Investing in U.S. stocks from Europe has become easier thanks to the rise of online brokerage platforms. In 2024, some of the top brokers offering access to the U.S. stock market for European investors include Interactive Brokers, DEGIRO, and Saxo Bank.
Interactive Brokers remains a top choice due to its vast market access, covering over 150 markets globally, including U.S. exchanges. It is known for competitive fees, offering trading at just $0.0035 per share, with a minimum of $0.35 per trade.
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It is particularly popular among active and professional traders DEGIRO stands out for low-cost trading, making it appealing for long-term investors. It has grown its presence across Europe and offers straightforward access to U.S. equities with low fees
Meanwhile, Saxo Bank provides a premium platform with access to over 23,500 stocks, including U.S. stocks, alongside various global markets. It caters to more advanced traders with a broad array of tools.
Choosing A European Broker: An In-Depth Guide
Selecting the right broker in Europe can greatly impact your investment success, especially if you plan to trade U.S. stocks. There are great stocks out there, such as AGNC Investment Corp stocks, which you are likely to miss out on without a broker. European investors have a wide array of brokers to choose from, with some standing out for low fees, user-friendly platforms, and extensive market access.
We’ll explore three leading European brokers—Interactive Brokers, DEGIRO, and Saxo Bank—and break down what each has to offer, helping you make an informed choice based on your trading needs.
Interactive Brokers: A Comprehensive Platform for Experienced Traders
Interactive Brokers (IBKR) is one of the most established names in the world of online brokerage and remains a top choice for European investors looking to access global markets, including the U.S. stock exchanges. Founded in 1973, IBKR offers a platform that suits both professional traders and long-term investors.
- Low fees and wide market access: IBKR is renowned for its low commission structure, particularly appealing for active traders. The tiered commission system starts at $0.0035 per share for U.S. stocks, with a minimum of $0.35 per trade. This pricing model ensures you can keep costs low, especially when trading frequently. Moreover, IBKR provides access to over 150 markets in 33 countries, giving investors opportunities beyond U.S. equities to build diversified portfolios.
- Advanced tools: The platform is feature-rich, offering a wide range of investment products from stocks and ETFs to more complex derivatives like options and futures. IBKR’s Trader Workstation (TWS) is packed with tools for in-depth technical analysis and charting, making it perfect for sophisticated traders.
- Drawbacks: While the platform excels in capabilities, it may be overwhelming for beginners. Additionally, IBKR has faced some criticism for slow customer service response times, which could be problematic for users requiring prompt assistance.
For investors who value low fees, broad market access, and powerful trading tools, Interactive Brokers is a standout choice. However, it is more suited for those with some experience in navigating complex platforms.
DEGIRO: Low-Cost Trading with Simplicity
DEGIRO is another prominent European broker, recognized for making investing affordable for retail investors across Europe. Initially launched in 2008, it has since expanded its services, attracting both beginner and advanced traders.
- Low costs: DEGIRO’s biggest selling point is its highly competitive fee structure. Trading U.S. stocks with DEGIRO involves a fee of just €1 per trade plus a €1 handling fee. This makes DEGIRO an excellent choice for cost-conscious investors. Additionally, it does not charge for inactivity, a feature that is a relief for long-term investors who do not trade frequently.
- User-friendly interface: One of DEGIRO’s key strengths is its intuitive and straightforward platform, which makes it accessible for beginners. You can easily trade on its web-based or mobile platform, both of which are designed for simplicity without sacrificing important functionalities like market data and portfolio tracking.
- Limited in some advanced features: While the platform is beginner-friendly, advanced traders may find it lacking in features compared to brokers like IBKR. It does not offer forex trading or an extensive range of tools for derivative trading, which can be limiting for professionals looking to diversify into complex products.
For those prioritizing affordability and ease of use, especially if focused on U.S. stocks and basic ETFs, DEGIRO is a solid option. Its straightforward platform makes it accessible, but those seeking advanced trading features may want to explore other brokers.
Saxo Bank: A Premium Service for High-Volume Traders
Saxo Bank stands out as a premium brokerage offering a wide range of products and services, designed to cater to more experienced or higher-net-worth investors. Founded in Denmark, Saxo Bank’s reach is extensive, with access to over 23,500 stocks from 50 global exchanges, including U.S. markets.
- Comprehensive platform: Saxo Bank’s platform is one of the most strong in the European market. It provides access to a wide array of financial instruments, from stocks and bonds to forex and commodities. The platform also supports advanced charting and real-time analytics, making it ideal for high-frequency and professional traders.
- Higher fees: While Saxo Bank offers excellent service, it comes at a price. The trading fee structure starts at around 0.03% per trade, with a minimum of $1 per U.S. stock trade. For some, the higher fees may be a deterrent, but the superior trading experience may justify the cost for active investors. Saxo offers different account tiers, with better pricing for higher-volume traders, making it appealing for those with larger portfolios.
- Tailored services: Saxo Bank is known for its personalized services, such as having access to investment advisors and more detailed financial planning tools, which can be a huge advantage for investors with complex portfolios. For premium clients, the broker even offers personalized support and enhanced research resources.
Saxo Bank is best suited for serious investors who are willing to pay for a premium service in exchange for a wide array of instruments, excellent market research, and superior trading tools.
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Wrapping Up
When choosing a European broker for trading U.S. stocks, it’s key to consider factors such as fees, platform features, and market access.
In addition to the brokers mentioned, it’s also worth looking into Trading 212 for its commission-free trades and easy-to-use platform, which has grown popular among newer investors.
Evaluating the quality of customer service and available educational resources is critical, especially for those new to the U.S. stock market. By weighing these factors, you can make a well-rounded decision that aligns with your investment strategy.