This category is a bit mixed because it covers the rest of the world and there are many different platforms, good and bad. There are the professional trading platforms like Interactive Brokers, which are mainly used professional traders. It is cheap but very advanced.
There are the foreign platforms that go after the small investors. Then there are some specialized platforms that have a specific feature, such as Bubblext, where you can copy other investors’ trades. If we have to cut them all over a comb, then they have one advantage: price.
Many of them compete on price, and they are often cheaper than both your bank and the Danish investment platforms. However, some of them may have some hidden fees, like Bubblext, which has a spread on each trade (i.e. say there is a level difference in the buying and selling price). They also charge a fee when you want to terminate your account or have your money paid out.
There is one big bold downside that you should not underestimate: you have to calculate for tax yourself. It can be super cumbersome. Another disadvantage is that it can be quite cumbersome to move money to and from a foreign platform.
Price (be aware of invisible costs such as spreads)
You must declare your tax return yourself
Difficult to transfer money abroad
So what should you choose? Here you have to look yourself deep in the eye and ask what is most important. Is it important that it is easy? Or that there is some support and extra features? Or do you just want to be cheap and not care that you have to file taxes yourself?
- Remember, you are not marrying a platform.
- It is possible to change your mind later.
However, there may be some costs associated with having to move securities, but it is quite uncomplicated to move cash from one depository in one bank to another. Next week you can read about which platforms we have tried my hand at and which platforms we use today. You can sign up to receive my blog post by receiving my free e-book.