Which is the best app to buy ETFs with?

The topic of ETFs (Exchange Traded Funds) is booming, not least because in covid and low-interest times, even small savers have now discovered the advantages of ETFs for themselves in their search for alternative investment options. But which smartphone apps shine with low fees?

“German private investors rush into ETFs” was the headline in the Frankfurter Allgemeine Zeitung recently, after direct bank ING Deutschland reported that assets invested in ETFs increased by 50 billion euros to 150 billion euros in 2021.

Instead of having to laboriously fight through the range of stocks, bonds or commodities and then having to decide, ETF apps, which function like a fund, offer the possibility of choosing from a large selection of different assets. And not just at your desk, but from anywhere and with just a few clicks on your smartphone or tablet. And with fees that are significantly lower than those of actively managed funds.

There is no way around eToro

Die Anzahl von ETF-Apps ist allerdings riesig. Bloß, welche ist die beste und taugt für Anfänger ebenso wie Experten? Nach Meinung des Online-Portals “ETF news” geht kein Weg vorbei an eToro, der App mit dem stilisierten Stierschädel als Logo. Auch andere Vergleichstest, etwa finanzvergleich.com, kommen zu diesem Ergebnis. “Finanzvergleich.com” vergibt gar die Note 1+ für die eToro-App, die längst mehr als zehn Millionen Nutzer hat. Viel Lob, für das es in der Tat auch genügend handfeste Gründe gibt.

First of all, with eToro you don’t have to pay any commission or at most a low one – a clear plus point compared to many other ETF apps. Only the minimum deposit, as usual with any licensed broker – here 200 euros -, must be made.

Of course, seriousness is also an important criterion. Thus, the eToro app offers investment security and transparency. This means that the user has investment protection of up to one million euros. This is a significantly higher sum than with most competitors. Also in eToro’s favor is the ability to connect with others on an interactive platform. Users can view and share trades and/or ETF purchases from experts and other investors. Social trading, which conveys a sense of “we” and thus, as far as that is possible when trading ETFs, also a sense of security. The fact that eToro provides a huge range of ETFs, but also other assets, increases the possibilities even more: because the user can trade on up to 21 exchanges, he benefits from different opening hours and can trade for longer.

“flatex.” also does a good job

Capital.com, Avatrade and alvexo are also on a high level. At capital.com, the minimum deposit is even only 20 euros, while the simple structure of alvexo’s platform with corresponding user-friendliness makes it easier for beginners to get started. Also very good: the comdirect app, which, like the app from Trade Republic, relies on German deposit protection.

Good jobs are done by the apps of “flatex.” and “scalable.Capital”. “flatex.”, the shirt sponsor of Bundesliga soccer team Borussia Mönchengladbach, does not require a minimum deposit and offers deposit protection by BaFin, the German Federal Financial Supervisory Authority. At “scalable.Capital”, on the other hand, the flexible cost structure is appealing, offering a trading flat rate as well as individual billing. In addition, “scalable.Capital” is one of the cheapest German depots. However, not in terms of total fees. Here one beats – in the negative – with 35.88 euros all other good apps clearly. The total fees are only higher with Targo-Bank (44.50 euros) and with “sbroker.”, the offer of the Sparkasse (171.09 euros). The familiar name and the reputable image owed to this name speak for these two apps first and foremost.

Also interesting: 9 apps that help you keep your finances under control

Sources

  • ETF news
  • FAZ