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Over the past few years I’ve been doing a ton of research on investment opportunities and asset classes.
An opportunity that I came across is investing in startups.
However, I haven’t really taken a big dip into this asset class. I’ve conducted some small investments to test the waters, as I always do with any investment I’m considering. I’ve learned quite a bit but I am not convinced that I should be investing a significant portion of my net worth into this.
Following my move to Spain, I started searching for a local broker to start investing in stocks.
I’m not a huge fan of Spanish financial institutions, and given the choice, I’d much rather use an international stockbroker. That also makes it easier for me if I eventually move my residence to another country.
There are two main advantages of working with a Spanish broker, on the other hand:
The Modelo 720 form is an absolute drag to compile, but once you get the hang of it or outsource it, this factor becomes less of a deal-breaker. However when the March deadline for that form comes around, it’s a good reminder of how backward the Spanish taxation system is. I invest internationally and not in the Spanish market, so the second advantage is not so important to me.
With that said, here are the best options I’ve found.
Online stock trading platforms offer a wealth of convenience for investing at any point in time and also provide lots of information about the market minute by minute, helping you make the best decisions.
For active trading as well as long-term investing these are the best platforms I’ve found:
There are not a lot of online brokers that offer an asset library as extensive as DEGIRO. Whether it’s shares, bonds, ETFs, or funds – you’ll have access to thousands of instruments across 50 markets and 30 exchanges. This ensures that you can build a highly diversified portfolio and thus – mitigate your exposure to a single asset or marketplace.
In terms of the main attraction – fees, this is largely very competitive. In fact, if investing in major marketplaces found in the UK, US, and parts of Europe, the fees are much lower than most brokers out there. However, it is important to remember that the likes of eToro allow you to buy shares in a 100% commission-free environment, although spreads apply.
As such, if you really want to focus on keeping your costs to an absolute minimum, eToro might be better. On the other hand, although you might pay a slightly higher fee at DEGIRO, the platform does offer much more in the way of asset diversity.
Finally, I do like the fact that DEGIRO does not have a minimum deposit in place and charges no transaction fees, albeit, it’s a bit frustrating that you can only fund your account via bank wire.
You can take a look at my review of DEGIRO for more information.
If you’re actively involved in the online trading space, there is every chance that you have heard of eToro. After all, the provider now has 13 million users under its belt – making it one of, if not the largest trading platform around.
eToro offers a wide selection of markets – all of which can be accessed online or via the app. When it comes to traditional ownership, you can buy and sell shares from 17 marketplaces. This includes stocks listed in the US, UK, Canada, Germany, France, and more.
You can also invest in ETFs – such as those backed by Vanguard and iShares. This is good for diversification purposes or gaining exposure to difficult-to-reach markets. You can also buy and sell cryptocurrencies. This covers 16 digital coins – including the big two: Bitcoin, Ethereum.
With eToro you will not pay any commissions on stocks and ETFs, however, spreads do apply. There is no sign-up fee or monthly/annual subscription, either. You will also avoid stamp duty when buying UK stocks, which saves you an extra 0.5%.
You’ll need to first open an account – which you can online or via the app. Then, you’ll need to meet a minimum deposit, which you can instantly fund with a debit/credit card or e-wallet. Bank transfers are also an option, but this can take up to 7 working days.
You can read my full eToro review here, where I delve deeper into why I like this platform, and what you need to be aware of when trading on it.
Your capital is at risk. Other fees apply. For more information, visit etoro.com/trading/fees.
I always recommend looking at all the fees and factors, because what works best for me will not necessarily work best for you, depending on your location and investing strategies.
Have you found any other great online trading platforms? Let me know in the comments section.
Investing in stocks, bonds, and ETFs involves risks including complete loss. Please do your research before making any investment.
Past performance is not an indication of future results. Trading history presented is less than 5 complete years and may not suffice as basis for investment decision.
Copy trading is a portfolio management service, provided by eToro (Europe) Ltd., which is authorised and regulated by the Cyprus Securities and Exchange Commission.
Cryptoasset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro.
