The financial markets have recently gone through a topsy turvy time directly linked to government spending and liquidity flooding due to the global Covid-19 pandemic. While this has seriously impacted financial investors, it has also created new opportunities for innovative European traders looking to invest in stocks, exchange traded funds (ETFs), and crypto, among other assets.
Seasoned traders will tell you that brokers in Europe offer some of the best trading platforms with strict regulatory measures to protect trader’s investment and ever-decreasing transaction fees. As a result, many new brokers are looking to invest in the European trading market.
However, this growing number of traders has also led to a rise in new brokers looking to benefit from the increased traffic. So, how do you differentiate the good legit brokers from those looking to scam your hard-earned cash with ridiculous commission fees on Europe’s trading scene?
Here’s a list of what I consider the best low-commission trading brokers in Europe right now. With this list and plenty of educational material to supplement your research, you’re set to start trading like a pro.
Disclaimer – I do not provide investment advice on Contract for Differences (CFDs) as they are complicated and come with a high risk of losing your money. Around 74-89% of investor accounts lose money when trading CFDs. You must have a higher understanding of how CFDs work and consider whether you can afford the high risk of losing your money.
Best Low Commission European Trading Brokers
Are you looking at the top brokerages serving European traders? Here is a list of the best ones with free commission trading and low or zero withdrawal fees.
- DEGIRO – Zero commission broker with low fees on trades. DEGIRO offers some of the lowest fees on the market and is regulated by multiple top-tier authorities. It provides a web and mobile platform that is easy to use.
- Capital.com – A proprietary trading platform with over 2 million traders. This broker has processed over $18 billion in volume. You can also trade over 3,000 liquid assets on Capital.com across five sectors. It has special design considerations for experienced investors.
- eToro – Zero commission on stocks makes eToro the largest discount broker for European traders. Regulated by UK Financial Conduct Authority (the FCA), CySEC (EU), and ASIC (AU), the broker has over 12 million active users. Seamless account opening with social trading experience makes eToro a top choice.
- NAGA – With over 950 tradeable assets, NAGA is a multi-asset trading platform that offers Forex Trading, Indices Trading, Crypto Trading, ETFs, CFDs, Stocks, and Commodities Trading. Its fees are below the industry averages, making it a lucrative broker for all levels of traders.
DEGIRO – Top online trader and discount trading
DEGIRO is a privately owned discount broker that was founded in 2008 in the Netherlands. The Dutch online trade platform is popular for its low trading fees and free monthly ETF trades.
Some of the top-tier authorities regulating DEGIRO operations include the Dutch Central Bank DNB and Netherlands Authority for Financial Markets AFM. Additionally, the company is duly registered by the Amsterdam-based Chamber of Commerce and Industry.
DEGIRO provides its users with bonds, options, stocks, ETFs, leveraged products, and futures. You will get access to about 50 world exchanges on this platform.
If the company’s claim on their website is anything to go by, they have industry-leading commission rates and a trading platform suitable for beginner trading. If you’re looking to cut on costs while trading, DEGIRO offers an easy-to-use platform worth considering.
Trading fees on DEGIRO are among the lowest, but you can only enjoy one monthly commission-free ETF irrespective of your trade size.
The good news is that DEGIRO has zero deposit fees and no limit on the account minimums. What’s more, it does not charge you for withdrawing earnings from the platform. DEGIRO is also one of the cheapest platforms for account maintenance – there is zero annual maintenance and custody fee charged.
On the other hand, just like many other brokers, DEGIRO charges a small fee on international ETF trading. The charge includes a €2 cost in addition to 0.03% of the value of your order. The charges on stock trading vary widely, but they’re lower than the industry averages.
For instance, trading stock on the London Stock Exchange will cost you €1.75 and an additional 0.022%. If you were to go for another broker, say Xetra, it would cost you €4.00 and an additional 0.05%.
On DEGIRO, you’ll part with €2.5 as an annual connection fee for each exchange – except for the Irish Stock Exchange – and an extra 0.10% of the traded amount as a currency exchange fee.
- Low trading fees
- Products on offer include bonds, options, futures, shares, leveraged products.
- Regulated by AFM
- No minimum account deposits
- No inactivity fee
- 24-hour trading
- Supports EUR, CHF, GBP, NOK, SEK, CZK, PLN, HUF and DKK.
Capital.com – Fund Safety through Segregation
Capital.com is an international brokerage with subsidiaries operating in the UK, Belarus, and Cyprus. This company started trading in 2018 after registering with the Financial Conduct Authority a year earlier. With subsidies in the aforementioned countries in Europe, Capital.com is regulated by the FCA, CySEC, and the National Bank of Belarus.
The platform serves clients from across different sectors as it is among the few fully segregated trading platforms. Capital.com segregates your funds at Raiffeisen and RBS; these are Europe’s leading financial institutions.
Capital.com also uses Prime Capital to serve institutional clients hence creating a deeper liquidity pool. For new traders, the brokerage gives you access to its educational platform, the Investmate.
This is one of the most secure trading platforms, with only 71.2% of account portfolios incurring a loss. This is considerably fair compared to many other brokers. Besides, accounts at this brokerage are audited by Deloitte.
The fees charged for trading with Capital.com are quite competitive — there are no commissions charged across the 3000 assets on offer. The exchange fee on the EUR/USD trades is at a low of 0.6 pips, and even better, no additional percentage fees are charged.
However, although you’ll be charged swap rates on positions leveraged overnight, this only applies to the borrowed amount and not the total size of the position.
Capital.com has some of the least fees on today’s trading platforms, making it a friendly and favourable platform to European traders.
- Zero commission
- No additional percentage charges on trades
- Low exchange fees
- Segregated client deposits
- World-leading accounting firm Deloitte audits accounts.
- Well regulated with Key Information Documents on their website.
- Three regulatory jurisdictions guarantee a secure trading platform.
eToro – Zero-commission on Stocks
Your capital is at risk. Other fees apply. For more information, visit etoro.com/trading/fees.
eToro was formed in 2007 and has grown to become the largest international broker with over 12 million traders. It provides EU and UK traders with commission-free trading on stocks and ETFs. The platform offers a wide range of products, including cryptocurrencies, indices, forex, and commodities, at very favorable spreads.
Having been in the industry for over 13 years, eToro stands out as a reputable trading broker. Three top-tier authorities regulate it, including ASIC of AU, CySEC of EU, and FCA in the UK. Due to the Cyprus Securities and Exchange Commission regulation of eToro, investors have up to €20,000 protection. The UK regulator, on the other hand, protects up to €85,000.
eToro has an active social community stream using the OpenBook. It gives users access to discussion groups
If you’re looking for an investment brokerage with the lowest fees, eToro beats them all. The platform charges zero fees when you open or close a stock trade. This is for the non-leveraged positions.
Additionally, traders on eToro can enjoy no mark-up, zero ticket fees, and free account management. Besides, with few restrictions, clients can enjoy large trade amounts on stocks.
It is worth noting that eToro’s USD-based accounts incur a flat rate fee of $5.00 on withdrawals. Unfortunately, deposits made in other currencies will have to incur an additional conversion fee.
eToro is a multi-asset platform that allows you to invest in stocks and crypto-assets as well as trading CFD assets.
- Zero commission on stocks and low transaction fees
- Wide range of products, including forex, cryptocurrencies, CFDs, stocks, and indices
- Excluding Serbia, all other European countries are supported
- Regulated by FCA, CySEC, ASIC
- Minimum deposit amounts of $200
- Has a demo account for beginner traders to do some training
- Charges a $10 inactivity fee for accounts that stay logged out for a year
- Copy portfolios are designed to minimize your risk long-term while pointing you towards new opportunities
- Copy-trading is available
- Fractional shares are available
79% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
Founded in 2015, NAGA is an online platform that offers multi-asset trading services in the EU. The Cyprus-based company offers cryptocurrency trading, forex trading, stocks, indices, EFTs, and CFDs. Although it is not considered a global brokerage firm, NAGA is publicly listed in the world’s leading stock market exchanges and supports over 650,000 trading accounts.
NAGA’s state-of-the-art trading platform comes with mobile trading apps and financial research tools. The broker charges commission fees on CFD instrumentals. What’s impressive, however, is that accounts on NAGA do not incur an inactivity fee even if they are not logged in for a whole year.
When trading on NAGA, clients incur withdrawal fees that vary depending on the amount of you’re withdrawing and the method of withdrawal selected. You can withdraw money from NAGA through bank wire transfer, Trustly, UnionPay, iDeal, GiroPay, EPS, Boleto, MasterCard, VISA, debit card, and P24.
Account openings on NAGA require a minimum deposit of $250. Higher minimum deposits come with additional premium services that traders can take advantage of. These premiums may not be freely offered on other platforms.
Relatively, NAGA’s minimum deposit is nothing compared to the industry averages. Some brokers require as high as 10,000 GBP/USD as a minimum deposit.
The minimum account deposit attracts zero fees on this platform which usually varies depending on your payment method.
- Demo account for training purposes
- Stop Loss available
- Advanced financial chart as a comparison tool
- An interface built for Apple Mac computers as well as a web version
- Regulated by CySEC, FCA, and CNMV
- Zero deposit fees and zero inactivity fees
- Minimum deposit of $250
Online trading allows you to invest your money in products whose performance you can track in real-time. Different brokerage firms vary in the way they charge for their services. These charges can be a deal-breaker when it comes to choosing your ideal platform.
DEGIRO is outstanding for its low fees and overall ease of use. Capital.com, on the other hand, offers an investment safety net with its funds segregation feature. eToro has an outstanding reputation as a commission-free platform with a plethora of features. Although NAGA comes last on this list, its zero-fee for inactivity and demo account makes it a darling of many novice traders.
That said, your favorite platform should be based on your needs. Generally, the brokers mentioned above provide the industry’s best services in Europe.
Investing in stocks, bonds, and ETFs involves risks including complete loss. Please do your research before making any investment.