Which ETF stock is good? A guide to choosing a broker that suits your style

Question

Investors nowadays rely on their eyes to invest but don’t know where to start? The popularity of ETF (Exchange Traded Fund) continues to grow because it is easy to understand, reduces risk, and offers appropriate returns. But the question is, which ETF stocks are good, and where should you buy them? This article will help you find the answers and recommend 8 trustworthy online brokers so you can choose according to your needs.

Key Points to Know Before Choosing an ETF

The right choice regarding your goals should come first. Ask yourself: Are you investing to generate short-term income or long-term growth? Do you want to hedge against inflation or seek maximum returns? What type of assets are you investing in?

Cost is a crucial factor because even a 0.1% difference in commission per year can impact long-term returns by up to 10% of your capital. You should compare trading fees, portfolio management costs, and other hidden expenses.

Past performance tells many stories. Study the track record of the ETF you’re interested in over the past 3-5 years. See how well it correlates with its benchmark index and how effectively it is managed.

Researching the manager is also important. Look into their background, experience, and risk history. Small details can have long-term impacts.

8 Leading Brokers to Consider

KGI Securities - Local Market Leader

KGI Securities is a good choice for those who prefer low commissions and a simple platform. The KGI Trade Online system is very user-friendly for beginners.

Trading ETFs through KGI can be done in two ways: trading on the main stock exchange like a single stock, or using Put-through for large quantities (starting from 1 Creation Unit), where you can negotiate prices directly with the liquidity provider.

BBL Securities - Focus on Convenience

The BBL Invest app from Bualuang Securities stands out for its ease of use. The product portfolio is comprehensive, and the available ETFs suit investors at all levels.

The advantage is that you can start investing with a small amount, yet diversify risk across many stocks, based on the understanding that one ETF in the BBL platform “contains many good stocks.”

Yuanta Securities - Suitable for Beginners

Yuanta Securities offers a simple platform, Yuanta Online, with low fees. The Yuanta ETF set is designed for:

New investors who are still unsure
Those who want easy diversification
Investors interested in specific themes

Examples include: SPY (SPDR® S&P 500® ETF Trust) for investing in 500 stocks in the S&P 500 index, or VEA (Vanguard FTSE Developed Europe ETF) for accessing the European market.

Interactive Brokers - Power on the Cloud

This global broker offers up to 13,000 ETFs, with trading fees as low as 1 USD and no minimum deposit.

IB provides powerful analytical tools to help investors make informed decisions, along with practical trading platforms. It seems suitable for those seeking access to global markets.

Saxo Bank - Plenty to Study

Danish financial giant Saxo Bank offers excellent research tools and recommends over 18,000 ETFs from worldwide stock exchanges.

Highlights include: low ETF trading fees, interest paid on uninvested cash, a powerful platform, and a variety of analytical tools.

Trading 212 - No Commission

This company offers 0% trading fees for ETFs on major European and US markets, allowing investors to save significantly.

Over 3,000 ETFs are available, and account opening is quick.

Firstrade - For US Markets

An online broker favored by American investors, Firstrade offers:

0% commission on US stocks and ETFs
Over 2,400 ETFs
Reliable research tools
Quality educational resources

Ideal for those wanting to enter the US market.

Mitrade - Start with Low Cost

Those with limited funds may be interested in Mitrade because the minimum deposit is only $50 . This platform may offer lower fees than competitors.

Mitrade offers a variety of ETFs along with analytical tools to help make effective investment decisions.

What Types of ETFs Are Available?

Stock index ETFs are the most popular, providing returns close to their benchmark indices, such as SET50, S&P 500, Nikkei225. Suitable for those wanting to invest in large-cap stocks with diversification. Examples: KETF-SET50, K-SET50, KIDX.

Commodity ETFs are for those seeking inflation hedges or speculating on gold, oil, natural gas prices. Examples: GOLD-ETF, GOXD.

Bond ETFs provide steady income, focusing on low risk, based on interest from bonds, corporate debt, etc. Examples: THFIXED, TFixed50.

Multi-asset ETFs include real estate, digital assets, for diversification or exploring new investment opportunities. Examples: K-REIT, BITCOIN-ETF.

Why Are ETFs Attractive?

Convenience: Trade via online platforms anytime, anywhere, without visiting stock exchanges.

Low Capital Requirement: Limited funds can start with margin, making expensive ETFs more accessible.

Speculation: Buy (BUY) when expecting prices to rise, sell (SELL) when expecting decline—suitable for short-term investors.

Diversification: Investing in a single ETF can spread risk across many stocks in an index.

Access to Global Markets: Invest in foreign ETFs easily.

Suitable for Everyone: Beginners can learn easily; professionals can use for speculation or hedging.

How to Start Investing in ETFs

First option: Online platforms. Reliable online investment platforms like Wealthfront, Betterment allow you to buy and sell ETFs freely.

Second option: Investment companies. Major firms often have their own ETFs; you can open an account and invest directly.

Third option: Financial brokers. Open accounts with trusted brokers like Fidelity, Charles Schwab, TD Ameritrade. Some have online platforms like Robinhood, eToro, Mitrade, offering CFD trading for over 35 new ETFs.

Choose an Investment Strategy That Fits You

Buy and Hold: Suitable for beginners who prefer convenience and long-term holding without frequent market monitoring.

Dollar Cost Averaging (DCA): Invest equal amounts regularly to reduce risk of buying at high prices, ideal for limited funds.

Rebalancing: Regularly adjust your portfolio by selling overvalued assets and buying undervalued ones. Suitable for experienced investors.

Sector Rotation: Invest in sectors expected to grow, based on market data.

Asset Allocation: Diversify across multiple asset classes to reduce overall risk.

Important Factors to Consider

Goals: Short-term or long-term investment?
Risk Tolerance: Accept high, medium, or low risk?
Time Horizon: How long do you plan to invest?
Capital: Do you have a large amount or limited funds?
Experience: Beginner or experienced investor?

Summary

Choosing the right broker and which ETF stocks suit you depends on your goals, needs, and personal experience. Consider fees, ease of use, and other features carefully.

Most importantly, have a good understanding of ETF investing. Study each fund’s details, the risks involved, and whether they align with your investment objectives. With thorough research, you will find the suitable ETF and a broker that provides excellent service.