What is it and How to choose the Best Brokers to Invest

Choosing a good broker is basic.

Your choice of broker will determine how much money you will have in the future, without a doubt.

Why?

👉 The commissions of the best brokers are much lower than others, and that implies thousands of euros in the long term.

👉 The security of a bad broker can make your money disappear, so you should focus on finding a good broker for your money.

👉 Some brokers will make investing easy for you, others are so complex that they will make you never start.

And, even more basic, but equally important, is knowing what a broker is and how to choose the best brokers for your particular case, for you.

I will start the article with the brokers that I personally use for each of my strategies.

Above all, I will focus on long-term and medium-term investments in the stock market, since it is my favorite, either with shares or investment funds.

Later you can also find a list of other brokers that I do not use but that I consider good and may better suit your profile.

And, of course, something fundamental.

Before seeing which are the best brokers to invest in and how to choose a broker that suits you, it is essential to be clear about some factors that only you can answer since the existing options are many.

And I’ll tell you about that too, of course.

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The best brokers that I personally use

Perhaps my case is not the same as yours, but I know that it always helps to know what others are doing.

Therefore, I want to tell you about my particular case in case it can help you.

When I started investing I did it with only one strategy, but now, after more than 7 years, I have tried many different things.

In this first section, I am going to tell you about what I consider the best brokers for each of my strategies.

I will simply tell you which broker I use for each investment and why.

Later I will tell you about other brokers that are also good, and that could be more adapted to your situation.

The best Spanish broker to invest in mutual funds

This is, without a doubt, my favorite investment strategy.

I love investment funds, specifically index funds.

In the long run, I’ll probably end up with most of my money tied up in mutual funds.

What do I ask a broker for this strategy?

Security

I will always prefer to pay a little more than doubt the security of the broker.

A good offer of investment funds

Many brokers offer mutual funds, in fact almost all of them.

Traditional brokers and banks, BBVA, Bankinter, La Caixa, etc. They offer mutual funds, of course.

But, in my opinion, they are not the best brokers to buy them, since their commissions are usually much higher.

And besides, they don’t offer the most interesting ones.

It is essential that the broker that I use for this strategy offers me the majority of the funds in the market.

No commissions

There are brokers for funds that do not charge a custody commission, purchase and sale commission, or a transfer commission.

There is no point in paying commissions in such a case.

A broker without purchase and transfer commissions allow me to make purchases of only €100 or €200 and I can achieve perfect temporary diversification.

Before you could go to Selfbank and BNP, but now you can’t.

Right now, I see 2 main options.

How do I invest in index mutual funds?

I invest in funds through Robo advisors.

If you are not sure what they are, I will tell you here in full.

In short, it is an automated manager that invests for you, automatically and with low commissions.

I invest my money in 3 Robo advisors, here are the details of each one

The best online broker for funds

You can also choose to invest yourself with an online broker, and I am clear about which one to recommend.

It is one in which I also have an account, and in which I have some funds.

It is My Investor, the best broker by far for investment funds.

The best online broker to buy shares

One of my strategies is to Buy and Hold with Spanish companies.

In fact, it is the first one I put into practice.

For this strategy, I invest with ING, but I recommend you do it with DEGIRO.

Why?

Simple, because when I started DEGIRO did not operate in Spain, basically, and it is much cheaper than ING.

Why don’t I change?

Because my intention is to eliminate this strategy from my investments since I personally prefer to invest through investment funds and Robo advisors.

I am no longer compensated for the change.

Now, I have it clear, if I started now I would certainly do it with the DEGIRO broker since I think it is one of the best stockbrokers, if not the best.

What do I ask a broker for this strategy:

The objective of this strategy is to collect dividends and keep the shares indefinitely, so I will look for a broker that gives me the following:

  • The necessary security to sleep peacefully.
  • Low buying and selling commissions.

👉 The essential thing is that the broker does not charge me stock custody fees or commissions every time I collect dividends.

One of the best online brokers for trading

I’m going, to be honest with you.

Trading is not my thing, really.

I don’t like it and I never have liked it, since it seems to be something very difficult and in which you can easily lose a lot of money.

If you feel like it, here I tell you why I do not trade or recommend it.

In any case, if you search you will easily find brokers for trading since it is what gives the most money by far.

I am not going to get fully into analyzing brokers for trading, forex, investing in commodities, CFDs and derivatives, etc.

If this is what you were looking for, Etoro, for example, could be an interesting option.

That if, personally I do not advise you, since this type of financial instruments based on technical analysis have a high risk.

At most, I would recommend it for a small part of your portfolio, perhaps trying social trading.

I have been experimenting with Social Trading since 2020, in order to speak with knowledge and experience on the subject, and I must admit that for now, the results are surprising to me.

If you are looking for the best broker to trade, this is not your article, since I have hardly done any trading and I could not talk about it in detail from my experience.

The broker / Exchange of cryptocurrencies that I use

The same thing happens a bit more with trading than with cryptocurrencies, I see it as very risky.

What if, as I want to be informed about it, I have experimented a bit.

And, in my opinion, without a doubt the best exchange for it is Binance.

Here you have Binance opinions, in case you are interested in getting into this world.

Factors to be clear about yourself before deciding how to choose a broker to invest

As I told you at the beginning of the article, it is important that you have some things clear before you start choosing a broker.

Because each person is different, and only you know yourself.

Depending on these factors, you can choose one broker or another, arriving at the best broker for you.

But the first thing is first, and it is to explain the definition of a broker before continuing, in case you are not clear.

best brokers

What is a stock broker exactly?

Look, I don’t say what a broker is and that’s it, I specify specifying that it is a stockbroker.

Brokers, there are many, and the word broker means intermediary.

The word broker comes from English and refers to the intermediary between a buyer and a seller.

A stockbroker, specifically, is an intermediary that allows you, as an investor, to buy shares or investment funds

Normally online brokers are used, and having one is essential to invest.

The good thing is that it is practically like a bank account, very easy to use and very cheap if you choose well.

In what and where will you invest your money?

It is very important that before registering with a broker you are clear about what and where you will invest your money since your choice will determine whether a broker is right for you or not.

Among others, you should be clear about the following

  • Will you invest in Spanish shares or foreign shares?
  • Do you want to be able to rent your shares in exchange for some return?

You will not need the same broker if you invest only in Spain and the IBEX 35 or if you want to invest in the main markets around the world and buy Amazon shares, for example.

And the same broker will not do you any good if you want to buy investment funds or be able to buy and sell options.

That is why there is no single answer to which are the best brokers, but it depends.

If you want to invest in IPOs, for example, to buy shares of companies when they go public, your broker will be Freedom24.

Later we will see which are the best brokers in the market and I will comment on which is the best option based on your investment strategy.

How many operations will you carry out with the broker?

Another aspect to take into account to be able to choose the broker that best suits you is the number of operations that you are going to carry out.

Someone who invests for the long term and plans to buy only once every 6 months will not be as affected by the commissions charged by the broker as someone who invests for the medium term and is going to make 2 operations each month.

If you are going to carry out very few operations, you can ignore the commissions somewhat and value other aspects of the broker more, such as its security, the markets in which it allows you to operate, etc.

If, on the other hand, you plan to start trading and make a lot of trades, the fees and commissions of each broker will be something of great importance to you.

What price do you put on your peace of mind?

Another factor to highlight and that you should be clear about is the price you put on your peace of mind.

The security offered by different brokers is not the same, and some brokers operate without being regulated, something you should definitely avoid.

The offer in brokers is very high and there are really cheap ones, but they have just come out or about which very little is known.

It is very important that the broker is registered with the CNMV and that it adheres to the FOGAIN or other coverage systems

Not all brokers assure you the same capital in case of bankruptcy or fraud, and some brokers do not even operate legally.

Do you want an online broker or do you need to go to a physical office?

The usual thing is to go to online brokers, without a doubt.

Online brokers are much cheaper and more efficient options.

Actually, there are practically no brokers left that do not offer the option to buy and sell online.

But you may be from the old school and prefer to be able to go to an office.

In that case, you can practically only opt for brokers associated with banks, and not for the best brokers in Spain, which are undoubtedly 100% online.

A broker for Spain, or to invest where?

This is another important question.

Some brokers allow you to open an account from anywhere in the world, while others are specific to Spain or other places.

Many, for example, allow you to open an account from anywhere in Europe.

The best thing you can do is look in the FAQ section of the page of broker that interests you and see the requirements to open an account.

You will always find options, wherever you are from, do not hesitate.

Therefore, the best brokers in what sense?

I hope that these factors have made you reflect on what type of investor you are, and therefore what type of broker you are looking for.

As I say, no one can answer the question of which is the best broker with a single answer.

If you tell me, Marc, what is the best broker to invest in stocks?

Then I can answer you more specifically, and I say DEGIRO.

Or if you tell me, what is the Spanish broker with offices that can do better for me to buy Spanish shares?

So I can tell you that maybe I would go for ING.

But first, yes or yes, you have to reflect on what you are looking for and how you want to invest your money before choosing a broker.

What are the best brokers to invest and their characteristics?

As I have mentioned, there are many brokers and they all offer different things.

I have also told you which ones I use for each type of investment.

But they may not suit you, and that is why I want to mention other important brokers, which could also be considered the best brokers for certain investments.

So that you do not have to search through an immense list, I will comment here on those who, in my opinion, are the best brokers to invest in the stock market and inequities.

what is a broker

Best brokers to invest in stocks

DEGIRO stockbroker

In favor

  • It allows to operate with all kinds of products . Stocks, ETFs, futures, options, etc.
  • The purchase-sale commissions are very low, one of the best in the market, being €0 for the Spanish stock market and the US.
  • Very simple platform and possibility to open the account easily.

Against

  • It is not a Spanish broker, so you will have to manually enter your tax summary when making the income statement.

Who is DEGIRO suitable for?

reviews Degiro

DEGIRO is a very complete broker indeed.

When it came out on the market I didn’t like it too much because I didn’t trust its low prices, but now that they have been in business for years, they give me confidence and the opinions of their clients are quite good.

Right now it seems highly recommended, especially if your goal is to invest in shares, whether Spanish or foreign.

➤ From here you can open a free DEGIRO account and see all its conditions

Investing involves the risk of losing money, both in DEGIRO and in other brokers, so I always advise you to know what you are doing before you start investing your money.

Here is a mega DEGIRO guide.

Orange Broker ING

In favor

  • It does not charge a commission for collecting dividends or a custody commission if a semi-annual purchase is made.
  • It allows buying national and international shares.
  • It is a consolidated and serious broker, with many satisfied clients.

Against

  • It does not allow trading with options.
  • The commissions are high and if you plan to make many purchase and sale operations, it can be quite expensive. Below you can see a table with the commissions.
broker ing

Who is the ING broker suitable for?

  • Although it is not an excellent broker and does not have an excessive offer of investment options, it is a very good option for someone who invests for the long term buying individual shares in Spain and does not do many operations at the end of the year.
  • For someone who wants to make purchases abroad, it is not recommended, since the commissions for international purchases are quite high.
  • Someone who wants to invest in funds should not do so with this broker.

Interactive Brokers

In favor

  • It offers access to many financial markets and allows operations with all types of products . Stocks, ETFs, CFDs, futures, options, etc.
  • Commissions are very low, with a minimum of $1 for American companies and €4 for Spanish companies. They are much lower commissions than those of other brokers.
  • Being an American broker, it offers security that is at another level from that offered by the others seen.

Against

  • It is necessary to have a minimum of $10,000 in the account
  • If you don’t have $100,000 in your account, the minimum monthly commission to spend is $10 . If those $10 are not reached by operating, they will have to be paid the same.
  • It is necessary to present form 720 to the Treasury if you have more than €50,000.
  • Customer service is in English.

The rates and commissions offered by Interactive Brokers raise many different cases and situations, so I leave you their page here so you can study them in-depth.

Who is IB suitable for?

  • If you want to operate in the American market, IB is a great option, since its commissions are very low .

Unfortunately, if you trade little and have less than $100,000, it is useless since you will have to pay $10 per month, something that you will not pay with another of the brokers seen if you make a few trades.

  • If you want to trade only Spanish stocks, perhaps IB can help you, although I would recommend ING or DEGIRO.

Best brokers to invest in investment funds

MyInvestor Broker

In favor

  • It is, without a doubt, the best broker to invest in investment funds right now.
  • You can access tons of index funds, including Vanguard, and with no extra fees.
  • You can also access many actively managed funds, such as Baelo Patrimonio, which I have precisely on MyInvestor.
  • You will have an account remunerated at 1% for your cash, up to 15,000 euros.

Against

  • To buy funds, which is what I recommend it for above all, it is practically all good. As I will comment later, it is the one I use and I have no complaints .

Who is MyInvestor suitable for?

  • MyInvestor is perfect for someone who wants to set up a portfolio of passively managed funds, since the cost will be €0 .
  • If you want to have actively managed funds in your portfolio, you will find the main existing ones.

Broker Renta 4 and Selfbank

Before, Selfbank was my recommended broker par excellence in this section.

In fact, I myself started with Selfbank.

Now I recommend My Investor, as you have seen, and the reason is clear

Selfbank has changed its conditions, and the My Investor offer is much better, without a doubt.

Renta 4 is a very similar option to Selfbank, and when I opened an account for funds I hesitated between the two.

I opted for Selfbank for small details.

If you are interested in any of these options, the best thing you can do is compare them thoroughly by looking at their pages to be able to choose the one you like best.

Renta 4, like Selfbank, offers to buy individual shares in many markets at very competitive prices.

They have a great offer, they just have extra commissions that My Investor does not have.

Robo Advisors – Automated Managers

In favor

  • They create your own diversified portfolio of index investment funds, the best in the market.
  • They offer Vanguard investment funds, something that other stock brokers in Spain do not offer.

Against

  • Although the commissions are very low compared to what a bank would charge you, they are somewhat higher than if you decide to create your portfolio yourself.

Who is a Robo Advisor suitable for?

  • It is a very good option for someone who wants to invest in mutual funds .
  • If you don’t want to manage your portfolio or have to decide where to invest, a robo advisor is ideal for you.
  • I have them in my portfolio, and the results are excellent. Much less work for me and a very good annual return.

I have not commented on actively managed funds, such as Bestinver, Azvalor, Cobas, etc. and it is that most of these can be contacted directly through their page and it is not necessary to have a broker to do so.

I would like to tell you that it is essential to think about diversification in terms of brokers

Do not put all your money in the same place, distribute it in different accounts in brokers to better protect yourself.

Start with a single broker, but as you have more money, expand that number and choose brokers that are suitable for your objectives.

Interactive Brokers, for example, seems to me to be a very bad option if you don’t have a large portfolio, but as soon as you have a certain volume and can afford to put in $100,000, it’s a great option.

Selfbank and Renta 4 seem like similar options to me, although as I said, My Investor is much more interesting right now.

So far the article on how to choose a broker to invest in the stock market in the long term and medium term, I hope you have found it useful.

It is clear that there is no single answer to the question of which is the best broker in the market, because it depends on whether you want a broker to buy shares, one to buy funds, etc.

The key, without a doubt, is to be clear about your situation and choose the best broker for your specific case.

I will be happy to answer any questions you have in the comments, don’t be shy 🙂

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