Which broker offers the best investment services

Broker comparison on the Internet - here you can trade cheaply

Before you decide on a broker with whom you can trade stocks, other securities, certificates, CFDs or foreign exchange, you should always carry out a broker comparison.

The reason is that the conditions, benefits and services of the online brokers will also differ from one another in 2021.

It goes without saying that you, as an investor or trader, want to find the best broker from the Internet broker comparison that combines favorable conditions and good service.

Use flatex's free custody account for online trading and securities trading

flatex is a German online broker for financial products. We recommend flatex, as opening a new account is free and the order fees are lower than those offered by other providers such as ING and comdirect.

The advantage: You can manage your securities from home via the online offer and use the associated app.

1. What should you look out for when comparing broks?

1. Comparison makes sense for all types of broker

A broker comparison is always useful, regardless of which type of broker you choose. The choice of provider depends primarily on the financial instruments you want to trade with.

On this basis, the following brokers exist on the market:

  • Stock broker
  • CFD broker
  • Forex broker
  • Crypto broker
In the following, we would like to use the example of stocks in a broker comparison to illustrate what distinguishes a broker comparison, what you should pay attention to when comparing the offers and what else is of interest on this topic.

1.2. The conditions as the most important comparison criterion

When comparing the providers, the conditions in particular play the greatest role for the vast majority of customers.

Naturally, you want to find a broker where the costs are kept as low as possible in a broker comparison.

While CFD and Forex brokers usually only use the respective spread as the cost factor when comparing brokers, there are other types of fees for securities brokers that you should be familiar with for a targeted comparison.

These include in particular:

  • Custody fees
  • Order fees
  • Costs for special services

First and foremost, the conditions are about the deposit fees on the one hand and the order costs on the other.

Since the broker providers are based on different fee models, it is difficult to carry out a suitable broker comparison. You should therefore first orientate yourself on the fee model that is most suitable for you.

For example, one broker offers an order flat, while the order fees with another broker always depend on the value traded. You should also be able to roughly estimate how many securities orders you will place per month or year, because sometimes a fee model is cheaper than another variant, especially due to a relatively high number of orders.
»More about the order fees on FTD.de

1.3. Trade offer as a further criterion for comparison

Another criterion that you should include in a broker comparison is the trade offer.

This primarily means how many different financial products or underlyings the respective broker has on offer or makes available to you for trading. This comparison is particularly useful for CFD brokers in the broker comparison and forex brokers in the broker comparison, because there the number of tradable underlyings varies from 20 to several hundred.

The trading offers of the securities brokers have some similarities, which is due to the fact that trading is carried out on official stock exchanges for securities. Therefore, when comparing stock brokers, the most important thing is that you find out how many exchanges the broker has access to.

Most of the time, you can trade well over 1,000 stocks, bonds or funds through almost any online broker that offers trading in securities.

1.4. Trading platform: self-test vs. broker comparison via review

With the help of a broker comparison, you can compare the current offers on trading platforms. For example, you can use the search function on justetf.com to search for brokers from this comparison and display their portfolio and the performance curve of individual funds.

Pay attention to the conditions, fees and the specified trade offer, among other things.

Well-known brokers from this comparison can be found on the platforms. Offshore brokers are also displayed in the comparison, if you want to display them.

But what are the alternatives to a broker comparison? In this regard, you have two main options: You can read through testimonials about the brokers you are particularly interested in. There, in the trading platform category, it is often rated how functional the trading platform is, whether it is easy to use and which tools are provided for the customer. These empirical values ​​usually result in a test winner in the broker comparison.

The second variant is that you test the trading platform of a broker yourself. This is now possible with numerous stock, CFD and Forex brokers, as they provide their customers with a free demo account.

Our tip: First create a trial account (often free of charge) in advance.

In this way you can run through the process of an order for the first time, because the trading process is simulated down to the last detail. Here you will find out at which points in the trade you need further input so that you do not lose your money through pure speculation.

When comparing brokers, a good trading platform can mainly be characterized by the following characteristics:

  • Easy and intuitive to use (even for beginners)
  • Useful functions
  • Trade mobile and stationary
  • Free tools and charts
  • Clear menu navigation
  • Optimal: individual adaptation possible

2. What can robo-advisors do?

Robo-advisors take over the online asset management. In contrast to classic asset management by an investment advisor, robo-advisors are significantly cheaper when compared to brokers.

Since we want to inform you about all financial products, this broker comparison contains a reference to robo-advisors.
»More about robo advisors on FTD.de

3. What else should I pay attention to when comparing brokers?

What is ECN trading?
In the ECN broker comparison, the spreads are compared with each other. In the ECN broker comparison, supply and demand regulate the market and remove them from further influence.

In addition to the categories listed, there are other points that you should pay attention to when comparing brokers. It is primarily a matter of both the service and the services that the respective provider makes available. By the way, you can find most of these categories in the previously mentioned field reports, which are also referred to as reviews or test reports, namely:

  • Customer service
  • Demo account
  • Mobile trading
  • Further education area
  • particularities
  • Bonus for new customers

In comparison, these categories are not quite as important as conditions, trading offer and trading platform. Nevertheless, it is not uncommon for them to be the deciding factor for which provider you ultimately decide after the broker comparison. It is often individually shaped, for example, whether you absolutely want to act on the move or whether competent and easily accessible customer service is very important to you. Ideally, the broker does of course above average in as many categories as possible when compared with its competitors.

Also interesting:

  • trading in cryptocurrencies - none of the listed providers fit this profile and are listed in comparisons of crypto brokers
  • trading with the help of day traders - here securities are opened and sold again within a day, both DEGIRO and onvista are well-known day trader brokers from this comparison
  • trading using scalping - make sure that scalping is expressly permitted by the broker in the comparison; otherwise there is a risk of the depot being closed

4. Which are cheap stock brokers in the broker comparison?

providersFixed costsOrder fee
Flatex0.00 euros / monthFrom 5.99
Onvista0.00 euros / monthFrom 5.99
DEGIRO0.00 euros / monthFrom 5.99
Consorsbank0.00 euros / monthFrom 5.99
LYNX0.00 euros / monthFrom 5.99

Because many brokers are now offering so-called order flats, this makes it difficult for brokers to compare prices. The costs differ by only one mill. If other components are included in the price comparison of the brokers, the result is clearer.

5. Which cheap CFD brokers stand out in the broker comparison?

providersFixed costsOrder fee
Flatex0.00 euros / monthFrom 5.99
Onvista0.00 euros / monthFrom 5.99
DEGIRO0.00 euros / monthFrom 5.99
Consorsbank0.00 euros / monthFrom 5.99
LYNX0.00 euros / monthFrom 5.99

When comparing the discount brokers, the provider DEGIRO is often recommended because the price is right here. In a discount broker comparison, providers that are cheap or have a flat rate model are primarily taken into account.

6. Which cheap forex brokers are recommended?

Forex brokers are often compared to forex brokers.

providersFixed costsOrder fee
Flatex0.00 euros / monthFrom 5.99
Onvista0.00 euros / monthFrom 5.99
DEGIRO0.00 euros / monthFrom 5.99
Consorsbank0.00 euros / monthFrom 5.99
LYNX0.00 euros / monthFrom 5.99

With the online broker flatex, you also get the best conditions compared to ETF brokers. Onvista Bank, DKB and Targobank are also well-known providers in the ETF broker comparison. With Onvista and flatex, German brokers can also be found in comparison.

We have not presented another well-known broker, the broker of the Volksbanken, in this broker comparison. GENO Broker has been offering securities services since 2015.

7. Cheap Crypto Brokers

providersFixed costsOrder fee
Flatex0.00 euros / monthFrom 5.99
Onvista0.00 euros / monthFrom 5.99
DEGIRO0.00 euros / monthFrom 5.99
Consorsbank0.00 euros / monthFrom 5.99
LYNX0.00 euros / monthFrom 5.99

8. How do I find the right depot?

Conclusion for comparison: Compare conditions, service and benefits

When comparing brokers, from our point of view it is especially important that you do not just concentrate on comparing the conditions, especially of course the fees. This would mean that it is a pure comparison of conditions, but you are completely disregarding services and benefits. Therefore, points such as mobile trading, demo account, trading offer, trading platform and customer service should also be included in the comparison of the offers. The most detailed comparison is certainly possible by not only comparing the conditions, but also using experience and test reports, the so-called reviews, to obtain detailed information on individual online brokers as well as stock brokers, forex or CFD brokers. Otherwise, you can consult other articles in relevant magazines such as Stiftung Warentest's Finanztest.

Photo credits: Freedomz / AdobeStock, Freedomz / AdobeStock, Screenshot / Lynx (sorted by order in the post)