Best European brokers for ETFs: Low fees & Regulated

The adoption of ETFs seems to have no end in sight. In fact, as of January 2025, assets under management (AUM) in European exchange-traded funds (ETFs) reached a record $2.37 trillion, surpassing the previous high of $2.29 trillion.

But which brokers to invest in ETFs? Which is the cheapest and the safest? Is there any catch you need to be aware of?

In this article, I will write about brokers I would recommend to my parents or friends. For full disclosure, I have two personal accounts at Interactive Brokers and DEGIRO. For me, they make sense, but for you, it might be a different story. For example, if you were looking only to earn interest on your cash, I would use other brokers (DEGIRO doesn’t even pay a cent!).

Quick summary:

• Interactive Brokers: The best broker overall. Low fees for ETFs and low conversion fees (in case you buy an ETF quoted in non-EUR currencies)
• XTB: 0% commissions on ETFs for monthly turnover up to €100,000 (above this amount, a 0.2% commission applies, min. €10). Offers a limited number of ETFs available
• Trading 212: 0% commissions on ETFs with no limits. Offers a limited number of ETFs available
• Lightyear: Emerging low-cost broker in Europe; mobile-first and expanding quickly.
• DEGIRO: Wide range of ETFs, but it charges a minimum of €1 per trade + an annual €2.50 connectivity fee.
• Freedom24: Vast offer of ETFs, but above average costs for ETF transactions

Regulation and safety

Before deeply diving into each broker, it is essential to mention that all brokers are regulated in Europe!

To demonstrate this, let’s use Interactive Brokers as an example. As a European, when you open an account at Interactive Brokers, you do it through the subsidiary “Interactive Brokers Ireland Limited”, regulated by the Central Bank of Ireland (CBI, reference number C423427):

As a result, you are protected by the Irish Investor Compensation Scheme (ICS).

The ICS is intended to help private individuals, such as people like you and me. Compensation under the ICS is limited to 90% of the amount lost, subject to a maximum of €20,000 to each investor. The coverage provides protection against the failure of the investment firm, not against loss of market value of financial products.

In the following table, we include the protection associated with each broker only considering the perspective of a European investor (a non-European investor may open his/her account through another subsidiary under a different jurisdiction):

Detailed analysis of each broker

Interactive Brokers

• ETF commissions: 0.05% of trade value (min. of €1.25; max. of €29)
• Fractional ETFs: Yes
• Minimum deposit: €0
• FX fee: 0.002% (min. of $2)

Founded in 1978 and publicly listed on NASDAQ (ticker: IBKR), Interactive Brokers is a global online broker known for its resilience through financial crises and strong risk management. European investors looking to access a wide range of ETFs will find an extensive selection, covering major global indices, sector-specific funds, and ESG-focused options.

With access to over 135 markets, Interactive Brokers allows European investors to trade ETFs listed on Euronext, Xetra, the London Stock Exchange, the SIX Swiss Exchange, and more. Investors can choose from UCITS ETFs, which are tax-efficient and compliant with EU regulations.

While Interactive Brokers does not offer commission-free trading, its low-cost structure makes it highly competitive for European investors. Some key cost considerations include:

• Low ETF trading fees: From €1.25 per trade to a maximum of €29 on European exchanges.
• Competitive FX conversion fees: 0.002% per trade when investing in ETFs traded in currencies other than the EUR.
• No custody or inactivity fees, making it attractive for long-term ETF investors.
• Stock loan program: Earn passive income by lending out your ETFs.

For European investors who prefer a user-friendly mobile experience, IBKR GlobalTrader provides an easy way to buy and sell ETFs. Key features include:

• Fractional ETF investing: Ideal for small-scale or beginner investors.
• Demo account, allowing new investors to test ETF strategies without risk.
• Advanced Tools for ETF selection and portfolio management:
• ETF Scanner: Find ETFs based on performance, region, or sector.
• Portfolio Analyst: Track and optimise your ETF portfolio with detailed analytics.

While the registration process can be lengthy and their main platform (TWS) quite complex, Interactive Brokers remains among the best choices for European investors seeking cost-efficient ETF investing.

XTB

• ETF commissions: 0% on ETFs for monthly turnover up to €100,000
• Fractional ETFs: Yes
• Minimum deposit: €0
• FX fee: 0.50%

Founded in 2002, XTB is a well-established brokerage firm listed on the Warsaw Stock Exchange and regulated by top-tier authorities, including the Financial Conduct Authority (FCA). With a strong European presence, XTB provides an attractive platform for investors looking to trade ETFs with 0% commission for monthly turnover up to €100,000 (above this amount, a 0.2% commission applies, min. €10).

XTB offers access to a diverse selection of European-listed ETFs, covering global indices (S&P 500, MSCI World, EURO STOXX 50), sector-specific funds, and ESG investments.

You can trade ETFs through xStation 5 and xStation Mobile, both of which offer a user-friendly interface with powerful tools for portfolio tracking and analysis.

You have access to fractional shares, which allow you to buy a fraction of an ETF, as shown in the image:

For intermediate and advanced investors, XTB provides technical and fundamental tools to support investment decisions, including:

• ETF screener: Filter ETFs based on performance, region, and sector.
• Advanced charting & indicators: Identify ETF trends and price movements.

On the downside, you must know that a €10/month inactivity fee applies after 12 months of no investments and if you have not deposited in the last 90 days.

Want to know more about XTB? Check our XTB Review.

Trading 212

• ETF commissions: 0%
• Fractional ETFs: Yes
• Minimum deposit: €0
• FX fee: 0.15%

Founded in 2006 and based in London, Trading 212 has over 4 million funded accounts and is known for its user-friendly mobile platform. In Europe, the broker is regulated by the Cyprus Securities and Exchange Commission (CySEC). In the UK, it is supervised by the Financial Conduct Authority (FCA).

For European ETF investors, Trading 212 provides commission-free ETF trading (no limits), fractional shares, and an automated investment system, making it a strong choice for beginners and cost-conscious investors.

Trading 212 offers access to ETFs listed on major European exchanges, including Euronext, Xetra, and the London Stock Exchange.

Some key ETF categories available:

• Broad market ETFs (S&P 500, MSCI World, EURO STOXX 50)
• Sector-specific ETFs (Technology, Healthcare, ESG)
• Dividend ETFs (Income-generating funds)

Key benefits for ETF Investors:

• Fractional ETF investing: Invest in ETFs with as little as €1.
• AutoInvest & Pie system: Create custom ETF portfolios and automate your investments.
• No deposit or withdrawal fees: Free transfers via bank transfer, card, Google Pay, or Apple Pay.
• New users can earn a free share worth up to €100.

While Trading 212 offers zero-commission ETF trading, it’s important to note that FX fees apply when trading ETFs in a different currency: 0.15% on Trading 212 Invest (for long-term ETF investors).

Besides, if you have any extra cash in your account, it earns 2.7% per annum in euros as of March 2025, one of the highest interest rates in euros.

Want to know if Trading 212 is safe? Check our Trading 212 safety review.

Lightyear

• ETF commissions: 0% on Lightyear execution fees
• Fractional ETFs: Yes
• Minimum deposit: €0
• FX fee: 0.35%

Lightyear is a European investment app offering zero-commission ETF (No Lightyear execution fees) trading with a beginner-friendly interface. Regulated by the Estonian Financial Supervision Authority (EFSA), it provides a secure investment environment, with client assets covered up to €20,000.

For European ETF investors, Lightyear stands out with its cost-efficient trading, multi-currency accounts, and high interest on uninvested cash.

Lightyear allows European investors to trade ETFs commission-free, making it a great choice for cost-conscious, long-term investors. The platform provides access to major European-listed ETFs, including:

• Broad market ETFs (S&P 500, MSCI World, EURO STOXX 50)
• Sector-specific ETFs (Technology, Healthcare, ESG)
• Dividend ETFs (For income-focused investors)

Key benefits for ETF investors:

• Multi-currency accounts (EUR, GBP, USD): Minimize FX costs when investing in international ETFs.
• Fractional ETF investing: Start investing from €1.
• User-friendly app: Ideal for beginners and mobile-first investors.

While Lightyear has no ETF trading fees, here are some things to keep in mind: FX conversion fee of 0.35% (though reduced if using a multi-currency account) and no demo account for beginners to test the platform.

_{Disclaimer: Capital at risk. The provider of investment services is Lightyear Financial Ltd for the UK and Lightyear Europe AS for the EU. Terms apply: lightyear.com/terms. Seek qualified advice if necessary.}

DEGIRO

• ETF commissions: From €1 per trade
• Fractional ETFs: No
• Minimum deposit: €0
• FX fee: 0.25%

Founded in 2013, DEGIRO is a low-cost European brokerage firm that has gained popularity among investors due to its competitive fees and “do-it-yourself” approach. With over 3 million users, it offers a wide range of ETFs while maintaining a simple and efficient trading platform.

For European ETF investors, DEGIRO provides an ETF Core Selection list, where it only applies a €1 fee per trade (handling fee per trade).

DEGIRO grants access to many ETFs listed on major European stock exchanges, including Euronext, Xetra, and the London Stock Exchange (broad market, sector-specific, dividends,...):

Key benefits for ETF investors:

• Low-cost ETF trading: Competitive pricing structure for ETF transactions.
• No minimum deposit required: Start investing with any amount.
• Reliable banking structure: Backed by flatexDEGIRO Bank AG (regulated in Germany and the Netherlands).

While DEGIRO is a cost-efficient broker, there are some costs and limitations to keep in mind:

• €2.50 annual connectivity fee (charged for access to global exchanges).
• €1 flat handling fee per free ETF trade (external cost).
• DEGIRO pays no interest on uninvested cash

Your investments are protected by the German Investor Compensation Scheme (up to €20,000 for non-returned assets), and cash deposits are protected by up to €100,000 under the German Deposit Guarantee Scheme.

Freedom24

• ETF commissions: From €1.2 per trade
• Fractional ETFs: No
• Minimum deposit: €0
• FX fee: ~0.005% (EUR/USD)

Freedom24, a subsidiary of Freedom Holding Corp., has positioned itself as a cost-effective brokerage offering access to a diverse selection of ETFs. Regulated by CySEC (Cyprus Securities and Exchange Commission), Freedom24 provides European investors with a straightforward platform for ETF trading.

Freedom24 offers access to thousands of ETFs from global exchanges, including Euronext, Xetra, London Stock Exchange, and NYSE, namely:

• Broad market ETFs (S&P 500, MSCI World, EURO STOXX 50)
• Thematic & Sector ETFs (Technology, ESG, Healthcare, AI)
• Dividend ETFs (For passive income investors)
• Bonds & Fixed Income ETFs (For conservative investors)

Key benefits for ETF investors:

• Diverse ETF selection: Access to ETFs from European & U.S. markets.
• No minimum deposit: Start investing with any amount.
• Market analysis & investment ideas: The InvestIdeas tool offers curated ETF opportunities.
• High interest on uninvested cash: Up to 4.30% in EUR and up to 7.10% in USD (via Long-Term Funds Placement Securities Swap*), as of March 2025

It offers two pricing plans: Smart in EUR, which is best for low-volume investors and Prime in EUR, which includes a personal account manager.

On the downside, you should also consider that the €7 withdrawal fee applies, and no fractional shares are available (only whole ETF shares can be purchased).

Your funds are safeguarded under CySEC regulations and the Investor Compensation Fund (ICF) covers up to €20,000 of your investments.

Want to explore more? Check our full Freedom24 review for European investors. And if you want to open an account, check our list of Freedom24 bonuses.

_{*This product is an investment in OTC swaps, and may not be appropriate for every investor. This product is not a banking service and is not related to a bank deposit or a bank account. The ability to provide access to a particular financial instrument is subject to an appropriateness test.}

How to choose an ETF?

Selecting the appropriate Exchange-Traded Fund (ETF) involves a systematic approach that aligns with your investment goals. Here's a concise guide to assist you:​

1. Define your investment objectives

Identify the asset class (e.g., equities, bonds, commodities) and the specific market segment or theme you wish to target, such as global markets, specific regions, sectors, or investment strategies. ​At justetf.com, you can filter by asset class:

2. Choose the right index

Select an index that accurately reflects your chosen market segment. For instance, the FTSE All-World Index offers global equity exposure, while the MSCI Emerging Markets Index focuses on developing economies. ​

3. Evaluate ETF options

When comparing ETFs tracking your selected index, consider the following factors:

• Total Expense Ratio (TER) or Ongoing Charges: This is the annual cost of running the ETF. Lower expense ratios enhance net returns over time. ​
• Fund size: The higher the assets under management, the less likely it is for the ETF to be closed down. Besides, larger funds often provide better liquidity and stability. ​
• Fund age: Established funds with a longer track record may offer more reliability.
• Tracking difference: Assess how closely the ETF's performance matches its index. The ETF price should move very closely to the underlying index. In other words, the tracking difference should be as low as possible.​
• Trading costs: Consider bid-ask spreads (the difference between the price you can pay and sell if you bought and sold immediately) and brokerage fees (commissions applied in some brokers) that will impact overall investment costs. ​
• Replication method: Decide between physical replication (holding actual securities) or synthetic replication (using derivatives). I recommend going for physical ETFs only. The additional risk involving derivatives does not compensate.
• Income treatment: Determine if the ETF distributes dividends (distributing ETFs) or reinvests them (Accumulating ETFs). In most European countries, accumulating ETFs are more tax efficient because you do not receive the dividends in your account, so there is no need to pay any taxes. ​
• ETF provider: Consider the reputation and reliability of the fund issuer. ​The biggest ones are iShares (by BlackRock), Vanguard, Amundi and State Street.

How to buy an ETF?

After finding the online broker that suits your needs, you can buy any ETF. For our example, we will use Interactive Brokers (the web portal) as our broker and simulate buying an ETF replicating the S&P 500: iShares Core S&P 500 UCITS ETF USD (Acc). Characteristics:

• Fund size: +€95 billion
• TER: 0.07%
• Ticker: SXR8
• Replication: Physical
• Distribution policy: Accumulating
• TF provider: iShares
• Inception date: May 2010

Search for the SXR8 ETF:

Then, select it and click "Buy":

On the right side, in “Order ticket”, you will fulfil all the details:

• Number of shares: One share in our case
• Order type: We gave a limit order, but you can give a market order

Then, click “Preview” to see the estimated costs and if the details you inserted are correct:

And, finally, “Submit Buy order”. That’s it!

Bottom line: Which broker should you choose?

The best broker for ETF investing in Europe depends on your investment style, budget, and priorities:

• Best overall broker: Interactive Brokers (Lowest trading & FX fees, vast ETF selection, advanced tools)
• Best for commission-free ETF Trading: XTB & Trading 212 (0% commissions, fractional shares)Best for beginners & mobile users: Lightyear & Trading 212 (Simple apps, commission-free trading)
• Best for ETF Variety & Global Markets: Interactive Brokers & DEGIRO (Largest ETF selection)
• Best for interest on cash → Freedom24 & Lightyear (Competitive interest rates on uninvested cash).

Ultimately, the best choice depends on how often you trade, whether you need fractional shares, and if you prefer a mobile-first or desktop platform.