Stock market investment can be conducted in different ways. You can choose to subscribe to one of the stock market placement products offered by online banks, or register with an online trading platform with one of the many financial market brokers on the internet. In both cases, it is judicious to carefully compare the different offers available in order to find the one that best corresponds to your requirements. To assist you in your choice we have prepared a detailed comparison of the best online banks and broker trading platforms with the specific aim of enabling you, in just a few clicks of your mouse, to access all the information you require
The online trading platforms enable you, as do the online banks, to speculate on stock market assets. However the operation of these platforms differs slightly from the banks in that with the former it is you who completes your investment transactions. For this you will use trading instruments such as CFDs that will enable you to speculate on the movement of an asset price without actually buying it. To learn more about the differences between the trading platforms and the online banks read our article.
Review of eToro
76% of retail investor accounts
|Approved by Cysec, small deposit
Review of XM
69.45% of retail investor accounts
|Fixed spreads, regulated by the MIFID
Review of AvaTrade
78% of retail investor accounts
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you can afford to take the high risk of losing your money
Trading on the stock market used to be reserved for finance professionals or those passionate about financial markets, and it often required calling upon the services of a bank or other physical broker.
However, it is nowadays possible to invest in shares, indices or other stock market assets, simply and easily via the internet using online brokers, the numbers of which increase rapidly as time goes by.
But it is highly important to know how to choose the broker offering the best advantages.
As with all products or services, the online stock market trading platform users logically search for the best quality/price ratio in order to maximise their profits against the costs engendered. As you no doubt already know, the online CFD brokers charge no indirect fees but rather charge direct costs according to the volume traded, these are called ‘spreads’.
We can then differentiate between fixed and variable spreads, the latter sometimes being more profitable but possibly fluctuating according to the attractiveness of an asset at any given time. In this matter, some great online trading names distinguish themselves from their competitors with truly attractive offers, such as the broker FXCM which offers a spread of 90 on the Dow Jones and 60 on the CAC40.
Another important point when analysing the quality of a stock market broker concerns the assets they offer for trading, and their variety. Certain brokers only offer a few CFDs on their stock market assets, particularly concentrating on currencies and commodities. Others offer their users a great variety of assets such as shares or stock market indices and certain brokers who boast a truly complete range of assets, such as FXCM, even offer bonds.
Finally, less experienced traders should also pay attention to the tools available on the platform of the broker they choose, but particularly its simplicity of use. You should therefore choose a reputable broker’s platform that offers a free demonstration account, such as that of the broker FXCM, that allows you to test all the functions and tools before investing your own money.
The various analyses and advice available from the broker concerned are also to be taken into account as it is these, and their pertinence, that your positions will depend on. You should know for example that the broker FXCM offers trading sessions in real time, commentated by finance professionals that will therefore assist beginner traders to learn to trade effectively and rapidly by giving them the keys to success.
Since the launch of the first online trading platforms the number of brokers hasn’t stopped rising and it is increasingly difficult for individual investors to make a wise choice. Faced with the growing success of this type of investment and the rising number of platforms we have witnessed the appearance of less scrupulous brokers who have encouraged, voluntarily or not, their users into transactions that created as many losses as gains thereby placing the financial and personal security of their users at risk.
Happily, over the last few years these platforms have become regulated by a few responsible organisations which verify their security measures and respect for standards in terms of financial transactions. Approvals are granted to platforms that respect all the fixed criteria relating to the security of financial and personal data as well as the quality of services provided.
On our website and in our comparison we only recommend platforms that are safe and benefit from one or more official approvals. These platforms can therefore be safely used without any litigation worries.
Among the major agreements we particularly note the CySEC, the AMF and the MiFid.
If you have the slightest qualm about the reliability of a trading platform don’t hesitate to check this information on its website where details of the regulations and obtained approval should be stated. You should also know that the authorities responsible for these regulatory organisations such as the AMF also have a ‘Black List’ of less reputable brokers that may present a risk regarding security and should therefore be absolutely avoided if you plan to start speculating online.
CySEC is a European financial services regulatory organisation. The name CySEC actually represents Cyprus Securities and Exchange Commission. As is the case with many online brokers, CySEC is based in Cyprus.
CySEC was created in 2001 with the aim of providing the professional brokers with a services authorisation they could offer their clients situated particularly in Europe. Of course, many French brokers have also obtained AMF approval (Autorité des Marchés Financiers) that is specific to brokers with French clients. However these brokers are often also approved by CySEC.
To summarise, the trading platforms regulated and approved by CySEC generally offer a larger choice and ensure you can trade in safety on the financial markets and stock markets.
Choosing a broker approved by CySEC for your online trading offers numerous advantages, particularly in terms of security. For one reason, this ensures you can avoid any scams that are becoming more numerous as the number of online brokers proliferates, also you have peace of mind in trusting your capital to an organisation that is approved, certified and strictly regulated by official authorities.
Apart from providing safety for your funds, a trading platform approved by CySEC also guarantees that the orders passed are completed in accordance with the market regulations and in real time. You will therefore avoid any unpleasant surprises due to a difference in rates.
Your withdrawals are also guaranteed and you will be able to access your capital at any time. The funds will of course be transferred in an encrypted secure format as will all your personal details.