In the comparison table under the services column, you will see different descriptions:
“Broker” means that they offer normal trading with stocks and securities.
“CFD” means that they only offer to trade with CFD products. These are products for active traders.
“All-in-One” means that they offer trading with both stocks as well as CFD products.
In our comparison table, you will find the columns “Deposit / Withdraw” and “Fees / Spread”. This gives you a good overview of the broker’s fees. But the answer to this question may be different for different people. Brokers usually have different fees depending on the market, product, and amount you are going to trade with. At the top of our table, you find the stockbroker with the lowest fees in general.
All brokers that you find with us are safe to use, we have tested and rated them ourselves. We only recommend regulated brokers who protect your money. In addition, your money can be protected by investor protection. For example, in the U.S. the nonprofit corporation SIPC insures up to $500,000. In the U.K. up to £85,000 is protected by FSCS. While in Canada up to $1,000,000 of your account is protected by CIPF. The kind of investor protection depends on where you live and where the broker is regulated. Read our review of each broker for more information.
NOTE! There are many stockbrokers on the market, this also includes unreliable brokers. Be sure to read the reviews of the broker before opening an account.
If you’re new to investing it can feel overwhelming. There are thousands of stocks and mutual funds to choose from. But it doesn’t have to be complicated. We help you compare and choose the best stockbroker. 1: Open an account. 2: Deposit money. 3: Buy an index fund. This is a fund that contains all the stocks on the stock market and is recommended for beginners.
This is not an easy question to answer. There is no straight answer to the question, the answer depends on who is asking. All people have different time horizons, risk profiles, and knowledge.
Do you want to invest money for 1-3 years? In that case, it’s risky to only own stocks. The stock market goes both up and down, especially in the short term. In this case, it is recommended to spread the risk with several assets such as fixed income products, gold, or a savings account with interest.
Do you want to invest money for 5 years or longer? In that case, it’s always recommended to buy stocks. There is no point in opening a savings account with a 1% interest when inflation is 2% per year. This means that your money is guaranteed to decrease in value.
CFD (Contract for difference) is a contract that follows the value of an underlying asset. In other words, you can buy a CFD product that reflects the price of, for example, stocks and commodities. There can be various reasons why you choose to trade CFDs instead of ordinary stocks. But it tends to be more flexible, providing access to multiple markets, leverage, short selling, and the ability to buy fractional shares. There are many CFD brokers on the market but in general, these brokers are for people who are active and experienced. For beginners, we recommend buying real stocks.
When you sell a share at a profit, you need to pay capital gains tax. However, this is usually lower than your regular tax rate. How much you have to pay varies depending on the country. In the U.S the capital gains tax is between 0-20%. In the U.K. you pay between 10-20% in capital gains tax. While in Canada the capital gains tax is as high as 50%. Be sure to read the rules that apply in your country and state.