Lesson 1 of 5 · 6 min read
Choosing a broker
A broker is your access to the stock exchange. What should you look for when choosing one?
What is a broker?
A broker (or 'investment platform') is the company through which you buy and sell shares and ETFs. Think of an app or website that connects you to the stock exchange. Examples are DEGIRO, Trade Republic or your own bank.
What should you look for?
The important things are: the cost per transaction, whether there is a custody fee, the range of shares/ETFs on offer, the ease of use, and above all safety. A good broker is supervised by the financial regulator of its country and keeps your securities separate from its own assets.
Regulation = protection
Choose a broker that is supervised by a recognised regulator. Then your money is protected within legal limits and the broker has to comply with strict rules. Nice advertising means nothing — regulation does.
Remember this
- A broker is your gateway to the stock exchange for buying and selling shares and ETFs.
- Watch out for transaction costs, custody fees, range on offer, ease of use and above all safety.
- Supervision and segregated custody protect you; nice advertising means nothing.
There is a quiz for this lesson
3 questions that check whether it stuck. They live in the app, because a quiz nobody grades teaches nothing.
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