The best ETF brokers are DEGIRO, eToro, Trading 212, and Interactive Brokers.
To choose the best ETF broker to trade, the availability of tradable ETF instruments, trading costs (spreads and commissions), platform and tools, minimum deposit, and customer support are the most important criteria.
DEGIRO is the best ETF broker overall, for the possibility to trade more than 4,000 ETF instruments with fees as low as $1, comprehensive platforms (Proprietary Platform), and active customer support (24/5 availability).
eToro, Trading 212, and Interactive Brokers follow DEGIRO as the best ETF brokers, they offer ETF instruments, with platform and tools (MT4, MT5,and Proprietary Platform), minimum deposit ($50 for eToro, $100 for Admirals, and $1 for Trading 212), and customer support (24/5 availability via phone, email, and chat). eToro offers trading costs with spreads of 1 pips on EUR/USD with a high execution speed. Trading 212 offers trading costs with spreads of 1.2 pips on EUR/USD with a high execution speed. Interactive Brokers offers trading costs with spreads of 0.2 pips on EUR/USD with a high execution speed.
Round-up
Warning
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you can afford to take the high risk of losing your money.
| Best brokers for etfs | Total number of ETFs | Fractional ETFs |
|---|---|---|
| DEGIRO | 4000+ | No |
| eToro | 145+ | Yes |
| Trading 212 | 400+ | Yes |
| Interactive Brokers | 1000+ | Yes |
| CMC Markets | 1000+ | No |
| XTB | 200+ | Yes |
| AvaTrade | 50+ | No |
| Admirals | 380+ | Yes |
| Saxo | 4000+ | No |
| Fineco | 100+ | No |
What are the best ETF brokers?
Below our curated list and review of the best ETF brokers and ETF trading platforms, showcasing their advanced features and characteristics.
DEGIRO
DEGIRO offers access to over 4,000 ETFs in Europe with low fees. DEGIRO provides a Core Selection for low-fee investments. DEGIRO does not provide leverage on ETFs. A minimum deposit of €0.01 is required.
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About DEGIRO
DEGIRO is a European online broker founded in 2008, whose CEO is Oliver Behrens. DEGIRO offers access to over 50 global exchanges for trading securities like stocks, ETFs, bonds, options and futures. DEGIRO offers low fee structures, user-friendly platforms, and a AFM regulated investing environment.
DEGIRO Features
The features of DEGIRO are listed below.
- DEGIRO is a broker offering ETFs only in the European territory.
- With DEGIRO you can trade more than 4,000 ETFs with fees as low as $1.
- DEGIRO offers a selection of ETFs called Core Selection that allows you to invest in ETFs with very low fees.
- DEGIRO does not offer leverage on ETFs.
- Minimum deposit to open a real account starts at €0.01, and no trial account is available.
DEGIRO Pros and Cons
Advantages of DEGIRO
The advantages of DEGIRO are listed below.
- User-Friendly Platform
- Low and Transparent Fees
- Wide Range of Investment Options
Disadvantages of DEGIRO
The disadvantages of DEGIRO are listed below.
- No Direct Cryptocurrency Trading
- Lack of a Demo Account
- Limited Educational Resources
eToro
eToro offers over 100 ETFs as CFDs and fractional CFDs starting at $10. eToro allows virtual investments with a free demo account. The minimum deposit at eToro starts at $50.
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About eToro
eToro is a global multi-asset investment platform founded in 2007, offering trading on stocks, ETFs, Crypto CFDs, commodities, and forex. eToro provides a proprietary web and mobile platform with social trading features. eToro is regulated by multiple authorities including FCA, ASIC, and CySEC. eToro is known for its user-friendly interface, copy trading functionality, and commission-free stock trading. eToro serves over 30 million users worldwide. The eToro CEO and co-founder is Yoni Assia.
eToro Features
The features of eToro are listed below.
- eToro offers more than 100 ETFs to invest in as CFDs.
- eToro allows you to invest in fractional CFDs starting as low as $10.
- Within eToro you can also find Smart Portfolios, which are ETF-like assets that allow you to invest in different markets.
- The minimum deposit to open an account at eToro starts at $50 but varies depending on where the trader lives.
- With eToro you can open a totally free demo account to invest in ETFs with virtual money.
eToro Pros and Cons
Advantages of eToro
The advantages of eToro are listed below.
- Great copy trading and social trading features
- Wide range of asset classes
- It allows to buy fractional stocks from $10
Disadvantages of eToro
The disadvantages of eToro are listed below.
- The eToro spreads can be high
- Offers only USD accounts
- Transferring cryptocurrencies to other platforms can be hard
Trading 212
Trading 212 allows investment in over 400 real and CFD ETFs. Trading 212 offers fractional trading at $1. Trading 212 requires a minimum deposit as low as $1.
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About Trading 212
Trading 212 is a global online broker founded in 2004, offering commission-free trading on stocks, ETFs, forex, and CFDs. Trading 212 provides proprietary web and mobile platforms. Trading 212 is regulated by multiple authorities including FCA, CySEC, and FSC. Trading 212 is known for its user-friendly interface, educational resources, and fractional share investing. Trading 212 serves over 2 million clients worldwide. The Trading 212 CEO is Mukid Chowdhury since 2024.
Trading 212 Features
The features of Trading 212 are listed below.
- With Trading 212 you can invest in real ETFs and CFD ETFs.
- At Trading 212 you can trade over 400 ETFs in total with low commissions.
- ETFs on Trading 212 can be traded as fractional as low as $1.
- Opening an account at Trading 212 requires a minimum deposit of $1, which extends to $10 for a CFD account.
Trading 212 Pros and Cons
Advantages of Trading 212
The advantages of Trading 212 are listed below.
- User-Friendly Interface
- No Commission Trading
- Wide Range of Assets
Disadvantages of Trading 212
The disadvantages of Trading 212 are listed below.
- Limited Research Tools
- High Forex Spreads
- Lack of Advanced Features
Interactive Brokers
Interactive Brokers offers access to over 1,000 ETFs. Interactive Brokers provides commission-free ETFs on Lite and Pro accounts. Interactive Brokers requires a minimum deposit of at least $2,000.
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About Interactive Brokers
Interactive Brokers is a global electronic broker founded in 1978, offering trading in stocks, options, futures, forex, bonds, ETFs, and cryptocurrencies across 150 markets in 33 countries. Interactive Brokers provides advanced trading platforms, low commissions, and access to a wide range of financial instruments. Interactive Brokers is known for its sophisticated technology and serves both retail and institutional clients. Interactive Brokers is regulated by multiple top-tier authorities worldwide. The CEO of the Interactive Brokers Group is Milan Galik.
Interactive Brokers Features
The features of Interactive Brokers are listed below.
- It is possible to invest in more than 1,000 ETFs.
- Among them Interactive Brokers offers commission-free ETFs on both Lite and Pro accounts.
- IB’s platform is highly customizable, and is suitable for implementing automated trading robots.
- Interactive Brokers requires a minimum deposit of at least $2,000; however, a demo account is available to try out the service.
Interactive Brokers Pros and Cons
Advantages of Interactive Brokers
The advantages of Interactive Brokers are listed below.
- Low Trading Fees
- Advanced Trading Tools
- Wide Market Access
Disadvantages of Interactive Brokers
The disadvantages of Interactive Brokers are listed below.
- Not user-friendly
- No MetaTrader Support
- Additional Fees
CMC Markets
CMC Markets offers over 1,000 ETFs on CFDs. CMC Markets provides access to quantitative equity analysis. CMC Markets executes orders quickly to minimize slippage on ETFs.
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About CMC Markets
CMC Markets is a global online financial trading company founded in 1989 and headquartered in London. CMC Markets offers trading on forex, indices, commodities, cryptocurrencies, and shares through CFDs and spread betting. CMC Markets provides proprietary and MetaTrader platforms for desktop, web, and mobile. CMC Markets is regulated by multiple authorities including FCA, ASIC, and BaFin. CMC Markets is listed on the London Stock Exchange. The CMC Markets CEO is Lord Peter Cruddas.
CMC Markets Features
The features of CMC Markets are listed below.
- CMC Markets offers ETFs on CFDs.
- More than 1,000 ETFs can be found on CMC’s platform.
- With a CMC account you can get access to quantitative equity analysis from Morningstar.
- Slippage on ETFs with CMC is minimal thanks to lightning-fast order execution as low as 7.5 ms.
CMC Markets Pros and Cons
Advantages of CMC Markets
The advantages of CMC Markets are listed below.
- Regulatory Trust
- Low Trading Costs
- Extensive Trading Platform
Disadvantages of CMC Markets
The disadvantages of CMC Markets are listed below.
- Complex Fee Structure
- Limited Funding Options
XTB
XTB allows trading of over 300 ETFs without commission up to $100,000 monthly volume. XTB charges 0.2% commission above this volume. XTB offers fractional ETFs starting at $10.
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About XTB
XTB is a global forex and CFD broker founded in 2002 and headquartered in Poland. XTB offers trading on over 2,000 instruments including currencies, stocks, indices, commodities, and cryptocurrencies. XTB provides the proprietary xStation platform and is regulated by multiple authorities including FCA, CySEC, and KNF. XTB is listed on the Warsaw Stock Exchange and serves over 897,500 clients worldwide. The XTB CEO is Omar Arnaout since March 2017.
XTB Features
The features of XTB are listed below.
- More than 300 ETFs can be traded on a variety of markets with XTB.
- ETFs on XTB are commission-free until a monthly volume of US$100,000 is reached.
- Above the maximum volume, ETFs will charge a 0.2% commission with a minimum commission starting at $10.
- XTB offers fractional ETFs starting at $10.
XTB Pros and Cons
Advantages of XTB
The advantages of XTB are listed below.
- No minimum deposit
- Wide selection of assets
- Competitive trading costs
Disadvantages of XTB
The disadvantages of XTB are listed below.
- Small withdrawal fee
- No social or copy trading
- XTB demo account is limited to 30 days
AvaTrade
AvaTrade offers ETF trading through CFDs with over 50 ETFs available. AvaTrade requires a $100 minimum deposit. AvaTrade provides a demo account for ETF trading.
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About AvaTrade
AvaTrade is a global forex and CFD broker founded in 2006 and headquartered in Dublin, Ireland. AvaTrade offers trading on currencies, commodities, indices, stocks, bonds, ETFs, and cryptocurrencies. AvaTrade provides proprietary platforms alongside MetaTrader 4 and 5. AvaTrade is regulated by multiple authorities including CySEC, ASIC, and FSA. AvaTrade serves over 300,000 clients worldwide. AvaTrade is known for competitive spreads and extensive educational resources. The AvaTrade CEO is David Dryzin since 2016.
AvaTrade Features
The features of AvaTrade are listed below.
- AvaTrade is a broker market maker that offers ETF trading in CFDs.
- At AvaTrade you can trade over 50 ETFs at fixed spreads.
- To open an account at AvaTrade, a minimum of $100 is required. Alternatively, a free demo account is available to try out the service.
AvaTrade Pros and Cons
Advantages of AvaTrade
The advantages of AvaTrade are listed below.
- Tight fixed spreads from 0.6 pips (0.9 pips for retail traders)
- The mobile apps are well designed
- Can be connected to ZuluTrade and Duplitrade
Disadvantages of AvaTrade
The disadvantages of AvaTrade are listed below.
- High inactivity fees
- The demo account is limited to 30 days
Admirals
Admirals provides access to over 380 ETFs as CFDs. Admirals allows investment in fractional ETFs starting at $1. Admirals requires a $100 minimum deposit for accounts.
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About Admirals
Admirals, formerly Admiral Markets, is a global forex and CFD broker founded in 2001. Admirals offers trading on currencies, commodities, indices, stocks, and cryptocurrencies through MetaTrader platforms. Admirals is regulated by multiple authorities including CySEC and FCA. Admirals is known for competitive spreads and extensive educational resources. Admirals recently halted onboarding of new EU clients to comply with regulatory standards. The co-founder of Admirals and CEO of Admirals Group is Alexander Tsikhilov.
Admirals Features
The features of Admirals are listed below.
- With Admirals you can trade over 380 ETFs as CFDs.
- On Admirals you can invest in fractional ETFs as low as $1.
- The leverage on Admirals’ CFD ETFs is 1:5.
- Commissions on Admirals ETFs are variable depending on market conditions.
- A minimum deposit of $100 is required to open an account with Admirals.
Admirals Pros and Cons
Advantages of Admirals
The advantages of Admirals are listed below.
- Extensive Forex Options
- Strong Regulatory Framework
- Advanced Educational Resources
Disadvantages of Admirals
The disadvantages of Admirals are listed below.
- Charges Inactivity Fee
- Mobile App Limitations
- Higher Average Spreads for Some Assets
Saxo
Saxo enables trading of over 7,000 ETFs. Saxo reduces commissions from $18 to $2.50 for active traders. Saxo does not require a minimum deposit.
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About Saxo
Saxo is a Danish investment bank and online trading platform founded in 1992. Saxo offers trading in forex, stocks, CFDs, futures, options, and other financial instruments across global markets. Saxo provides proprietary trading platforms and white-label solutions for institutional clients. Saxo is regulated by multiple authorities including the Danish FSA and UK FCA. Saxo serves retail and institutional clients in over 170 countries. The Saxo CEO and co-founder is Kim Fournais.
Saxo Features
The features of Saxo are listed below.
- Through Saxo you can trade over 7,000 ETFs in a professional environment.
- Commissions start at $18 per order, but can be reduced to $2.50 for more active traders.
- Opening an account at Saxo does not require a minimum deposit.
Saxo Pros and Cons
Advantages of Saxo
The advantages of Saxo are listed below.
- Regulation and Trust
- Extensive Product Range
- Advanced Trading Platform
Disadvantages of Saxo
The disadvantages of Saxo are listed below.
- High Minimum Deposits for Premium Accounts
- Lack of Spread Betting Options
- Custody Fees in Certain Regions
Fineco
Fineco offers access to over 100 ETFs. Fineco charges variable spread on CFDs and commissions starting at €2.95. Fineco requires a $100 minimum deposit for accounts.
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About Fineco
Fineco is an Italian online bank and broker founded in 1999, offering trading services on stocks, ETFs, bonds, futures, options, forex, and CFDs. Fineco provides proprietary web and mobile trading platforms. Fineco is regulated by multiple authorities including Banca d’Italia and CONSOB. Fineco is known for its integrated banking and investing services, competitive pricing, and extensive product range. Fineco serves over 1.4 million clients primarily in Italy and the UK. The Fineco CEO is Alessandro Foti since 2000.
Fineco Features
The features of Fineco are listed below.
- Fineco offers its traders the ability to trade more than 100 ETFs.
- Commissions on Fineco ETFs start at €2.95 per order, but increase for less active traders to €19 per transaction.
- When ETFs are traded as CFDs, Fineco charges a variable spread.
- ETFs can be purchased either as CFDs or as Reals.
- Fineco requires a minimum deposit of $100 to open a real account.
Fineco Pros and Cons
Advantages of Fineco
The advantages of Fineco are listed below.
- No Minimum Deposit Requirement
- Competitive Trading Fees
- Diverse Range of Tradeable Assets
Disadvantages of Fineco
The disadvantages of Fineco are listed below.
- Lack of a Demo Account
- Limited Educational Resources
- Higher Spreads Compared to Competitors
How to choose an ETF broker
When choosing a broker for ETF investing, the main concern should be about fees and long term costs.
In fact ETFs are an asset type that should be held long term to potentially be profitable, and keeping costs low is extremely important.
Other than the buy-sell costs, which some brokers do not charge under certain conditions, you should make sure the ETF broker of your choice do not charges administration costs or performance fees.
These commissions are usually charged when using Robo-Advisors to buy ETFs, and can become quite high overtime as they are usually paid on percentage based on the total amount of money invested into the service.
For instance, if a trader invests 1000 USD on an ETF, and the administration costs are set at 1%, it means that the trader will have to pay 10 USD per year to the broker.
Characteristics of ETFs: how to choose one
There are several companies in the world that create ETFs, and it is common to find ETFs that replicate the same markets, but in a slightly different way.
The factors governing the choice of an ETF are varied, but among the main ones are:
- The price
- The size of the fund
- The annual costs
- The type of replication
- The strategy used
- The currency of the fund
- The mode of dividend distribution
- The exchange at which the ETF is listed
ETFs are listed on an exchange, and just like stocks they have a market value. Their value is derived primarily from the performance of the market that the ETF is replicating. Typically, the cost of an ETF ranges from $5 to $200. In addition, you have to consider the commissions of the broker on which you buy the ETF.
In addition to the initial cost to invest in it, each ETF has:
- an annual cost (the TER, or Total Expense Ratio), which is generally less than 1% per year and is used to cover the costs of managing the fund
- commissions that the distributing entity must pay to brokers each time it recalibrates the basket of assets within the ETF
- swap fees if the type of ETF replication is synthetic.
ETF replication can be physical or synthetic. Typically, larger mutual funds have the economics to actually buy the assets within the ETF, while smaller funds may not, and consequently invest in derivatives.
Another case where an ETF might offer synthetic replications is when it seeks to replicate markets where it is complex or inexpensive to source physical assets (e.g., stocks listed on exchanges in poor and/or emerging markets).
Depending on the size of the fund, is important not only to have a physical replication, but also to have a more faithful sampling of the market you want to track. In fact, a large ETF will be able to source a large number of assets that will allow it to more accurately manage allocation percentages, and thus, better replicate the market.
Each ETF has its own investment strategy. Typically ETFs use long-only strategies (i.e., they buy assets with the expectation that they will increase in value), however, there are ETFs that use short-only strategies (which increase in value if the market loses it), ETFs that use leverage, or ETFs that use all three strategies.
Another important point is the currency of the fund. Investing in euros in a fund that uses the U.S. dollar exposes the investor to foreign exchange risk.
Finally, it is also important to know the dividend management of ETFs. Distributing ETFs “distribute” dividends directly to the investor’s account. In contrast, accumulation ETFs reinvest dividends within the fund.
How much money can you earn with ETFs?
Taking a look at the top 20 ETFs by market capitalization in 2022, to date 10-year average returns come in at 15.6%, while one-year returns are generally negative with an average of -14.68%.
| ETF | 1 YEAR | 3 YEARS | 5 YEARS | 10 YEARS |
|---|---|---|---|---|
| Invesco QQQ Trust | 32.78% | 15.00% | 17.39% | 18.93% |
| iShares Core MSCI Emerging Markets ETF | 2.89% | 3.58% | 1.41% | 3.17% |
| iShares Core MSCI EAF | 17.72% | 8.85% | 4.23% | 5.72% |
| iShares Core S&P 500 | 19.57% | 14.56% | 12.27% | 12.82% |
| iShares Core SP Mid-Cap ETF | 17.61% | 15.40% | 7.73% | 10.14% |
| iShares Core SP Small-Cap ETF | 9.69% | 15.09% | 5.18% | 9.77% |
| iShares Core US Aggregate Bond ETF | -0.93% | -3.97% | 0.74% | 1.48% |
| iShares Russell 1000 ETF | 19.20% | 13.93% | 11.77% | 12.50% |
| iShares Russell 1000 Growth ETF | 26.88% | 13.53% | 14.92% | 15.53% |
| iShares Russell 2000 ETF | 12.27% | 10.71% | 4.13% | 8.23% |
| SPDR SP 500 ETF Trust | 19.38% | 14.51% | 12.15% | 12.73% |
| SSgA SPDR Gold Shares | 11.12% | -0.56% | 9.47% | 3.60% |
| Vanguard Dividend Appreciation ETF | 10.70% | 12.63% | 11.41% | 11.26% |
| Vanguard FTSE Developed Markets ETF | 13.96% | 9.33% | 4.64% | 5.47% |
| Vanguard FTSE Emerging Markets ETF | 7.96% | 2.99% | 2.58% | 3.79% |
| Vanguard Growth ETF | 16.86% | 11.08% | 14.67% | 14.69% |
| Vanguard SP 500 ETF | 12.94% | 13.68% | 12.15% | 12.61% |
| Vanguard Total Bond Market ETF | -3.21% | -4.53% | 0.79% | 1.46% |
| Vanguard Total Stock Market ETF | 12.58% | 13.02% | 11.35% | 12.07% |
| Vanguard Value ETF | 8.96% | 15.34% | 9.07% | 10.29% |
Why invest in ETFs: Risks and benefits
Pros:
- Investing in ETFs has many benefits on a practical level. In fact, they are professionally managed investment funds, and the trader’s only responsibility is to choose the correct ETF to invest in without worrying about rebalancing to achieve a perfect replication.
- ETFs are also a much cheaper method of investing in stock indexes, which often require large sums (even exceeding $1,000 per single share).
- Brokers who offer ETFs typically charge very low commissions (and even zero in some cases).
Cons:
- However, although ETFs have many benefits, there are also two risks namely. These are, foreign exchange risk and market fluctuations.
- When you invest in EUR in a USD-listed ETF, in addition to the ETF you are also indirectly investing in the U.S. dollar. Assuming that the Euro becomes stronger than the U.S. Dollar, the ETF will lose value relative to the initial investment.
- Finally, another problem with ETFs is the risk from market fluctuations. Although it is often considered a less risky asset than others, there is always the risk that it will lose value and thus cause the investor to lose money.
How long can an ETF be held?
An analysis of the returns of the world’s leading ETFs shows that on average it takes at least 3 years to make a profit from the investment. However, the longer an ETF is held, the more its average returns increase.
| TIME LAPSE | ETF RETURNS |
|---|---|
| 1 year | -14,68% |
| 3 years | 4,85% |
| 5 years | 6,54% |
| 10 years | 8,80% |
That is why when investing in an ETF there is no maximum time limit, but it always depends on the investor’s plans and the average returns of the ETF they are investing in.
You also have to take into account the type of ETF you are investing in.
Investing in synthetic ETFs, that is, ETFs that have derivatives as their underlying assets could be counterproductive in the long run because the swap fees would add up day after day, thus reducing some of the ETF’s growth.
If you are looking for an ETF to hold for the long term you should consider physically replicating ETFs.
How much money does it take to invest in ETFs?
It takes an average of $175 to invest in an ETF, taking into consideration the top 20 ETFs by market capitalization.
However, each ETF has its own cost, which means that ETFs of all values can be found.
Their market valuation also depends on the exchange on which they are listed. The same ETF listed on two different exchanges may have two slightly different valuations.
To invest in the most expensive ETFs, it is good to know that there are brokers such as Trading212 that allow ETFs to be fractionated as low as $1.