1. What is an online broker?
The definition and role of an online broker
The online broker on the stock market (also called “broker”) is an intermediary between the trader or the 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 type of order, the quantity and the price.
These transactions can sometimes be carried out via a mobile application, or even by telephone. Thanks to an online stock market comparator, it is possible to know all the services offered by these financial players.
Transactions allowed by an online broker
Stockbrokers allow retail investors to buy and sell stocks, but also, most often, to transact in other markets. These include the bond market, currency market, commodities, cryptocurrencies, etc.
Investors’ stocks and securities are kept on the portfolio they opened with the broker. It 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 the leverage effect.
It is generally possible to make investments via a PEA, an SME PEA 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 over the phone in accordance with the regulations governing their activities. This contact could reassure some 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. Investors wishing to consolidate all their assets (current and savings accounts, movable securities, life insurance, etc.) will preferably choose the services of a traditional bank.
The advantages of online brokers
An online stock market comparison provides information on the field 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, ancillary fees for optional services and brokerage fees. Online brokers only charge brokerage fees.
When it comes to financial products, shares are the best-known financial assets. Some online brokers also offer bonds, ETFs and other derivative products, SICAVs, etc. on several stock exchanges. It is a difference with the traditional banks which intervene especially 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. For all the information, go to the online stock market broker comparison at the top of the page
The criteria to remember when choosing an online broker
There is no better online broker. It all depends on the objectives of the investors.
Depending on the profile of the trader (beginner, experienced, expert), the latter will choose the level of support offered by online brokers. This support ranges from simple training to advanced analytical skills.
The financial products of online brokers are suitable for 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 have to be careful about the prices charged. However, very low brokerage fees are not always the best option. Pay attention to the conditions to be met, particularly in terms of trades per month and capital, as well as any hidden fees.
It should also be ensured that online brokers are regulated by reliable financial authorities (this is the case for all the brokers listed on this page). For investors residing in France, it is desirable to choose an online broker whose head office is located in France or in Europe.
Scalable Capital
Scablable Capital was founded in 2014 and is supervised in Germany by BaFin and the Bundesbank, has over 600,000 clients and 10 billion euros on its platform. Liquid assets benefit 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.
eToro
eToro is on a mission to make investing accessible and easier. With zero fees, low minimum amounts and a user-friendly platform, anyone can invest in stocks.
You can also invest in fractional shares. A fractional share is a portion of a share that is less than a full share. Fractional shares allow you to buy shares based on the amount you want to invest.
Freedom24
Launched in 2015, Freedom24 adheres to high standards of transparency and reliability. Declared to regulators BaFin, CySEC and SEC, it ensures the highest possible level of investor protection.
Freedom24 is the only NASDAQ-listed European stockbroker offering over 1 million US stocks, ETFs and options. In addition to investment options, Freedom24 offers unique savings plans with high interest on uninvested cash – from 2.5% to 3.6% for euro deposits, and up to 5.8% for dollar deposits.
Freedom24 clients enjoy direct access to major US, European and Asian markets, and the exclusive ability to purchase new shares at the IPO price. The average growth in the price of new shares on the platform is 52% in 3 months.
The platform, chosen by more than 370,000 customers worldwide, has a rating of 4.7 out of 5 on Trustpilot. In 2023, the broker was named “Service Champion” by Die Welt and awarded by major tech media CHIP.de.
Trade Republic
Trade Republic is Europe’s leading savings platform and enables its millions of customers to simply invest in thousands of scheduled equity ETF investment plans with just three clicks. It offers a very 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 firm is regulated by the German financial authorities. At a time of high inflation and widening retirement savings gaps, everyone should have the chance to enjoy the fruits of economic growth. Using state-of-the-art technology, Trade Republic makes saving, investing and trading directly accessible on mobile, tablet or computer while freeing customers from unnecessary costs and so that anyone can become a shareholder with just a few clicks.
Saxo Bank
Saxo Bank is one of the leaders in online stock exchange and investment. Launched in September 2008 in France, its technology offers all types of investors the best tools to achieve their financial aspirations. Saxo Bank offers its clients (individuals and companies) the choice between 3 trading platforms adapted to different levels of stock market experience (from beginner to expert), also available via two mobile applications, as well as access to ProRealTime Free. We offer the possibility of opening a derivatives, SRD, PEA, PEA-PME and company securities account 100% online.
Available in 25 languages, the platforms make it possible to process a wide range of 70,000 financial products accessible on 60 global financial markets: shares, SRDs, ETFs, funds, turbos, cryptocurrencies, warrants, options, futures, margin products, in France, in Europe, the United States, and Asia, all via a single account. Saxo offers transparent prices that are among the lowest on the market, from €2.5 per order on Euronext Paris, as well as a wide range of free financial services and tools (simple and advanced orders, IPO, real time on all markets, fundamental and technical analyses, brokerage offers on certain products; etc.). Saxo also remunerates uninvested cash in euros and dollars with no limit on the amount.
The Saxo Bank Group has more than 30 years of expertise in Europe (founded in 1992), more than 2,500 employees, 1 million customers, and more than 100 billion euros in customer assets (2023 figures). Supervised by the Prudential Control and Resolution Authority and by the Financial Markets Authority.