15 Best ETF Brokers

An exchange-traded fund (ETF) is a type of pooled investment that contains or tracks multiple instruments. In this article, we reveal our 15 Best ETF Brokers and we review the features, tools, platforms, trading conditions and instruments these brokers offer.

 

What is an ETF?

Exchange-traded funds (ETFs) are pooled investment securities (baskets) that are very similar to mutual funds. ETFs usually track a particular asset (collections of assets or individual assets) and can be traded on a stock exchange.

ETFs are popular because they can be traded all day, have lower commission fees and generally offer higher liquidity. These instruments also enable a greater level of portfolio diversification due to covering a wide range of assets.

ETFs are commonly traded as baskets or groups/collections of different assets and are not limited to only one asset or instrument, but you can limit your investments to one industry or sector if you prefer to do so.

ETFs can be used to generate income and are a popular choice for speculation, hedging and offsetting portfolio risks. These types of instruments are generally characterized as either passive or actively managed.

ETFs fall under the categories of Active ETFs and Passive ETFs. The main types of ETFs are Stocks, Bonds, Commodities and Currencies. You can also trade industry sector ETFs, leveraged ETFs, Inverse ETNs (Exchange Traded Notes).

 

How to choose an ETF?

There are a few things you should look at before choosing an ETF:

• Volume
• Expense Ratio
• Performance metrics
• Holdings
• Commissions

 

What are the most popular ETFs?

There are many types of ETFs. The following is a list of some of the most commonly-traded instruments:

• SPY – SPDR S&P 500 ETF
• VOO – Vanguard S&P 500 ETF
• QQQ – PowerShares QQQ ETF
• GLD – SPDR Gold Shares ETF
• EEM – iShares MSCI Emerging Markets ETF
• IEMG – iShares Core MSCI Emerging Markets ETF
• VTI – Vanguard Total Stock Market ETF
• IVV – iShares Core S&P 500 ETF
• VEA – Vanguard FTSE Developed Markets ETF
• VTV – Vanguard Value ETF
• GDX – VanEck Vectors Gold Miners ETF
• EFA – iShares MSCI EAFE ETF
• XLF – Financial Select Sector SPDR Fund

 

FXTM

FXTM was established in 2011 and has earned the trust of more than 2 million clients since its inception.

Clients can choose from 3 account types with low spreads and zero-commission accounts, and each type of account can be tested as a demo account.

FXTM offers many different trading tools, including trading signals, indicators, advanced calculators, strategy tools and investment calculators.

FXTM is available in over 100 countries and provides more than 5,000 trading strategies that can be copied by clients.

This is a beginner-friendly broker that gives new traders access to trading guides, educational tutorials and webinars. 

 

FXTM Pros and Cons:

✔️Pros	❌Cons
Tight spreads	No US clients allowed
Fast trade execution	Penalty fees for inactive users
Option to start trading with $10

 

Interactive Brokers

Interactive Brokers offers transparent pricing and low commission trading accounts.

The most attractive feature of Interactive Brokers is that it can be used to access a variety of free trading tools, such as strategy builders, account and portfolio management tools, analytics and much more.

This broker is available in 33 countries and supports many base currencies.

Other products and services offered by Interactive Brokers includes a GlobalAnalyst for stock valuation, a PortfolioAnalust, advisory services and a comprehensive library of educational resources.

 

Interactive Brokers Pros and Cons:

✔️Pros	❌Cons
Well regulated	Limited payment methods
Great variety of products	Commission fees
Supports API
24 base currencies

 

InstaForex

ECN and Scalping accounts are offered by the InstaForex European entity and traders of the Muslim faith are provided with an Islamic account, in addition to the demo account and 2 account types offered to all traders.

InstaForex has a dedicated educational section for beginners to make it easy for new traders to learn how to trade and so that they can trade responsibly.

InstaForex hosts events and contests for clients making it very popular along with its products making InstaForex very popular.

 

InstaForex Pros and Cons:

✔️Pros	❌Cons
Cent and Islamic accounts offered	Only 2 base currencies to choose from
10 trading servers provided	US clients not accepted
Negative Balance Protection
Great variety of research and trading tools

 

City Index

City Index has been in the Forex and trading industry since 1983 and operates as part of StoneX Financial Ltd. and GAIN Capital Holdings Inc. 

City Index provides fixed and variable spreads on all account types, along with access to more than 12,000 markets and a variety of trading tools, such as SMART signals, charts, strategy tools, volatility alerts and performance analytics.

City Index delivers updated, in-depth market news with articles on trending market topics, and new traders have access to training courses, detailed instructional guides, and educational webinars.

 

City Index Pros and Cons:

✔️Pros	❌Cons
Listed on NASDAQ	Penalty fees for inactivity
Great selection of products	Stock CFD fees are high
Deposits and withdrawals are free	Only one account type to choose from
Part of StoneX

 

BDSwiss

BDSwiss is a popular Forex and CFD broker that is suitable for beginners and offers 4 unique accounts with competitive trading conditions.

The BDSwiss learning centre can be used with a demo account to learn how to trade and the customer support centre offers easy solutions to the most common issues.

BDSwiss also offers live education with a daily market analysis update and multi-lingual support that can be reached via multiple channels.

 

BDSwiss Pros and Cons:

✔️Pros	❌Cons
Daily market analysis updates	Not available to US and Canadian clients
Trading academy for beginners	No fixed spread accounts
Highly regulated broker
151 deposit methods

 

Vantage Markets

Vantage Markets is an Australian broker that was founded in 2009.

Vantage Markets offers 3 types of accounts and is a great option for social trading. 

As a client, you can use ZuluTrade, Protrader, Duplitrade, Myfxbook and the Metaquotes apps in addition to MT4 and 5 and the Vantage app. 

 

Vantage Markets Pros and Cons:

✔️Pros	❌Cons
Multiple platforms	High minimum deposit
ASIC-regulated
6+ account currencies

 

HYCM

HYCM has over 30 million clients and is a multi-regulated broker based in the UK. 

HYCM offers 3 types of accounts and over 300 instruments. 

HYCM provides plenty of educational resources and is a great option for beginners. 

 

HYCM Pros and Cons:

✔️Pros	❌Cons
Beginner-friendly	No USA clients
30mil+ clients	Inactivity fees
Many regulations
Negative Balance Protection

 

Tickmill

Tickmill offers 3 types of accounts and all accounts can be used as swap-free accounts.

You can open a Pro account, a Classic account or a VIP account. 

Spreads start from 0 pips but might be slightly higher on swap-free accounts. 

These accounts can be used for all trading strategies.

 

Tickmill Pros and Cons:

✔️Pros	❌Cons
Many regulations	No USA clients
Welcome bonus	3 account currencies
Tight spreads

 

FXCM

FXCM is a beginner-friendly broker that was founded in 1999.

FXCM offers a variety of Cryptocurrencies, Commodities, Forex pairs, Indices and Shares.

You can deposit funds using debit/credit cards, Skrill, Neteller, bankwire and EFT.

FXCM accepts Visa, MasterCard, and Discover card deposits.

 

FXCM Pros and Cons:

✔️Pros	❌Cons
ASIC-regulated	Not many account currencies
Multiple platforms	Inactivity fees
Rebate and Referral rewards
Great for Copy Trading

 

Admirals

Admirals (previously Admiral Markets) is a low-risk broker that was founded in 2001 and is regulated by EFSA, ASIC, CySEC and FCA.

To open an account with Admirals, only $1 is required and accounts can be funded using EUR, HRK, GBP USD, CZK, HUF, BGN, PLN, RON or CHF.

 

Admirals Pros and Cons:

✔️Pros	❌Cons
Low minimum deposit	Low leverage
6+ account currencies	Penalty fee for inactivity
Negative balance protection
Tier-1 regulations

 

OctaFX

OctaFX is an award-winning broker that was founded in 2011 and has more than 10 million clients. 

OctaFX offers trading guides and research for beginners and they offer 2 types of accounts that can be used on MT4 and 5.

OctaFX also offers a mobile trading app that can be used to easily manage your MetaTrader 4 and 5  accounts, make secure deposits and withdrawals and monitor account activity. 

 

OctaFX Pros and Cons:

✔️Pros	❌Cons
10 mil+ clients	No tier-1 regulations
Trading bonuses offered
Beginner-friendly
24/7 customer support

 

XTB

This trusted brokerage was founded in 2002. XTB is branded as a multi-asset broker, offering excellent training material and research tools to supply novice traders with critical knowledge about currency exchange markets and tools. 

User registration is straightforward and they do not require a minimum deposit to start trading.

The customer technical support service is satisfactory and their response and resolution processes are dependable. They focus mainly on e-mail support. 

 

XTB Pros and cons:

✔️Pros	❌Cons
Low trading fees	Email customer support is incompetent
Withdrawals and deposits are flexible	Limited product offering
Account creation is hassle-free

 

Plus500

Plus500 is an authorized Financial Services Provider, licensed and regulated by FCA and CySEC. Traders have access to more than 2,000 instruments, with no commissions charged and tight spreads. 

Payment options are flexible, risk management tools can be used and traders have Negative Balance Protection.

More than 82 million positions have been opened on Plus500 and over $1,700 billion has been traded in total, with more than 430,000 active traders on the Plus500 servers.

The Plus500 website can be viewed in multiple languages and new clients can use demo accounts or create a live trading account, which will be redirected to the WebTrader platform.

 

Plus500 Pros and Cons:

✔️Pros	❌Cons
User-friendly platform	Lack of research tools
Account creation is quick and easy	Lack of educational resources
Reliable customer support	No option to change leverage manually
Regulated broker

 

Saxo Bank

Saxo Bank is a credible online broker with more than 800,000 clients and accounts that accommodate retail, corporate and professional trading.

Accounts can be funded using AED, JPY, SEK, NZD, TRY, HUF, USD, GBP, RON, NOK, CZK, DKK, MYR, CNH, LTL, CAD, SGD, PLN, AUD, CHF, HKD, EUR, RUB, ILS, MXN and ZAR, and there are 3 accounts to choose from.

This is a beginner-friendly broker that provides a great selection of educational resources and its own innovative trading platform with a set of advanced tools and unique features.

The Saxo Bank loyalty system gives an improved level of utility to trading accounts and gives clients incentive to trade more.

 

Saxo Bank Pros and Cons:

✔️Pros	❌Cons
Many base currencies	High minimum deposit
Advanced research data and tools	Not compatible with MetaTrader platforms
Withdrawals are free	Penalty fees
VIP offering	No MetaTrader support

 

eToro

eToro is a copy trader-friendly broker that is popular for trading stocks and NASDAQ, but it also offers currency trading and plenty of other instruments.

eToro provides customizable risk management tools and services, advanced tools for research and analytics, and a variety of innovative trading features.

eToro has more than 15 million clients and is also available to citizens from the United States, whereas most Forex brokers are not.

This broker is suitable for beginners and offers trading education through the eToro Academy.

 

eToro Pros and Cons:

✔️Pros	❌Cons
Supports CopyTrading	Difficult to find account info
Supports Social trading	Forex fees are high
Flexible leverage	Withdrawal fee of $5
Free stock and ETF trading in EU

 

Conclusion

ETFs make it easy to focus on specific industries when diversifying your portfolio. You can either trade baskets of instruments at the same time or buy and sell individual instruments during each trading session.

ETFs are a popular alternative to mutual funds because they can be traded all day, similar to how stocks are traded. These types of instruments also give you access to a much greater variety than you would typically have access to when trading mutual funds.

ETFs are one of the best ways to get a truly diversified portfolio and if you trade them at the right time, they can be more cost-effective and have high liquidity.

We hope that this review of the 15 Best ETF Brokers will help you find a broker that aligns with your trading goals so that you can trade with confidence.

Good luck with your trading!

 

FAQ

What is an ETF?

An ETF is an Exchange Traded Fund and is a pooled investment or basket of securities that can be traded the same way stocks are traded.

 

What is the difference between ETFs and Mutual Funds?

The prices of ETFs fluctuate all day and can be traded all day, but mutual funds can only be traded once a day after the market closes and are not traded on an exchange.

 

What are the most popular ETFs?

There are many types of ETFs. The following is a list of some of the most commonly-traded instruments:

• SPY – SPDR S&P 500 ETF
• VOO – Vanguard S&P 500 ETF
• QQQ – PowerShares QQQ ETF
• GLD – SPDR Gold Shares ETF
• EEM – iShares MSCI Emerging Markets ETF
• IEMG – iShares Core MSCI Emerging Markets ETF
• VTI – Vanguard Total Stock Market ETF
• IVV – iShares Core S&P 500 ETF
• VEA – Vanguard FTSE Developed Markets ETF
• VTV – Vanguard Value ETF
• GDX – VanEck Vectors Gold Miners ETF
• EFA – iShares MSCI EAFE ETF
• XLF – Financial Select Sector SPDR Fund