Online broker comparison 2021: The best brokers in the test

The big online broker comparison: If you want to trade in shares and other commodities online, you need a securities account for this. This is a basic requirement for all private investors who want to trade in shares and other securities on the stock exchange.

However, high fees can be charged for share trading, especially if you do this through your own bank or independent financial service providers. If you want to save money, you should set up an online custody account with an online broker.

The fact is that the best securities accounts are available on the internet. Whether at direct banks or online brokers. In addition, a good online custody account usually also has favourable and suitable savings plans. In our online broker comparison, we have picked out the best brokers and securities accounts and compared them with each other.

Whether you want to trade shares, ETFs, CFDs, crypto or forex: In our big online broker comparison 2021 we have picked out the best brokers.

The best online brokers in comparison 2021:

 

What is a broker?

A broker or online broker handles all on-exchange and off-exchange executions of orders (securities orders) of its customers. A broker thus works as an intermediary between investors on the one hand and stock exchanges (and off-exchange trading partners) on the other. The online broker trades in securities such as shares or bonds on commodities, energy or raw materials.

Trading thus takes place with the help of the online broker on stock exchanges and also on over-the-counter places (OTC trading). Private individuals who want to trade and be active on stock exchanges or other markets such as the foreign exchange market need a broker. The broker takes on the role of an intermediary or middleman.

Thanks to the internet, trading in shares and other securities has become much easier and cheaper for private investors. Today, you can choose between different online brokers, some of which are much cheaper than your own bank. Depending on the strategy, risk profile and desired commodity, there are various online brokers that offer an online securities account for private investors.

What is the best online broker?

In our big online broker comparison we found a test winner: eToro. On the basis of several criteria, the online broker convinced us across the board.

Founded in 2007 in Tel Aviv, Israel, eToro is a multi-asset platform best known for its social trading feature. The online broker has registered offices in the UK, Cyprus, Israel and also China. Currently, over 10 million customers use the platform, making eToro the most popular online broker.

eToro covers pretty much all trading offers, and at the best conditions. On eToro you can trade stocks, ETFs, cryptocurrencies, commodities, currency pairs and CFDs. Furthermore, trading stocks and ETFs is completely free of charge. Only small spreads apply.

In addition, eToro is regulated and licensed. It is regulated by the financial supervisory authorities of the respective country, including the licences of the FCA, CYSEC and GB. Thus, eToro can score points not only thanks to the attractive conditions, but also due to the security and respectability.

eToro is suitable for newcomers as well as advanced private investors. The trading platform is very clear and also has a modern design. There is an in-house app that also makes mobile trading possible while on the move. This means that you can keep an eye on the market and your own online portfolio at all times and from anywhere.

Probably the most important focus at eToro, as already mentioned, is on social trading. This is the function for copying the portfolios of other traders.   Through social trading, investments of other successful investors can be replicated and incorporated into one’s own portfolio.

With the help of the demo account and the extensive blog, even beginners can expand their knowledge of trading with various assets.

The best share, security & ETF brokers in comparison

What is a Stock, Security & ETF Broker?

If you want to trade in securities, you should choose a broker who does not charge any fees for trades. This is because the fees for share trading are sometimes underestimated. Most online brokers also have the option of trading in shares, securities or ETFs. There are also brokers who specialise purely in CFDs. You can find out more about CFDs below.

A share deposit is a broker that enables investors to trade in shares. But not all share trading is the same – which is why you should choose the right share broker carefully. It is important to know which investment strategy you are pursuing. Often these are only small details, but it depends on whether you want to trade shares in the short or medium term, or are planning a long-term investment.

The situation is similar with ETFs. An ETF is an exchange-traded index fund that tracks the performance of an index (e.g. DAX). In principle, ETFs combine the advantages of shares and funds in one. With an ETF, you can invest in markets at low cost with one security – provided you find the right ETF broker. The important thing when choosing an ETF broker is selection.

Stock exchanges, off-exchange trading & fund trading possible?

Depending on the investment strategy, investors should also think about what kind of trading they want to do. There are different types of over-the-counter trading. These include:

  • Off-exchange trading in listed securities
  • Over-the-counter trading in financial derivatives
  • Off-exchange trading in securities not admitted to trading on the stock exchange

Through online brokers, private investors have the opportunity to conduct transactions directly with an issuer or a broker. In doing so, the investor makes an enquiry via the internet about the price for the specified financial product to his online broker. The issuer then communicates the binding buying and selling price for the specified quantity. The investor must then decide within a few seconds whether he wants to conclude the transaction at these conditions.

All the online brokers we present allow you to trade fund units via the stock exchange. However, the offer varies from broker to broker. With top ETF funds, you can easily earn money over a longer-term investment period. What you need for this, however: Patience. As a rule, ETF funds are only worthwhile if you plan to invest for at least 10 to 15 years. The easiest way to get your first own fund is to use an online broker.

What is the best stock, securities & ETF broker?

In our test for the best stock, securities and ETF broker, eToro convinced us in every respect. If you specialise in stock trading, you can open and close stock positions via eToro – and all this without any commission, no mark-up, no order fee and also no management fees.

This means that eToro does not charge any costs for a stock trade. Many brokers charge trading fees or administration fees, which do not exist at eToro.

Other advantages of trading stocks via eToro are:

  • No limit on trading volume
  • Possibility to buy only fractions of shares
  • Free access to share analysis

This also applies to ETFs. When you buy an ETF on eToro, you become the owner and the underlying asset is held in the investor’s name. Again, there are no commissions or other fees.

Note: Zero commission means that no brokerage fee is charged when opening or closing the position on the US exchange. It does not apply to short (SELL) or leveraged positions. Other fees may apply.

The best CFD brokers in comparison 2021

What are CFDs and CFD brokers?

CFDs (Contracts for Difference) are highly speculative derivatives and are suitable for well-informed investors who are aware of the risks involved in CFD trading. In principle, CFD trading allows you to open large trading positions on the market with little capital investment. In contrast to the purchase of shares, the buyer of CFDs is not a shareholder in a company, but merely the holder of a claim.

As a so-called derivative, the price of CFDs is derived from an underlying, which is often a share, but also other values (for example indices or commodities). Unlike equity investors, CFD investors participate exclusively in the price development of the financial instrument. CFDs thus belong to the group of financial contracts for differences.

With CFD trading, you can achieve high sums with small capital due to the leverage effect. Since trading involves high risks, it is important to find the right CFD broker. A CFD broker is a financial service provider that specialises in contracts for difference.  There are Forex CFD brokers, stock CFD brokers and also crypto CFD brokers.

Via the CFD broker, it is possible to trade different CFDs and speculate on the price rise or fall of certain underlyings. Due to the leverage, only relatively little money needs to be invested, and yet large sums can be moved on the market.

When choosing a suitable CFD broker, you should ask yourself the following questions:

  • Is it a CFD broker with margin calls?
  • Is the CFD broker a German CFD broker?
  • Is the offer available in German?
  • Is it a cheap CFD broker?
  • Is there a demo account?

With a CFD broker, it is important that the platform is available in German and is subject to European law. Therefore, you should also pay attention to the regulation.

CFDs or normal trading – which is better?

CFD trading

  • Lower fees than real trading
  • State regulated & deposit protection
  • No complicated set-up of a depot required
  • Trading with leverage
  • No “real” trading values – No rights in the company
  • Fee disadvantage for long-term investors
  • Risky investment: Large losses possible in case of leveraged (leveraged) trading

“Real” trade

  • Possession of genuine trading pairs
  • Voting at Annual General Meeting
  • Right to dividend distribution
  • Steep learning curve
  • Those who want to trade for the long term have an advantage here in terms of fees
  • Vulnerable to hacks and cyber attacks (especially cryptocurrency)
  • Self-responsibility for managing a custody account

Depending on the investment strategy, both CFD and stock trading or real trading have their advantages and disadvantages. Generally speaking, there is a fee advantage with CFD trading; moreover, CFD trading is regulated and a complicated set-up of a securities account is not necessary.

However, real trading offers the advantage of being in physical possession of the asset you have purchased. Thus, one also has the right to vote at the annual meeting and the right to dividends.

What is the best CFD broker?

In recent years, CFDs have become the most popular way for online investors to trade commodities, indices, forex and stocks. Because CFD trading does not involve the actual asset and works independently of the market, it allows greater flexibility than traditional trading – for example, through access to foreign markets, leveraged trading, fractional shares and short selling.

We will continue to explain why eToro is the best CFD broker based on hard criteria. The trading of shares and ETFs is completely free of charge. This means: 0% fees on trading in shares & co. In addition, only very low spreads are incurred.

In addition, eToro is fully regulated and licensed. The provider is multi-regulated with over 10 million users. Moreover, you can trade CFDs of forex, commodities, stocks, indices and more in one portfolio.

Risk management is also extremely important in CFD trading. Here, eToro offers advanced risk management functions, such as real-time notifications and adjustable stop loss. The online broker also convinces with a leverage of up to 1:30.

The best forex brokers in comparison 2021

What is Forex trading and what are Forex brokers?

Forex (FX) stands for foreign exchange. When trading with Forex, two currencies are traded against each other: The purchase of one currency results in the simultaneous sale of another. Currencies are always traded in pairs, which is why they are also called currency pairs.

It is important to know that in foreign exchange trading only one currency is ever traded. Speculation always takes place in relation to two currencies or a currency pair. In forex trading, speculation is made on different exchange rate developments. An example of this would be how the euro stands in relation to the US dollar.

The Forex market itself is considered the most liquid market in the world. Thus, one chooses forex trading especially if one wants to achieve financial independence.

Forex brokers offer trading in currencies such as the euro, dollar, Swiss franc, British pound and many other currencies. The foreign exchange market is sometimes subject to strong fluctuations

What is the best Forex broker?

There are many forex brokers on the market that offer very good conditions. The test winner based on our criteria is eToro. The forex market is attractive to a wide range of traders because it is open 24 hours a day, five days a week, and because the relatively limited number of forex makes it possible for even the most inexperienced traders to spot market fluctuations. This can be done quite conveniently via eToro.

It should also be mentioned here that eToro dedicated itself entirely to forex trading after its founding in 2007. Only in the course of time were other assets added.

eToro offers a variety of webinars, courses and trading videos that revolve around forex trading.

The best crypto brokers in comparison 2021

What is a crypto broker?

Cryptocurrencies have gained a lot of popularity in recent years. This does not only mean buying crypto, but also trading it. In the meantime, there are many different cryptocurrencies that are traded on the internet. However, if you want to invest in cryptocurrencies, you first need a crypto broker.

A crypto broker is therefore a trading place for digital currencies. You can compare the process of a crypto broker with that of a normal broker or the stock exchange. Crypto trading is similar to buying shares. The price is decided by the market, and the crypto broker acts as a middleman or intermediary.

The offer of a good crypto broker should include at least the most common cryptocurrencies. So before you decide on a crypto broker, but already want to speculate on a cryptocurrency, this is definitely a selection criterion. Not all crypto brokers have the same cryptocurrencies available for trading.  A recommendable platform should therefore have a wide range of different coins.

Can you buy real cryptocurrencies or do you trade crypto CFDs?

You can buy real cryptocurrency as well as CFDs. However, it should be noted that some online brokers have specialised purely in CFD trading. In such a case, you can only buy crypto CFDs. With our test winner eToro, however, you can buy real cryptocurrency or invest in crypto CFDs and trade with them.

In crypto CFD trading, investors bet on the possible price trend of a digital currency. The leverage multiplies the stake so that high profits (but also losses!) can be achieved in a very short time.

A reputable online broker that also offers crypto CFDs not only takes care of the trading itself, but also the service around it.

What is the best crypto broker?

In our test, eToro proved to be the clear test winner in terms of crypto brokers. On the one hand, the broker offers trading with real cryptocurrency, but also trading with crypto CFDs. Thus, the broker covers a broad spectrum for private investors. If you want to invest in real coins at eToro, you also save yourself a wallet – because eToro offers its own wallet.

In addition, there is an excellent customer service, a modern user interface, an in-house app and a large range of cryptocurrencies. Currently, one can buy, store, receive or transfer over 120 cryptocurrencies. One also has the option to switch between 500 pairs.

Another advantage of eToro are the deposit options. While it is still difficult to buy cryptocurrencies at other online brokers with PayPal, for example, you can do so here without any further ado.

When trading cryptocurrencies, security is also an important issue. eToro uses two-factor authentication to protect the account twice. This makes it difficult for hackers to access your coins. When buying cryptocurrencies, you often need your own wallet, which you should store securely on a USB stick – this is not the case here.

The best robo advisors in comparison

What is a Robo Adviser?

As a private investor, you have certainly heard of the term Robo Advisor. The term Robo Advisor is made up of the English words robot and advisor. Robo Advisor (also Robo-Advisor) are digital platforms that provide automated, algorithmically driven financial planning services with little or no human supervision.

 

A typical robo advisor collects information from clients about their financial situation and future goals and then uses this data to provide advice and invest client assets automatically. Robo advisors are digital asset managers that offer comprehensive investment solutions at attractive and transparent prices.

Robo advisors have been around for quite some time. In the 90s, software was already being developed that performed a similar activity to today’s robo advisors. However, the software was not accessible to everyone. The internet then made Robo Advisors popular – and above all interesting for every private investor. Robo advisors score above all with low barriers to entry, low costs and intuitive interfaces.

What is the best robo advisor?

A good robo advisor offers comprehensive investment solutions at attractive prices. The advisor automatically takes care of the investment. In our test, we were able to determine a clear test winner: Scalable Capital. The robo advisor is cheaper than classic asset management companies and takes over the investment and handles the entire investment.

A big plus with Scalable Capital is that there are five locations in Germany where you can actually get advice. Most advisors are purely online and do not offer this service.

In addition, Scalable Capital follows the investor’s specifications and thus creates a suitable securities portfolio for the customer. This is then also managed by Scalable Capital. This includes 23 risk categories, investments in low-cost ETFs and global diversification.

The best trading apps in comparison 2021:

         

What is a trading app?

Nowadays, many online brokers are increasingly focusing on mobile trading. This means that online brokers are often not only accessible via the computer and the web application, but also provide an in-house trading app. This means that you can also do all your business on the move and from anywhere.

It is important that the app has the same functions as the web application. In addition, there should be a chart analysis that shows turnover and price history. A good trading app must also be available for Android and iOS devices, clearly designed and easy to learn for beginners. All functions of the online broker’s trading app should be accessible in just a few clicks.

Furthermore, the download and use of the app should be free of charge. Another plus point would of course be a demo account with which you can first “play” with fictitious credit. This gives users the opportunity to get to know the app and the online broker before they start live trading.

What is the best trading app?

eToro has also come out on top in terms of its trading app. The online broker offers its app for Android and iOS devices. The app is also clearly designed and available in many languages. In addition, there is also a tutorial with which you can first get to know the app.

The most important function of eToro, social trading, is also available via the mobile app. The online broker makes it easy for all users to learn from other experienced users and copy their portfolios or strategies even via smartphone or tablet.

eToro offers more than 1000 different investment options, including CFD stocks, forex, commodities, indices, ETFs and copy portfolios. Notification within the app is in real time. The minimum amount for an entry is €200.

eToro also offers the possibility to create a free trial account in order to familiarise oneself with the functions. This allows the user to experiment with the numbers without having to spend real money. In principle, eToro has a very good trading app.

Registering with the test-winning broker eToro: Step-by-step guide to trading with the best broker

Buying shares for beginners made easy: The following steps are the quickest way to register with our test winner eToro. Although this is not complicated, traders should act attentively. Whether you want to trade stocks, CFDs, crypto or forex – eToro offers a wide range of investment opportunities for everyone.

Anyone who is also relatively new to the field is in good hands with eToro: Thanks to numerous training materials, great customer service and social trading, even beginners can quickly and easily enter the world of trading.

Step 1: Register with the test winner online broker comparison eToro

Choosing the right provider is the first essential step when you want to invest your money in shares. There are a number of criteria that determine which provider is best suited for beginners.

Firstly, you should look at which trading tools and which user interface is best suited to your requirements. Then, of course, the fees play a role, which are often related to the amount of the deposit you want to make.

We choose our test winner broker eToro because it offers the best conditions: At eToro you can trade stocks & ETFs free of charge. In addition, the provider also offers CFDs, crypto, forex and much more. In addition, eToro is fully regulated and licensed.

Registering with eToro is quick and easy:

To create a user account, you first enter a user name, your email address and a strong password. As a rule, registration with eToro is completed within a few minutes. At eToro, for example, not only a correct email address must be provided, but also a mobile phone number to verify the account.

There are different verification processes in the market. In most cases, you have to verify the account with an ID card. However, this procedure is usually quite simple and can be completed in a short time. A copy of the identity card, driving licence or passport is sent or uploaded for this purpose. In some cases, it is also possible to do this directly via webcam, which can save some time.

The procedures to confirm identity can take between a few minutes and several days. As a rule, it should work rather quickly, but you must expect to have to wait a little longer sometimes.

Step 2: The deposit

After you have set up and successfully verified your account, you can now make a deposit into your customer account. Regardless of which asset you want to trade, the general rule is that you should only ever bet as much money as you are prepared to lose, even if the worst comes to the worst.

Once you have decided on the amount you want to start trading with, you have to decide on a payment method. With the platforms presented here you always have several options – a bank transfer can be used as well as a credit card payment. eToro offers a wide range of payment options in this case, from which private investors benefit.

When choosing a payment method, you should always keep the fees in mind. This is because fees are usually already incurred when making a deposit. Naturally, it takes some time until the amount is finally tradable.

This usually takes the longest with bank transfers, while payment by credit card is usually the quickest and enables trading in shares within a few minutes. So if you are in a hurry, you should check in advance which provider and which payment method will lead you to your goal the fastest.

Here is an overview of all payment methods available at eToro:

Payment option

possible?

Buy shares with credit card

 

Buy shares with PayPal

 

Buy shares with SOFORT bank transfer

 

Buy shares with Rapid Transfer

 

Buy shares with Skrill

 

Buy shares with bank transfer

 

Buy shares with Neteller

 

Buy shares with UnionPay

 

Step 3: Trade stocks, CFDs, forex, crypto & more online

Once the desired amount has been deposited in the customer account at eToro, trading can begin. You should be aware in advance of what you want to invest in.

eToro offers a wide range of trading options. You can trade and invest in shares, CFDs, forex, crypto and many more. It is also possible to buy real cryptocurrency.

When trading, the most important thing is to choose the right strategy and to implement it. The good thing is that this page provides further information on investment strategies. Just read on. The form of the trades must also be selected, of course, before an order is placed and the actual trading begins.

What should you look for when choosing the right broker?

1. broker comparison fees & costs? Our custody account fee comparison:

It is not so easy to determine which is the cheapest online broker. This is mainly because there are different financing models and investment options. For example, some earn by charging fees on deposits and withdrawals. Other brokers, on the other hand, only make profits through the spread.

The term “cheapest broker” is also relative. Favourable for whom? Some providers are particularly favourable for professional traders with high trading volumes, while others are more favourable for those who only trade occasionally. For this reason, we have decided to set a healthy average.

So we compare the fees of the largest online brokers with the following example:

  • Purchase of shares worth €1,000
  • Holding the shares for one month and subsequent sale
  • No price changes in the 30 days

With these assumptions we now compare the fees of Libertex, eToro & Plus500:

Provider

Libertex

etoro

Plus500

Deposit

free of charge

free of charge

free of charge

Purchase fees

2,20€

0%

3,08%

Holding fees

free of charge

free of charge

0,05%

Sales charges

2,20€

0%

3,08%

Payment

free of charge

5 USD

1,9%

Total fees

4,40€

4,22€

92,32€

 

 

 

 

Broker comparison: Is there a demo account?

Another important criterion is the demo account. Most of the online brokers on offer have a demo account. In this mode, you can first try your luck with virtual credit – and in real time.

It is especially important for beginners to first familiarise themselves with the platform of an online broker. This way you can also make settings and trade without risking your own capital. Only when you are confident in using the platform can you start live trading.

Broker comparison: How good is customer service & support?

A good online broker relies above all on very good customer support and customer service. At eToro you have the opportunity to take a look at the support page first. The most common questions about the online broker and trading are answered there.

As soon as a problem or question arises during trading, contact support. At eToro you have several options for contacting customer service.

If you are already a registered investor, select the corresponding tab under “Online Help”.

You can also use the handy live chat or pick up the phone.

For future investors, there is the possibility to make a new request and leave one’s e-mail address in a contact form with a message.

The customer service works around the clock from Monday to Friday.  Even in the Android or iOS Store, employees of the Forex & CFD Broker respond with a personal message after just a few days.

The fact that you can also use the support in several languages is another advantage.

Broker Licence & Location: What makes a reputable broker? German broker or international provider?

The regulation of an online broker is equally important. This is also an important clue that can be used to determine whether the provider is reputable or fraudulent.

Whether the headquarters of a CFD broker is in Germany is basically not decisive. It is much more important for most people whether the platform is available in German, whether it is subject to European law and whether it is sufficiently regulated. In this CFD broker comparison, this applies to all tested providers.

Here, too, the following applies: All tested online brokers can be recommended without hesitation, as they are regulated by different authorities. This ensures, for example, that traders’ investment income must be held in trust accounts. All in all, this creates great advantages for CFD traders.

Our test winner eToro also has a government deposit guarantee of €20,000 and is fully regulated and licensed.

eToro (Europe) Ltd. is a financial services provider licensed (license number 109/10) by the Cyprus Securities Exchange Commission (CySEC) and subject to its regulations. Source: eToro website

The broker’s licence (Forex Broker, CFD Broker, Stock Broker, Commodities & Crypto Broker) originates from the EU country Cyprus. European regulations must therefore be adhered to, otherwise eToro would not be able to offer its service in the first place.

5. the broker’s offer

It should be noted that Libertex and Plus500 are pure CFD and Forex brokers. eToro, however, also offers the purchase of physical assets.

Assetts

eToro

Libertex

Plus500

Shares

 

 

 

ETFs

 

 

 

Cryptocurrency

 

 

 

Raw materials

 

 

 

Forex

 

 

 

CFD

     

6 Broker comparison: Is there a margin call?

Especially in CFD trading, a margin must be deposited. Due to the leverage effects, losses can exceed the stake. In most cases, the positions are then closed by the CFD broker if the trader does not comply with the broker’s demands to inject additional capital.

In Germany, it is de facto no longer legal to offer a margin call. Consequently, all online brokers tested are without margin calls. Nevertheless, it is important to proceed strategically and to prepare your trading strategy in advance. Risk management is essential to avoid total loss.

7. functions of the online broker

Functions

eToro

Libertex

Plus500

iOS & Android

 

 

 

Apple Watch compatible

 

 

 

Real-time charts

 

 

 

Price alerts

 

 

 

Watchlist

 

 

 

Mobile Trading

     

Account management

 

 

 

Demo account

 

 

 

8. deposit options of the online brokers in comparison

Deposit options

eToro

Libertex

Plus500

Credit cards

 

 

 

PayPal

 

 

 

Instant bank transfer

 

 

 

Skrill

 

 

 

Neteller

 

 

 

Giropay

     

Bank transfer

 

 

 

Other

 

 

 

Which broker suits me?

The decision for the right online broker depends on one’s own investment strategy, risk management, the capital invested and the type of investment. Depending on whether you want to trade in shares, CFDs, ETFs, forex or crypto, or whether you want to set up a savings plan – you have to be aware in advance of what you actually want.

In our broker comparison we found out: eToro offers the largest selection of trading goods. At eToro you can expand your portfolio and you have the possibility to trade with all different commodities. In addition, you can buy cryptocurrency and save on your own wallet.

It is important to note that some providers only offer CFD trading and not “real” trading. If you only want to trade CFDs from the outset, you can choose an online broker that specialises in this. In our broker comparison we found that the advantage of eToro is that you can trade both “real” and CFDs.

How do I make money with my online broker?

This depends entirely on one’s own investment strategy and in which asset one would like to invest. CFD trading should be treated with caution and should only be carried out by experienced traders. CFDs are available with every conceivable underlying asset: shares, funds, currencies or commodities and also cryptocurrencies. Especially with already very expensive shares, CFDs also enable entry into trading with lower investments.

A clear strategy is crucial when trading shares. This way, one can soon make one’s own share buy recommendations. When looking for a suitable strategy, one should first be clear about how much risk one is willing to take. For this purpose, there are very helpful tests on the pages of the brokers presented here, which help one to optimally assess one’s own abilities.

One basically distinguishes between an aggressive and a conservative investment strategy. Of course, there are all kinds of gradations between these two extremes. The basic principle is: the more aggressive the approach, the higher the profits can be if successful, even in a relatively short time. However, the higher the returns, the higher the risk.

The easiest way to make money with a share is to buy it at a low price. Then you try to hold the share as profitably as possible in order to profit from rising prices. Finally, you look for a suitable time to sell the shares again at the increased price.

Ultimately, it is important to be clear about what kind of trading you want to do and over what period of time. With cryptocurrencies, for example, a long-term plan for investing is also worthwhile, as the price sometimes fluctuates a lot. However, as you can see with Bitcoin, the price rises steadily over years. However, as with any commodity, losses can occur if the price falls.

What are the risks with online brokers?

As our broker comparison shows: In general, the risks with online brokers are the same as those you face on the stock exchange or in over-the-counter trading. Depending on the commodity being traded, there is always a risk of losing the capital invested. Total losses are also not excluded – especially in CFD trading.

Generally speaking, the more complex the trade and the less knowledge you have, the greater the risk with an online broker.

It is important that you only use capital that you actually have available and whose loss you can bear. Furthermore, you should register with an online broker that also offers deposit protection. This way, the capital is protected in the event of the online broker’s insolvency.

How do I change my broker?

Switching custody accounts is uncomplicated and completely free of charge within Germany. For example, if you want to switch to our test winner eToro, which was convincing in our broker comparison, you first open a customer account there. After all, you need a new securities account before you can order a transfer.

If you have securities or other assets at a bank or at another broker, you then apply for a change of securities account there. The current broker or bank may not charge separate fees for individual securities or complete securities accounts.

With online brokers, you then also identify yourself via the so-called PostIdent procedure. This verifies your account and ultimately allows you to transfer your securities account from another broker or bank to eToro.

With little effort, you can delete the securities account you have been using up to now and then switch to another broker. This process normally takes only a little time and is completed by the new broker. As a trader, you do not need to show much activity and only need to terminate the previous securities account with your broker.

The best online broker – our conclusion

There are currently many online brokers on the market, so the choice for investors is correspondingly large. In our big online broker comparison, we put the best brokers to the test and our test winner is clearly eToro.

There are few exchanges that offer such a wide variety of trading products as eToro. Whether you want to trade stocks, CFDs, ETFs, forex or crypto: it’s all possible at eToro. Here you can build and expand your portfolio.

In addition, the website and the in-house app are convincing thanks to their modern design and user-friendly operation. The app is now also available in 20 different languages. The customer service also convinces us in all respects.

eToro is especially popular with beginners, as the online broker is a pioneer in social trading. Young traders can copy the strategies and portfolios of successful traders and use them themselves.

So if you like to rely on an all-round package, eToro is the best place to be.

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