Comparison of reputable stock portfolios and brokers 2023
There are also black sheep in the field of stock brokers. Macdougallecology.ca has set itself the task of finding them and pillorying them so that readers do not fall for the machinations of these companies. In our comparison, only reputable brokers are listed.
In our extensive test, we were able to CapTrader as a reputable and affordable provider.
The table below for the stock portfolio comparison shows the different providers with our rating and link to the respective experience report of each portfolio.
| CapTrader | Go to the test report | starting $ 5.00 / Order | Go to the page |
| LYNX Broker | Go to the test report | starting $ 5.00 / Order | Go to the page |
| comdirect | Go to the test report | starting $ 5.80 / Order | Go to the page |
| flatex | Go to the test report | starting CA$ 9.90 / Order | Go to the page |
| eToro | Go to the test report | starting 0 CA$ / Order | Go to the page |
Our background check for stock brokers
Table of contents
Selection of a stock portfolio
In the case of a stock portfolio, in addition to the selection of tradable securities, the costs for the portfolio and for the trade executions are at the top of the list. But the speed and reliability of the trading platform is also crucial.
Important criteria
- Selection - many tradable securities
- Order fees - or flat-fee for particularly favorable trading
- Deposit fees - no or only a few additional fees and additional costs
- Trading - powerful and reliable software
- Execution - fast transactions at the best price
Macdougallecology.ca has set itself the task of checking the seriousness of stock depot brokers and highlighting where customers are at the safe address. For this, however, it is necessary to critically examine the background of a provider. Thanks to many years of experience, we know where to look for information about the companies. Because a broker or a bank usually has its own name and is only part of the total offer that a company makes in the field of finance.
In our background check, we mainly check the company that is responsible for the daily business of the broker. We look at what other offers still emanate from the side of this provider and how these are to be assessed in principle in terms of seriousness. In addition, we examine the history of the company as well as its company relationships. Basically, we are very pleased when we see an owner-managed company. There we can be almost sure that customer friendliness and reliability are one of the first commandments. In addition, many companies have a charter that shows which principles employees would like to adhere to in their work. Transparency should be listed there as well as the customer satisfaction already mentioned.
The backgroundcheck also includes the license check. Not all providers of trading opportunities with shares may have a license valid for the EU. In general, it is a little more difficult with licenses in the European Union. Some states do not allow companies that do not have a license from this country. At the same time, the brokers rely on the fact that they have a license from another EU country and are therefore allowed to operate anywhere in the EU. There are still few decisions by European forces about this.
A license to regulate brokers is therefore important, since an official financial regulator should have control and insight into the transactions that a bank makes day after day. With an official regulation, certain programs and mechanisms are installed on the broker's side that determine whether the business conduct is going right. For example, stock prices are compared in real time with the original prices. This enables the regulatory authorities to determine whether the prices on the broker's side may have been manipulated in order to extract profits from customers' deposits.
Another important legal restriction is deposit insurance. For example, since the financial crisis of 2012, all business assets have to be kept separate from customer funds. In the event of insolvency, customers can be sure that they will receive their funds back at least up to a certain value.
8 Points to Recognize Professional Stock Portfolio Brokers
in our reviews and ratings on Macdougallecology.ca in addition to the concrete offers and the background check, it is always about whether a stock broker is interesting and attractive for an individual reader. But since all traders have different preferences, it is important to know what is actually expected from a provider. Therefore, when deciding for or against a particular broker, the following selection of 8 important points should be, which each trader should take into account individually when making his decision.
Transparency of deposit fees
A really first-class broker shows a high level of transparency. This also applies to the applicable deposit fees. On an extra page, interested customers can follow and read how much they have to pay for the management of a custody account with the broker and what they get for it. If there are no more than windy advertising promises and opaque or lowercase conditions to be found on the side of a stock portfolio broker, interested private investors should probably avoid the provider. Also mentioned are costs incurred for possible partial executions of orders.
Stock exchanges and over-the-counter trading
With one provider, customers should be able to trade on a variety of different stock exchanges. These should not only extend to the well-known German places such as Frankfurt and Berlin, but should be relocated worldwide. As a result, stock traders have the opportunity to get rid of their securities on national markets, possibly for higher prices. Over-the-counter trading should also be offered. Shares can also be traded there at non-trading hours of the usual stock exchanges. Often it is also possible to get slightly higher prices there.
Sample depot
If a broker also offers a sample account, this is the best way, especially for beginners and newcomers, to gain experience with the real market completely risk-free and without investing capital. Investors should by no means miss this opportunity. Free demo accounts and sample accounts are also available for professional traders who have been active on the market for several years. You can use it to practice new strategies and tactics completely without risk. If a stock broker offers the possibility of a sample deposit, we would strongly advise you to use them as well.
Investment recommendations from the broker
Professional and larger brokers usually offer their clients access to a larger area that can be used for further training. Interesting news and news are published there, which arise due to the market situation. Important key data such as a stock market calendar are usually also part of this area. The extent of the investment recommendations varies greatly from broker to broker. Some seminars and webinars are also offered. However, all investment recommendations should be carefully reviewed by traders. They do not represent tips that must always be correct. It also includes our own expertise in order to be able to actually generate profit from investment recommendations.
Website and language
If possible, a broker's website should be available on Canadian. On the one hand, this makes it easier for Canadian native speakers to find their way around and is also to be seen as a quality feature. This signals that a provider is actively striving for the German market and also provides its support services in German. This, in turn, can be very helpful precisely when problems arise or there are questions.
With regard to the website, it should also be mentioned that it should be clearly structured. Intuitive operation is just as important as finding the necessary information quickly. Transparency is also a keyword here.
Overnight deposit account as a settlement account
Most brokers not only offer trading in stocks and securities, but also provide a settlement account directly. If possible, this should not be a normal current account or bank account. Instead, the broker or bank should offer a overnight deposit account. Investors can benefit from higher interest rates and thus still make profits with the settlement account.
This settlement account must also be set up quickly and easily. In most cases, this happens with the depot opening. With some brokers it is possible (or partly necessary) to specify an external account as a settlement account. The connection to it should also be possible without any problems.
Funds with low mark-ups
Stocks and securities are not the optimal investment opportunity for everyone. Funds offer more security, but also sometimes smaller profit opportunities. If you want to specialize in funds when trading or at least want to have the chance to invest your money there, you should carefully question whether investing in funds is also possible when choosing a broker. The larger the selection, the better the broker is.
Usually, investing in funds involves additional expenses and costs. As a result, it plays a not insignificant role for traders how big the mark-ups are, which come to them through trading with funds. Interested parties can get an overview of the costs in the fee overview sheets directly from the broker.
Termination of custody account and transfer of custody account
If a broker and a new stock portfolio have been found, which offers significantly better conditions than the current provider, it may be worthwhile to transfer the portfolio. Usually this is not a problem at all with most brokers. With just a few clicks and steps, deposits can be transferred from one provider to another.
In principle, it is also possible to terminate a stock portfolio with little effort. Tips and hints can usually be found on the broker's websites.
Who should trade with a stock portfolio?
Investing in stocks and securities may not be the best alternative for all private investors. Securities are often accompanied by a certain risk. If you put all your eggs in one basket, i.e. all your capital in one or two companies in the same industry, you run the risk of losing large parts of your savings in the event of a negative market development. It is immensely important to have already built up a basic knowledge before the first investment in stocks and to know exactly what stock trading is actually about.
We recommend that you select at least ten different stocks in which you will end up investing. We would like to quote $ 5,000 as the minimum investment amount, so that at least $ 500 is invested per company. The stock portfolio should be designed in a very balanced way. Choosing only one or two related industries is a difficult and very risky investment strategy. Should a shock go through the industry, which leads to falling prices for each of the companies, it is possible to make significant losses in the double-digit percentage range within one day.
In our opinion, therefore, only people who are familiar with the basic economic situation and are willing to make long-term efforts to monitor market developments should invest in equities. Students in business areas, for example, often continue their education privately in addition to their studies and usually know exactly what the markets are about. You have a balanced overview that allows you to trade successfully with stocks.
As already mentioned, the perfect basis is provided by all those who regularly deal with the stock exchanges and markets, as well as industries. With the entry into professional activity, most are looking for investment opportunities. This would be the perfect place to start stock trading right away.
Tips for a successful start in stock trading
After selecting the right broker, it's all about trading successfully in the long term directly with the first purchase. There are some basic rules of conduct that should be taken into account by traders and private investors. This also includes the scattering of money already mentioned above. A sensible distribution of the companies in which investments are made is particularly important. In addition, the following rules should also be taken into account. This already applies from the first trade!
It should only act who understands
If an investor has no idea about the stocks in which he invests, he gives away money. Sufficient knowledge must be available for each company and all companies within a fund, which also includes the financial situation of the company. Without this basic requirement, trading should not be done.
Always act attentively
It can easily happen that a trade quickly turns out to be a failure. Within a short period of time, the share price decreases significantly in value. In the end, this leads to the fact that the generated loss should be recovered by the private investor. However, attention can easily be lost in the process. Blind trades in high-risk investments can be the result. In the end, however, they usually turn out to be an even bigger mistake. Keeping a cool head is therefore also very important.
Find investment strategies
There are many different investment strategies on the Internet and in the literature. Which individual is the best must of course be decided by yourself. However, if the private investor has agreed on a strategy and begins to actively pursue it, it may not be changed. Even with minor setbacks, it is important to continue to act in this way. This criterion is accompanied by the 2nd point.
Only use your own money
Depending on what the personal financial planning looks like, investors have to agree on whether they want to use stock trading more for fun or make their main investment with it. If, for example, the money is also intended as a retirement provision, it is unwise to speculate in high-risk investment assets. Then it is necessary to choose safe stocks, and maybe funds. Another important rule is that you should never invest with borrowed money. With the smallest losses, it may not be justifiable to repay this again. High debt can be the negative consequence.
Your own opinion
Blindly following advice and instructions regarding the system is also not a good idea. It is necessary to build up your own and not externally influenced opinion on the security, which will be the decisive factor in deciding whether an investment should be made.