Before You Start
- Basic understanding of investment products (e.g., ETFs, stocks, bonds)
- Access to at least one European brokerage account (e.g., Trade Republic, DEGIRO, Interactive Brokers, Scalable Capital)
- Familiarity with EUR as your account currency
- Ability to read broker fee schedules (available on their websites)
Time needed: 45–60 minutes
What you'll need: Your broker account, calculator or spreadsheet, access to broker fee pages
Fees are the silent killer of long-term investment returns. Yet, many European investors underestimate their true impact, especially when dealing with seemingly small commission, spread, FX, and custody charges. As we covered in our Ultimate 2026 Guide to European Broker Fees, understanding and minimizing these costs is crucial for maximizing your returns. This tutorial provides actionable, EUR-based examples to show exactly how fees work—and what you can do to keep more of your money working for you.
Step 1: Identify the Main Types of European Broker Fees
First, you need to know what fees you’re actually paying. European brokers typically charge some or all of these:
- Commission fees (fixed or per-trade)
- Spreads (difference between buy and sell prices)
- Foreign exchange (FX) fees (for non-EUR trades)
- Custody/Account fees (monthly, annual, or for inactivity)
Why does this matter? Even a 0.1% difference in annual fees can cost you thousands of euros over decades. Knowing which fees apply helps you compare brokers and products accurately.
What can go wrong? Many investors overlook “hidden” fees like spreads or small FX markups, which can add up quickly. Always check the broker’s official pricing page (for Trade Republic) or fee schedule (for DEGIRO).
Pro Tip
Download each broker’s full fee schedule as a PDF and highlight every fee that might apply to your planned investments. This will make later comparisons much faster.
Step 2: Calculate the Real Cost of a Typical EUR Investment
Let’s walk through a concrete, EUR-based example using two popular brokers: Trade Republic and DEGIRO. Suppose you want to invest €10,000 in the iShares Core MSCI World UCITS ETF (ISIN: IE00B4L5Y983), a common choice for European index investors.
- Trade Republic: €1 commission per trade (buy or sell), no custody fee, no FX fee for EUR-denominated ETFs, spread typically 0.05–0.15%.
- DEGIRO: €2 commission per trade (Core Selection ETF trades are free if conditions met), €2.50 annual custody fee per exchange, no FX fee for EUR ETFs, spread similar.
Scenario: You buy €10,000 of the ETF, hold for 10 years, then sell everything. Assume the ETF grows at 6% per year and you make no additional contributions.
- You buy €10,000 in ETF shares.
- After 10 years at 6% annual growth, your investment would be worth:
€10,000 × (1.06)10 ≈ €17,908 - Now let’s subtract the fees:
| Broker | Buy Fee | Sell Fee | Custody Fees (10 yrs) | Total Fees | Net Value After Fees |
|---|---|---|---|---|---|
| Trade Republic | €1 | €1 | €0 | €2 | €17,906 |
| DEGIRO | €0* (Core ETF) | €0* (Core ETF) | €25 | €25 | €17,883 |
*Zero commission applies if you comply with DEGIRO’s Core Selection rules (e.g., one transaction per month per ETF).
As you can see, even small differences—like a €2 commission or a €2.50/year custody fee—add up over time. The impact is far greater if you invest regularly or use non-EUR ETFs (see Step 4).
Pro Tip
Use a compound interest calculator and include all known fees to preview your “real” long-term returns before committing to a broker.
Step 3: Compare Spreads and Their Long-Term Effect
Spreads are often ignored, but they’re a real cost. The spread is the gap between the price you pay to buy and the price you’d get if you sold immediately. For liquid EUR ETFs, spreads are typically low (0.05–0.15%), but for less-traded assets, they can be higher.
Example: If the ETF’s quoted price is €100.00 (buy) and €99.90 (sell), the spread is €0.10 or 0.10%. On a €10,000 order, you lose €10 instantly.
Why does this matter? Spreads are “invisible” fees—you pay them whether your broker advertises “zero commission” or not. Over decades of investing, these small amounts compound and reduce your returns.
What can go wrong? Trading illiquid instruments or outside market hours can widen the spread. Always check the live quote before placing large orders.
Pro Tip
On Trade Republic or DEGIRO, always place ETF orders during main exchange hours (09:00–17:30 CET) for the tightest spreads.
Step 4: Understand FX Fees (When Buying Non-EUR Assets)
European investors often want to diversify globally, but buying US stocks or non-EUR ETFs introduces FX (foreign exchange) fees.
- Trade Republic: 0.15% FX fee for USD trades
- DEGIRO: 0.25% auto FX fee for USD trades, or €10 + 0.02% manual conversion
- Interactive Brokers: ~0.002% FX fee, but minimum €2 conversion
Example: You buy €10,000 worth of a USD-denominated S&P 500 ETF (e.g., iShares Core S&P 500 UCITS, ISIN: IE00B5BMR087) via Trade Republic. The 0.15% FX fee means you pay €15 extra when converting EUR to USD. When you sell, you’ll pay another €15 converting USD back to EUR. Total FX cost: €30.
Why does this matter? FX fees can be much higher than commission or custody fees, especially for frequent traders or those investing in non-EUR assets.
What can go wrong? Some brokers use less-transparent FX rates, adding a hidden markup. Always check the official fee page for Interactive Brokers or your broker’s support section for FX details.
Pro Tip
Prefer EUR-denominated UCITS ETFs for global exposure to avoid FX fees entirely. See our breakdown in Should Europeans Buy US Stocks Directly—or Use UCITS ETFs?
Step 5: Factor in Custody and Inactivity Fees
Some brokers charge ongoing custody or inactivity fees. These are often overlooked—especially by long-term, buy-and-hold investors.
- DEGIRO: €2.50 per exchange per year (so if you own ETFs on Xetra and Euronext, you pay €5/year)
- Interactive Brokers: No custody or inactivity fee for European retail clients as of 2026
- Scalable Capital: Free plan (no custody fee); PRIME plan (€2.99/month) for unlimited commission-free trades
Example: If you hold positions on three exchanges at DEGIRO for 20 years, you’ll pay 3 × €2.50 × 20 = €150 in custody fees, regardless of your investment performance.
Why does this matter? Over decades, custody fees can become a significant drag, especially for small portfolios.
What can go wrong? If you stop trading for a while, some brokers may charge inactivity fees. Always check the latest fee schedule before opening an account.
Pro Tip
If you’re only buying ETFs on a single exchange, limit yourself to one to minimize custody fees. For example, stick to Xetra-listed ETFs on DEGIRO.
Step 6: Compare Total Cost Using Real Broker Tools
Now, let’s put it all together. Use your broker’s fee calculator (if available) or build a simple spreadsheet. Here’s how to do it:
- List all expected trades per year (buys/sells, expected amount).
- Multiply by known commission fees.
- Add expected custody/inactivity fees for your planned assets and exchanges.
- Estimate FX fees if you plan to buy non-EUR assets.
- Add an average annual spread cost (e.g., 0.10% per trade).
- Sum it all up: this is your “all-in” cost.
For example, if you plan to invest €500/month in an MSCI World ETF via Trade Republic’s savings plan:
- €0 monthly commission (for most ETF savings plans)
- No custody fee
- No FX fee (if EUR ETF)
- Spread: €500 × 0.10% = €0.50/month
Over 10 years: €0.50 × 12 × 10 = €60 in spread costs. That’s it—much lower than if you had commission or FX fees eating into your returns each month.
You should now see, in euros, exactly how much your broker choice will cost you over your intended time horizon.
Pro Tip
Platforms like DEGIRO and Interactive Brokers have built-in fee simulators. Use these to preview your costs with different investing strategies.
Step 7: Best Practices for Minimizing Broker Fees in Europe
Now that you’ve seen the numbers, here’s how to keep your fees low:
- Use EUR-denominated UCITS ETFs for global exposure to avoid FX fees.
- Choose brokers with free ETF savings plans (e.g., Trade Republic, Scalable Capital) for regular investing.
- Minimize the number of exchanges you use (especially at DEGIRO) to reduce custody fees.
- Trade during main market hours to get tighter spreads.
- Review your broker’s fee schedule annually for changes.
For more on tax considerations, see our dedicated guide on choosing the most tax-efficient European broker for ETFs.
Common Mistakes
- Ignoring “small” fees: Underestimating the impact of €1 or 0.1% fees, which compound over time.
- Overtrading: Frequent buying/selling incurs more commissions and spreads.
- Choosing the wrong account currency: Buying USD assets with a EUR account without understanding FX fees.
- Not reading the full fee schedule: Missing hidden fees like custody, inactivity, or withdrawal charges.
- Assuming zero-commission means zero cost: Spreads and FX markups still apply.
Next Steps
- List your current broker’s full fee structure and compare scenarios for your planned investments.
- Test your strategy: simulate 10–20 years of investing with all-in costs.
- Consider switching or splitting between brokers if it meaningfully reduces your total costs.
- For a broader fee overview, revisit our Ultimate 2026 Guide to European Broker Fees.
- Learn how to automate your investing and minimize behavioral mistakes in How to Automate Regular Investing in Europe: DCA with EUR in 2026.
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.