Choosing a broker is an important step when investing. There are many different options available, so picking the right one for you is challenging. We compare investing in ETFs through Bolero (run by KBC) and Saxo, two brokers available to European investors. The goal of this article is to help you find out which broker is best for you for investing in ETFs. We’ll compare the brokers based on their fees, convenience, the ease of setting up an account and importantly the safety of your assets.
The overview
The table shows an overview of how Bolero compares to Saxo for different criteria. Read on to get the full details!
Bolero
Story of Bolero 🇧🇪
Bolero is one of the first online brokers in Belgium and launched in 1999. The name Bolero stands for Belgian OnLine Exchange Realtime Operated. It's owned and run by KBC Bank and allows Belgians to invest in many different types of assets. Note that you don't have to be a KBC customer to use Bolero. Bolero has a wide range of ETFs to choose from and continues to be one of the most popular brokers in Belgium although it also charges some of the highest fees.
Fees for ETFs
Although Bolero recently reduced their pricing, unfortunately it's still one of the most expensive brokers in Belgium. As part of their new pricing, they launched the Bolero ETF playlist. Essentially, it reduces the price for a specific list of ETFs. They inspired themselves from DEGIRO's core selection in order to be competitive for more Belgians. For example, buying €1,000 of the IWDA ETF will cost you €5.00 in transaction fees.
Convenience
Bolero handles the transaction tax (TOB). They also automatically withhold and declare the 30% dividend tax on shares and distributing funds, as well as the Reynders tax on ETF profits. However, Bolero does not offer automated savings plans or fractional shares, which, combined with high fees, makes regular investing less practical, potentially necessitating larger, less frequent investments.
Setting up an account
Creating a new account with Bolero is easy with itsme, but requires a Belgian phone number, and offers both individual and joint account options, with joint accounts only creatable via computer. Account approval can take a few days, but for KBC customers, this process is faster and allows easy linking of KBC current accounts for transactions. Bolero does not provide accounts for children but you can set up an account for your business.
Safety
Bolero, owned by Belgium's largest bank KBC, is regulated by the FSMA and has not had any known regulatory issues, providing a sense of safety for investors' assets. Bolero does not engage in securities lending or payment for order flow (PFOF).
The full review
Learn more about the pros and cons of Bolero in our review.
Saxo Bank
Story of Saxo 🇩🇰
The story of Saxo begins with its founding in Copenhagen in 1992. The company was established with a vision to make global financial markets more accessible to a wide audience. By 1998, Saxo Group had launched one of the first online trading platforms in Europe, offering professional-grade tools and easy access to global financial markets for anyone interested in investing. They serve over 1m customers and have over €100bn under management. In 2018, they purchased the popular online broker BinckBank for €428m. All BinckBank customers were automatically switched over to the Saxo platform for trading.
Fees for ETFs
Saxo is one of the cheapest brokers in Europe. To buy €1,000 worth of IWDA, the cost is €2 for the transaction fee.
Convenience
Saxo, catering to experienced traders, supports a wide array of complex order types but does not offer automated savings plans or fractional shares making regular investing less practical due to high fees. Depending on where you're registered in Europe, Saxo assists investors. For example, in Belgium (🇧🇪), it helps with transaction taxes, dividend taxes, and the Reynders tax on ETF profits, and due to its direct presence in Belgium, customers don't need to declare their accounts to the Belgian National Bank.
Setting up an account
Setting up an account with Saxo is streamlined though approval may take a few days. While Saxo does not provide children accounts, it does offer the option to set up joint and business accounts.
Safety
Saxo, with its primary regulator being the Danish Financial Supervisory Authority (DFSA), continues to operate under a Dutch banking license after acquiring BinckBank. Saxo participates in securities lending with an opt-in policy for transparency, and does not engage in payment for order flow (PFOF).
The full review
Learn more about the pros and cons of investing through Saxo in our review.
Curvo: easier than a broker
Brokers push you to trade and to pick individual companies to invest in. Rather than picking individual stocks such as Amazon or Tesla, index funds are a way to buy the whole market, across all sectors and regions of the world. Essentially, you own a small portion of thousands of companies throughout the world. Instead of betting on a particular company, you are placing a bet on the global economy.
Rather than having to pick the right stocks or ETFs among the thousands available through Bolero or Saxo, you invest in a portfolio that is tailored to you and your goals. These portfolios are composed of globally diversified index funds, meaning you earn a piece of the growth of the global economy, and they're best suited to make the most of your savings long term. And they're secure, as they're managed by NNEK, a Dutch investment firm under supervision of the regulator in the Netherlands (AFM).
We believe that investing is an important tool for our generation to improve our financial well-being and to prepare for our future. We are building Curvo to fulfil that vision, by making good investing easy and accessible to all:
- Diversified portfolio set up for you: The best portfolio for you is built by NNEK based on your time horizon and financial goals. Simply answer a short questionnaire and you’ll get everything set up for you.
- Automated savings plans: Through Curvo’s app you can set up a monthly contribution from €50. That means that money is automatically invested for you in your portfolio. Put your savings on autopilot!
- Fractional shares: All the money you send towards your portfolio is fully invested by NNEK. No cash is left on the side.
- No TOB 🇧🇪 : Significant savings as the portfolios aren’t liable for the Belgian transaction tax (or "TOB"). This saves you between 0.12% and 1.32% for every time you buy or sell!
- Sustainable investments: Your investments focus on one guiding principle: don’t invest in companies that are considered destructive to the planet. This means that sectors like non-renewable energy, vice products, weapons and controversial companies are all excluded.
- Project yourself into the future: Through Curvo 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”.
Summary
In this article we highlighted the key differences between Bolero and Saxo, two brokers accessible to Belgians. Saxo is clearly the most cost-effective way of investing your savings. But cost is not the only factor to take in consideration when you’re putting your savings to work. Although more expensive, Bolero can provide a greater sense of trust and safety for us Belgians. We built Curvo to make good investing easy and accessible to all Belgians, and we explained its benefits. Feel free to explore Curvo's app if you wish to learn more.