/ What criteria to follow when choosing the best broker

Best broker: What to look for when choosing one

The right broker can not only improve your investment experience, but also contribute significantly to the success of your investments and the growth of your wealth.

Therefore, it is important to do thorough research and compare your options before making a decision. Ultimately, the ideal broker is the one that best meets your specific needs as an investor.

Reliability of the stockbroker

Before you open an account with an online broker, make sure that the company is reliable and regulated by the relevant authorities. Online investing is an extremely regulated world, so it is important to make sure that your broker is authorised and complies with the financial standards of the countries in which they operate.

For example, DEGIRO and Trade Republic brokers are regulated by BaFin (Germany's Federal Financial Supervisory Authority). XTB and eToro are regulated by the Financial Conduct Authority in the UK.

Commissions charged

Today, most stockbrokers offer very affordable commissions for investors who want to get started without spending too much money. However, it is important to realise that not all commissions are clear. Even if a broker offers you a free brokerage commission or very low transaction costs, they may compensate for these low costs by charging a spread, which may not be favourable.

The impact of commissions on your choices should primarily be determined by your investing style. Obviously, a long-term investor who does not want to change their portfolio regularly will not be as affected by commissions as a trader who enters and exits positions several times a day.

Product range and your investing style

The best stockbroker is the one that fits your investing style and your level of knowledge about investing in the stock market. For most investors, buying stocks and ETFs is enough to invest their money. For others, investing in cryptocurrencies and other risky products such as CFDs is important. To have a good experience, it is best to choose a broker that prioritises access to your favourite investments.

Trading tools

User interface is one of the most important elements when choosing the best broker for your investments.

Each broker offers different features and support

Some offer a web version and a mobile app, others offer a 100% mobile version or offer a trading platform that you can download to your computer. If your goal is trading, a mobile app probably won't work for you. On the other hand, if you want to invest in traditional products for the long term, you won't need a sophisticated web application.

Customer service

This important point is often overlooked when choosing a stockbroker. However, if you have any problems or concerns about the functionality of your account, a late transfer, an unexpected debit or any other technical issue, it is important to be able to consult a specialist.

Many brokers are based abroad and some of them cannot provide quality customer service in French. Neo-brokers such as Trade Republic and Scalable Capital prefer to communicate only by email, which can be frustrating for some users.

DEGIRO, on the other hand, offers telephone customer service in French. Other brokers, such as eToro, offer live chat support right on their website.

It is important to clearly understand your personal needs and analyse which broker will meet them. Your comfort and sense of security is a good indicator to complement a rational analysis of brokerage companies.

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