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How to choose a broker

To buy shares you need a broker: the company that buys and holds the shares for you.

What to check

  • That it’s regulated. Check on the CNMV website (Spain) or with the regulator of its European country.
  • Fees for buying and selling, custody (for holding your shares) and currency exchange (when buying in dollars).
  • Guarantee fund: if the broker goes bust, your shares are still yours; on top of that, a fund covers cash and other problems (in Spain, up to €100,000; in other EU countries, at least €20,000).
  • Spanish or foreign: Spanish brokers make your taxes easier; with foreign ones you have to declare more yourself.
  • Which markets, ETFs and funds it offers.
Watch out for “brokers” who contact you on social media or by phone offering to invest for you. It’s the most common scam. The CNMV publishes a list of unauthorised firms.