Here you will find what we consider to be the best ETF brokers, based on thousands of hours of detailed research, testing and analysis across hundreds of online brokers. Upon completion of each of our broker reviews, the trading brokers team has assigned each ETF broker with a rating, and displayed our best ETF brokers on this page.
ASIC, BVI, CBI, FFAJ, JFSA, FSCA, IIROC, ADGM FRSA
Min $100 Deposit
FCA, CFTC, NFA, BaFin, FINMA, ASIC, FMA, MAS, FSA, FSCA, DFSA, JFSA, METI, MAFF
Min $250 Deposit
ASIC, FCA, DFSA, SCB, CySEC, BaFin, CMA
Min $200 Deposit
ASIC, CySEC, IFSC, DFSA
Min $5 Deposit
Some of the most important factors that contribute towards a good broker for trading ETFs have been considered including the regulatory authority, trading platforms, trading instruments, trading tools, fees, spreads, execution speeds, account types, deposit/withdrawal options, leverage, minimum deposit requirement, educational resources, customer support and more.
Having the best ETF trading brokers based on our findings listed in one place can help traders save time when identifying the best ETF brokerages according to their own individual trading needs.
Each of the brokers we have chosen have undergone and passed our stringent ETF broker reviews with flying colours, based on what the trading brokers team consider to be amongst some of the most important considerations. These brokers are well-established within the online brokerage industry, providing top ETF trading services to traders across the globe.
Following on from our list of the best brokers for trading ETFs, we will now look at what ETF trading is and some of the most important factors to consider when looking for a broker to trade ETFs.
An exchange-traded fund (ETF) is a type of investment fund and exchange-traded product, i.e. they are traded on stock exchanges. ETFs are similar in many ways to mutual funds, except that ETFs are bought and sold throughout the day on stock exchanges.
An ETF works like this: The fund provider owns the underlying assets, designs a fund to track their performance and then sells shares in that fund to investors.
ETFs give you a way to buy and sell a basket of assets such as stocks and commodities, without having to buy all the components individually. If you speculate that the energy market, for instance, will go up, you can invest in a few trades simultaneously.
Trading ETFs is a popular way to gain exposure to a range of markets – including indices, sectors, commodities and currencies. A prominent advantage of ETFs is that often they balance each other out; if one instrument’s value goes down, another instrument’s value can go up and even it out.
ETFs are bought and sold on a stock exchange – in much the same way as stocks are traded. Although, ETFs do not grant the investor shareholder rights in the same way as traditional investing. For example, stock ETFs can pay dividends, but do not grant the holder voting rights.
An exchange-traded fund (ETF) is a basket of securities you buy or sell through a brokerage firm on a stock exchange. They offer you a way to invest in a wide range of bonds or shares in one package. They’ll typically track a specific market, like the FTSE 100.
Unlike some other funds, ETFs are traded on the stock market. That means you can buy or sell them at any time during the day. Many brokers will offer popular ETFs to trade as CFDs, giving traders the ability to trade long or short with leverage.
To learn more about trading ETFs, please see our guide on how to trade ETFs.
An ETF broker is a firm or an individual who executes ETF trades on behalf of the clients and usually charges them a commission fee for doing so. A firm or individual who trades ETFs for their own account is called a trader. Most ETF brokers handle transactions for a number of individual and institutional customers.
Each ETF is usually focused on a specific sector, asset class, or category. ETFs can be commonly used to help diversify your investment portfolio, or, for the active trader, they can be used to try and take advantage of price movements.
ETFs have several advantages over traditional open-end funds. The 4 most prominent advantages are trading flexibility, portfolio diversification and risk management, lower costs, and potential tax benefits.
There are various factors worth considering if you are looking for an ETF broker to trade online with. In this section, we will cover what we consider to be some of the most important factors that you need to be aware of when choosing a suitable ETF broker for your own individual needs.
If you are looking for a broker to trade ETFs online with, then regulation should really be one of the first things that you look for. The trading brokers review team believe regulation to be very important as it can give traders some protection in the case something was to go wrong. Regulated brokers must follow strict rules and procedures that are put in place to protect investors. Without regulation, there may be no help should the worst happen.
If you have a particular market in mind, you will need to ensure that the broker you are considering has ETFs in that market available to trade. The more ETFs that the broker has, the more choice you will have if you wish to trade other markets in the future.
Brokers will often charge a commission fee for processing your ETF trades through their platform. There may also be accounting fees and inactivity fees. It is important to be aware of all the broker fees and compare brokers to make sure they are providing good value.
To trade ETFs online, you will need an ETF trading platform which the broker will provide you with. There are various desktop, web and mobile platforms available, some more user-friendly than others. Each platform will have a choose of trading tools, features and functionalities. If you are already familiar with a specific trading platform, you may wish to check that the broker provides it. Alternatively, you can opt for a popular and user-friendly ETF trading platform such as MetaTrader or cTrader.
In finance, leverage refers to the act of magnifying positions through the use of borrowed capital. You have to qualify for a margin account, but when you do, you’re able to use leverage (margin) when trading ETFs. Leveraged products, such as ETFs, magnify your potential profit but also your potential loss.
For example, if you had an account balance of $10,000 and leverage of 1:2, you would be able to take a position size of $20,000 ($10,000 x 2 = $20,000).
Whilst this does mean that you can control a position size larger than you would have been able to without leverage, it also means the risk is significantly greater. It is imperative that you have a clear understanding of leverage and how it works before trading ETFs with leveraged positions.
The best ETF brokers should have a generous selection of educational resources such as trading guides, tutorial videos, webinars, eBooks, quizzes and more. These can help you to learn more about trading ETFs online and to help familiarise yourself with the brokers products and services. We are a big advocate of brokers who support informed trading.
Most ETF trading platforms will have an array of built-in trading tools to assist with their daily trading activities and thorough market analysis. However, if you require any additional tools, it may be worth checking that they are provided by the broker. Tools can include economic calendars and earning reports to keep up to date with the latest stock market news, which can be used as part of a fundamental analysis. Other trading tools may include trade calculators, trading signals, market alerts and more.
Each ETF broker will have its own minimum deposit policy so check that you can meet this requirement. You may also need to provide some personal information in order to pass the brokers KYC and AML procedures. The sign-up process can be quicker at some brokers, especially if all of it is conducted online. During the sign-up process it is very important to make sure that you read all of the brokers terms and conditions, only proceeding if you understand and agree with them.
ETF brokers can have a variety of different account funding options in order for traders to make deposits and withdrawals to and from their trading account. You should make sure that the broker has a convenient funding options for you along with the time taken and fees involved. Common broker payment methods can include wire transfer, credit/debit card whereas some brokers will offer online payment methods such as Neteller, PayPal and Skrill.
There are ETF brokers located throughout the globe. Some will offer email and telephone support whereas others will also offer live chat support. You want to be able to contact the broker at a time and via a method that suits you. Therefore, it can be important to check where the brokers’ offices are located, what times they are available and how they can be reached. You could test their response time and quality prior to opening an account.
Now that you have had a brief overview of what ETFs are and what to look for when choosing an ETF broker, you may be considering opening an online trading account to trade ETFs online. To do so, you will need to choose an ETF broker, follow the account opening process and you will then be able to start trading ETFs online through one of their ETF trading platforms.