Best Brokers to Invest in ETFs from Ireland
Exchange-Traded Funds (ETFs) are a type of investment fund listed and traded on a stock exchange. They typically track the performance of an index. Find out which are the best apps to invest in ETFs in Ireland.
Top 3 List of Brokers for Investors in Ireland
Saxo Bank offers clients the option to invest in stocks, bonds, options, ETFs and many more. With their accessible platform and easy to manage account, they are an effective option to consider for investment purposes.
In particular, for ETFs, Saxo allows you to invest in 5,500+ ETFs from tech, healthcare, environment and other significant sectors that trade in 60 global stock exchanges for USD 0.01 in commission per share. In other words, Saxo allows you to invest in almost every ETF available out there at a meagre cost.
DEGIRO has revolutionized the stockbroking market in Europe by offering real ETFs with no commission or at a low cost. Every calendar month, the first trade executed in an ETF of what DEGIRO calls the 'Free ETF Core Selection' (An extensive list of mainstream ETFs) is free of charge regardless of size and direction.
Compared to other brokers, DEGIRO is one of the cheapest ones in terms of overall costs. In 2013, DEGIRO launched its online brokerage services in the Netherlands. Since then, it has expanded across 18 European countries enabling retail investors to benefit from a highly competitive commission structure. As a result, DEGIRO has quickly become one of the largest brokers in Europe.
At eToro, buying and selling ETFs is very straightforward. eToro's platform is easy to use and offers zero commissions on ETFs with low minimum investments. This means that investing in ETFs is something that anyone can do.
eToro is an online broker and investment platform with over 6 million users around the globe. eToro allows you to trade Forex, Cryptocurrencies, Stocks, Indices, Commodities and ETFs. You can make long-term investments as well as day-trade.
ETF Distinguishing Features
ETFs track the performance of a wide variety of fixed income and equity indices and a range of sector and theme-specific indices.
Some ETFs are more liquid (or easily tradeable) than others, depending on their tracking index. For example, ETFs that track the S&P500 index tend to be more liquid than an ETF that tracks the performance of space exploration related stocks.
The details of the ETF's holdings are transparent, so calculating its underlying value is easy.
ETFs have continuous real-time pricing so that investors can trade at any time.
They have low expense ratios, and no initial or exit costs are applied. Instead, the investor pays average dealing commissions to his stockbroker.
Retail (and institutional) investors can use ETFs for a wide range of investment strategies, including constructing core-satellite portfolios, asset allocation and hedging.
Top Traded ETFs
SPDR S&P 500 ETF (Known as 'SPY'): Holds a portfolio of the US stocks included in the S&P 500 Index.
VanEck Vectors Gold Mining ETF (GDX): Holds stocks of companies involved in the gold mining industry by tracking the NYSE Arca Gold Miners Index
Invesco QQQ (QQQ): This ETF invests based on the Nasdaq-100 Index, including 100 of the largest US and international Tech companies listed on the Nasdaq Stock Market.
Ark Innovation ETF (ARKK): ARKK is an actively managed ETF seeking long-term growth by investing in global stocks of companies involved in disruptive innovation.
Vanguard Total International Bond ETF (BNDX): The ETF seeks to track the performance of an index that includes international government, agency, and corporate bonds, mostly from developed countries and some emerging markets countries.
Now let's move to our criteria to select the top 3 brokers to trade ETFs.
Our Criteria to Pick the Top 3 Brokers for ETF Trading
To be included on our top 3 list, the brokers have to excel in several of these matters:
The Broker has to have a good ETF selection in terms of quantity and variety (asset class, geographies, and theme variety).
The commissions, both the fee levied to open and close a trade, and the spread (the difference between buying and selling) that the Broker charges should be low compared to their competitors.
Tied to the previous one, ideally, the Broker should not charge a maintenance cost, or it should be low if set. Some Brokers charge you for keeping an open trade. Since ETFs are instruments designed to be held from mid to long term, the Broker fee to keep that trade open must be as low as possible.
The trading platform should be user friendly, allowing investors to read news about the ETF and provide key information about the asset.
Last but not least, the Broker should be available to local traders. Every Broker has restrictions in terms of geographies. Our top list only includes Brokers that open trading accounts in Ireland.