Best Online Brokers 2021
Are you looking for a broker to invest or trade and want to make sure it’s a good one? Congratulations! You have come to the right place. In this website we will analyse the best online brokers of 2021. If you are in a hurry, below you can see a table with our comparison in which we selected some of the main ones. How did we choose the best ones in the ranking? Based on security, rates, platforms, trading conditions and demo account (CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76.4% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money).
|Ranking||Regulation||Minimum Deposit||Learn More|
|1º||FCA, CySEC||100€/$/£||More info|
|2º||FCA, CySEC||200€/$/£||More info|
|3º||FCA, CySEC, BANIF||0€/$/£||More info|
Why do we think Plus500 is one of the best brokers today? For several reasons. On the one hand it is regulated according to our requirements. Otherwise, we would have ruled it out directly. Besides this, its rates and spreads are quite attractive and interesting for a trader who wants to save on commissions. Finally, the platform developed by them is very useful and intuitive. But this small paragraph cannot summarise the reasons why it is at the top of the ranking. Therefore, we are going to lengthen it a bit more by analysing all the factors we have taken into account, and we will compare it with its competitors. In any case, if you want to take the fast track, click here for more information and open a real account with Plus500 (76.4% of retail investor accounts lose money when trading CFDs with this provider).
Tabla de contenidos
Are you worried about the broker’s safety? Are you afraid it’s a scam? To avoid problems with scams, investors have a tool to defend themselves; regulation. Regulation is always an aspect worth studying, as it is the question that can best indicate the seriousness of a broker. That is why we can never ignore its analysis. The most direct and effective way of differentiating a scam from a serious company is regulation. An unregulated broker is likely to try to defraud us, a regulated broker is under the control of supervisors who monitor compliance.
Plus500 CY LTD is authorised and regulated by the CySec, licence number 250/14. In addition to this, it is also regulated in the UK under the name Plus500UK LTD at the Financial Conduct Authority (FCA) under number FRN 509909. To extend security, it is also registered with many other European Union bodies.
Another very important factor in terms of security is that they are a listed company. Plus500 shares are currently listed on the main market of the London Stock Exchange. Why do we value this positively? The simple fact of being listed on the stock exchange means that the company has to present its accounts to the public on a regular basis. In addition to this, it is under the surveillance of auditors who must attest that the accounts and results for the company are true.
Finally, there is something that to us does not seem relevant in terms of reliability, but which for some reason gives many investors peace of mind, and that is sponsorship. In the UK Plus500 is very famous. There is no doubt that its advantageous conditions are the main reason, but it is not the only one. If it has gained a lot of popularity in the UK and in the rest of the world it is because it is the sponsor of Atletico Madrid, and its brand can be seen on the front of the shirts in all the matches of the year 2020/2021 and earlier.
To sum up everything related to security, we have to say that the regulation under which Plus500 operates gives us enough confidence to think that it is a reliable broker.
We already know that we are dealing with a serious company, so the next step in the analysis is to study the rates. To do this, we have only used the most economical brokers in the market. For this reason, we have directly eliminated brokers who charge any kind of commission for trading CFDs. For example, we have left out high quality, reputable brokers such as Interactive Brokers and Hanseatic Broker-house, only for charging for trading CFDs on stocks. Our view is that in 2021 there is no point in charging us commissions for buying or selling CFDs, so we have been very strict.
By leaving out all the brokers who charge only for trading, we are left with only those whose only cost to clients is the spreads, and that’s what we’re going to look at next.
As brokers offer CFDs on different products and underlying assets, we will classify the rates according to the different options, starting with what is considered the most liquid market in the world, Forex. In the image below you can see the cost of trading the Euro/Dollar currency pair.
Investing in Forex is very popular, so it is imperative that a good broker has attractive rates. In the case of Plus500 we find that trading has no cost, which is already a positive point for us. Therefore, the only cost for investing is the spreads. Spreads are not the same for all currency pairs, and not only that, but the spreads also change over time. In any case, it is possible to calculate an average spread. For example, in the case of the Euro/Dollar currency pair it is variable but tight, which in our opinion is very cheap for this service
It is also possible to trade CFDs on shares. Listed companies you can trade with are from all over the world, from large British companies to European and American multinationals (Amazon, Google, Tesla Motors, Facebook…) to smaller companies. Therefore, the breadth of the market is enormous.
The spread in the case of shares depends on the shares, as it changes depending on the company. In any case, the truth is that they are quite small in our opinion. Another clear advantage of trading CFDs on shares with Plus500 is that if you go long (which doesn’t mean that you are investing for the long term, but that you think the shares will go up, i.e. if you have bought), you don’t have to pay commissions for collecting dividends or custody fees.
On the stock exchange, you can not only trade company shares, but you can also trade stock market indices. In the case of CFDs, you do not invest directly in the index of each stock exchange, but in a product that replicates it.
The amount of commodities that can be traded is very large, and ranges from energy commodities such as oil, foods such as soy or wheat, coffee or sugar, to metals such as silver or gold as you can see in the image below.
We have already seen the spreads of the main financial assets. Apart from this, it is also possible to trade in crypto-currencies and buy Ethereum, IOTA, Bitcoin Cash, Ripple or Monero. In the image below you can see the conditions for trading with a crypto-currency such as Ripple. If you want to trade XRP through CFDs, spreads are applied as you can see in the image below.
Even so, the truth is that the rates depend on the markets and each specific asset. In general, for the assets we are most interested in Plus500 is quite cheap. However, we have also analysed Markets.com, Vestle, Trading 212, Clicktrade, Hanseatic Brokerhouse, ING Direct’s Orange Broker, 24Option, Interactive Brokers, ActivoTrade, ActivTrades, CMC Markets, easyMarkets, Plus500, Admiral Markets, Bankinter Broker, eToro, DeGiro, XTB, XTrade, IG Markets, IronFX, Renta 4 or AvaTrade and that the brokers of banks such as BBVA, Santander,,. So if you want to know more about Plus500 commissions and spreads click here (76.4% of retail investor accounts lose money when trading CFDs with this provider).
Types of accounts
According to your needs you have two types of account. On the one hand the real one, for those investors who want to start investing for real. On the other hand we have the demo, which is usually designed for people who want to see how it works with a simulator before starting with real trading with the broker.
Plus500 has only one type of live account for its clients. Although many brokers offer numerous accounts with different conditions, there is a common pattern in all of them, the basic accounts (the ones used by the vast majority of traders) have worse conditions than the premium or VIP accounts (which usually require a lot of money). Therefore, in the end what happens is that a few clients with a lot of money have privileges to invest. Therefore, we value very positively that there is only one real account in which the best possible conditions are offered to all clients.
Opening a live account is easy and you can do it from here. The main requirement is that you make a minimum initial deposit 100 pound sterling if you are in the UK or at least 100 dollars or Euros if you live abroad. Let’s see the requirements in a more visual way:
Requirements and characteristics
- Minimum deposit: 100 pound sterling/euro/dollars
- Maximum leverage: 1:30
- Web trading with Webtrader for computers, tablets and mobiles
- Applications for android, iOS and Windows Phone
- Thousands of instruments available for trading
To open a real trading account click here (76.4% of retail investor accounts lose money when trading CFDs with this provider).
If you want to try a demo before launching into real trading, Plus500 gives you that option. If we have chosen this broker as the number 1, in addition to the other factors we have been analysing, it is because their demo has no time limit for use. For example, Renta4 allows you to use the demo only for 20 days, so you may feel obliged to start trading when you are still not ready. And the same happens with many other competitors who limit the period for which you can use their simulators.
The demos are very useful for two things:
- Improving investment and market knowledge
- To understand how the platform works as well as the tools and signals offered.
An example that serves both cases is that of traders who test their strategy with the demo. With it you can investigate how the analysis tools work, and create your own signals based on technical analysis. With the demo you will see how the news affects the markets and how the prices go up and down in a matter of hours, minutes, and even seconds. There are also many people who use the simulator to see how trading CFDs on cryptoforex works. As crypto-currencies are a very new and high risk product, it may be a good idea to practice with Bitcoin and other crypto-currencies before you start trading with real money. If you want to get a demo account, click on the button below, click where it says «start now», and then choose the button where it says «test mode» (76.4% of retail investor accounts lose money when trading CFDs with this provider).
Forums, blogs, comparisons and reviews
Having a general idea of what other investors think about a broker is very useful, to know whether most clients are happy or dissatisfied. Therefore, reputation is something that we value very much in order to choose the best broker. How do you know the reputation of a brokerage? By reading user comments in investment forums and blogs, making comparisons between brokers’ characteristics and through reviews, we can try to discern which ones receive better opinions and which receive bad ones. A comment that an investor who has only completed one transaction makes is taken with a pinch of salt compared with that of group of experienced clients, although we also value it.
As we have directly discarded the worst brokers in our opinion and in the table above in this article we have published a ranking of Plus500, we will analyse the opinions on this broker to see if it is one of the best.
We will start with the favourable opinions: we have seen many comments in more than one forum discussing the demo account, where many users talk about how to invest with it. The platform also receives good feedback thanks to its ease of use for investors with little trading experience. Security also seems to be highly valued. Finally, we have seen good feedback on the spreads.
Logically there are also comments from clients who are not so happy. There are some negative comments on the bonds which, as far as we can see, are from people who have not seen that the regulator has banned them and can no longer be offered. There are also comments from traders with many years experience who say that some tools are missing from the trading platform.
How to sign up
We think Plus500 is a good broker, but it may not suit your needs or you may not be ready to invest yet, so hiring a broker should be a decision made by you alone
In our opinion, Plus500’s services are of high quality, and we think their platform is really useful. The spreads are really low and the amount of assets you can trade is huge. The broker is properly regulated and its online presence is very strong.
If you want to get more information about or if you want to open a real account you can click on the button below (CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76.4% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money).