Top 10 Best Brokers for Dividend Investing in 2022

logomark Filippo Ucchino calendar Last Updated: December 2021 timer 9 min read
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Our Best Forex Brokers article reveals the major play players in the trading industry.

However, which of them is the best broker for dividend investing?

This article answers your question and helps you make a wise choice.

Table of contents

Best Brokers for Dividend Investing in 2022

If you are thinking of investing in dividends in 2022 and beyond, here is a list of the best brokers to that meet industry standard that you can choose from:

 

BaFin regulates the ECN broker that operates exclusively in the EU’s activities. DEGIRO neither offers a demo account nor requires a minimum deposit amount. Although it doesn’t place a deposit restriction to attract more clients, it is best suitable for experienced traders.

You can trade any of the over 30,000 stocks available on the platform and take advantage of its low commissions from $0.50 to invest in a wide range of dividends.

Some of the ETFs available on the broker are fee-free, making the broker great for dividend accumulation strategies.

DEGIRO charges a 19% withholding tax on dividends on its proprietary trading platform.


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Investing involves risk of loss

A handful of regulatory bodies such as CySEC, FCA, ASIC, and SEC regulate the STP/NDD broker that offers an unlimited time for trading skills acquisition on its demo account.

Once you meet the $200 minimum deposit requirement, you will have access to more than 950 stocks to trade. If you invest in real stocks, you won’t be charged trading commissions. If you wish, you can also engage in fractional stock trading.

Dividends are available on both real stocks and CFDs while charging a withholding tax on dividends of 19%.

Social trading is eToro’s strong point for traders using its proprietary trading platform.


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68% of retail investor accounts lose money

Duly regulated by CBI, FCA, ASIC, SEC, IIROC, and MAS, Interactive Broker also offers an unlimited learning time on its demo account, a good offer for interested users who need the necessary trading skills.

The minimum deposit of $0 opens the door to several trading opportunities, especially access to over 30,000 stocks and more than 80 market centers. If you can’t afford a whole stock, you can trade fractional stocks while paying the 15% withholding tax on dividends.

The broker is known for stockbroking with very low commissions, a feature that many investors are taking advantage of. Some of its trading platforms are Client Portal, Trader WorkStation (TWS), IBRK Mobile, and API IBKR.


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74-89% of retail CFD accounts lose money

A handful of top regulatory bodies including FCA, ASIC, FMA, FSCA, NFA, MAS, DFSA, JFSA, FINMA, and BMA see to the DMA broker’s activities.

Take as long as necessary to learn the trading ropes on its demo account before you trade for real on its Live account. Making its minimum deposit of $250 is all that you need to access the broker’s over 12,000 stocks across over 50 stock exchanges. You won’t be stuck with one or two trading opportunities but have several dividend investment options to choose from.

Commissions on the broker start from $3 while the withholding tax on dividends stands at 19% on L2 Dealer, the broker’s dedicated trading platform.


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76% of retail CFD accounts lose money

Trading 212 is a Market Maker broker regulated by the duo of FCA and FSC. You don’t need to be the broker’s registered member to access its demo account and learn valuable trading skills by taking advantage of its unlimited learning time.

For just a $1 minimum deposit amount, over 3,000 stocks across 7 different stock exchanges are available for you to choose from and trade. You can engage in fractional stock trading as well and enjoy its commission-free stock trading under its Invest account.

The withholding tax on dividends is 19% on the broker’s proprietary trading platform. It’s noteworthy that the broker is well known for stockbroking.


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76% of retail investor accounts lose money

Admiral Markets is an ECN/STP broker regulated by CySEC, FCA, and ASIC. Enjoy 30 days of unlimited training on the broker’s demo account. At the expiration of the bonus training time, you’re free to open a new demo account.

The broker requires a minimum deposit of $100 to start trading your favorite dividend on its platform. You’ll have unrestricted access to over 4,500 stocks to choose from and trade.

Invest account is the broker’s approved stockbroking account where you can trade real stock with a minimum deposit of $1 and pay a commission starting at just $0.02 per share. However, note that this offer isn’t available under ASIC.

The withholding tax on dividends stands at $19 if you are trading on any of the broker’s trading platforms such as MT4, MT5, and Metatrader Supreme Edition.


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76% of retail investor accounts lose money

NAGA Trader is duly regulated by CySEC and SV as a Market Maker broker. You have an unlimited training time opportunity on its demo account. You can seize the opportunity to acquire valuable trading skills until you are confident enough to trade with real money.

When you’re ready to trade via its Live account, access over 400 stocks from 9 major exchanges with a $0 minimum deposit amount and gradually build your trading portfolio.

For EU traders, NAGA Mobile is available as real stocks on MT5 and Webtrader with no commission.

The broker’s withholding tax on dividends is 19% if you are trading on its trading platforms such as MT4, MT5, NAGA Web Trader, and NAGA Mobile.


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76.69% of retail investor accounts lose money

FP Markets is an ECN/STP/DMA broker that is regulated by major regulators such as CySEC, ASIC, and SV. Its demo account doesn’t have a time limitation to allow prospective traders ample time to learn valuable skills that will make a difference in the result of their trading activities.

The leading broker places a minimum deposit amount of $100 on new users. If you meet the financial requirements, you can access over 10,000 stocks when trading on its IRESS platform for stockbroking that is exclusively designed for Australian traders. Choose any of these stocks and showcase your trading knowledge and skills.

The withholding tax on dividends stands at 19%.


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74-89% of retail CFD accounts lose money

Plus500 is another Market Maker broker regulated by CySEC and other regulators such as FCA, ASIC, FMA, MAS, SFSA, and FSCA.

Like most of the other brokers on this list, its demo account offers an unlimited training package. You can switch to the live account after paying the minimum deposit of $100 to gain access to over 1,800 stocks.

Withdrawals are fee-free and you can deposit with your bank card for a smooth transaction.

The broker’s commission ranges between $0.05 and $2 on its proprietary trading platform while 19% is the withholding tax on dividends.


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72% of retail investor accounts lose money

CMC Markets is regulated by a good number of the leading regulatory bodies in the trading industry such as FCA, ASIC, FMA, MAS, and IIROC. The DMA broker offers an unlimited training opportunity via its demo account.

When you are done honing your skills through its demo account, you can trade directly on its Live account with a minimum deposit of $0 that grants you access to over 4,900 stocks in 29 different stock exchanges around the world.

The Market Maker broker offers an impressive spreads of 0.74 pips for traders on its Next Generation trading platform.


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80% of retail CFD accounts lose money

What are Dividends?

Dividends are payments received on a per-share basis from a company in which you are a shareholder. These are generally paid on a set date for shareholders, people who hold at least a share in the company.

As a shareholder in a company, you can store your shares or reinvest it in the company to acquire more shares and gradually build your investment portfolio.

The Main Dividend Investing Strategies

When you reinvest your dividend, such reinvest dividends are generally commission-free. More so, if the broker allows it, you can buy fractional shares also.

There are different dividend investing strategies. The commonest ones are:

  • Individual Stock Reinvestment: This strategy involves repeatedly investing in the same stock with the dividends money. Gradually, from a few shares, you can increase your shareholder’s value in the company.
  • Pool and Deploy: This investment strategy involves reinvesting the dividends from your portfolio in undervalued or low-cost shares.
  • Portfolio Reinvestment: This dividend investment strategy involves having a set of dividend-paying stocks with a certain allocation percentage that you periodically reinvest your dividends thus:
    • Invest $1,000 on 5 shares with 20% allocation or $200 each;
    • Over time, one of the stocks may perform better or worse than others. So, the allocation weight for each stock will change since the value of one share increases or decreases more than that of others;
    • The goal is to invest more money in the badly-performing stocks to increase the allocation percentage compared to the other ones, and vice versa, by buying the poorly-performing stocks.

If you are contemplating dividend investing and have no clue about where to start, these are some renowned brokers for dividend investing you can check out. You may find one that meets your requirements and may be the perfect fit for your investment goals.


About the Author

Filippo Ucchino

Co-Founder - CEO - Broker Expert
Filippo is the co-founder and CEO of InvestinGoal.com. He has 15 years of experience in the financial sector and forex in particular. He started his career as a forex trader in 2005 and then became interested in the whole fintech and crypto sector.
Over this time, he has developed an almost scientific approach to the analysis of brokers, their services, and offerings. In addition, he is an expert in Compliance and Security Policies for consumers protection in this sector.
With InvestinGoal, Filippo’s goal is to bring as much clarity as possible to help users navigate the world of online trading, forex, and cryptocurrencies.

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