, price, and bid-ask spread

    VWCE on IBKR’s mobile app. The header reads “VWCE IBIS2” — that tells you the ticker (VWCE) and the exchange (IBIS2, which is Xetra). Below: price, bid-ask spread, and key stats.

    The same ETF might trade on multiple exchanges under different tickers: IWDA on Euronext Amsterdam (in USD), SWDA on London Stock Exchange (in USD), EUNL on Xetra (in EUR). These are all the same fund. You are choosing which exchange and currency to trade in. The underlying holdings are identical.

    Every UCITS ETF also has an ISIN (International Securities Identification Number) that uniquely identifies it regardless of exchange or ticker. For the fund above, the ISIN is IE00B4L5Y983. When you are comparing ETFs, the ISIN removes all ambiguity.

    What an ETF Costs

    ETF costs come in layers. Knowing them prevents surprises.

    TER (Total Expense Ratio)

    The TER is the annual fee the fund charges, expressed as a percentage of your investment. It is deducted automatically from the fund’s value. You never see a bill. A broad MSCI World UCITS ETF typically charges 0.10%–0.20% per year. An S&P 500 UCITS ETF can be as low as 0.03%–0.07%. Compare this to the average European actively managed equity fund at 1.5%–2.0%.

    To put this in euros: on a €10,000 investment, a 0.12% TER costs you €12 per year. A 1.5% active fund fee costs €150. Over 30 years with compounding, that gap grows to tens of thousands of euros on a six-figure portfolio.

    Tracking difference

    The TER does not tell the full cost story. Tracking difference measures the actual gap between the ETF’s return and the index’s return over a given period. An ETF with a 0.20% TER might have a tracking difference of only 0.10% (because it earns revenue from securities lending) or 0.30% (because of transaction costs and withholding taxes). Tracking difference is the more honest cost measure, and you can find it on fund factsheets or on justETF or trackingdifferences.com.

    Trading costs

    These are broker fees, not fund fees. Every time you buy or sell an ETF, you pay a commission to your broker (anywhere from €0 to €3 depending on the broker and platform) plus a bid-ask spread (the small gap between the buy and sell price). For large, liquid ETFs like VWCE or CSPX, the spread is small, often 0.01%–0.05%. For niche or small ETFs, the spread can be wider.

    We compared broker costs in detail in our best brokers for European investors guide.

    Types of ETFs

    Not every ETF is a broad stock market index fund. The main categories break down as follows.

    Equity index ETFs (the core)

    The most popular for European investors track MSCI World (developed markets), FTSE All-World (developed + emerging), S&P 500 (US large cap), and MSCI Emerging Markets. If you are building a simple long-term portfolio, one or two of these form the backbone.

    Bond ETFs

    Bond ETFs hold government bonds, corporate bonds, or a mix. They add stability and income to a portfolio. European investors often look for euro-hedged versions to avoid currency risk, or euro-denominated government bond ETFs.

    Thematic and sector ETFs

    Sector and thematic ETFs target specific areas (technology, healthcare, clean energy) or investment themes (artificial intelligence, cybersecurity, ageing population). They concentrate your bets, and costs tend to be higher: 0.30%–0.65% TER is common. Useful as satellite positions, not as your core.

    Dividend ETFs

    Dividend ETFs track indices of high-dividend-paying companies. Popular in Europe for income-focused investors, but watch for the tax implications discussed in the accumulating vs distributing section above.

    Multi-asset ETFs

    Some ETFs combine stocks and bonds in a single fund, like the Vanguard LifeStrategy UCITS ETFs (available in 20/40/60/80% equity versions). These are one-fund portfolios that rebalance automatically.

    ETF vs Mutual Fund vs Stock: When to Use Each

    For most European investors building long-term wealth, ETFs are the default tool. Individual stocks are for people who want to actively research specific companies (we write stock reviews for those who do). Active mutual funds have lost ground to ETFs for years, and the data explains why.

    How to Buy Your First ETF in Europe

    Four steps, nothing complicated.

    1. Open a brokerage account

    You need a broker that gives you access to European exchanges (Xetra, Euronext, Borsa Italiana, etc.) where UCITS ETFs trade. The main options for European investors are Interactive Brokers, Degiro, Trade Republic, and Scalable Capital. We compared them all in our best brokers guide.

    2. Decide on your ETF

    For a first ETF, keep it simple. A single global equity index ETF gives you exposure to the entire developed world. The two most popular choices among European investors:

    • iShares Core MSCI World UCITS ETF (Acc) — ISIN: IE00B4L5Y983, TER: 0.20%, tracks ~1,300 companies in 23 developed countries
    • Vanguard FTSE All-World UCITS ETF (Acc) — ISIN: IE00BK5BQT80, TER: 0.19%, tracks ~4,200 companies in developed + emerging markets

    Both are accumulating, physically replicated, and domiciled in Ireland. Either one works as a core holding for a long-term portfolio.

    IBKR mobile app Fund Profile tab for VWCE showing Morningstar Silver rating and 4-star rating

    The Fund Profile tab for VWCE inside IBKR. Morningstar rates it Silver with 4 stars. You can check ratings like these before buying to compare funds.

    3. Place your order

    Search for the ETF by ISIN or ticker in your broker’s platform. Select the exchange you want to trade on (Xetra is the most liquid for many UCITS ETFs traded in EUR). Place a limit order at or near the current price. The trade settles in T+2 (two business days).

    Example: buying VWCE on Interactive Brokers. In the IBKR Client Portal or mobile app, type “VWCE” or the ISIN (IE00BK5BQT80) in the search bar. IBKR will show you multiple listings — pick the one on Xetra (IBIS2) if you want to trade in EUR. Click Trade, select Buy, enter the number of shares (or use the order value field for a euro amount). Set the order type to Limit, enter a price at or slightly above the current ask, and submit. IBKR charges 0.05% of the trade value on Xetra, with a minimum of €1.25 and a maximum of €29 — so a €5,000 ETF purchase costs you €2.50 in commission. The shares appear in your portfolio within seconds, and settlement completes in two business days. For a detailed walkthrough, see our IBKR review.

    IBKR mobile app showing VWCE ETF quote with live price chart on Xetra

    VWCE on IBKR, showing the live quote and price chart. The spread of 0.18 (0.128%) tells you this is a liquid ETF with tight trading costs.

    4. Automate if possible

    Several European brokers offer savings plans (Sparpläne in German) that automatically buy a fixed euro amount of your chosen ETF every month. Trade Republic and Scalable Capital offer these for free on many ETFs. Degiro offers a selection of commission-free ETFs. Automation removes emotion and builds the habit of consistent investing.

    Common Mistakes European ETF Investors Make

    Overcomplicating the portfolio

    You do not need 10 ETFs. A single global equity ETF covers over 1,300 companies across all sectors and geographies. Adding a second ETF for bonds or emerging markets is reasonable. Beyond that, every extra fund adds rebalancing work with diminishing diversification benefit. Many European investors hold one or two ETFs for their entire portfolio.

    Chasing past performance

    The thematic ETF that returned 40% last year might lose 30% next year. Broad indices are boring by design, and boring compounds well.

    Ignoring the tax implications of distributing ETFs

    Choosing a distributing ETF in a country with high dividend taxation means you lose a chunk of every dividend payment to tax, even if you reinvest. Check whether accumulating makes more sense in your tax jurisdiction before buying.

    Buying the wrong share class

    The same ETF can have an accumulating and a distributing version, an EUR-hedged and an unhedged version, and trade on multiple exchanges. Always verify the ISIN before you buy. The name alone is not enough. Two different ISINs can have very similar names but different structures.

    Trading too often

    ETFs trade like stocks, which makes it tempting to buy and sell based on market movements. Resist. Transaction costs, bid-ask spreads, and the tax events triggered by selling all eat into your returns. The optimal strategy for most people is to buy regularly and not sell for decades.

    Frequently Asked Questions

    Is an ETF safer than a stock?

    An ETF is more diversified than a single stock, which reduces the risk of one company destroying your portfolio. But ETFs still carry market risk. If the entire stock market drops 30%, your MSCI World ETF drops roughly 30% too. Diversification protects against company-specific risk, not market risk.

    Can I lose all my money in an ETF?

    For a broad index ETF to go to zero, every company in the index would have to go bankrupt simultaneously. This has never happened. Individual stocks can go to zero. Broad ETFs cannot, practically speaking. That said, they can and do lose significant value during market downturns: a 40%–50% drawdown is within the historical range for equity indices.

    What is the minimum amount to invest in an ETF?

    The price of one share. For the Vanguard FTSE All-World UCITS ETF, that is roughly €110–130. Some brokers like Trade Republic and Interactive Brokers offer fractional shares, allowing you to invest as little as €1. Monthly savings plans on many European brokers start from €1–25.

    Should I buy an ETF in EUR or USD?

    The trading currency does not affect your returns. Whether you buy IWDA in USD on Euronext Amsterdam or EUNL in EUR on Xetra, the underlying holdings are identical. Your real currency exposure is to the currencies of the companies in the index (mostly USD for an MSCI World ETF). The only difference is whether your broker needs to convert your EUR to USD before the trade, which may incur an FX fee. Buying in EUR on Xetra avoids that step.

    How are ETFs taxed in Europe?

    There is no single EU-wide tax treatment. Each country has its own rules for capital gains, dividends, and sometimes special provisions for ETFs (like Germany’s Vorabpauschale or France’s PEA wrapper). The general principle: you owe tax in your country of residence when you sell (capital gains) and possibly when you receive distributions. Consult your local tax authority or a tax advisor for specifics.

    What happens to my ETF if the provider (iShares, Vanguard) goes bankrupt?

    UCITS rules require that fund assets are held by an independent custodian (a large bank like State Street or BNP Paribas), separate from the fund provider. If iShares or Vanguard went under, the ETF’s holdings would still exist at the custodian. The fund would be liquidated or transferred to a new provider, and you would receive the value of your shares. Your investment is not lost.

    Disclaimer: This article is for informational purposes only and does not constitute investment, tax, or legal advice. ETFs carry market risk, including the potential loss of principal. Tax treatment depends on your individual circumstances and country of residence. Always consult a qualified advisor before making investment decisions.

    Some links in this article are affiliate links. If you open an account through these links, The Bourse Report may receive a commission, at no extra cost to you. See our full affiliate disclosure.

  • Degiro Review 2026: Low Fees, but Is It Enough?

    Degiro Review 2026: Low Fees, but Is It Enough?

    By Makkleod · Last updated:

    Degiro logo - Degiro review Europe 2026
    Degiro — one of Europe’s original low-cost brokers

    This Degiro review Europe 2026 Europe covers everything you need to know before opening an account in 2026. Degiro made cheap investing possible on the continent. For years, it was the broker European investors recommended to each other in Reddit threads, personal finance blogs, and office conversations. Open an account in ten minutes, buy an ETF for almost nothing, done.

    That was true in 2018. In 2026, the landscape looks different. Trade Republic and Scalable Capital charge €1 or less per trade and pay interest on your cash. IBKR gives you 150+ exchanges and the lowest FX rates in Europe. Degiro still works, and it still costs less than a traditional bank. But I went through the numbers carefully, and the verdict surprised me: for anyone opening a new account today, Degiro is no longer the obvious choice it once was. Rating: 7.5/10

    Key Takeaways

    • ETF Core Selection: €1 per trade on Tradegate, first monthly trade free per ETF
    • EU stock fees vary by country: €2 (France), €3 (NL, Ireland), €4.90 (Germany) per trade
    • US stock fees: €2 per trade (€1 commission + €1 handling), plus 0.25% FX conversion
    • No custody fees, no inactivity fees, no withdrawal fees
    • Regulated by BaFin (Germany), supervised by AFM/DNB (Netherlands)
    • €100,000 cash deposit guarantee (German scheme), €20,000 investor compensation
    • 3.5 million customers across 15 European countries
    • Best suited for buy-and-hold ETF investors with portfolios under €50,000 who prioritise simplicity

    Key Facts at a Glance

    Feature Details
    Founded 2008 (Amsterdam)
    Parent company flatexDEGIRO SE (publicly traded, FTK on Xetra)
    Primary regulator BaFin (Germany)
    Additional oversight AFM and DNB (Netherlands)
    Investor protection (cash) €100,000 (German Deposit Guarantee)
    Investor compensation Up to €20,000 (90% of loss)
    Available in 15 European countries
    Total customers ~3.5 million (Q4 2025)
    Minimum deposit €0.01 (effectively none)
    EU stock fee €2–€4.90 (varies by home exchange)
    US stock fee €2 (€1 + €1 handling)
    ETF Core Selection €1 per trade (first monthly trade free on Tradegate)
    FX conversion 0.25%
    Custody fee None
    Inactivity fee None
    Options Yes (€0.75 per contract)
    Futures Yes (€0.75 per contract)
    Interest on cash No

    Who Is Degiro Best For?

    European ETF investors on a budget. If you buy one or two ETFs per month through the Core Selection, your total trading cost is €1 per trade on Tradegate. The first trade each month in a given ETF is free. For a simple buy-and-hold strategy using UCITS ETFs, Degiro remains competitive.

    Investors who want a clean, minimal platform. Degiro’s interface does one thing and does it without clutter. You log in, you place an order, you leave. If IBKR’s four platforms and dozens of settings feel like overkill, Degiro is the opposite end of that spectrum.

    People who already have a Degiro account and are happy with it. Switching brokers involves transferring holdings, tax paperwork, and time. If your Degiro account is doing what you need, there is no urgent reason to move. The fee gap with newer competitors is real but not catastrophic for small portfolios.

    Who Should Look Elsewhere?

    Active traders. At €3–€4.90 per EU stock trade (depending on your country), 35 trades a year costs €105–€172 at Degiro versus €35 at Trade Republic. The gap widens with every trade.

    Global investors who buy US stocks regularly. Degiro charges 0.25% on every currency conversion. On €10,000 converted to dollars, that is €25. IBKR charges 0.03% for the same conversion: €3. Over a year of monthly conversions, the difference adds up to hundreds of euros.

    Anyone who values responsive customer support. Degiro’s support is email-only in most countries. Response times can stretch to days or weeks based on user reports. If you need a question answered before placing a trade, this matters.

    Investors who want to earn interest on idle cash. Degiro pays nothing on uninvested cash. Trade Republic pays 2.75% from the first euro. On a €5,000 cash buffer, that is €137 per year you leave on the table at Degiro.

    Fees & Pricing

    Degiro charges two things on every trade: a commission and a €1 handling fee. The commission depends on which exchange you trade on and whether it counts as your home market.

    Stock Trading Fees

    Your “home exchange” is the main exchange of the country where you opened your account. Degiro waives the annual connectivity fee for your home exchange and charges a lower commission on it. Here is what you pay per trade:

    Exchange Commission Handling Total per trade
    Euronext Paris (home for FR accounts) €1 €1 €2
    Euronext Amsterdam (home for NL accounts) €2 €1 €3
    Euronext Dublin (home for IE accounts) €2 €1 €3
    Xetra (home for DE accounts) €3.90 €1 €4.90
    US exchanges (NYSE, NASDAQ) €1 €1 €2

    For non-home European exchanges, add a €2.50 annual connectivity fee per exchange. This is capped at €2.50 per exchange per calendar year, so it only matters in your first trade of the year on that exchange.

    ETF Fees

    Degiro’s ETF Core Selection is its strongest feature. It includes over 1,000 ETFs on the Tradegate exchange. For these ETFs, you pay €0 commission + €1 handling = €1 per trade. The first trade per ETF per calendar month is free (no handling fee either) if you buy on Tradegate.

    ETFs outside the Core Selection cost €2 commission + €1 handling = €3 per trade on most exchanges.

    In October 2025, Degiro redesigned the Core Selection around Tradegate. The connectivity fee for Tradegate is waived, which makes this the cheapest way to buy ETFs on the platform.

    Degiro ETF search and selection screen showing available ETFs for European investors
    Degiro’s ETF search — browsing available ETFs on the platform

    Currency Conversion

    Every time you buy a non-EUR asset (US stocks, UK stocks), Degiro converts your euros at a 0.25% markup. The platform does this automatically on every trade. You cannot convert currency manually or hold foreign cash balances the way you can at IBKR.

    On a €5,000 US stock purchase, that is €12.50 in conversion fees, on top of the €2 trading fee. For context, IBKR charges €1.50 for the same conversion.

    Total Annual Cost Examples

    Using the three investor profiles from our best brokers comparison, here is what Degiro costs per year. We use €3 per EU trade (the NL/IE rate) as a representative mid-range figure:

    Profile Degiro IBKR Trade Republic
    Clara (€10K, 2 trades/yr, EU ETFs) ~€12 ~€18 −€53 (earns interest)
    Marc (€25K, 35 trades/yr, EU stocks) ~€107 ~€44 −€48 (earns interest)
    Sophie (€150K, 50 trades/yr, US+EU) ~€299 ~€77 ~€170

    Note: Clara’s Degiro cost uses Core Selection ETFs at €1 per trade. Marc’s and Sophie’s use the €3 mid-range for EU stocks. Sophie’s includes 0.25% FX conversion on €60,000 in annual currency conversions. For the full methodology, see our best online brokers comparison.

    Degiro is competitive for Clara’s simple ETF strategy. For Marc and Sophie, it is the most expensive option of the three.

    What is Free

    No custody fee, no inactivity fee, no deposit or withdrawal fees, no account maintenance fee. Real-time quotes on your home exchange are free. The Core Selection ETFs have no connectivity fee on Tradegate.

    Platform & User Experience

    Degiro login screen showing the clean, minimal interface for European investors
    Degiro’s login screen — clean and minimal, reflecting the platform’s no-frills approach

    Degiro offers a web platform and a mobile app (iOS and Android). There is no desktop application.

    You can find a stock, place an order, and check your portfolio without reading a manual. I tested the web platform and the navigation is fast: search, order, confirm, done. Compared to IBKR’s four platforms and dozens of configuration options, Degiro strips everything back to the essentials.

    That simplicity has trade-offs. There are no price alerts. The charting tools are basic. Portfolio reporting shows your total profit and loss but does not break down performance by individual position in a useful way. Research tools are minimal: you get basic fundamentals but nothing like IBKR’s analyst reports, screeners, or news feeds.

    Available order types: market, limit, stop loss, stop limit. Trailing stop orders work on German exchanges (Xetra and Frankfurt) only. If you trade on Euronext, you cannot set a trailing stop.

    The mobile app mirrors the web experience. It supports 11 languages. App store reviews praise the basics, but investors who want alerts, advanced charts, or detailed position analytics run into the platform’s limits fast.

    Available Markets & Products

    Degiro gives you access to 50+ exchanges in about 30 countries. That is broader than Trade Republic (1 exchange) or Scalable Capital (2 exchanges), but far narrower than IBKR (150+ exchanges).

    Asset class Available? Notes
    Stocks Yes 50+ exchanges, 30 countries
    ETFs Yes 5,000+, including 1,000+ Core Selection
    Bonds Yes 600+ government and corporate bonds
    Options Yes €0.75 per contract (limited exchanges)
    Futures Yes €0.75 per contract (US and European)
    Crypto Yes Launched October 2025. 0.5% per trade (0.29% in NL)
    Investment funds Yes 64 fund providers
    Forex No
    CFDs No
    Fractional shares No

    The product range is decent for a European retail broker. You can buy stocks and ETFs on most major exchanges, trade options and futures if you upgrade to an Active or Trader account, and access bonds. The October 2025 crypto launch added Bitcoin, Ethereum, and other cryptocurrencies.

    Two notable gaps: no fractional shares (IBKR offers them, but Trade Republic and Scalable Capital do not either) and no forex trading. If you want to hold USD or GBP cash balances and convert at your own timing, IBKR is the only European-accessible broker that does this well.

    Safety & Regulation

    Degiro is a brand of flatexDEGIRO SE, a publicly traded company on the Frankfurt Stock Exchange (ticker: FTK). In 2025, the group reported €560 million in revenue and €160 million in net income. It is a real company with real financial statements anyone can read.

    Regulators: BaFin (German Federal Financial Supervisory Authority) is the primary regulator. The AFM (Netherlands Authority for Financial Markets) and DNB (Dutch Central Bank) provide additional oversight because Degiro’s original entity is Dutch.

    Cash protection: €100,000 per client under the German Deposit Guarantee Scheme. This covers uninvested cash.

    Investor compensation: Up to €20,000 (90% of losses) under the Dutch Investor Compensation Scheme if Degiro fails to return your assets.

    Asset segregation: Your stocks and ETFs are held in a separate legal entity (a Special Purpose Vehicle). You remain the beneficial owner. If Degiro goes bankrupt, your holdings are not part of the insolvency estate.

    The BaFin History

    In 2023, BaFin fined flatexDEGIRO €560,000 for fee disclosure failures under the German Securities Trading Act. BaFin also appointed a special representative to oversee the company’s remediation. That mandate ended in September 2024 after an independent audit confirmed the issues had been resolved.

    Should this concern you? The fine was for disclosure practices, not for mishandling client money or securities. BaFin’s intervention shows the regulatory system working: a problem was identified, the regulator acted, the company fixed it, and oversight returned to normal. Many long-established European brokers have received BaFin fines. The question is how the company responded, and in this case, the response satisfied the regulator within about 18 months.

    Degiro Review Europe: How It Compares

    Here is Degiro side by side with the brokers European investors compare it to most often. This table uses the same format and data points as our IBKR review for consistency:

    Feature Degiro IBKR Trade Republic Scalable Capital
    EU stock fee €2–€4.90 €3 / 0.05% €1.00 €0.99 (or €0 on PRIME+)
    US stock fee €2.00 ~$1.00 €1.00 €0.99
    FX conversion 0.25% 0.03% Variable (~0.2%) N/A (EUR only)
    ETF savings plans Core Selection (€1) Limited Free Free
    Options / Futures Yes (limited) Yes (full) No No
    Global exchanges 50+ (30 countries) 150+ (33 countries) 1 (LS Exchange) 2 (gettex + Xetra)
    Interest on cash No ~1.4% EUR (above €10K) Up to 2.75% Up to 2.6% (PRIME+)
    Minimum deposit €0.01 €0 €1 €1
    Regulation BaFin + AFM/DNB CBI (Ireland) BaFin + ECB BaFin
    Investor protection €100,000 €20,000 €100,000 €100,000
    Best for Budget ETF investors Global investors, options Beginners, savers ETF savings plans

    For a detailed head-to-head, see our IBKR vs Degiro comparison. For a broader overview, read our guide to the best online brokers for European investors.

    How to Open a Degiro Account

    [AFFILIATE:DEGIRO]

    Step 1: Go to degiro.com and select your country of residence. Degiro operates separate entities per country (degiro.fr, degiro.de, degiro.nl, etc.). Your country determines your home exchange and fee schedule.

    Step 2: Complete the registration form. Name, email, phone number, tax identification number. Degiro asks about your investment experience and financial situation to classify your account type (Basic, Active, or Trader).

    Step 3: Verify your identity. Upload a government-issued ID (passport or national ID card). Most European residents can verify through an automated process. Approval takes minutes to a few hours.

    Step 4: Fund your account. Bank transfer (SEPA) or iDEAL (Netherlands). Degiro provides a dedicated IBAN. Deposits are free. SEPA transfers arrive within 1 business day.

    Step 5: Start trading. Search for the stock or ETF you want, choose your order type (limit orders are recommended over market orders for better price control), and confirm. For Core Selection ETFs, make sure you select Tradegate as the exchange to get the €1 fee.

    Account Types

    Degiro offers four account profiles: Basic, Active, Trader, and Day Trader. Basic accounts are for buy-and-hold investors (no margin, no short-selling). Active and Trader accounts unlock derivatives and margin trading. You can upgrade for free at any time through your account settings.

    Frequently Asked Questions

    Is Degiro safe for European investors?

    Yes. Degiro is regulated by BaFin (Germany) with additional supervision from the AFM and DNB in the Netherlands. Your cash is protected up to €100,000 under the German Deposit Guarantee Scheme. Your stocks and ETFs are held in a segregated Special Purpose Vehicle, meaning they remain legally yours even if Degiro goes bankrupt. The parent company, flatexDEGIRO SE, is publicly traded on the Frankfurt Stock Exchange and reported €560 million in revenue in 2025.

    What are Degiro’s fees for stocks and ETFs?

    EU stock fees depend on your home exchange: €2 per trade for French accounts (Euronext Paris), €3 for Dutch and Irish accounts, and €4.90 for German accounts (Xetra). US stocks cost €2 per trade everywhere. ETFs in the Core Selection cost €1 per trade on Tradegate, with the first monthly trade in each ETF free. ETFs outside the Core Selection cost €3 per trade. There are no custody, inactivity, or withdrawal fees.

    How does Degiro’s ETF Core Selection work?

    The Core Selection includes over 1,000 ETFs available on the Tradegate exchange. You pay €0 commission + €1 handling fee = €1 per trade. The first purchase of each ETF per calendar month is completely free (no handling fee either). There is no connectivity fee for Tradegate. To get these prices, you must select Tradegate as the exchange when placing your order. If you buy the same ETF on a different exchange, you pay the standard €3 fee.

    How does Degiro compare to Interactive Brokers?

    For small portfolios invested in European ETFs, Degiro is simpler and roughly comparable in cost. For larger portfolios, international investing, or options trading, IBKR is cheaper and more capable. The biggest difference is currency conversion: Degiro charges 0.25% versus IBKR’s 0.03%. On €10,000 converted, that is €25 at Degiro versus €3 at IBKR. IBKR also offers 150+ exchanges (vs Degiro’s 50+), full options and futures trading, and interest on idle cash. Read our full IBKR vs Degiro comparison.

    Does Degiro pay interest on cash?

    No. Degiro does not pay interest on uninvested cash balances. For comparison, Trade Republic pays 2.75% on all cash with no minimum threshold, and IBKR pays approximately 1.4% on EUR balances above €10,000. If you keep significant cash at your broker, this is a real cost of using Degiro.

    Methodology

    This Degiro review is based on official fee schedules from degiro.ie, degiro.nl, degiro.de, and degiro.fr, verified in March 2026. Fee data was cross-referenced with BrokerChooser and EU Personal Finance. Regulatory information was confirmed with BaFin’s public register. Financial data for flatexDEGIRO SE comes from the company’s Q4 2025 earnings release. Competitor data was sourced from official broker websites. The author does not have a funded Degiro account; this review is based on fee schedules, regulatory filings, platform documentation, and conversations with Degiro users. Our broker ratings consider fees (30%), product range (20%), platform quality (20%), safety and regulation (15%), and customer service (15%). For our full approach, see our editorial policy.

    Disclaimer: The information in this article is for educational and informational purposes only and does not constitute financial advice. All investment decisions carry risk, and you should conduct your own research and consult a qualified financial adviser before making any investment decisions. Broker fees, features, and regulations change. Always verify current information on the broker’s official website. See our full disclaimer.

    Disclosure: This article contains affiliate links. We may earn a commission if you open an account through our links, at no additional cost to you. This does not influence our ratings or recommendations. See our full affiliate disclosure.

  • Best Online Brokers for European Investors 2026

    Best Online Brokers for European Investors 2026


    Choosing the best broker Europe 2026 has to offer is one of the most consequential financial decisions you’ll make, and it has nothing to do with which stock to buy. Two people making the exact same trades, in the exact same stocks, for the exact same amounts, will pay very different fees depending on the broker they chose. Over a decade of investing, those differences compound into thousands of euros. You’d rather be on the right side of that gap.

    The trouble with most broker comparisons is that they show you the cost per trade and leave you to figure out the rest. That’s a bit like showing you the price per ingredient and expecting you to calculate what dinner costs. It depends entirely on what you’re cooking.

    So instead of listing features and hoping you can map them to your situation, we built three investor profiles, ran the numbers using each broker’s official fee schedule, and let the maths tell the story. The results surprised us, and they might surprise you too.

    Three Investors, Five Brokers, Verified Numbers

    We created three profiles that cover the range of European retail investors we hear from most often. Each one has a name, a portfolio size, a trading style, and a specific set of needs. The brokers are Interactive Brokers, Trade Republic, Scalable Capital (Free and PRIME+ tiers), Degiro, and eToro.

    Clara, 29, Lyon. Starting out.

    Clara decided this year to start investing. She’s done her reading, she knows she wants a diversified ETF, and she’s set aside €10,000 from her savings. Her plan is to invest €200 per month through a savings plan, make two or three manual trades per year when she has extra cash, and otherwise leave things alone. She keeps about €2,000 at her broker as a buffer. She buys European ETFs only, so there’s no currency conversion involved.

    Clara doesn’t need advanced tools or access to exotic markets. She needs something that’s cheap, simple, and regulated by a serious authority. She’ll check her portfolio on her phone once a week and forget about it the rest of the time. There are a lot of Claras in Europe, and for good reason: this is exactly the kind of steady, low-cost investing that the evidence says works best over the long run.

    Marc, 42, Munich. Getting serious.

    Marc has been investing for a few years and has built a €25,000 portfolio. He trades actively, about 35 times a year, mostly individual European stocks he researches himself. He doesn’t use a savings plan. He keeps €3,000 in cash for when he spots an opportunity. Like Clara, he sticks to EU markets for now.

    Marc cares about execution speed, a decent trading interface, and keeping costs low across a higher volume of trades. He’s comfortable learning a more complex platform if the savings justify it.

    Sophie, 38, Amsterdam. Going global.

    Sophie has a €150,000 portfolio split roughly 70/30 between US and European stocks. She makes about 50 trades a year (15 European, 35 American), at an average of €3,000 per trade. Every month she converts around €5,000 from euros to dollars to fund her US positions. She doesn’t keep much idle cash at the broker because she prefers to stay fully invested. She’s also started learning about options and wants a platform that can handle them.

    Sophie represents the investor who has outgrown the simple brokers. She needs global market access, competitive FX conversion, and products that go beyond stocks and ETFs. There are fewer Sophies than Claras, but the stakes are higher because the cost differences at this level are measured in hundreds of euros per year.

    What Clara Actually Pays

    We ran the numbers for Clara’s exact profile: 12 savings plan executions per year (one per month at €200), two manual trades at roughly €1,000 each, all in European ETFs, with €2,000 sitting in cash. Here’s what each broker costs her annually.

    Broker Trading fees Cash interest earned Net annual cost
    Trade Republic €2 €55 −€53 (she earns money)
    Scalable Capital (Free) €2 €0 €2
    Scalable Capital (PRIME+) €60 €52 €8
    Degiro €12 €0 €12
    Interactive Brokers €18 €0 €18
    eToro €25 €0 €25
    Bar chart comparing annual broker costs for Clara's beginner profile showing Trade Republic as cheapest at minus 53 euros

    Trade Republic’s net cost is actually negative. Clara makes €53 per year just by having her cash there, because Trade Republic pays 2.75% interest on all uninvested cash with no minimum threshold. Her two manual trades cost €1 each. Her savings plan is free. For someone in Clara’s position, Trade Republic isn’t just the cheapest option; it’s the only one that pays her to use it.

    Scalable Capital on the Free plan comes very close on trading fees (€0.99 per manual trade, savings plan free), but the Free plan pays no interest on cash, so she misses out on that €55. The PRIME+ plan at €4.99 per month would give her 2.6% interest, but the subscription adds up to €60 a year. For someone making only two manual trades, the subscription is hard to justify.

    Interactive Brokers, which is genuinely the best broker on this list for larger and more complex portfolios, turns out to be one of the more expensive options for Clara. The reason is straightforward: IBKR doesn’t offer free savings plans. Each monthly execution costs €1.25 (the minimum fee on its Tiered plan), which adds up to €15 a year just for the savings plan, a cost that’s zero at Trade Republic and Scalable. And IBKR only pays interest on cash above €10,000, so Clara’s €2,000 buffer earns nothing.

    For Clara’s profile, the answer is clear: Trade Republic first, Scalable Capital (Free) second.

    Why Trade Republic over Scalable for beginners

    Since both charge essentially the same trading fees, the question is worth answering properly. Three things tip the balance. First, Trade Republic has no subscription tiers to think about. You sign up, you trade, you’re done. Scalable’s three-tier model (Free, PRIME, PRIME+) is not complicated, but it introduces a decision that a new investor shouldn’t have to make on day one. Second, Trade Republic pays 2.75% interest on all cash from the first euro, while Scalable only pays interest on PRIME+. Third, Trade Republic holds a full banking licence from BaFin and the ECB, which means your cash is a genuine bank deposit protected by the German deposit guarantee scheme. At Scalable, your uninvested cash goes into a money market fund, which is different in both structure and legal protection.

    What Marc Actually Pays

    Marc’s 35 annual trades at an average of about €714 each, all in EU stocks, with €3,000 in cash.

    Broker Trading fees Cash interest earned Net annual cost
    Trade Republic €35 €83 −€48 (earns money)
    Scalable Capital (PRIME+) €60 €78 −€18
    Scalable Capital (Free) €35 €0 €35
    Interactive Brokers €44 €0 €44
    eToro €105 €0 €105
    Degiro €174 €0 €174
    Bar chart comparing annual broker costs for Marc's active trader profile showing Trade Republic and Scalable PRIME plus as cheapest

    Degiro stands out here, and not in a good way. It was once the go-to low-cost broker in Europe, the platform that made cheap investing accessible to ordinary people. But at €3 to €4.90 per trade (depending on your home exchange), 35 trades a year adds up to €105–€172 plus a €2.50 connectivity fee. That is three to five times what Trade Republic charges for the same trades.

    Trade Republic wins again on net cost because of the cash interest. But Scalable Capital PRIME+ deserves a closer look here. At €4.99 per month (€60 a year), all of Marc’s trades above €250 become free. Since his average trade is €714, every one of them qualifies. Add the 2.6% interest on his €3,000 in cash, and his net cost is −€18. For someone who trades at Marc’s frequency, the subscription starts paying for itself.

    Interactive Brokers comes in at €44, which is competitive, but without the cash interest advantage. IBKR requires over €10,000 in uninvested cash before it pays anything, so Marc’s €3,000 earns nothing. On raw per-trade cost, IBKR at €1.25 is close to Trade Republic’s €1.00, but that small gap multiplied by 35 trades adds up.

    For Marc’s EU-only profile: Trade Republic if he values simplicity and cash interest. Scalable PRIME+ if he trades often enough to make the subscription worthwhile.

    What Sophie Actually Pays

    This is where the picture changes completely. Sophie’s profile includes 15 European trades, 35 US trades, and monthly currency conversions of €5,000. The currency conversion is the key variable, because every time a European investor buys an American stock, their euros need to become dollars first, and each broker charges a very different rate for that conversion.

    Broker Annual cost (trading + FX fees)
    Interactive Brokers €77
    Trade Republic €170
    Scalable Capital (Free) €170
    Scalable Capital (PRIME+) €180
    Degiro €299
    eToro €620
    Bar chart comparing annual broker costs for Sophie's global investor profile showing Interactive Brokers as cheapest at 77 euros

    Interactive Brokers is the cheapest broker by a wide margin: €77 per year, less than half what Trade Republic charges. The reason is almost entirely down to currency conversion. IBKR converts euros to dollars at 0.03%, with a minimum fee of €1.84 per conversion. Trade Republic and Scalable charge 0.2%. Degiro charges 0.25%. eToro charges 0.75%. On €60,000 converted over a year, that’s €22 at IBKR versus €120 at Trade Republic versus €450 at eToro. The chart below isolates just the FX cost to show how dramatic the difference is.

    Bar chart comparing annual currency conversion costs across brokers, IBKR at 22 euros versus eToro at 450 euros

    And there’s something the numbers can’t capture at all. IBKR is the only broker on this list where Sophie can trade options. It’s the only one that gives her access to 150+ exchanges in 30+ countries. If she wants to buy a Japanese stock, write a covered call on her Apple position, or trade futures on Eurex, she can do all of that from one account. Trade Republic and Scalable give her access to one or two exchanges. For someone whose investing has grown beyond European ETFs, that difference in product range is the real story.

    For Sophie’s profile: Interactive Brokers, and it’s not close.

    Read our full Interactive Brokers review →

    Beyond the Spreadsheet

    Cost is the easiest thing to compare, but once you’re actually using a broker every week, other things start to matter. Here’s what the numbers can’t tell you.

    How safe is your money? Trade Republic, Scalable Capital, and Degiro all offer €100,000 in investor protection for cash deposits. Interactive Brokers and eToro offer €20,000. Your stocks and ETFs are held in segregated accounts at all of them (they’re legally yours, not the broker’s), so this is really about uninvested cash. If you keep significant cash at your broker, the difference between €20,000 and €100,000 protection is one worth knowing about. Trade Republic goes further: its full banking licence means your cash is a proper bank deposit, not a position in a money market fund.

    How does it feel to use? Trade Republic is a phone app, clean and minimal. You can place a trade in about thirty seconds. Scalable Capital has both a web platform and an app, slightly more features, still intuitive. Degiro works but feels dated, like a car that runs fine but hasn’t been redesigned since 2015. IBKR is powerful and complex. The new Desktop app is a genuine improvement over the old Trader Workstation, but the learning curve is measured in days rather than minutes. eToro is polished and has a social feed where you can see what other investors are doing, which you’ll either find interesting or distracting.

    What can you actually buy? This is where they really separate. Trade Republic and Scalable Capital give you stocks and ETFs on one or two exchanges (LS Exchange, gettex, Xetra). That’s plenty for most European investors buying mainstream ETFs and blue-chip stocks. Degiro covers about 30 exchanges. IBKR covers 150+ exchanges across 30+ countries, plus options, futures, bonds, and forex. eToro offers stocks, ETFs, and CFDs, which are leveraged instruments where most retail investors lose money (the regulatory warnings on their site are there for a reason). If you only buy European ETFs, you don’t need 150 exchanges. But if your ambitions grow, you’ll want a broker that can grow with you.

    Who watches over them? Trade Republic and Scalable Capital are regulated by BaFin, Germany’s financial regulator, which is among the strictest in Europe. Trade Republic has additional ECB oversight through its banking licence. Degiro is regulated by BaFin and the Dutch AFM. IBKR is supervised by the Central Bank of Ireland. eToro is regulated by CySEC in Cyprus. All are legitimate EU regulators, but the intensity of oversight does vary. Think of it as the difference between getting your car inspected every year versus every three years. Both cars might be perfectly fine, but you have more recent information about one of them.

    So Which Is the Best Broker Europe 2026?

    If you recognise yourself in Clara’s profile (starting out, small portfolio, savings plan, EU markets), Trade Republic is the obvious choice. The fees are minimal, the cash interest is a genuine bonus, the app is straightforward, and you won’t outgrow it for a while. Scalable Capital (Free) is a strong alternative if you prefer a web platform or want access to Xetra.

    If you’re closer to Marc (active trader, mid-sized portfolio, EU stocks), both Trade Republic and Scalable Capital work well. For frequent traders, Scalable PRIME+ starts making sense because the trades become free above €250 and the subscription is partly offset by cash interest. If you want the lowest per-trade cost without committing to a subscription, Trade Republic’s flat €1 is hard to beat.

    If you’re in Sophie’s territory (large portfolio, US and international stocks, options), Interactive Brokers is the right answer. Its currency conversion alone saves you roughly €100 per year over the next cheapest alternative and over €400 per year over eToro. The platform requires patience to learn, but the savings compound every year, and no other broker gives you access to the same range of products and markets.

    If you’re specifically interested in copy trading, eToro is the main option in Europe. Just know that the costs are meaningfully higher than alternatives, particularly once you account for the 0.75% FX markup on every deposit.

    And Degiro? It was a pioneer. It made European low-cost investing possible for a generation of investors. But at €2 to €4.90 per trade (depending on your country) when competitors charge €1 or less, it is difficult to recommend for a new account in 2026. The ETF Core Selection at €1 per trade on Tradegate remains competitive, but for stocks, the newer platforms offer more for less. If you already have one and you are comfortable with it, there is no rush to switch. Read our full Degiro review.

    Broker Best for Trading fee Regulation Investor protection Full review
    Trade Republic logo
    Trade Republic    		 Beginners, savers €1 flat BaFin + ECB €100,000 Review →
    Scalable Capital logo
    Scalable Capital    		 ETF savings plans, active EU traders €0.99 or PRIME+ BaFin €100,000 Review →
    Interactive Brokers logo
    Interactive Brokers    		 Global investors, options, large portfolios 0.05% / min €1.25 Central Bank of Ireland €20,000 Review →
    Degiro logo
    Degiro    		 Budget ETF investors €2–€4.90* BaFin + AFM €100,000 Review →
    eToro logo
    eToro    		 Copy trading ~€1.38 + 0.75% FX CySEC €20,000 Review →

    *Degiro’s EU stock fee depends on your home exchange: €2 per trade on Euronext Paris (FR accounts), €3 on Euronext Amsterdam/Dublin (NL/IE accounts), €4.90 on Xetra (DE accounts). Core Selection ETFs cost €1 on Tradegate regardless of country. See our full Degiro review.

    What I Use, and What I Don’t Know Yet

    I use Interactive Brokers. It’s where my portfolio lives: EU and US stocks, options, currency conversions. I’ve had the account for about three years. The learning curve was real, and the first month involved more confusion than I’d care to admit. But the costs are low, the execution is solid, and once you know the interface, it does exactly what it should.

    I haven’t used Trade Republic, Scalable Capital, Degiro, or eToro with real money. Their sections in this article are based on official fee schedules, regulatory filings, platform documentation, and conversations with investors whose judgement I trust. I plan to open accounts at Trade Republic and Degiro in the coming months and will update this page with first-hand observations when I do. Until then, I’ve been clear about what comes from direct experience and what comes from research.

    Frequently Asked Questions

    Which broker is best for a beginner in Europe?

    Trade Republic. It charges €1 per trade, offers free savings plans, pays 2.75% interest on cash, and has €100,000 investor protection under a full banking licence. Scalable Capital (Free plan) is a close second with nearly identical fees, but no cash interest on the free tier. See our guide on the best broker for beginners.

    How much does currency conversion cost at European brokers?

    It varies enormously. IBKR charges 0.03% (€3 on a €10,000 conversion). Degiro charges 0.25% (€25). eToro charges 0.75% to 1.0% (€75 to €100). If you buy US stocks regularly, FX conversion will likely be your single biggest annual cost. It’s the first thing to check when comparing brokers for international investing.

    Is Interactive Brokers safe for European investors?

    IBKR is regulated by the Central Bank of Ireland, publicly traded on NASDAQ, and has operated since 1978 with over $500 billion in client assets. Investor protection covers €20,000 per person, which is lower than the €100,000 at Trade Republic, Scalable, and Degiro. Your stocks and ETFs are held in segregated accounts (legally yours regardless of what happens to the broker), but cash is protected only up to the limit.

    Can I buy US stocks from Europe?

    Yes. All five brokers listed here give you access to US stocks on NASDAQ and NYSE. The difference is cost: every purchase involves converting euros to dollars, and the FX rate ranges from 0.03% (IBKR) to 1.0% (eToro). Over time, this fee matters more than the trading commission itself. See our guide on how to buy US stocks in Europe.

    Which broker is cheapest for ETF savings plans?

    Trade Republic and Scalable Capital both offer free ETF savings plans. Degiro offers 1,000+ ETFs in its Core Selection at €1 per trade on Tradegate, with the first monthly trade per ETF free. IBKR charges its normal commission (minimum €1.25) on recurring investments, which makes it the most expensive option for savings plans specifically. See our breakdown of the best broker for ETFs in Europe.

    Methodology

    Fee calculations are based on official broker pricing pages, verified in March 2026. Trading cost estimates use the specific investor profiles detailed above rather than generic assumptions, and were computed programmatically using a Python calculator to avoid rounding errors. Cash interest rates reflect published rates as of March 2026 and will change with ECB rate decisions. Currency conversion costs are calculated on actual FX conversion volumes for each profile. The author uses Interactive Brokers as his primary broker; the other four brokers were evaluated through fee schedules, regulatory filings, and community experience. Rankings reflect a long-term European retail investor perspective. For our full approach, see our editorial policy.

    Disclaimer: This article is for educational purposes and does not constitute financial advice. We may earn affiliate commissions if you open an account through our links. This does not affect our rankings or increase your costs. Broker fees, features, and regulations change. Always verify current information on the broker’s official website. Investing carries risk, including potential loss of capital. See our full disclaimer.

    Disclosure: This article contains affiliate links. We may earn a commission if you open an account through our links, at no additional cost to you. This does not influence our ratings or recommendations. See our full affiliate disclosure.