February 28, 2022, 10:51 pm | Read time: 3 minutes
The topic of ETFs (Exchange Traded Funds) is booming, especially as small investors have discovered the benefits of ETFs while searching for alternative investment options during COVID and low-interest times. But which smartphone apps shine with low fees?
“German private investors are flocking to ETFs,” recently headlined the Frankfurter Allgemeine Zeitung after the direct bank ING Germany announced that assets invested in ETFs increased by 50 billion euros to 150 billion euros in 2021.
Instead of laboriously navigating through the offerings of stocks, bonds, or commodities and then having to decide, ETF apps, which function like a fund, offer the opportunity to choose from a wide range of different assets. And not just at the desk, but from anywhere with just a few clicks on a smartphone or tablet. And all this with fees that are significantly lower than those of actively managed funds.
There’s No Getting Around eToro
The number of ETF apps is enormous. But which one is the best and suitable for both beginners and experts? According to the online portal “ETF-Nachrichten,” there’s no getting around eToro, the app with the stylized bull’s skull as its logo. Other comparison tests, such as finanzvergleich.com, also reach this conclusion. “Finanzvergleich.com” even awards a grade of 1+ for the eToro app, which already has more than ten million users. Much praise, for which there are indeed plenty of solid reasons.
First of all, with eToro, you pay no or at most a low commission–a clear advantage over many other ETF apps. Only the usual minimum deposit required by any licensed broker–here 200 euros–needs to be made.
Read also: What are ETFs and who benefits from them?
Of course, reliability is also an important criterion. The eToro app offers investment security and transparency. This means the user has investment protection of up to one million euros. This is a significantly higher amount than most competitors offer. Another point in favor of eToro is the ability to interact with others on an interactive platform. Users can view and share trades and/or ETF purchases from experts and other investors. Social trading that conveys a sense of community and, as far as possible when trading ETFs, a sense of security. The fact that eToro offers a vast range of ETFs, as well as other assets, further expands the possibilities: Because the user can trade on up to 21 exchanges, they benefit from different opening hours and can trade longer.
“flatex.” Also Does a Good Job
Capital.com, Avatrade, and alvexo are also at a high level. At capital.com, the minimum deposit is 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 Trade Republic app, relies on German deposit insurance.
Also interesting: 9 Apps to Keep Your Finances in Check
The apps from “flatex.” and “scalable.Capital” also do a good job. “flatex.,” the jersey sponsor of the Bundesliga soccer club Borussia Mönchengladbach, requires no minimum deposit and offers deposit insurance through BaFin, the Federal Financial Supervisory Authority. At “scalable.Capital,” the flexible cost structure is appealing, offering both a trading flat rate and individual billing. Additionally, “scalable.Capital” is one of the cheapest German depots. However, not in terms of total fees. Here, it negatively stands out with 35.88 euros, clearly surpassing all other good apps. Only the Targo Bank (44.50 euros) and “sbroker.,” the Sparkasse’s offering (171.09 euros), have higher total fees. For these two apps, the main selling point is the familiar name and the reputable image associated with it.