As every investor knows, profits are maximised by saving unnecessary costs. This is why searching for an affordable online broker is worthwhile. But which online broker is the right one? The product portfolios differ as much as the fee models and many of the offers are described with convincing words.
The magazine “Euro am Sonntag” can now provide help for making the decision because the choice of the right online broker is most of all a question of your own type. For example, do you tend to be more of an active trader, who often trades in small sums or do you invest rarely but use larger sums when doing so? Would you like German standard stocks or funds and ETFs? XETRA or New York? The online broker of your choice should not only support your trading strategy but also offer it at particularly affordable conditions.
To find out which online broker is suitable for whom, “Euro am Sonntag” has examined 18 online brokers regarding their fee models, including external costs of third parties and interest fees, in a broker comparison. Specifically for this purpose, five sample customers were developed:
the active trader, the normal trader, the savings plan customer, the direct trader and the investor.
The active trader is versatile and trades about 30 times per quarter at the stock exchange, primarily in DAX stocks up to EUR 2500. But he also trades in the USA and invests in equity warrants and certificates. The normal trader trades less frequently, but invests monthly rates in a fund. The savings plan customer concentrates on funds and ETF savings plans, while the direct trader primarily transacts off the market. The investor trades only rarely, about eight times a year, but then does so with larger volumes of up to EUR 15,000.
“Euro am Sonntag” has now compiled a separate ranking of the online brokers that are most suitable for each of the sample customers. Only online brokers were considered here, which have an offer matching the sample customer’s trading strategy. In addition, the first four places were listed for each sample customer in an overall ranking if the offer of the respective online broker matched at least three further sample customers.
The result: There is no online broker that is the best choice for all investors. But there are very good universal brokers covering many trading strategies simultaneously. Here, especially the online broker flatex makes a compelling case and it not only has the most affordable offer for three sample customers but it also takes first place in the overall ranking.
The active trader, the savings plan customer and the direct trader pay least at flatex. Per quarter, the active trader pays just EUR 274.62 and therefore EUR 90 less than at the broker ranking second. The savings plan customer pays merely the affordable quarterly fee of EUR 23.40 and the direct trader incurs costs of EUR 106.20 per quarter – at the broker ranking second this is already EUR 50 more. For the normal trader and the investor, flatex comes in second.
3x gold and 2x silver for flatex secure the broker the top spot in the overall ranking. flatex is the best online broker for the active trader, the direct trader who likes to trade over-the-counter and via the gettex stock exchange, and the investor who concentrates on trading funds and ETF savings plans.
Source: "€uro am Sonntag” magazine, “It is all a question of type”, 6 August 2016