Best Broker for Europeans in 2025 (ETFs & Stocks)

Summary

In this video, the creator evaluates various European investment brokers, comparing their fees, investment options, regulation, and features. Key brokers like Interactive Brokers, Trade Republic, Scalable Capital, and Flatex are praised for their low costs and robust services. However, platforms like N26 and Revolut are criticized for relying on external solutions and having less favorable regulations. Trading212 has improved but still faces scrutiny due to its regulation under CySEC in Cyprus. The video emphasizes the importance of choosing brokers with strong regulation and low fees, especially for long-term ETF investors.

Takeaways

• 😀 Interactive Brokers is considered the gold standard for long-term investors due to its strong financial position and comprehensive offerings.
• 😀 N26 offers competitive fees but lacks the ability to transfer shares in or out, making it less favorable for long-term investors.
• 😀 Revolut is a good secondary bank option, but its investment services are limited by missing stocks and ETFs and high fees after the first free trade.
• 😀 Trading212 has made significant improvements, like allowing share transfers and disabling share lending, but still faces issues with Cyprus regulation.
• 😀 Degiro is a solid option but loses points due to its share lending policy, making it less ideal for long-term investment.
• 😀 Scalable Capital provides low fees and strong features similar to Trade Republic, making it a great choice for investors in Germany.
• 😀 Trading212 offers a 0.5% cashback card, but the broker's reliance on CFDs (high-risk products) should be avoided by most retail investors.
• 😀 N26 and Revolut rely on external services (like Upvest), which adds complexity and potential risks to their investment offerings.
• 😀 The regulation in Lithuania (for Revolut) and Cyprus (for Trading212) is considered weaker compared to larger financial markets, posing risks for investors.
• 😀 Trading212 offers interest on uninvested cash, but it's unclear where the extra interest comes from, making it a bit unsettling for investors.
• 😀 For those in the UK, Trading212's regulation by the FCA makes it a more secure option, though still with some limitations when it comes to transferring shares.

Q & A

What is the main concern with using N26 for investments?

The main concern with using N26 is that there is currently no way to transfer shares in or out of the platform, making investors 'locked in' to N26. This limits flexibility for users who may want to move their assets in the future.

How does N26 execute its trades and what are the fees like?

N26 executes trades using the Tradegate exchange, which has tight spreads during public market hours. The fee for each trade is 0.9€, which is considered very competitive.

Why does the speaker have reservations about Revolut's investment offerings?

The speaker is concerned about the lack of certain stocks and ETFs, the unclear execution details of trades (some can be executed internally or OTC), and the use of a white-label solution from Upvest, which adds complexity and a potential point of failure.

What regulatory issue does Revolut face that makes it less ideal for investors?

Revolut's assets are custodied by Revolut Securities Europe UAB, which falls under Lithuanian regulation. The speaker views Lithuanian regulation as less stringent compared to other financial markets, making it less ideal for investors.

What improvements has Trading212 made recently?

Trading212 has made several improvements, including allowing users to transfer shares to other brokers, offering interest on uninvested cash, and enabling users to disable share lending to minimize counterparty risk.

What are the risks associated with Trading212’s CFD offering?

Trading212's CFD offering carries significant risk, with 75% of retail investors losing money when trading with leverage or derivatives. The speaker advises avoiding CFDs unless you're a professional.

Why is Trading212's regulatory oversight considered a limitation?

Trading212 is regulated by the CySEC in Cyprus, which is perceived as having less stringent regulation compared to other financial markets. This lack of strong regulatory oversight is a major concern for long-term investors.

What is the appeal of Interactive Brokers compared to other brokers?

Interactive Brokers is considered the gold standard for long-term ETF investors, offering a comprehensive range of services, a long history of reliability, and strong financial backing, making it a top choice for large investments.

What are the benefits of using Trade Republic for investments?

Trade Republic offers a flat 1€ fee per trade, commission-free recurring investments, full ECB interest rates on uninvested euros, and a 1% cashback card. These features make it a strong choice for cost-conscious investors.

What is the speaker's opinion on Trading212’s share lending policy?

The speaker views Trading212’s share lending policy as a downside, as it may create issues for long-term investors. They prefer brokers that allow users to fully control whether or not their shares are lent out.