Before You Start
- You must be a resident of an EEA country, Switzerland, or the UK (for most European brokers).
- Have a valid EU/EEA/UK passport or national ID for identity verification.
- Access to your tax identification number (TIN) from your home country.
- Basic understanding of investment products (ETFs, stocks, etc.).
Time needed: 45–60 minutes
What you'll need: Internet connection, smartphone or computer, access to your identification documents, and a European bank account (for transfers).
Choosing your first broker is the single most crucial step to start investing as a European resident. Your broker determines what you can buy, how much you pay in fees, and even what happens to your assets if you move countries. This step-by-step guide will walk you through how to choose a broker in Europe in 2026, with tested examples and EUR-based comparisons of Trade Republic, DEGIRO, and Interactive Brokers. If you want a broader overview of investing as a European, see our Beginner’s Blueprint: The Ultimate 2026 Guide to Investing as a European.
Step 1: Decide What You Want to Invest In
What to do: List the types of assets you want to buy: ETFs, individual stocks, bonds, crypto ETPs, etc. Write down your top 3–5 priorities (e.g., "I want to buy accumulating MSCI World ETFs in EUR, fractional shares, and possibly trade US stocks.").
Why it matters: Not all brokers offer the same products, and some restrict access to popular ETFs or stocks (especially US-listed ones, due to EU regulations). Getting this clear means you won't get stuck later with a broker that doesn't fit your needs.
What can go wrong: Picking a broker that lacks your desired ETFs (like iShares Core MSCI World UCITS ETF EUR Acc, ISIN: IE00B4L5Y983), or one that doesn't allow fractional investing if you want to start small.
Pro Tip
Check if your preferred broker supports fractional investing if you want to invest less than €100 in a single ETF or stock. Trade Republic and DEGIRO both offer this on many assets.
Step 2: Compare Broker Regulation and Safety
What to do: Confirm that the broker is regulated in a major European jurisdiction—ideally Germany, the Netherlands, Ireland, or Luxembourg. Look for membership in deposit protection or investor compensation schemes, such as the German EdW (up to €20,000) or Dutch Beleggerscompensatiestelsel.
Why it matters: Regulation ensures your broker operates under EU law and that your assets are protected if the broker goes bankrupt. Brokers outside the EU (e.g., some "offshore" or Cyprus-based platforms) may offer less protection.
What can go wrong: Using an unregulated or lightly regulated broker risks loss of assets or legal difficulty in case of disputes.
| Broker | Regulated by | Investor Protection | Where client assets held |
|---|---|---|---|
| Trade Republic | BaFin (Germany) | €100,000 cash, €20,000 securities | German custodian banks |
| DEGIRO | AFM & DNB (Netherlands) | €20,000 (Dutch scheme) | Segregated accounts in major EU banks |
| Interactive Brokers (IBKR) | Central Bank of Ireland & FCA (UK) | €20,000 (Ireland), up to £85,000 (UK) | Client segregated accounts |
For more in-depth platform differences, see DEGIRO vs Trade Republic vs Interactive Brokers: Which Platform Is Best for Long-Term ETF Investors?.
Step 3: Calculate and Compare All-In Costs
What to do: List all fees: account fees, trading commissions, currency conversion, withdrawal or inactivity fees. Use a real example: “If I buy €1,000 of iShares Core MSCI World ETF once a month, what will I pay in total annual fees?”
Why it matters: Small fee differences can compound into thousands of euros over a decade. Some brokers offer zero-commission trades but add hidden costs (spreads, FX markups, etc.).
What can go wrong: Underestimating currency conversion costs (often 0.25–0.5% per trade at some brokers), or missing inactivity fees if you go months without trading.
| Broker | ETF Purchase Fee (per trade) | Currency Conversion Fee | Inactivity Fee | Withdrawal Fee |
|---|---|---|---|---|
| Trade Republic | €1 (many ETFs free via savings plan) | 0.50% | None | Free |
| DEGIRO | €2 (+€1 handling); many core ETFs free | 0.25% | None | Free (SEPA) |
| Interactive Brokers | €3 (fixed); volume discounts | 0.03% (min €2) | None | Free (SEPA) |
Example: Buying €1,000 of iShares Core MSCI World ETF (EUR) monthly for a year:
- Trade Republic: €0/month via savings plan = €0/year
- DEGIRO: Free if on core ETF list, else €36/year
- IBKR: €3/trade × 12 = €36/year
Pro Tip
Always check if your chosen ETF is on the broker’s "core" or "free ETF" list. For example, at DEGIRO, see their free ETF list before choosing an ETF. This can save €24–€36 per year for monthly investors.
Step 4: Assess Platform Usability and Language Support
What to do: Download the app or visit the web platform. Check if it is available in your preferred language (e.g., French, German, Italian, Spanish, etc.). Register a demo or read reviews to see how easy it is to buy an ETF or set up a savings plan.
Why it matters: A simple, intuitive platform saves time and reduces mistakes. Poor translations or confusing layouts can lead to costly errors—especially for beginners.
What can go wrong: Some brokers have limited language support (e.g., IBKR’s website is less beginner-friendly, and their mobile app is more complex than Trade Republic’s).
| Broker | Mobile App | Languages | Savings Plan Feature |
|---|---|---|---|
| Trade Republic | Yes (very user-friendly) | DE, EN, FR, ES, IT, NL | Yes (ETFs, stocks, crypto ETPs) |
| DEGIRO | Yes (simple, but web-first) | DE, EN, FR, ES, IT, NL, PT | No (manual recurring buys only) |
| Interactive Brokers | Yes (advanced features) | EN, DE, FR, ES, IT, and more | No (manual recurring buys only) |
In Practice: To set up a monthly ETF savings plan in Trade Republic:
Open the app → Tap Portfolio → Savings Plan → Select ETF (e.g., "iShares Core MSCI World UCITS Acc"). Enter your monthly amount (e.g., €100), select the date, and confirm. You should see your first ETF purchase scheduled immediately.
Step 5: Check Asset Transferability and Portability
What to do: Ask: “If I move to another EU country or want to switch brokers, how easily can I transfer my assets?” Look for brokers that support outbound transfers (“broker-to-broker transfer” or “Wertpapierübertrag”).
Why it matters: If you move or want to consolidate accounts, some brokers make it easy (DEGIRO, IBKR), while others (Trade Republic) may only support cash withdrawal, not direct asset transfer.
What can go wrong: Being forced to sell your assets, incur taxes, or pay high outgoing transfer fees if your broker doesn't support asset transfers.
| Broker | Outbound Asset Transfer | Fees | Notes |
|---|---|---|---|
| Trade Republic | Limited (case-by-case, usually cash out only) | Free (cash), €15/ISIN (for securities, if allowed) | Asset transfers not always supported |
| DEGIRO | Yes | €10 per ISIN | Supports broker-to-broker transfer |
| Interactive Brokers | Yes | Free | Very flexible; global transfer support |
Pro Tip
If you plan to move within Europe, DEGIRO or IBKR are usually safer choices for seamless asset transfer, while Trade Republic is best for those who plan to stay in one country and value simplicity.
Step 6: Test Research Tools and Support
What to do: Explore the broker’s research section for educational materials, ETF screeners, or analyst reports. Try contacting customer support in your language—see how fast and helpful the response is.
Why it matters: Good research tools help you make smarter investment decisions, while responsive support helps resolve issues quickly.
What can go wrong: Some brokers offer only basic research (Trade Republic), while others (IBKR) have extensive tools but a steep learning curve. Poor support can leave you stranded if you have a problem with a transfer or tax document.
For more on using research tools, see How to Use European Broker Research Tools to Find Top Stocks and ETFs.
Step 7: Register and Verify Your Account
What to do: Go to the official registration page of your chosen broker:
Follow the on-screen steps: enter your personal details, upload your ID, provide your tax ID, and connect your bank account. Verification usually takes 1–3 days.
Expected outcome: You should receive an email confirming your account is active and ready to fund. Now you can make your first deposit (usually via SEPA transfer).
Pro Tip
Start with a small deposit (€50–€100) to test transfers and withdrawals. This helps you spot any transfer issues before investing larger amounts.
Common Mistakes When Choosing a Broker in Europe
- Ignoring currency conversion fees: Even "free" brokers charge up to 0.5% on EUR/USD trades. Always check the FX markup in the fee schedule.
- Assuming all brokers allow asset transfer: Some (like Trade Republic) may force you to sell and withdraw cash, which can trigger taxes or missed market gains.
- Missing out on core/free ETFs: Not checking if your ETF is on the broker’s free list can cost you €24–€60/year in extra fees.
- Overlooking tax reporting support: Some brokers (DEGIRO, IBKR) offer downloadable tax reports, while others provide only basic statements. This matters at tax time.
- Choosing a complex platform as a beginner: While IBKR is powerful, its interface can overwhelm new investors. If you value simplicity, Trade Republic or DEGIRO may be a better fit.
Next Steps
- Review your asset priorities and choose the broker that best matches your needs and country of residence.
- Register, verify, and test your chosen platform with a small amount.
- Set up your first recurring investment (e.g., a €100/month ETF savings plan).
- Explore more advanced topics and platform comparisons in our Ultimate 2026 Guide to Investing as a European.
Disclaimer: This article is for educational purposes only and does not constitute financial advice. Always do your own research and consider consulting a qualified financial advisor before making investment decisions.