Table of Content
Table of Content
What Are The Vanguard Alternative Platforms in the Netherlands?
Vanguard Platform Alternatives In the Netherlands
Investors in the Netherlands have a variety of Vanguard platforms to choose from. Vanguard Netherlands, Some of its most popular platforms are:
- Interactive Brokers
Comparing platforms is important before choosing the right one for you. Each has unique features and advantages. Consider the following: account minimums and fees; customer service.
What is Vanguard?
Vanguard was founded in 1975 and is the second largest investment firm (after BlackRock), with over $5.6 trillion of assets managed. They have more than 30 million customers who trust their services.
John Bogle (Vanguard’s deceased founder) made history by creating 1976 the first index funds available to retail investors. It is called “First Index Investment Trust,” but today, it is officially known as “Vanguard 500 Index Fund Investor Shares”. The central idea is to buy and hold the stock market rather than try to beat it with active managers. Investment costs for market participants have decreased since then.
Why does the US hold such a high regard for it?
Vanguard Netherlands offers mutual funds and ETFs as well as brokerage services, financial planning, and trust services. These are geared more towards the US individual investor. Vanguard Netherlands provides Vanguard Business Accounts. In 1983, the brokerage division was created to diversify mutual fund investments by adding stocks and bonds. Vanguard’s brokerage wasn’t designed to cater to traders looking to make quick profits but aimed at long-term investors.
What does the Vanguard in the Netherlands offer?
Vanguard only offers its services to US and UK investors. You can only open a personal account if you are an experienced professional.
Vanguard Netherlands is available worldwide but for professional investors. There are no announcements about when Vanguard will be available in other countries.
How do they plan to expand?
As a Dutchman, you can invest in Vanguard’s wide selection of ETFs. You can buy ETFs that track the S&P500, DAX, or other leading indices. Vanguard offers 45+ ETFs. All these ETFs have EU domiciles. Please read the following explanation – this is important.
Since you cannot invest in the Vanguard platform, but you can in its products, you must look at other options. And that is exactly what we offer you!
What’s the Difference Between ETFs, Index Funds?
Everyone in the US talks about indexes or mutual funds as they’re known elsewhere. Everyone in the Netherlands talks about ETFs. What is the difference between ETFs?
Index Funds and ETFs differ in trading, as ETFs can be bought or sold anytime during the day. While Index Funds only have a price at the end of the day, similar to active mutual funds. If you track the same benchmark, investing in ETFs or Index Funds will produce similar results. Index Funds are not widely available in other countries because you have to buy them directly from their providers.
Vanguard offers Index Funds only to UK Residents in Europe. Unlike Index Funds in Europe, ETFs are very common because of their availability on multiple stock exchanges and the low distribution cost to fund providers.
The output of an ETF, Index Fund, or both should ultimately be identical (although there could be slight variations due to tracking errors and TER).
Why are US-domiciled funds not available in the Netherlands?
SPY, VOO, IVV, etc., are familiar to you. The tickers are for the biggest passive funds in the US, not the Vanguard Netherlands. Why?
PRIIPs, a regulatory body of the European Commission that was created to harmonize the ETF market in Europe, demanded at the start of 2018.
All ETFs sold in Europe must comply with the MiFID II regulations.
You may have noticed the Key Investor Information Documents (KIIDs), which are two-page documents, present all the information in a similar format. This includes the Objectives and Investment Policy, the Risk and Reward profile, Charges, and Past Performance. It’s not a coincidence EU regulations are in place.
Since their main clients remain in the US, US-domiciled ETFs don’t have to comply with regulatory changes.
PRIIPs laws are subject to different interpretations, as some Dutch financial institutions allow their customers to invest in US-based financial instruments, adding to the confusion!
We strongly recommend you refrain from using this method, as you could face high exchange rates, a new regulatory agency (possibly causing legal problems), or higher taxes.
Alternatives to the Vanguard Platform in the Netherlands
Vanguard offers similar low-cost options but with a long-term approach. The online brokers we have identified below offer even more features, including mobile-friendly desktop and tablet versions, watchlists, and financial data. They also provide news. You can still benefit from this platform even if you are not a long-term trader.
Here are our top picks:
eToro, with over 25,000,000 users worldwide, is the largest social investment platform. (Copy and follow other traders/investors). The platform offers free stock trading.
IBKR, founded in 1978, is one of the most trusted brokers on earth. The broker offers various products, including stocks, ETFs, Options,…), and low FX (foreign exchange) fees. Interactive Brokers has also released IBKRGlobalTrader, an app that allows novices to trade stocks, options, and ETFs.
Buy stocks and ETFs at 0% commission.
Some of these platforms are relatively new. Despite this, we have observed that all these platforms could withstand the huge spike in volatility caused by Covid-19 in 2020, particularly in March and April. This type of instability in the market was seen in 2007 during the Global Financial Crisis. It is, therefore, comforting to know that these apps did not crash, as experienced by Robinhood, an online US broker that offers a free service.
Vanguard Alternatives for the Netherlands
- 0% Commissions
- (on Stocks)Mobile App – available
- Products – CFDs, ETFs, Stocks, Commodities, Forex, and Cryptocurrencies Minimum Deposit – 50$
- Regulators – CySEC, FCA, and ASIC
eToro, the leading global social trading platform, has over 25,000,000 clients spread across 140 different countries.
Retail account holders can automatically mimic and trade successful clients’ trading strategies and transactions in real time.
It is not solely focused on social trading. The multi-asset platform offers a wide range of financial instruments for trading, including CFDs (contracts for difference), ETFs (exchange-traded funds), stocks, commodities, Forex, and cryptocurrency. eToro offers 0% commissions on stocks and ETFs (not all are free). Spreads for CFDs can vary depending on the financial products, so consider this when placing your order.
Both the website and app for mobile are visually appealing and extremely simple. It is easy to open a new account. Signing up is quick and easy. eToro offers a free practice account if you’re uncomfortable using the dashboard or investing.
eToro has been deemed safe because top financial institutions like the Financial Conduct Authority regulate it. It also showed resilience in the Covid-19 turmoil.
- 0% Commissions –
- Mobile App – available
- Product – Forex, Commodities, and Futures.
- Minimum deposit – 0EUR
- Regulators – FINRA, SIPC, SEC, CFTC, IIROC, FCA, CBI, AFSL, SFC, SEBI, MAS, MNB
Founded in 1978, Interactive Brokers has publicly traded on NASDAQ since its inception (ticker IBKR). It is a leading global online brokerage that has proven resilient and has a strict risk management system.
Interactive Brokers is a leading investment company offering a comprehensive investing platform. It includes stocks, options, mutual funds, ETFs, futures contracts, bonds, and currencies.
The learning curve is steep for beginners and intermediate investors. We recommend it mainly to advanced traders. The customer service is very clear and will answer all your questions.
- 0% Commissions
- Mobile App
- Products – Stocks, Funds, ETFs, Futures, Leveraged Products, Bonds, and Warrants
- Minimum Deposit – EUR0
- Regulators – AFM, DNB
Degiro, a brokerage company with low fees that was founded in 2013, has grown to be very popular because of its rates. The innovative platform has almost 2,000,000 users and is well-known for its “do it yourself” philosophy. You have all the tools you need to get started investing. The platform offers many financial assets for trading, such as stocks, ETFs, and bonds, plus options, futures contracts, warrants, mutual funds, investment funds, and leveraged products. Click here for more information.
You can, for example, trade certain stocks and ETFs without any fees (a EUR1.00 handling charge – an external cost – is still applicable). There is also a list of 200 ETFs you can trade for free once per month, with no minimum required. It is a simple platform but efficient and easy to use. You will be able to use it in a few minutes. Its mobile app is the same. The downside is that there are no significant research findings, EUR2.50 in connectivity fees, and no pricing alerts.
Concluding Thoughts on Vanguard Alternatives
The options we provide are a good alternative to the Vanguard Platform, or an ETF domiciled in the EU that provides the same exposure as a US-based ETF.
It is important to consider the following factors: the platform fees; the top institutions that regulate it, the products available for trading (not every platform allows you to trade EU stock, for example); and the responsiveness of customer service.
It is important to know how closely the interests of the company/platform align with your own. Every investor has their own set of needs. We cannot assist each of you personally, but our solutions should satisfy more than 90 per cent of our readers.
1. Is Vanguard available in the Netherlands?
Vanguard is available only to US and UK investors. Vanguard Netherlands only allows personal accounts if you are an experienced professional.
2. Vanguard Platform Alternatives in the Netherlands?
There are several Vanguard alternatives in the Netherlands. EToro, Interactive Brokers and Degiro are some of the most popular Vanguard alternatives. Comparing and contrasting these platforms is important before you make your decision.
3. What are the fees associated with Vanguard in The Netherlands?
Vanguard’s fees are usually competitive. There may be hidden fees associated with their platform. They may, for example, charge higher prices on certain assets or have higher minimum account balances. Do your homework and understand the charges before investing with Vanguard.