I have said many times before that one of my near future goal is to balance out my portfolio by increasing stock investment volume. For a while I have been looking for a better suited broker company that I can use for buying and holding the instruments. Firstly, I was choosing from different possibilities that LHV is offering and I even opened a LHV Broker account, however, by now I have sold my assets at LHV and opened an account at Interactive Brokers. Why? Continue reading!
Comparison between IB and LHV
NB! I have made some USD to EUR conversions. I also only compare USD stock market related trading fees.
|Fee type||Interactive B||LHV Trader||LHV Broker||LHV Web|
|Trading||0.004€ (0.90€ min)||0.018€ (6.25€ min)||0.036€ (13.4€ min)||11€ fix + 0.3%|
|Monthly||0€ to 8.93€1,2||30€ + 0.025%||0€||0.05% (1€ min)|
- 1 If Average Equity Balance is less than USD 2,000 (~1786€) then the fee is USD 20 (~17.85€) – Monthly Commission
- 2 Accounts generating commissions less than the minimum as stated below in any given month will be assessed the difference as a monthly activity fee (Activity Fee = Minimum Required Monthly Commission – Actual Monthly Commission)
- 3 IB states that the minimum to open the account is USD 10,000 however I and some other from Estonia have been able to open account with less than that
My plan is to buy some index ETF’s (Exchange-Traded Fund) every month. Lets imagine that I will buy 200€ worth of SPY (today 1 share costs about 186€). Then we get following monthly and yearly total fees.
|Interactive B||LHV Trader||LHV Broker||LHV Web|
|Monthly holding Fee||7.93€||>30€||0€||1€|
|Yearly Holding Fee||96.16€||>360€||0€||12€|
As clearly seen from previous example the clear winner is IB. Therefore, I decided to open IB account. The process was very easy and quite fast. The only things I had to provide (besides filling different data forms) my ID card pictures (front and back side) and proof of address (sent my Starman PDF invoice).
I hope this comparison is useful to others also. If you have any questions or comments, please free to post them!