The stockbroker (also called a “broker”) is responsible for receiving your buy/sell orders and executing them for you in the financial markets. At that time, clients sent their orders to their brokers by fax, phone or email, which was far from optimal (risk of error, execution time, etc.).
Until the day when, fueled by the digital revolution, 100% online brokers have appeared in the early 2000s. The latter have an online interface accessible 24 hours a day where savers can place their orders instantly, follow the evolution of their portfolio, activate alerts and program automatic order steps, etc. And the icing on the cake, the savings gained through digitization allow these digital brokers to charge much lower fees than traditional brokers. The best trading platforms are even free!
in two decades Online brokers have become essential for buy and sell shares, forcing many traditional brokers and network banks to digitize their brokerage services. There are still some traditional brokers that can be found mainly in the services of family-owned private banks and small local banks… But they are becoming the exception: today they are the brokers that offer the best value in terms of the quality of the offer . , service and rates, are exclusively online brokers.
Methodology of our comparative online brokers to invest in the stock market
How do we select the best brokers? We assume that a saver who wants to place orders on a regular basis will first and foremost look for a broker that is cheap, responsive and offers the products they are likely to trade in, be it a generalist, a bank or a CFD broker. Thus, in our opinion, the online broker should:
- Offer competitive, clear and transparent rates
- Offer a sufficiently wide variety of financial products and good access to stock markets.
- Provide good management tools for your operations, as well as quality customer service.
- Be regulated by the control authorities
Finally, as we specified above, brokers do not meet the same expectations depending on whether they are independent or not. In order not to mix cabbage and carrots, we have chosen to divide the comparison into 4 categories: general brokers, online banks, specialized CFD players and those that give access to a PEA.
How much are new mobile brokers worth?
In recent years, new mobile runners appeared on the broker market. we call them corridors “mobile” because they are completely digitized : the subscription is done from the mobile application, in 8 minutes, no more! A promise: ease. Stock selection and purchase, portfolio management, selling, fund recovery… Everything is designed to be ergonomic and easy. It is a small revolution that sounds like the appearance of the neobanks in the years 2014, 2015. At the time, the neobanks revolutionized the market with the possibility of managing your account and your bank card from anywhere thanks to its reason, follow expenses and make transfers in real time.
We have identified the two mobile brokers currently available in France: Trade Republic and BUX.
Thus, neobrokers target a young market, which is discovering the world of equities. Some offer explanatory sheets on financial products, the new BUX broker in particular offers on its application Simple and easily understandable explanations for all to discover the world of the stock market, with the added benefit of humorous stock descriptions. Your biggest sales force: Trading orders to a maximum of €1, or even €0 in some cases, for all markets in the world. This seems very advantageous when it is known that placing an order on the American or Asian market can easily amount to several tens of euros.
However, in our opinion, mobile brokers are still not advantageous enough compared to the best traditional brokers:
- They are not as cheap as you might think: of course, the order fees are €0 or €1, but you have to take into account the dollar/euro exchange fees, and they add up! Are kind of hidden fees… They are 0.25% on BUX, but mined out on Trade Republic.
- After the arrival of the neobanks, the online banks themselves have created their own applications with similar functionality. In our opinion, buoyed by the success of the neobanks, online brokers should soon do the same (the first is DEGIRO, which has already significantly improved its application)
- the the number of shares available is limitedBut mobile brokers continue to improve and offer new shares regularly, based on customer demand.
Mobile brokers are therefore a novelty aimed at a niche market, but in our opinion, keep an eye out for them! You can discover below the links to our articles on the two best mobile brokers available in France: