Best Online Broker In Italy

You’ve made up your mind to invest your hard-earned cash. Which brokers are the greatest when it comes to costs that won’t reduce my profits? This is the current query.

It might be challenging for Italians to find the finest online stock trading platforms. Getting the ones that enable you to invest in different equities and accept Italian stock market traders is extremely important. We’ve got you covered, so don’t worry!

The top online brokers that would allow you to trade stocks as an Italian stock trader are mentioned below.

eToro: An online broker that provides commission-free trading of stocks and ETFs. You may also emulate other investors and traders. Sleek, contemporary, and simple to use for everyone. More than 20 million customers worldwide rely on it. 

Nextmarkets: A cutting-edge neobroker with a significant presence in Europe that provides commission-free trading across all asset classes and doesn’t charge currency conversion fees. 

XTB: Since its inception in 2004, XTB has provided a wide range of investment products, a risky investment platform, and commission-free stock trading up to €100,000 in monthly volume. 

DEGIRO: a discount broker with nearly 2 million clients in Europe. It uses a straightforward fee structure consisting of a flat handling fee per transaction (which varies by country) and FX fees of 0.25%.

	eToro	Nextmarkets	XTB	DEGIRO
English Website	Yes	Yes	Yes	Yes
Commissions	No	No	No	No
Mobile App	Yes	Yes	Yes	Yes
Minimum Deposit	€48	€1	€1	€1
Product	CFDs, ETFs, Stocks, Commodities, Forex, and Cryptocurrencies	Shares, ETFs and CFDs on shares, ETFs, indices, forex, bonds, cryptocurrencies, and commodities	CFDs, Stocks, Commodities, Forex, and Cryptocurrencies	Stocks, Funds, ETFs, Futures, Leveraged Products, Bonds, and Warrants

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What Are The Possible Fees Of An Online Broker In Italy?

Investing typically results in costly. When it comes to internet brokers, the following fees are the most typical:

Securities Account Fees

To invest in or trade stocks in Italy, you must have a specific type of securities account. There are free and premium versions, much like a traditional bank account. This is often a monthly or annual fee.

Order Placement Costs

The majority of the stock, ETF, and other investment orders are subject to order costs; hence, the more active you are, the greater the fees you will incur. ETF savings plans are typically less expensive (if not free!) than one-time purchases unless you pick a broker that provides flat trading fees, like Scalable Capital.

Which Is The Best Online Broker In Italy?

eToro

The goal of eToro, a fintech firm and social trading broker established in Israel in 2006, is to make trading available and enjoyable to anyone, anywhere, and to lessen reliance on conventional financial institutions. Users may trade a wide range of financial assets on its trading platform, including conventional stocks, ETFs, and dozens of CFD products on stocks, indices, currencies, and commodities. You may buy and sell cryptocurrencies on eToro as well.

CopyPortfoliosTM, a brand-new long-term thematic investment product, is designed to manage portfolios of various asset classes or groups of traders under a predetermined market strategy and is constantly monitored by machine-learning algorithms. eToro is known for its product innovations, introducing a number of features over the years, such as CopyTraderTM, which allows any user to follow and automatically replicate other investors’ trades. To put it another way, while the CopyTrader lets you replicate specific transactions, the CopyPortfoliosTM lets you invest in a single portfolio that combines a variety of assets.

In addition, you can purchase cryptocurrencies on eToro for a fraction of the price of other, more well-known platforms like Coinbase, which charges a hefty 3.99% fee for debit/credit card deposits and a further 1.5% fee for both buying and selling. However, eToro charges you a 1% spread regardless of the cryptocurrency you are trading. Using the eToro platform is beneficial if you trade in Bitcoin and Ethereum.

Meet all three of the following criteria when investing in cryptocurrencies through eToro. You will become the owner of the asset (much like an actual stock): you are not using leverage (i.e., CFDs) on your trade, you are not selling it short, and you are not a client of the Australian Securities and Investments Commission (ASIC).

Overall, eToro provides the following:

• The ideal platform for investors who desire commission-free stock and ETF trading (not all ETFs are commission-free).
• Exposure to cryptocurrencies.
• An account with a brokerage that provides social trading services.

Additionally, if you own a business, you may invest through an eToro business account!

Pros

• Trading stocks and ETFs without commission (not all ETFs are commission-free)
• Social Trading and other cutting-edge goods
• Various financial products are available.
• sleek, contemporary, and simple to use for everyone
• high-level regulators

Cons

• Discretionary financial information
• fees for withdrawal and inactivity
• Spread, overnight, inactivity, and higher-than-average currency conversion fees
• principally provides CFDs, which are high-risk securities without asset ownership.
• Only one base currency account (USD)

Nextmarkets

Nextmarkets, an online broker established in 2014, is best suited for anyone with a fundamental grasp of the financial markets. It includes a mobile app that is incredibly user-friendly and intuitive. You may invest in financial items, including commodities, FX, bonds, indices, shares, ETFs, and CFDs on shares, indices, and ETFs.

In addition to the “Do-it-yourself” market, Nextmarkets distinguishes itself from its rivals by providing “selected investment.” Most likely, you’ve heard of social trading, in which you monitor other people’s trades. Nextmarkets aims to advance the concept of social trading by enabling you to gain from the expertise of recognized authorities (referred to as “coaches”) and stock market professionals.

Additionally distinctive is the charge structure: you pay spreads. Consequently, CFDs have no costs for deposits, withdrawals, inactivity, currency conversion fees, or even overnight fees (something not usual in most brokers). The web platform is somewhat “buggy,” there are no instructional resources available, and orders under €250 are subject to a €1 fee.

The official name of Nextmarkets is Nextmarkets Trading Ltd, registered in Malta and, as a result, is authorized and governed by the Malta Financial Services Authority (MFSA). Your money and possessions are insured up to a total of €20,000.

Pros

• Free stocks trading
• Trading without a fee for all asset classes (orders over €250)
• No custody, inactivity, and withdrawal/deposit fees
• swift creation of accounts (less than 5 min)
• There is no required down payment
• no fee for currency conversion
• excellent client service
• Demo Account

Cons

• Orders under €250 will incur a €1 commission.
• The web interface might be improved.
• There is no apparent difference between genuine shares and CFDs.
• Spreads are higher than usual.
• No essential information
• No learning resources
• There is a €150 minimum withdrawal.

CFDs are complicated financial products that carry a significant risk of losing money quickly because of leverage. 56.65% of retail investor accounts that trade CFDs with this service experience losses. It would be best if you considered your understanding of CFDs’ operation and ability to bear the substantial risk of financial loss.

XTB

XTB, established in 2002, touts itself as a market participant with substantial international expertise. It is listed on the Warsaw Stock Exchange and is governed by the Financial Conduct Authority (FCA) as well as other local regulators like CONSOB. On stocks, the site charges no commissions. However, with affordable charges, its software is mainly focused on CFDs and FX trading.

Additionally, XTB provides commodities and cryptocurrencies as well as other financial instruments. In contrast to its modest fees for forex, XTB levies large commissions on CFDs of cryptocurrencies. A €10/month inactivity fee will also apply if you haven’t traded for a year and haven’t deposited in the previous 90 days. It is simple and quick to open an account and transfer money (demo account available).

Pros

• Trade free stocks
• Reduced Forex Spreads
• a programmable trading environment (charts and workspace)
• Demo account
• zero required account deposits
• useful educational resources
• high-level regulators

Cons

• a challenging trading platform for a novice
• High CFD stock fees
• Fees for withdrawals for transfers of under $100
• Fee for inactivity (€10 per month after more than a year with no activity and no deposits in the previous 90 days)

DEGIRO

DEGIRO, a low-cost brokerage company, was established in 2013 and has been incredibly popular as a result of its low prices! The cutting-edge platform, which has approximately 2 million members, is well recognized for its “do-it-yourself” approach, which places everything you need at your fingertips to begin investing. Stocks, ETFs, bonds, options, futures contracts, warrants, investment funds, and some leveraged products are just a few of the many financial assets that may be traded on it.

For instance, you may trade select stocks and ETFs for nothing (albeit there is still a €1 flat handling charge associated with external costs). Although the web trading platform is necessary, it is also practical and straightforward. It doesn’t take you long to get used to it. Its mobile app follows the same rules. The drawbacks include lacking substantial basic research, the €2.50 connectivity cost, and the absence of pricing notifications.

DEGIRO is the Dutch division of flatexDEGIRO Bank AG, specialising in security. Keep in mind that DEGIRO is covered by the German Investor Compensation Scheme, which covers any losses from non-returned assets up to 90% (with a maximum of €20,000) in the unlikely event that they cannot be returned to clients. Also Keep this in mind if you plan to invest in much larger volumes.

Pros

• A list of commission-free ETFs is available (one free transaction per month; for more information and the terms that apply in your country, visit the DEGIRO official website).
• In US stocks and ETFs, there is no commission.
• a user-friendly mobile app and website
• Various investment possibilities
• Investing with DEGIRO’s super-low commission structure and the Investor’s Academy are both educational resources.
• Option for manual FX conversion
• No withdrawal, inactivity, or account opening fees

Cons

• €2.50 in connection fees and a fixed handling fee of €1 (paid annually)
• doesn’t provide cryptocurrency, CFDs, or forex
• Having little research and no demo

How Do You Start Online Trading In Italy?

Compare Online Brokers And Choose One

We have previously compared the top four online brokers in Italy for you in this guide, which should aid your decision-making.

Open A Securities Account 

Open a securities account once you’ve chosen the online broker you wish to work with. You also need a SEPA bank account and a mobile phone with a European area code.

When creating an account, you must supply a reference account, often known as a cash or clearing account. You may use your standard checking account for this. You should transfer funds to the securities account using this account, and any capital gains from selling securities will also be remitted here.

As part of a self-assessment, you can also be asked to answer questions about your knowledge and expertise with the stock market. The online broker may bar you from using riskier trading items if you lack expertise or refuse to complete the questionnaire.

Get Legitimized 

You must verify your identification after submitting the application for a securities account. This often occurs digitally via Video-Ident on your PC or smartphone. A list of all IDs that Video-Ident supports is provided by Scalable Capital. In the event that your passport is not accepted, you can verify your identity at the nearby post office.

Transfer Money Into Your Securities Account

To start trading online, you can use a little cash. The minimum transaction amount with the Trade Republic is 10 euros. Compound interest can be advantageous if you’re looking to invest in an ETF savings plan for the long term. Over 20 to 30 years, even 25 euros per month can produce a comfortable sum of money.

Set Up Order Or Savings Plan

This is the last step before you can begin making online investments. Set up the order via your online broker’s interface after selecting the ETF savings plan, stock, or fund you want to invest in.

Conclusion

Italy boasts one of the cheapest and easiest stock markets in the world. You may choose the best online broker in Italy for your needs, whether you want to actively day trade for short-term gains (or losses) or invest long-term in supplementing your retirement. If you are starting, we advise starting small and expanding your financial literacy.