Best ETF Brokers in 2025

What is an ETF or Exchange Traded Fund?

An ETF (Exchange Traded Fund) is a financial product that allows you to invest in a basket of assets in a single transaction. It is an index fund listed on the stock exchange, the objective of which is to replicate the performance of a benchmark index, such as the S&P 500 or the MSCI World.

Unlike traditional actively managed funds, an ETF follows passive management: it replicates the composition of the index it tracks, with lower fees compared to active funds. It is continuously tradable on the markets, just like a stock, which allows investors to buy or sell their shares at any time of the trading day.

ETFs are very popular due to their many advantages:

• Immediate diversification: by purchasing an ETF, the investor positions themselves on multiple assets in a single transaction.
• Reduced costs: ETF management fees are generally much lower than those of traditional investment funds.
• Accessibility: it is possible to invest in ETFs with a modest amount, and some brokers offer fractional purchases.
• Transparency: the composition of ETFs is generally accessible in real-time, allowing investors to know exactly what they are investing in.

Advantages of ETFs

ETFs offer instant diversification: a single transaction allows investment in a collection of assets reflecting the composition of the tracked index. For example, an ETF replicating the Euro Stoxx 50 provides access to the 50 largest companies in the Eurozone, while an ETF based on the Bel 20 gives exposure to the main listed companies in Belgium.

What is an ETF broker?

An ETF broker is a financial platform that allows investors to buy and sell Exchange-Traded Funds (ETFs). These brokers offer different ways to invest, depending on the investor’s goals and risk tolerance. In the UAE, there are mainly two types of ETF brokers available to residents:

• Brokers offering direct ETF investment through a standard securities trading account, often via platforms connected to international markets (e.g., U.S., Europe).
• Brokers offering ETFs via Contracts for Difference (CFDs), which allow speculation on ETF price movements without owning the underlying asset.

Here's a comparison between the two models:

The right choice depends on your investor profile:

• If you are a long-term investor looking to build wealth passively, it's best to choose a broker that lets you buy and hold actual ETFs via a standard investment account. Many UAE-based investors use platforms like Interactive Brokers, Saxo Bank, or eToro (for real ETFs).
• If you are a short-term trader and want to benefit from price swings using leverage, CFD brokers such as IG, Capital.com, or Plus500 may be suitable — but they carry higher risk and should be approached with caution.

How to choose an ETF broker?

Choosing an ETF broker is an essential step for investing effectively in the stock market. There are brokers that allow you to buy ETFs directly and brokers that offer CFDs on ETFs. Each type of platform caters to different investment strategies. Here are the criteria to consider to make the right choice.

1. Accessibility to ETFs

Not all brokers offer the same access to ETFs. It is important to check:

• Available ETFs: Some brokers offer a wide selection of physical ETFs, while others only offer ETF CFDs.
• Access to international ETFs: Some brokers allow investing in European and American ETFs, while others restrict their offerings to certain geographic areas.
• Eligibility for UAE investment accounts: If you want to optimize your taxes, choose a broker offering ETFs compatible with a UAE investment account.

2. Brokerage and Management Fees

Fees directly influence the profitability of your investment. Here are the main costs to compare:

• Order fees: commission applied to each purchase or sale of ETFs. Some stock brokers offer free orders, while CFD brokers often apply a spread (difference between the buy and sell price).
• Management fees: levied annually by the ETF issuer (generally between 0.05% and 0.50%).
• Inactivity fees: some brokers charge fees if no order is placed over a given period, especially CFD trading platforms.
• Conversion fees: for ETFs listed in foreign currencies, there may be exchange fees on transactions.

3. Platform Ergonomics and Tools

Whether you're a beginner or experienced investor, an intuitive and efficient platform is essential. Verify:

• The quality of search tools and filters to easily find ETFs.
• The existence of a mobile application to manage your investments in real time.
• The availability of advanced charts and technical indicators for active investors, especially for those trading CFDs.

4. Account Type and Taxation

While choosing an ETF broker in the UAE, it's important to understand the type of account offered and the local taxation framework.

• Standard brokerage account: This is the most common account type offered by international platforms accessible from the UAE (e.g., Interactive Brokers, Saxo Bank, eToro). It gives you full access to a wide range of global ETFs.
• Tax advantage: The UAE does not levy capital gains tax or dividend tax on individuals, making it extremely attractive for long-term ETF investors.
• Shariah-compliant accounts: Some brokers offer Islamic investment accounts that comply with Shariah law. These accounts exclude ETFs that invest in non-compliant industries and do not charge interest (swap-free).
• ETF CFDs trading account: If you opt for trading synthetic ETFs via CFD brokers (e.g., Plus500, IG, Capital.com), gains are still not taxed for individuals residing in the UAE.

5. Leverage and Risk Management

If you wish to use leverage, only brokers offering ETF CFDs will allow you to amplify your positions (generally with leverage of x2 to x5). However, the risk of loss is increased, as leverage can also multiply losses. Make sure your broker offers:

• Protections against negative balance to avoid losing more than your initial capital.
• Stop-loss and take-profit orders to manage your positions effectively.

6. The Quality of Customer Service

Good customer service is essential, especially for active investors. Before opening an account, inquire about:

• The available contact methods (phone, online chat, email).
• The availability of support (days and opening hours).
• The quality of the educational resources offered (guides, webinars, tutorials).

7. Security and Regulation

To invest safely, always choose a broker that is licensed and regulated by a reputable financial authority. UAE residents often use brokers based abroad, so it's essential to verify that the platform is overseen by one of the following:

• DFSA (Dubai Financial Services Authority) – Regulates financial institutions in the Dubai International Financial Centre (DIFC).
• FSRA (Financial Services Regulatory Authority) – Oversees firms operating in Abu Dhabi Global Market (ADGM).
• FCA (Financial Conduct Authority) – UK regulator, common among top-tier brokers used in the UAE.
• CySEC (Cyprus Securities and Exchange Commission) – Frequently regulates European brokers accepting UAE clients.
• ASIC (Australian Securities and Investments Commission) – Highly regarded regulator for brokers offering services globally.

Which ETF broker is best for a beginner?

If you're new to ETF investing in the UAE, it’s important to select a broker that offers a user-friendly interface, low fees, and educational support to help you build confidence. Fortunately, investors in the UAE benefit from access to global platforms with tax-free investment conditions, making ETF investing both accessible and efficient.

• Simple, intuitive interface for easy navigation
• Low trading fees on ETF purchases and sales
• Wide range of ETFs, especially low-cost index funds
• Shariah-compliant account options, if applicable
• Responsive customer service, preferably with English or Arabic support
• Educational tools such as tutorials, articles, and demo trading features

What are the different types of ETFs accessible in the United Arab Emirates?

In the United Arab Emirates, investors have access to a wide range of ETFs allowing them to invest in different assets and strategies. Here is a summary table of the main types of ETFs, with their description and some popular examples among traders in the United Arab Emirates.

How to Invest in ETFs Online?

Investing in ETFs online is a simple and accessible method to diversify your investment portfolio. Here are the essential steps to start investing effectively.

1. Choosing a Suitable Broker

The first crucial choice is the broker that will allow you to buy ETFs. To do this, you need to compare several criteria:

• Brokerage fees: Choose platforms with reduced fees.
• ETF offer: Make sure the broker offers a wide choice of ETFs (stocks, bonds, sector, thematic...).
• Account type: Verify whether you want to invest via a securities account (unlimited access to global ETFs).
• Security and regulation: Opt for a broker regulated by the Central Bank of the United Arab Emirates or other recognized authorities.

2. Opening an Investment Account

Once you have chosen a broker, you need to open an account by providing some documents:

• Identification document (identity card or passport).
• Proof of address (bill, tax notice).
• Bank statement for deposits and withdrawals.

Account verification can take anywhere from a few hours to a few days, depending on the broker.

3. Deposit funds into your account

Before buying ETFs, you need to fund your account by making a deposit. Depending on the broker, you can deposit funds via:

💳 Bank transfer (most common method).
💰 Credit card (faster but sometimes with fees).
📱 Electronic wallets (PayPal, Skrill, etc., depending on the platforms).

4. Selecting ETFs to Buy

It is important to choose ETFs that are adapted to your strategy. You can invest in:

• Index ETFs (MSCI World, S&P 500) for a passive and diversified approach.
• Sector ETFs (technology, healthcare, renewable energies) to target a trend.
• Bond ETFs for a more defensive allocation.
• Dividend ETFs to generate a passive income.

5. Placing a Buy Order

Once you've chosen your ETF, you need to place a buy order. There are several types of orders:

• Market Order: Immediate purchase at the current price.
• Limit Order: Purchase only if the ETF reaches a defined price.
• Stop Order: Purchase triggered when the price exceeds a certain threshold.

6. Monitor and Adjust Your Portfolio

Investing in ETFs requires regular monitoring to ensure your portfolio remains aligned with your goals. To do this:

• Analyze performance: Track the performance of your ETFs through your broker or tools like Google Finance.
• Rebalance your portfolio: Adjust your asset allocation if one sector becomes too dominant.
• Invest regularly: Adopt a Dollar Cost Averaging (DCA) strategy by buying ETFs at regular intervals to smooth out the risk.

What Fees Are Involved with an ETF Broker?

Investing in ETFs involves fees that can impact the profitability of your portfolio. These costs vary depending on the type of account, the target market, and the investment method. Here are the main fees to anticipate with concrete examples.

1. Brokerage Fees

Brokerage fees are applied to each purchase or sale order of ETFs. They can be fixed (example: 1 AED per order) or proportional (example: 0.1% of the amount invested). Some brokers offer commission-free ETFs under certain conditions, such as a scheduled purchase or a limited order per month.

Example of ETF brokerage fees

Buying an ETF for 1,000 with a fee of 0.5% → 5 fee.

Buying the same ETF with a broker offering one free order per month → 0 fee.

2. ETF Management Fees

These fees are directly levied by the ETF issuer and slightly impact the fund's performance. They are expressed as an annual percentage of assets under management.

Example of ETF management fees

• A global ETF with a 0.40% management fee incurs an annual cost of AED 4 for every AED 1,000 invested.
• An S&P 500 ETF at 0.07% costs only AED 0.70 for every AED 1,000 invested over a year.

3. Currency Conversion Fees

If the ETF is listed in US dollars (USD) or British pounds (GBP) and the account is in AED, currency exchange fees will apply to the purchase and sale. These fees range from 0.1% to 1% depending on the platform.

Example of Currency Conversion Fees

Buying a Nasdaq-100 ETF in dollars for AED 8,000 (approximately), with a currency exchange fee of 0.5% → AED 40 fee.

4. Inactivity Fees

Some brokers charge fees if no order is placed for several months. These fees are usually charged after 6 to 12 months of inactivity and can be fixed or proportional to the account balance.

Example of inactivity fee

• An account that is inactive for 1 year with a fee of 40.44 AED per month results in a cost of 485.28 AED over the year.

5. Withdrawal fees

Some platforms charge fees to withdraw funds to a bank account. These fees can be fixed (example: 20.22 AED per withdrawal) or proportional (example: 1% of the amount withdrawn).

Withdrawal Fee Example

A withdrawal of AED 2041 with a fixed fee of AED 20.41 results in a cost of 1% of the amount withdrawn.

6. Spreads and Overnight Fees (for ETF CFDs)

If you trade ETF CFDs, you need to consider:

• The spread: difference between the buying and selling price, which can be fixed or variable.
• Overnight fees: applied when you keep a leveraged position from one day to the next.

Example of ETF CFD Fees

• Purchasing a CFD on the S&P 500 ETF with a spread of 0.2% on a AED 4,000 position → AED 8 in fees.
• Holding the CFD for 5 days, with overnight fees of 0.01% per day → AED 2 cumulative fees.

What are the ETF investment strategies?

ETFs offer numerous investment strategies tailored to different investor profiles. Depending on your objectives (growth, passive income, protection against volatility, etc.), some approaches will be more suitable than others.

Here is a summary table of the main ETF investment strategies:

What is the taxation of ETF income in the United Arab Emirates?

One of the biggest advantages for investors residing in the United Arab Emirates is its favorable tax environment. For individuals, the UAE does not apply personal income tax, capital gains tax, or dividend tax — which makes ETF investing particularly attractive.

Below is a detailed explanation of how ETF-related income is taxed (or not taxed) in the UAE, depending on the type of product and investment structure used.

1. Taxation of ETFs Held in a Standard Brokerage Account

When you invest in ETFs through a brokerage account (either with an international broker or a UAE-based platform), your returns can come from two sources: capital gains (profits from selling ETFs at a higher price) and dividends (payouts from the underlying assets in the ETF).

Example:

• You buy an ETF at $1,000 and sell it at $1,400 → the $400 profit is entirely tax-free.
• You receive $500 in dividends from a European or US ETF → you keep the full amount unless taxed at source by the issuing country (see next section).

2. Withholding Tax on Foreign ETFs

Although the UAE does not tax foreign income, withholding taxes may apply in the country of origin for foreign ETFs, especially U.S.-listed ones.

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.