Worldwide Investors

Freetrade markets itself as an ETF-friendly platform with very competitive pricing for SIPPs and General accounts. It caters well to investors who want a simple portfolio as well as investors that may be interested in trading on European and U.S. exchanges. More advanced investors may find limitations depending on their sophistication and needs.

Brokers are usually bucketed together by comparison sites, that don’t have an in-depth knowledge of trade-offs related to fees, transparency and counterparty exposure. Most of the websites are also conflicted, often promoting brokers with the highest-earning commissions.

We take a more rigorous angle. How would a wise long-term investor categorise them?

Here is what you need to know about the 5 Key Broker Categories in Europe and the UK. These categories give you a mental model of how to think about brokers, but some of them may not fit in neatly, and availability in your country may also impact your choice.

For most individual investors, Interactive Brokers is simply one of the best platforms. While beginners might find its interface and features complex, the platform is a treasure trove for those willing to scale the learning curve.  It is suitable for most passive investors. Very competitive ETF trading commissions and FX rates, no ongoing platform fees along with family subaccounts and monthly standing orders largely justify opening an account.