The growth of the internet, combined with the liberalization of brokerage, paved the way for online brokers. The term usually raises a number of equally relevant questions. What does online brokerage mean? Why choose an online broker rather than a traditional broker with a physical branch? How does an online broker work? What sets these two types of brokerage apart? Which online broker should you choose for stock market trading? And, most importantly, how do you identify the best online broker?
Best Online Brokers Compared by Spreads
EUR/USD | USD/JPY | GBP/USD | USD/CAD | EUR/GBP | ||
0.6 pips | 0.9 pips | 1 pip | 1.6 pips | 1 pip | Learn More | |
0.9 pips | 1.1 pips | 1.6 pips | 2 pips | 0.9 pips | Learn More | |
0.9 pips | 1.8 pips | 2.5 pips | 2.2 pips | 2.1 pips | Learn More | |
3 pips | 2 pips | 4 pips | 3 pips | 4 pips | Learn More | |
from 1.4 | from 1.5 | from 1.6 | from 1.6 | from 2.9 | Learn More |
Once you understand what online brokerage means, you will know that spreads matter a great deal, and that they vary by broker, account type and the market you trade.
Online Brokers by Regulation
For the safety of your funds, it is strongly recommended to work with regulated, reliable brokers. Regulators have the power to sanction firms that break the rules, which is how supervisory bodies keep brokers in line. Some regulators deliberately adopt a lax legal framework or very low taxation to attract brokerage firms, while others deliberately apply strict rules and higher standards to keep the sector at arm’s length. As a result, the best regulators differ from one continent to another. Leading examples include CySEC, ASIC, the FCA and the FSA. In France, you should choose an online broker authorized by the AMF.
Overall Rating of Online Brokers
eToro
Online broker eToro offers a unique platform that lets you copy trade. It also qualifies as a free online stock broker: you can trade stocks and a range of other financial assets commission-free through a brokerage account.
Founded in 2007, eToro is a well-known Israeli tech startup. The broker serves UK clients through an entity regulated by the Financial Conduct Authority (FCA) and Australian clients through an entity regulated by the Australian Securities and Investments Commission (ASIC). All other clients are served by a Cypriot entity regulated by the Cyprus Securities and Exchange Commission (CySEC). It is recommended for traders interested in social trading (copying the orders placed by other traders of varying experience) and commission-free stock trading. Read our full eToro review.
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XTB
Founded in 2002, XTB is publicly listed and regulated in a tier-1 jurisdiction, making it a low-risk broker for forex and CFD trading. As a trusted multi-asset broker, XTB offers traders exceptional customer service and an excellent overall trading experience through its xStation 5 platform. XTB’s xStation suite combines excellent usability with a solid selection of trading tools, research and advanced features. Read our full XTB review.
AvaTrade
AvaTrade (or AvaFX) is an Irish broker founded in 2006 with an international reach. It operates in many countries around the world, with around 200,000 registered traders. This is also why it holds numerous licenses and has offices on every continent (including Italy, as mentioned). The AvaTrade trading platform offers a wide range of financial products, all in the form of CFDs.
The AvaTrade trading account stands out for its flexibility. In practice, opening an account with this broker lets you trade from many platforms: WebTrader, MetaTrader 4, MetaTrader 5,
AvaTradeGo and many more. AvaTrade’s platforms strike the right balance between professional-grade tools and ease of use. Every type of trader can find a solution that suits them, from the simplest (web-based) to the most sophisticated (MetaTrader).
In addition, if you want to try automated copy trading, you can connect your AvaTrade account to DupliTrade and ZuluTrade, platforms designed for those who want to automate their investing.
Vantage
Vantage is a leading forex broker that gives traders access to a range of financial markets. The company has consistently been recognized as a safe and secure forex broker offering highly transparent market access. Vantage was founded in 2009 by a highly specialized team with deep experience in technology, forex and finance. The broker’s goal was to help clients pursue their financial objectives by providing powerful trading platforms, transparent access to the currency market, award-winning customer service and exceptional execution speed.
On the software side, Vantage backs its robust technology with well-established forex trading platforms which, combined with powerful execution, deliver a truly complete trading experience. All trading accounts are accessible on every device and platform offered, with fast and stable account access as a key priority. This includes enhanced MetaTrader 4 and MetaTrader 5, WebTrader and numerous mobile trading apps for iPhone and Android. Vantage spreads depend on the account you choose: the Standard account has slightly higher spreads, while the ECN account offers raw spreads.
Why Choose an Online Broker?
Brokerage used to be offered only by brick-and-mortar brokers, such as traditional retail banks like BNP, Société Générale or LCL. With the rise of the internet, physical brokers evolved to become online brokers, and new online-only brokers emerged. These newcomers deliver their services exclusively online. Among the best online brokers on the market are eToro, Vantage and AvaTrade. Online banks such as Saxo Bank and BforBank also offer their customers an online stock broker service in France.
Low Fees
One of the most obvious advantages of online brokerage is lower transaction costs, avoiding the high fees charged by traditional brokerage firms. According to a Bloomberg report, you will typically pay between €5 and €10 to buy and sell stocks and exchange-traded funds through physical brokerage houses.
More Control and Flexibility
Timing is often critical when trading stocks, so the speed of online trading platforms is a real advantage for many investors. With an online broker, you can execute a trade almost instantly. Traditional brokers sometimes require an appointment, whether online, by phone or in person, just to initiate a transaction.
Access to Online Tools
In online trading, low cost does not necessarily mean low quality. Many online brokers now offer their clients an impressive array of tools that deliver valuable insights and help optimize trades.
Real-Time Investment Tracking
Many online brokerage sites provide stock quotes and market information that let individuals track their investments in real time.
How to Choose an Online Broker
How do you go about choosing an online broker? Start with its range of financial products (which products it offers and on which markets), then look at the tools (trading platform, stock screener and technical analysis software) and services (market updates, webinars, training) it makes available. You can also check a forum on the best online broker. Finally, compare prices to find the online broker with the best rates.
All in all, several criteria should be weighed when choosing the best online broker. The five most important criteria for the best online brokers are:
Regulation
One of the first criteria when selecting a broker is to choose one that puts safety first. It is essential to pick a broker that is both licensed and regulated, as a number of fraudulent websites and brokers engage in scams and disappear with traders’ deposits. Remember that brokers must meet specific conditions and criteria to obtain a license, and if they break the rules, they automatically lose their license along with a lot of money.
The most reputable regulators licensing brokers worldwide include ASIC (Australia), the FCA (United Kingdom), CySEC (Cyprus) and BaFin (Germany and Europe). Beyond these, you can also opt for brokers duly recognized by the Financial Commission, an independent regulatory body, and, for a French online broker, by the AMF in France. For example, the best online broker in France should naturally be regulated by the Autorité des marchés financiers.
There are a number of important factors to consider when choosing an online brokerage firm.
- Check that your broker has a track record of at least 2 years.
- Check that your broker has a reasonably sized customer service team of at least 15 people.
- Is the broker regulated in a jurisdiction that can hold it accountable or, at the very least, act as an arbiter in the event of a major dispute?
- Check that deposits and withdrawals can be processed within 2 to 3 days. This matters especially for withdrawals.
- Does your broker have an international presence in several countries? This includes presentations and training at local seminars.
- Make sure you can reach staff in different locations around the world who can communicate in your local language.
Customer Service
To be ranked among the best online brokers, every broker we selected offers its users customer service available 24/7 to answer questions about payments, deposits, withdrawals, technical issues and platform features. They make sure every request is handled within a reasonable time. Another feature available on most brokerage sites is a “Call Me” button, which guarantees a response within 10 minutes or less. Customer support should always be available in your native language. When assessing customer service in your search for the best online broker, ask yourself a number of questions, the most important of which are:
- Is there a dedicated number you can call to speak to a person for trading help?
- Do you have full information about additional fees for phone-assisted trades?
- Is there an automated number you can call for basic questions?
- What about general help? What are the hours for reaching a representative?
- What are the phone line opening hours? Can you call 24/7, or are the phones only staffed during normal business hours?
- For those who prefer not to talk, is there an email address you can use to get prompt support?
- Does the broker use a secure internal messaging system for important documents and account inquiries?
- Does the website offer live chat for immediate assistance?
- What if you have a basic question but do not want to tie up a representative? Does the site have a searchable FAQ section covering a wide range of questions?
- What about technical support? Are there dedicated phone lines, email addresses or chat systems for technical assistance?
Online Broker Commissions
Brokerage fees vary as much as share prices do. They represent the broker’s compensation: every time you buy a security or invest in a company, you pay a brokerage fee. In other words, it is a commission paid to the broker for the services it provides. Brokerage commissions can therefore vary, as they depend on several different factors.
The more you invest, the higher your brokerage fees will be. Likewise, the type of broker, the size of the brokerage accounts and the number of orders the broker executes all affect these fees. You may also have to pay other ancillary fees depending on the services you request from your broker. The best approach is to research every broker’s price schedule thoroughly so you are not caught out before committing.
- Spreads
One of the most important factors when selecting the best online broker is the spread (margin or gap). This is the difference between an asset’s bid and ask prices. Brokers make their money from the bid-ask spread, so they generally charge no commission, and the trader pays the spread to access the market they are speculating on. For this reason, speculators are usually better off choosing a broker with tight, competitive trading spreads. Spreads vary depending on the account type and the market you trade.
- Ancillary Fees
Watch out for account fees! You may not be able to avoid them entirely, but you can certainly keep them to a minimum. Most brokers charge fees for transferring funds or closing your account. If you transfer to another broker, the new firm may offer to reimburse your transfer fees, at least up to a certain limit.
Most other fees can be avoided simply by choosing a broker that does not charge them, or by forgoing services that cost extra. Common fees to watch include annual fees, inactivity fees, trading platform subscriptions, extra charges for research or data, and custody fees. Today it is hard to find an online broker with no custody fees.
- Swaps
A swap is an interest rate derivative traded over the counter (OTC). It is an agreement between two parties to exchange one stream of interest payments for another over a set period. Swaps that exchange fixed-rate payments for floating-rate payments are commonly called “vanilla” swaps. They are usually based on the London Interbank Offered Rate (LIBOR), which covers the US dollar (USD), the EMU euro (EUR), the British pound (GBP), the Japanese yen (JPY) and the Swiss franc (CHF).
Swaps remain largely unexplored by non-institutional investors, mainly because few online brokers cover or offer them. Some, however, do provide access to these instruments, even for individual traders and investors.
Trading Platform
Whatever you do, always choose a broker that offers an easy-to-use trading platform. Your broker should provide an efficient, user-friendly platform that makes trading simple and convenient. The broker should also offer different account types or options so traders can trade according to their comfort level and means. You should also check the minimum deposit required to start live trading, as well as the broker’s deposit and withdrawal options. As a rule, your broker should offer bank transfers and other electronic payment methods.
Ease of Use for Beginners
There is no denying that some online brokers are easier to use than others, and when you are a beginner this matters even more. That is why you should look to a broker like eToro, which offers excellent online brokerage options for beginners. With its copy trading/social trading feature, you will learn more easily and quickly by watching far more experienced traders place orders across the various financial markets.
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Most online brokers let you deposit and withdraw directly through your bank via wire transfer. Modern banks have put their own security measures in place to protect these transactions, but that does not make them completely immune to security breaches.
Online payment providers such as Skrill and SafeCharge are good options, as they have their own security measures. For a CFD broker, PayPal is one of the best options to offer, since its transactions are always secure. Whatever platform you trade on, make sure your general online security is solid, because hackers can see your activity if security is lacking.
Making a withdrawal from your online broker brokerage account is an exciting moment, since that is when you take out the profits you have earned from your trades. Fee-free options are always welcome, but some e-wallets and credit cards inevitably carry transaction fees. You also want to make sure your online broker processes withdrawals on time, meaning no more than three business days.
Product Offering
Financial products | Admiral Markets | eToro | Avatrade | Vantage FX | XTB |
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Forex: currency trading | Yes | Yes | Yes | Yes | Yes |
Number of currency pairs | 47 | 47 | 70 | 45 | 49 |
Social trading | No | Yes | Yes | Yes | Yes |
Education Offering
While a useful, usable trading platform is crucial, you should also take the time to browse the educational resources of the best online broker for your strategy and try out its search function.
If you are a new investor, you need to be able to look up unfamiliar terms or find guidance on how to interpret data. If a topic worries you or there is a metric you do not fully understand, try the search function and see whether you can find what you need quickly and efficiently.
Keep in mind that what feels intuitive and user-friendly to one investor can be a nightmarish maze of fruitless searches for another, so it is important to find a platform you can work with.
After spending twenty minutes or so exploring a platform, you should be able to answer the following questions fairly easily. If you cannot, and a quick search of the site for specific answers does not turn up the information you need, that is probably a sign the brokerage firm’s platform is not for you.
Demo Account
Before trading with real money at a new online broker, you should spend a good amount of time getting to know the software with a free demo account. With an online broker simulation feature, for example, you receive €50,000 in “virtual money” to trade under real market conditions. Almost all forex brokers offer a demo account. Unfortunately, many of them only offer time-limited demo accounts, for example for 3 weeks, 1 month or two months. That is a short period, especially if you do not have time to trade currencies every day.
Best Broker for Beginners
As a beginner trader, you probably will not need complex features such as an advanced trading platform. You may, however, need some training and support. For example, you can use videos and tutorials on the broker’s website or attend in-person seminars at its branches. The best online brokers offer these services free of charge to account holders.
Best Broker for Experienced Traders
Professional traders, on the other hand, will want a brokerage firm that supports high-frequency trading. That means weighing a broker’s trading platforms, analysis tools, research and data offerings, as well as its commissions (including discounts for high-volume traders) and fees. Many high-quality online brokers provide free access to trading platforms, tools and research, so be wary of brokers that charge for every extra option, as these costs can add up quickly. The best online broker in this category is, without a doubt, Saxo Bank.
Online Brokers According to User Reviews
User | Comment | Rating |
| Source | Read Review | |
Jules | Efficient broker with responsive customer service. Very low fees and no withdrawal fees. The support means you never feel alone against the markets. | ★★★★★ 5/5 |
Gilles | Satisfied. I switched to Admirals a while ago and have had no problems so far, with either trading or withdrawals. | ★★★★★ 5/5 |
NA NO | Decent, apart from the fact that they take commission on losing trades, but it’s OK | ★★★☆☆ 3/5 |
![]() Source | Read Review | |
Elie Dauli | AvaTrade is a really great broker, security guaranteed since they are strict about document verification. Nothing in this world is perfect, but AvaTrade really comes close… | ★★★★★ 5/5 |
e-DevBusiness Peter31 | The AvaTrade platform is safe! You can make deposits and transfers with no fees! Plus, the team responds quickly to requests!! | ★★★★☆ 4/5 |
Vincent | AvaTrade should check more carefully who they work with. Hundreds of clients lost between 30% and 100% of their capital by trusting Mr. Laurent Chenot (livret Alpha) to follow a trading signal. See all the testimonials on the Signal Arnaques website. | ★☆☆☆☆ 1/5 |
Source | Read Review | |
Dave | Having tested a large number of brokers, Vantage FX really is THE BEST, the broker par excellence!! Whether it’s deposit or withdrawal fees or spreads, there’s nothing to complain about. The only small drawback is how complicated their website is. Apart from that, I can only recommend it. On top of that, it is one of the only brokers to offer a 50% first-deposit bonus!! | ★★★★★ 5/5 |
M. LOT Andy | Top broker with serious support! | ★★★★☆ 4/5 |
Sphinxz | I recommend it! | ★★★★☆ 4/5 |
![]() Source | Read Review | |
Yotoli Gaming | Scam, huge fees and hidden charges on top. Avoid. | ★☆☆☆☆ 1/5 |
Elie Rozet | So far I haven’t had any major problems, but it’s hard to get in touch with them by email or through their official website. The chat doesn’t work and nobody answers my customer service tickets. I’ve already deposited more than €500 to get started, I had questions about how withdrawals work and got no answer, I asked for higher leverage and still no answer. So I’m still waiting. | ★★★☆☆ 3/5 |
Mia | I’m giving two stars because it does have one good feature: copy trading. It’s convenient to be able to copy pros and diversify your portfolio (bearing in mind you have to invest a minimum of €200 per copy trade). | ★★☆☆☆ 2/5 |
![]() Source | Read Review | |
Mehdi Benz | All good. Nothing to complain about with this broker so far: fairly low spreads on forex, but rather high on some stocks, I think. | ★★★★★ 5/5 |
Djoko 97 | Organized fraud. A company already convicted for its fraudulent practices that keeps going. Namely: manipulating spreads, sometimes multiplied by 10, in the middle of the day to trigger stops, always in their own interest: reducing gains and increasing losses. | ★☆☆☆☆ 1/5 |
Olivier Rolin | I’m with 2 brokers, XTB and INSTA MARKETS, and I’m completely satisfied with both. | ★★★★★ 5/5 |
How to Choose the Right Online Broker for You in 2025
An online broker may be the undisputed market leader without necessarily being the right one for you. Depending on your needs, investment goals or trading strategy, it is better to choose the online broker that matches your profile.
Online Brokers by Financial Market
Online Broker for ETFs
Interactive Brokers can be considered the best online broker for ETFs. ETFs offer an affordable way to build a diversified portfolio, thanks to their expense ratios and greater tax efficiency compared with mutual funds. ETFs are easy to trade because, just like stocks, they change hands on regulated exchanges. ETFs can be traded on margin, have no short-selling restrictions and allow intraday trading. Many ETFs also have options, allowing traders to manage portfolio risk with derivatives.
Online Broker for FDJ Shares
eToro is the best online broker for FDJ shares, as it lets you buy and track FDJ stock with complete peace of mind. That way, no management fees or stamp duty are deducted.
Brokers by Trading Strategy
- Scalping
Scalping is a trading style that operates on short time frames. Price moves are therefore very small (a few pips), unless a market crash triggers a sudden bearish reversal. To maximize gains when scalping, traders generally use more or less significant leverage. That is why online brokers offering the best leverage should be favored for this trading strategy.
Scalping also requires a strict exit strategy, as a single large loss could wipe out the many small gains the trader has worked to achieve. For this strategy to work, you need the right tools, a good connection, a direct-access broker and the stamina to place a large number of trades. For those who want to scalp, look for a broker where:
- No trading restrictions apply;
- Fees are highly competitive;
- Volatility protection settings are available;
- Platforms are up to date and intuitive, allowing fast order execution.
- Day Trading
Many traders think day trading and scalping are similar. Although both styles are practiced within a single day, there are important differences. Day traders open and close far fewer positions than scalpers. They sometimes open just one position a day, and often no more than two per trading day.
Although both trade within the same day, the day trader’s strategy is to focus on the day’s best opportunities and hold out for a larger profit target. As a result, a day trader typically holds a position for several hours, but no longer than a full trading day. They must also stick to their trading plan and resist the temptation to close a position too quickly, at the risk of turning intraday trading into scalping.
eToro, for example, is a platform suited to short-term trades. For long-term orders, however, this online broker is not reliable enough.
- Swing Trading
Swing trading is a strategy that targets medium-term trading opportunities. Swing traders enter and exit sporadically, over a period of a few days or weeks.
- Swing traders often use relatively low leverage, although this is by no means mandatory, as it all depends on the trader.
- They tend to use a mix of fundamental and technical analysis.
- They aim for larger price targets and tend to wait longer for a position to play out.
- They also use wider stop losses to give more room for price swings up and down, and for their position.
Online Broker Scams
While many reputable brokers serve traders around the world, there are unfortunately also those looking to make money from unsuspecting victims. As a new trader, you may not know what to look for or may not be equipped to spot a fraudulent online broker. That will obviously cause you some concern when you are looking to invest your money. There are, however, key warning signs to watch for so you can be sure you are trading with a genuine, reliable online broker and avoid signing up for services that promise to make you thousands of dollars.
How to Test an Online Broker in 2025
For the more daring, relying on analysis and customer reviews alone is not enough to confirm whether one broker is better than another. The solution is to test it yourself. So how do you test an online broker? You have two options: open a demo account or a live account.
What Is a Demo Account?
If you are completely new to trading, it is strongly recommended to start with a demo account to get used to the different types of market orders, timing, the impact of news on exchange rates and all the features of your trading platform. A demo account offers a realistic trading environment without risking real money. When you open a demo account with an online broker, you receive virtual money you can use to place orders, put your trading knowledge into practice, get to know the broker’s platform and discover the dynamic world of financial markets.
Nowadays, almost every broker offers demo accounts that let traders get familiar with online brokerage in a risk-free environment. Depending on the broker, you will be able to trade a virtual balance of between €10,000 and €100,000. However, this is also one of the main drawbacks of demo accounts, as traders have no emotional attachment to their demo funds.
What Makes a Live Account Different
A live account, for its part, is designed for traders with enough experience to calculate their risk and place precise or profitable trades. In a live account, you trade with real money, and your profits and losses are real too. When using a live account, orders are sometimes not executed at the right moment. This is because the trading environment is completely different.
To find the best online broker with real money, it is advisable to test with the platform’s minimum deposit. For example, if the minimum to open an account with a given broker is €200, do not deposit €500, let alone €10,000, but exactly €200. It is simple logic! If the broker turns out to be unreliable, you limit your losses.
Which Online Broker Do We Recommend After Reviewing Them All?
As you will have gathered, every online broker has its own strengths. Depending on your trading goals and investment plan, you should choose the platform that suits you best. For example, if you are a beginner and want to benefit from the experience of a community of professional traders, eToro is the better fit.
eToro
- “Best of Show” at Finovate Europe 2015
- Ranked among today’s top 50 fintech companies
Avatrade
- Best Forex Broker 2019 by Daytrading
- Most Innovative Broker, UK 2019 by International Business Magazine
- Most Trusted Broker, China 2018 by FX Eyes
- Most Trusted Broker, China 2017 by Finance Word
Vantage
- Financial Trading Services Provider of the Year 2017;
- Best Forex Execution 2012;
- Recommended for Forex 2011.
XTB
- Best Platform award for “xStation 5”
- Best CFD Broker by BrokerChooser
- Best Brokerage Service in Europe.
Other Online Brokers
- Pepperstone: This online broker offers a small range of financial products but gives forex and CFD traders competitive pricing, excellent customer service and one of the largest selections of third-party platforms, including many options for social copy trading;
- Swissquote : For traders who need a multi-asset solution and are willing to pay a premium to hold their brokerage account with a Swiss bank, Swissquote is worth considering. Otherwise, Swissquote’s UK-based offering is a better all-round solution;
- Darwinex : Darwinex gives forex traders a one-of-a-kind trading community that lets investors buy and sell strategies developed by traders. Beyond copy trading, Darwinex also offers the full MetaTrader suite, but the overall offering is only average;
- Plus500: Although Plus500 is a trusted global brand with an easy-to-use platform, the broker lacks competitive research, trading tools and comprehensive educational resources;
- FxPro: FxPro competes with the best MetaTrader brokers, offering the full MT4 and MT5 suite with multiple account pricing options. FxPro’s drawbacks include a small range of tradable products and limited market research.
Conclusion
If this is your first time investing, don’t worry: you now know what online brokerage means. With so many trading platforms available, including some with no minimum balance or trading fees, you can learn on your own and use our resources to guide you every step of the way.
Investing with an online broker, even one of the best, guarantees nothing, because the stock market is not an exact science. On the contrary, the market fluctuates and changes every day and is heavily influenced by a myriad of factors, from politics and news to the weather and the actions of other traders.
Which online broker do you think is the best? Share your experience and leave us a comment!








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