Choosing a broker matters more than most beginners realise. The difference between a 0.1% and a 0.5% annual fee on a £50,000 portfolio compounding over 20 years is roughly £20,000 in lost wealth. This guide covers the major European brokers honestly — fees, strengths, weaknesses, and who each one actually suits.
Disclaimer: Fees change. Always verify current rates on each broker's website before opening an account. This guide has no affiliate relationships with any broker listed.
The Fee Types That Actually Matter
Before comparing brokers, understand what you're paying for:
- Trading commission — the per-trade fee, fixed or percentage
- FX/currency conversion fee — charged when buying assets in a different currency (often the hidden killer for EU investors buying US stocks)
- Custody/platform fee — annual charge just for holding assets
- Inactivity fee — charged if you don't trade often enough
- Spread — the difference between buy and sell price; CFD brokers often charge no commission but take a wider spread instead
- Withdrawal fee — some brokers charge to move money out
DEGIRO
Best for: Cost-conscious European investors buying stocks and ETFs.
Fees
| Fee type | Cost |
|---|---|
| US stocks | €1 + €1 handling |
| LSE stocks | £1.75 + £1 handling |
| Core ETFs | €0 + €1 handling |
| Other ETFs | €2 + €1 handling |
| Currency conversion | 0.25% |
| Custody fee | €0 |
| Inactivity fee | €0 |
| Withdrawals | €0 |
| Exchange connectivity fee | Max 0.25% of portfolio/year per exchange (capped at €2.50) |
Strengths
- Very low flat commissions — makes DEGIRO excellent for frequent small-value trades
- Large selection of European and global stocks
- Regulated across the EU (Dutch AFM/DNB)
- Core ETF selection with zero commission (just the €1 handling fee)
Weaknesses
- No ISA or SIPP (important for UK investors — use Freetrade or IBKR instead)
- Limited research and analysis tools — it's an execution-only platform
- No fractional shares on most instruments
- Customer service has historically been slow
- No crypto trading
Bottom line
DEGIRO is excellent if you know what you're doing and just need cheap execution. Poor choice if you want research tools, tax-wrapper accounts (ISA/SIPP), or crypto.
Interactive Brokers (IBKR)
Best for: Active traders, large portfolios, sophisticated investors wanting access to global markets.
Fees
| Fee type | Cost |
|---|---|
| EU stocks (tiered) | 0.05% min €1.25 |
| US stocks (tiered) | $0.005/share, min $1 |
| EU stocks (fixed) | 0.1% min €4 |
| Currency conversion | 0.002% of trade (exceptionally cheap) |
| Custody fee | €0 (accounts >$100k or >$10 monthly commissions) |
| Monthly min (small accounts) | €3/month if commissions < €3 (waived under 25 or over $100k) |
| Withdrawals | 1 free/month, then ~$10 |
Strengths
- Best-in-class FX rates — 0.002% conversion is far cheaper than any competitor; critical for EU investors buying US stocks regularly
- Access to stocks, ETFs, options, futures, bonds, forex, and crypto across 150+ markets
- IBKR Pro offers genuinely professional-grade tools and data
- IBKR Lite (US) offers zero commissions but not available in Europe
- ISA and SIPP available for UK clients
- Interest paid on uninvested cash (one of the few brokers to do this competitively)
- Very strong regulatory standing and financial stability
Weaknesses
- Platform is complex — the TWS (Trader Workstation) desktop app has a steep learning curve
- IBKR Mobile is decent but not as polished as Trading 212 or eToro
- Small monthly fee for accounts under $100k unless you trade enough
- Not ideal for complete beginners due to interface complexity
Bottom line
IBKR is the most powerful European broker for serious investors. The FX rates alone make it compelling for anyone regularly buying US-listed assets from Europe. Once you learn the interface, it's hard to switch away.
Trading 212
Best for: Beginners, fractional share investors, regular savers in the UK.
Fees
| Fee type | Cost |
|---|---|
| Stock/ETF trading | £0 commission |
| Currency conversion | 0.15% (Invest/ISA accounts) |
| ISA account | £0 |
| Custody fee | £0 |
| Inactivity fee | £0 |
| Withdrawals | £0 |
| CFD account | Spread-based (avoid for long-term investing) |
Strengths
- Genuinely zero commissions on stocks and ETFs — including US stocks
- Fractional shares — invest from £1 in any stock
- Stocks and Shares ISA at no extra cost (critical for UK tax efficiency)
- AutoInvest feature for automated DCA into a custom pie portfolio
- Clean, beginner-friendly mobile app
- 4.2% AER on uninvested cash (rates vary — check current rate)
Weaknesses
- Limited market access — primarily US and European stocks; fewer exotic markets
- Research tools are basic
- Business model relies on payment for order flow (PFOF) in some markets and CFD revenue — creates potential conflict of interest
- Customer support can be slow during high-traffic periods
- CFD accounts are pushed prominently — avoid these if you're a long-term investor
Bottom line
Trading 212 is arguably the best entry point for UK beginners. Zero commissions, ISA, fractional shares, and a clean app cover 80% of what new investors need. The 0.15% FX fee is competitive. Just stay out of the CFD section.
eToro
Best for: Social investors, beginners who want to copy professional traders, crypto alongside stocks.
Fees
| Fee type | Cost |
|---|---|
| Stock trading (real stocks) | $0–$2 per trade depending on country |
| Stock margin fee | 0.15% of trade value open + close |
| Crypto spread | 1% buy/sell spread |
| CFD spread | 0.15% on stocks/ETFs |
| Withdrawal fee | $5 per withdrawal (USD accounts) |
| Currency conversion | Varies; spreads embedded in conversion |
| Inactivity fee | $10/month after 12 months of no login |
Strengths
- CopyTrader — automatically mirror the portfolios of top-performing traders on the platform
- Combined stock + crypto + ETF account in one place
- Social feed provides genuine market sentiment and community discussion
- Very beginner-friendly interface
- Regulated in multiple jurisdictions (FCA, CySEC, ASIC)
Weaknesses
- Hidden costs are significant — the 0.15% spread on each side of a stock trade (0.3% round-trip), plus currency conversion costs, add up quickly for active traders
- Crypto spread of 1% is expensive for frequent crypto traders
- Platform is primarily USD — EU/UK users pay currency conversion both ways
- CopyTrader past performance doesn't predict future results; "top traders" can have one lucky year
- Portfolio analysis tools are limited
- eToro's primary business is CFDs; real-stock investing sometimes feels secondary
Bottom line
eToro's social features are genuinely interesting and well-executed. But the fee structure — particularly for non-USD users — is expensive once you account for all the embedded costs. Good for occasional investors and those drawn to the social/copy features; poor value for cost-conscious frequent traders.
XTB
Best for: European investors wanting commission-free investing with solid educational tools.
Fees
| Fee type | Cost |
|---|---|
| Stocks/ETFs (under €100k/month) | 0% commission |
| Stocks/ETFs (over €100k/month) | 0.2% commission |
| Currency conversion | 0.5% |
| Custody fee | €0 |
| Inactivity fee | €10/month after 12 months of no login |
| Withdrawals | €0 (above €100; otherwise €2) |
Strengths
- Commission-free up to €100k/month in volume — generous threshold for most retail investors
- Strong educational content (xStation Academy) — one of the best for learning investors
- xStation platform is genuinely good — clean interface with meaningful charts and market data
- Regulated across EU (KNF in Poland, FCA in UK)
- Fractional shares available
- Interest on uninvested cash (rates vary by currency)
Weaknesses
- 0.5% FX fee is higher than IBKR or Trading 212 — a real cost for EU investors buying US stocks regularly
- Inactivity fee after 12 months — remember to log in
- No ISA for UK clients (use Trading 212, Freetrade, or IBKR instead)
- CFD products are prominently featured alongside real stocks
Bottom line
XTB sits comfortably between Trading 212 and IBKR: free commissions for most investors, a better platform than Trading 212, but not as sophisticated as IBKR. The 0.5% FX fee stings if you're a heavy US-stock buyer. Excellent choice for EU-based investors in European markets.
Freetrade
Best for: UK investors wanting a simple ISA/SIPP with zero commissions.
Fees
| Fee type | Basic (free) | Standard (£4.99/mo) | Plus (£9.99/mo) |
|---|---|---|---|
| Stock/ETF trading | £0 | £0 | £0 |
| FX fee | 0.99% | 0.59% | 0.39% |
| ISA included | Yes | Yes | Yes |
| SIPP included | Yes | Yes | Yes |
| Cash interest (AER) | 1% on £1k | 2.5% on £2k | 3.5% on £3k |
Strengths
- ISA and SIPP (pension) available on all plans including free — rare at this price point
- Clean, simple app — genuinely beginner-friendly
- No commissions on any plan
- UK-focused with LSE stocks well covered
Weaknesses
- Basic plan's 0.99% FX fee is expensive — buying £1,000 of Apple costs £9.90 in FX alone
- Smaller stock universe than IBKR or DEGIRO
- No fractional shares on basic plan
- Research tools are minimal
- UK-only (not available in the EU)
Bottom line
Freetrade is the best zero-commission ISA option in the UK if you're primarily investing in UK and European stocks where FX fees don't apply. For heavy US stock buyers, the FX fee on the basic plan makes Trading 212 (0.15%) or IBKR (0.002%) considerably cheaper.
Saxo Bank
Best for: Professional and high-net-worth investors wanting premium tools and global market access.
Saxo is genuinely a step above in terms of platform quality and market access — but commissions are higher. EU stock trades start at 0.1% (min €5), and there's a quarterly custody fee for smaller accounts. It's best suited for portfolios above €50,000 where the premium research tools and professional-grade order types justify the cost. If you're not yet at that level, IBKR gives you similar market access at lower cost.
Head-to-Head Comparison
| Broker | EU stocks | FX fee | ISA/SIPP | Crypto | Best for |
|---|---|---|---|---|---|
| DEGIRO | €1 + €1 | 0.25% | No | No | EU investors, low-cost stocks |
| IBKR | 0.05% min €1.25 | 0.002% | UK only | Yes | Active traders, large portfolios |
| Trading 212 | £0 | 0.15% | UK only | No | UK beginners, fractional shares |
| eToro | $0–2 | Spread embedded | UK only | Yes | Social trading, crypto+stocks |
| XTB | 0% (<€100k/mo) | 0.5% | No | No | EU investors, education tools |
| Freetrade | £0 | 0.39–0.99% | Yes (all plans) | No | UK ISA/pension investors |
| Saxo Bank | 0.1% min €5 | 0.25–0.75% | Yes | No | High net worth, premium tools |
Which Broker Should You Choose?
- UK beginner, starting small
- Trading 212 or Freetrade Basic. Zero commission, ISA included, no inactivity fee. Trading 212 wins if you'll buy US stocks frequently (0.15% FX vs 0.99%).
- EU beginner
- XTB for its educational tools and clean platform, or DEGIRO for the lowest flat commissions.
- Serious investor, growing portfolio (€30k+)
- IBKR. The FX rates alone pay for the learning curve at scale. Nothing else comes close for cost efficiency on USD assets.
- Social investor or crypto+stocks in one place
- eToro — but go in knowing the full cost structure.
- UK pension investor
- Freetrade (SIPP on all plans) or IBKR (UK SIPP available).
- High net worth / professional
- Saxo Bank or IBKR Pro.
Whatever broker you choose, research tools are largely independent of execution. Use Indikators for signal analysis, then execute through whichever broker gives you the best fee structure for your trading pattern.