Comparing Scalable Capital, ING, and Trade RepublicWhich Online Brokerage is the Best for an Average Investor?
Investing in the stock market can be a daunting task, especially for first-time investors. With numerous online brokerages to choose from, it's essential to weigh the pros and cons of each platform before making a decision. In this article, we compare three popular online brokerages: Scalable Capital, ING, and Trade Republic. We'll provide you with a comprehensive overview of their features, founders, public opinion, and recent newsworthy events so that you can make an informed decision on which platform is best suited for your investment needs.
- Founders: Erik Podzuweit, Florian Prucker, Adam French, and Simon Miller
- Website: www.scalable.capital
- Regulator: Financial Conduct Authority (FCA)
- Fully managed portfolios based on individual risk tolerance.
- No trading fees or commission for investments.
- User-friendly interface and mobile app.
- Dedicated customer support team.
- A minimum deposit of €10,000 may not be suitable for all investors.
- Limited to ETFs and funds – no individual stocks available.
- Annual management fee of 0.75%.
- Founders: Founded as a part of ING Group, a Dutch multinational banking corporation
- Website: www.ing.com
- Regulator: De Nederlandsche Bank (DNB)
- Wide range of investment options, including stocks, bonds, ETFs, and mutual funds.
- Access to global markets.
- No account maintenance fees for their standard brokerage account.
- Strong online banking platform and mobile app.
- Trading fees can be high, especially for smaller investments.
- No dedicated customer support for the investment platform.
- Limited research tools compared to other platforms.
- Founders: Christian Hecker, Thomas Pischke, and Marco Cancellieri
- Website: www.traderepublic.com
- Regulator: Federal Financial Supervisory Authority (BaFin)
- Simple and user-friendly mobile app.
- Low trading fees: €1 flat fee per trade.
- No account management fees or inactivity fees.
- Access to a wide range of stocks, ETFs, and derivatives.
- No desktop platform – only available through the mobile app.
- Limited research tools and market data.
- Customer support can be slow to respond.
Each of these online brokerages has its strengths and weaknesses. Scalable Capital is praised for its user-friendly interface and fully managed portfolios, while ING offers a broader range of investment options and access to global markets. Trade Republic stands out for its low trading fees and simple mobile app. However, all three have faced some criticism in terms of customer support and research tools available to users.
- Scalable Capital: In June 2021, Scalable Capital raised €150 million in a funding round led by Tencent, bringing their total valuation to €1.4 billion. This positions the platform as one of Europe's largest digital wealth managers.
- ING: In recent years, ING has focused on digital transformation by investing in innovative fintech companies, enhancing their online banking services and expanding their product offerings in areas like sustainable finance.
- Trade Republic: Trade Republic announced a $900 million funding round in May 2021 led by Sequoia Capital. As a result, the company's valuation has reached $5 billion, making it one of the fastest-growing fintech companies in Europe.
Recommendation for an Average Investor with €2,000 to Invest
For an average investor looking to invest €2,000, we recommend Trade Republic as the best choice among these three online brokerages. With its low trading fees and user-friendly mobile app, investors can easily start building their portfolios without worrying about high costs eating into their potential returns. While the platform does have some limitations in terms of research tools and customer support, its overall ease of use and affordability make it a suitable option for those with a smaller initial investment.