You've decided to start investing in the stock market. Great! But as you begin researching brokers in Belgium, you're overwhelmed by the choices. Each claims to be the best, but which one is truly right for beginners?
While foreign brokers often boast the lowest fees, they leave you to navigate complex Belgian taxes on your own. And some Belgian brokers, though convenient, come with hefty price tags that eat into your returns.
In this article, we'll cut through the noise and reveal the top brokers for new investors in Belgium. We'll show you how to balance ease of use, tax simplification, and reasonable fees – so you can start your investment journey with confidence.
What the ideal broker for a beginner looks like
There are many criteria to compare brokers. But for beginners, we think the following are the most important:
- Handles taxes: Belgian taxes like the transaction tax (TOB), dividend tax and Reynders tax aren't straightforward to declare and pay. If you're just beginning to invest, it's safer to avoid any fiscal risk and leave it up to your broker to safely withhold the taxes for you.
- No foreign account: When you invest with a foreign broker, you will have a foreign investment account. And you need to declare all your foreign accounts to the Belgian authorities, which is an additional administrative step that you may not want to worry about when you're starting to invest.
- Low fees: A broker takes a commission every time you buy or sell a stock or ETF. We naturally prefer brokers that charge lower commissions.
- Ease of use: As a beginner, we want a broker whose app or platform is straightforward to use.
Let's find out which broker in Belgium is the best for beginners.
The best brokers for beginners: Bolero and Saxo Bank
Below is a comparison of the brokers available in Belgium. We highlighted the criteria that we think are important when you're just starting to invest.
The two brokers that stand out for beginners are Bolero and Saxo Bank:
- They're both Belgian or have a Belgian branch. This means they handle all taxes for you so you don't have to worry.
- You don't need to declare any foreign account.
- Their fees are among the lowest for Belgian brokers.
- Their apps have recently been modernised. Although they're not the best, they aren't the worst either.
Why no foreign broker?
Many investors prefer foreign brokers for their low fees. Unfortunately, foreign brokers do not help you with all taxes, leaving you to declare them yourself. You must also declare your foreign account to the Belgian authorities. That's why we don't think they are the most suited if you are a beginning investor.
Why no other Belgian broker?
Of the other Belgian brokers, we didn't select Keytrade and MeDirect because they are significantly more expensive than either Bolero or Saxo Bank. For instance, buying €1,000 of the IWDA ETF costs €5.00 on Bolero, but respectively €10.00 and €14.95 on MeDirect and Keytrade. Keytrade also has very poor customer service, which can be frustrating when you're first starting out and have questions related to your investments.
We also didn't select ING Self Invest or Re=Bel because they require you to open a bank account at ING and Belfius.
About Bolero
First up is Bolero which is among Belgium's oldest online brokers, starting in 1999. Its name, Belgian OnLine Exchange Realtime Operated, highlights its aim to serve Belgian investors. Owned by KBC Bank, Bolero is open to everyone in Belgium, not just KBC customers.
Bolero has cut its fees due to competition from low-cost foreign brokers. Yet, it remains one of Belgium's pricier options. To be more affordable, Bolero launched its ETF Playlist. This offers lower fees for selected ETFs. For example, buying €1,000 of the IWDA ETF costs just €5.00 in fees.
Bolero simplifies tax handling for investors. It automatically manages the transaction tax (TOB). It also withholds and declares a 30% dividend tax on shares and funds. Additionally, it handles the Reynders tax on ETF profits. This is a major benefit for beginners unfamiliar with Belgian tax rules.
Bolero has limitations. It lacks automated savings plans and fractional shares. This raises fees, making regular investing costly. So, beginners might prefer larger, occasional investments over small, regular ones.
Creating an account with Bolero is simple, especially with itsme, but you need a Belgian phone number. Bolero provides both individual and joint accounts. However, joint accounts must be set up on a computer. Approval might take a few days. Yet, KBC customers enjoy quicker setup and easier linking of their KBC accounts for transactions.
For a detailed look at Bolero's pros and cons, check out our extensive review.
About Saxo Bank
The second broker we highlight for beginners is Saxo Bank. Founded in Copenhagen in 1992, aimed to make global markets accessible. By 1998, it had launched an online trading platform. It combined professional tools with market access. Now, it serves over 1 million customers and manages more than €100 billion.
For Belgian investors, Saxo Bank is among the cheapest brokers. For instance, buying €1,000 of the IWDA ETF incurs just €2 in fees.
We recommend Saxo Bank for beginners because it simplifies the Belgian tax process. It automatically handles transaction, dividend, and Reynders taxes on ETF profits. Also, since Saxo is based in Belgium, customers do not need to declare their accounts to the National Bank. This is a major advantage for beginners.
Setting up an account is easy, especially with the "itsme" app for verification. Approval might take a few days. Saxo also caters to experienced traders with advanced order types. Yet, it lacks automated savings plans and fractional shares. This makes regular investing pricier.
For a detailed look at Saxo Bank's pros and cons, check our full review.
Curvo: easier than a broker
Using a broker makes sense if you have the motivation, interest and time to go through the learning curve of managing your own investments. When you manage your own investments through a broker, you have to work out what ETFs to buy. Building a portfolio of ETFs that will bring you success on the long term is not an easy task. You must know your goals, your risk appetite, and your ability to take risks in your current financial situation. Also, you need to know when to buy the ETFs. You must understand the tax implications of your decisions. You should rebalance your investments to align with your goals and risk tolerance.
We created Curvo to make investing easier. Instead of choosing from thousands of ETFs, you can invest in a portfolio tailored to your goals. These portfolios consist of diverse index funds. This way, you tap into global economic growth. They're designed for long-term savings. Plus, they are safe, monitored by the Dutch regulator (AFM).
We believe that investing is an important tool to improve our financial well-being and to prepare for our future. We started Curvo to fulfil that vision, by making good investing easy and accessible to all.
Invest in a diversified portfolio set up for you
Simply answer a short questionnaire and you can start investing in a portfolio that matches you and your goals.
Automated savings plans
You can set up a monthly contribution from €50. That means that money is automatically invested for you in your portfolio. Adopt the best saving habits, without effort! Neither Bolero or Saxo Bank offer this.
Fractional shares
Bolero and Saxo Bank force you to buy units of a stock or ETF. Suppose you want to invest €100 but the ETF trades at €55. This means you're left with €45 doing nothing after purchase.
Curvo supports fractional shares, meaning allthe money you send towards your portfolio is fully invested. No cash is left on the side.
No TOB 🇧🇪
The funds in the portfolios aren’t liable for the Belgian transaction tax (or "TOB"). This saves you between 0.12% and 1.32% compared to a broker like Bolero or Saxo Bank every time you invest or sell!
Invest sustainably
Your investments focus on one guiding principle: don’t invest in companies that are considered destructive to the planet. Companies from sectors like non-renewable energy, vice products, weapons and controversial companies are excluded from your portfolio.
Project yourself into the future
You can see how much your portfolio is expected to be worth in the future. You can answer questions like “how will increasing my monthly contribution by €50, €100 or €200 affect my long-term savings?” to give a concrete idea for the “future you”.
Conclusion
As we've seen, both Bolero and Saxo Bank offer valuable features for beginner investors in Belgium, particularly in terms of handling taxes. However, investing through a broker still requires a significant amount of knowledge and time.
If you're looking for a more straightforward path to investing, consider giving Curvo a try. With its personalised portfolios, automated investing, and focus on sustainability, Curvo simplifies the investment process while still giving you the benefits of a diversified, long-term investment strategy. Ready to take the next step in your financial journey?