1. What is an online broker?
The definition and role of an online broker
The online stock market broker (also called a “broker”) is an intermediary between the trader or individual investor and the financial markets. The broker executes sell or buy orders on behalf of investors through a digital trading platform. The trader chooses the market on which the transaction will be carried out, the order type, the quantity and the price.
These transactions can sometimes be carried out via a mobile application, See e by telephone. Thanks to an online stock broker comparator, it is possible to find out all the services offered by these financial players.
Transactions permitted by an online broker
Stock brokers allow retail investors to buy and sell stocks, but also, more often than not, to transact in other markets. These include the bond market, the currency market, commodities, cryptocurrencies, etc.
Investors’ shares and securities are kept in the wallet they opened with the broker. This can be an ordinary securities account (CTO) which can accommodate all types of financial products. In addition, some brokers offer the Deferred Settlement Service (SRD). With the latter, it is possible to sell short and benefit from leverage.
It is generally possible to make investments via a PEA, a PEA SME or a young PEA. Before subscribing to a brokerage offer, however, it is advisable to carry out a PEA online broker comparison.
2. What is the difference between an online broker and a traditional broker?
Financial intermediaries are a must for any stock market investor.
The advantages of traditional brokers and banks
In the past, traditional brokers visited their clients or took their offers by telephone in accordance with the regulations governing their activities. This contact could reassure certain investors. This is now allowed by traditional banks.
The activity of an online broker is unique: brokerage. It is therefore a very specialized player unlike banks which offer all types of financial services. The investor who wishes to consolidate all his assets (current and savings accounts, securities, life insurance, etc.) will preferably choose the services of a traditional bank.
The advantages of online brokers
An online stock broker comparison provides information on the scope of activity of this intermediary.
Online brokers offer powerful trading tools like digital platforms.
In addition, the rates charged by online brokers are very advantageous compared to traditional banks. These charge custody fees, additional fees for optional services and brokerage fees. Online brokers only charge brokerage fees.
When it comes to financial products, stocks are the most well-known financial assets. Some online brokers also offer bonds, ETFs and other derivative products, SICAVs, etc. on several stock exchanges. This is a difference with traditional banks which mainly operate on Euronext Paris.
3. What is the best online broker?
Compare offers from online brokers
Before choosing the best online stock broker, it is prudent to consult the offers available on the Internet. To obtain all the information, go to the online stock broker comparison at the top of the page
Criteria to remember when choosing an online broker
There is no better online broker. It all depends on the investors’ objectives.
Depending on the trader’s profile (beginner, experienced, expert), the latter will choose the level of support offered by online brokers. This support ranges from simple training to advanced analysis capabilities.
The financial products of online brokers are adapted to several types of customers. For example, an experienced investor will be attracted to a wide range of products (stocks, currencies, commodities, stock indices, etc.).
In addition, if the trader is looking for quality customer service, he will focus on the broker’s services in this area: availability, speed of responses, means of communication (telephone, email, chat, etc.).
You also need to be careful about the prices charged. However, very low brokerage fees are not always the best option. You must pay attention to the conditions to be respected, particularly in terms of trades per month and capital, as well as possible hidden fees.
It is also important to ensure that online brokers are regulated by reliable financial authorities (this is the case for all the brokers cited on this page). For investors residing in France, it is desirable to choose an online broker whose headquarters is located in France or in Europe.
TradeRepublic
Trade Republic is Europe’s leading savings platform and allows its millions of customers to simply invest in thousands of ETF share programmed investment plans in just three clicks. It offers a simple pricing structure of €1 fixed fee per stock market order on thousands of real stocks, ETFs, cryptos and derivatives, regardless of the size of the order. In addition, scheduled purchases are free of charge.
The investment company is regulated by the German financial authorities. At a time of high inflation and a widening retirement savings gap, everyone should have the chance to enjoy the fruits of economic growth. Using cutting-edge technology, Trade Republic makes saving, investing and trading directly accessible on mobile, tablet or computer while freeing customers from unnecessary costs and so that everyone can become a shareholder in just a few clicks.
eToro
eToro’s mission is to make investing accessible and easier. With zero fees, low minimums, and a user-friendly platform, anyone can invest in stocks.
You can also invest in fractional shares. A fractional share is a part of a share that is less than a full share. Fractional shares allow you to purchase shares based on the amount you want to invest.
Avatrade
AvaTrade is a renowned online trading platform recognized for its commitment to innovation and transparency in the world of financial trading. Since its founding in 2006, Avatrade has stood out for its diverse offering of financial instruments, ranging from currencies to stocks, commodities and cryptocurrencies. Its intuitive and user-friendly platform, accessible via web or mobile applications, offers traders a smooth and efficient trading experience, supported by advanced features such as technical analysis and risk management tools.
Additionally, AvaTrade stands out for its commitment to security and regulation, being regulated in several jurisdictions including the Irish financial authorities. This approach builds traders’ confidence by ensuring the security of their funds and transparency of operations. With a comprehensive range of educational resources and responsive customer service, Avatrade strives to meet the needs of traders of all levels, providing an environment conducive to growth and success in the global financial markets.
Scalable Capital
Scablable Capital was founded in 2014 and is supervised in Germany by BaFin and the Bundesbank, has more than 600,000 clients and 15 billion euros on its platform. Cash benefits from the German deposit guarantee up to €100,000. Scalable Capital is present in Germany, France, Italy, Spain, Austria, the Netherlands and the United Kingdom. The platform is accessible on the web and via its mobile application.
Scalable Capital makes investing in the stock market simple and affordable for everyone.