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 collection 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 because of their many advantages:

• Immediate diversification: By buying an ETF, the investor positions themselves on several assets in a single transaction.
• Reduced fees: 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 you to invest in a basket of assets reflecting the composition of the tracked index. For example, an ETF tracking the Euro Stoxx 50 allows 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 an online platform or licensed financial institution that allows you to buy and sell exchange-traded funds (ETFs). These brokers provide access to various stock markets where ETFs are listed—whether it’s the Philippine Stock Exchange (PSE) or global exchanges like the NYSE, NASDAQ, or HKEX.

There are two main types of ETF brokers for Filipino investors:

• Direct ETF Brokers, which allow you to invest in real ETF shares listed on the PSE or international markets through global brokers.
• CFD Brokers, which let you speculate on the price movement of ETFs without owning the actual fund—via Contracts for Difference (CFDs).

The right broker depends on your goals and risk appetite:

• If you're a long-term investor looking to build wealth passively, choose a direct ETF broker that gives you access to Philippine or international ETFs. In the Philippines, local brokers like COL Financial, BPI Trade, or First Metro Sec allow limited ETF trading (e.g., First Metro Philippine Equity Exchange Traded Fund). For broader global access, consider brokers like Interactive Brokers or TD Ameritrade.
• If you are a short-term trader comfortable with higher risk, CFD brokers like eToro or Capital.com let you trade ETFs with leverage, but you won’t own the asset. These platforms may offer tools like stop-loss orders and demo accounts but come with significant risk of loss.

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 verify:

• ETFs Available: 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 geographical areas.
• Eligibility for a Specific Investment Plan: If you want to optimize your taxation, choose a broker offering ETFs compatible with specific investment plans available in the Philippines.

2. Brokerage and Management Fees

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

• Order fees: A commission applied to each purchase or sale of an ETF. Some stock brokers offer free orders, while CFD brokers often apply a spread (the difference between the buying and selling 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, particularly CFD trading platforms.
• Conversion fees: For ETFs listed in foreign currencies, there may be exchange fees on transactions.

3. Ergonomics and Platform Tools

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

• The quality of the 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. The Account Type and Taxation

The type of account offered by a broker will impact how you access ETFs and how your gains are taxed in the Philippines.

• Brokerage Account with Local Brokers (e.g. COL Financial, BPI Trade) These accounts allow you to invest in ETFs listed on the Philippine Stock Exchange (PSE) — for example, the First Metro Philippine Equity ETF (FMETF). Tax implications:
• Capital gains from selling shares are subject to 15% CGT for non-traded shares; however, listed shares (like ETFs) are usually exempt but incur:
• Stock Transaction Tax (STT) of 0.6% on the gross selling price.
• Cash dividends are subject to 10% final withholding tax.
• Foreign Broker Account (e.g. Interactive Brokers, eToro, TD Ameritrade) Offers access to global ETFs (like those listed in the US, HK, or London). These accounts are typically held in USD or other currencies and may be subject to:
• Withholding taxes on dividends, depending on the ETF’s country of origin (e.g. 30% from US unless reduced to 25% via treaty).
• Capital gains are not taxed locally if earned outside the Philippines by individuals, but tax may apply if you're classified as doing business abroad.
• CFD Trading Account (e.g. eToro, Capital.com) CFD brokers offer synthetic ETF exposure. While profits are not subject to capital gains tax, frequent trading may trigger taxation as business income under BIR rules. Leverage also increases your risk exposure.

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 a leverage of x2 to x5). However, the risk of loss is increased, as leverage can also multiply losses. Make sure your broker offers:

• Des protections contre le solde négatif pour éviter de perdre plus que votre capital initial.
• Des ordres stop-loss et take-profit pour gérer efficacement vos positions.

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, make sure your broker is registered with a recognized regulatory authority. In the Philippines, look for:

• SEC Philippines – Regulates local investment firms and online brokers. Verify local platforms like COL Financial, First Metro Securities, and BPI Trade are registered.

For international brokers, ensure regulation from reputable foreign agencies:

• SEC and FINRA (United States) – for brokers like TD Ameritrade, Interactive Brokers
• FCA (UK) – covers brokers like eToro, IG, Plus500
• ASIC (Australia) – a trusted regulator for brokers offering services in Asia-Pacific
• CySEC (Cyprus) – regulates many CFD brokers offering platforms to Filipinos

Which ETF Broker is Best for Beginners?

If you're just starting your journey into ETF investing in the Philippines, choosing the right broker is essential. A good beginner-friendly broker should offer:

• A clean and intuitive interface that’s easy to navigate
• Low or zero commissions on ETF trades
• Access to a wide range of low-cost index ETFs (local or global)
• Responsive customer support (ideally with local or English-speaking agents)
• Educational resources like tutorials, webinars, or demo accounts

While the Philippine market offers limited ETF options (e.g., FMETF on the PSE), international brokers allow access to ETFs tracking the S&P 500, Nasdaq-100, or MSCI World.

What are the different types of ETFs available in the Philippines?

In the Philippines, 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 Filipino traders.

How to Invest in ETFs Online?

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

1. Choose 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: Prioritize platforms with reduced fees.
• ETF Offer: Ensure that the broker offers a wide selection of ETFs (stocks, bonds, sectoral, thematic, etc.).
• Account Type: Verify if you want to invest via a securities account (for access to global ETFs).
• Security and Regulation: Opt for a broker regulated by the Securities and Exchange Commission (SEC) (Philippines) or other recognized authorities.

2. Open an Investment Account

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

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

Ang pagpapatunay ng account ay maaaring tumagal ng ilang oras hanggang ilang araw, depende sa broker.

3. Magdeposito ng mga pondo sa iyong account

Bago bumili ng mga ETF, kailangan mong pondohan ang iyong account sa pamamagitan ng paggawa ng deposito. Depende sa broker, maaari kang magdeposito ng mga pondo sa pamamagitan ng:

💳 Bank transfer (pinakakaraniwang paraan).
💰 Credit card/Debit card (mas mabilis ngunit kung minsan ay may mga bayarin).
📱 Mga electronic wallet (PayPal, Skrill, atbp., depende sa mga platform).

4. Selecting ETFs to Buy

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

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

5. Placing a Buy Order

Once you have chosen the ETF, you must 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 objectives. 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 or broker?

Investing in ETFs incurs 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 order to buy or sell ETFs. They can be fixed (example: PHP50 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.

Exemple de frais de courtage ETF

Achat d’un ETF pour l'equivalent de 1 000 € en PHP avec des frais de 0,5 % → frais de 5 € convertis en PHP.

Achat du même ETF avec un courtier offrant un ordre gratuit par mois → 0 frais convertis en PHP.

2. Management Fees for ETFs

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

3. Mga bayarin sa conversion ng currency

Kung ang ETF ay nakalista sa dolyar (USD) o sa British pound (GBP) at ang account ay nasa piso, may mga bayarin sa palitan na ipinapataw sa pagbili at pagbebenta. Ang mga bayarin na ito ay nag-iiba sa pagitan ng 0.1% at 1% depende sa mga platform.

Halimbawa ng mga bayarin sa conversion ng currency

Pagbili ng ETF Nasdaq-100 sa dolyar para sa ₱ [halaga], na may bayarin sa palitan na 0.5% → ₱ [halaga] na bayarin.

4. Mga bayarin sa hindi aktibo

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 may be fixed or proportional to the account balance.

Example of inactivity fees

• An inactive account for 1 year with a fee of ₱[amount] per month results in a cost of ₱[amount] over the year.

5. Withdrawal fees

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

Withdrawal Fee Example

Withdrawing PHP 500 with a fixed fee of PHP 5 incurs 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.

Exemple de frais sur CFD ETF

• Achat d’un CFD sur ETF S&P 500 avec un spread de 0,2 % sur une position de ₱50,000 → ₱100 de frais.
• Conservation du CFD pendant 5 jours, avec des frais overnight de 0,01 % par jour → ₱25 de frais cumulés.

What Investment Strategies Can Be Used with ETFs?

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

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

What is the taxation on ETF income in the Philippines?

In the Philippines, the taxation of ETFs depends on two main factors:

• The type of account used (local broker vs. international broker)
• The nature of the income (capital gains vs. dividends)

There are currently no tax-advantaged investment accounts in the Philippines like France’s PEA, so all ETF-related income is taxed under general Bureau of Internal Revenue (BIR) rules.

1. Taxation of ETFs Held via a Local Broker (e.g. COL Financial, BPI Trade)

If you invest in ETFs listed on the Philippine Stock Exchange (PSE), such as the First Metro Philippine Equity ETF (FMETF), here’s how taxes apply:

Example

You sell ₱100,000 worth of FMETF: you pay ₱600 in STT (0.6%).

You receive ₱2,000 in dividends: ₱200 is withheld as tax.

2. Taxation of ETFs Held via International Brokers (e.g. eToro, Interactive Brokers)

If you use a global broker to invest in ETFs listed abroad (e.g. S&P 500 or MSCI World ETFs), tax rules may differ based on foreign and local laws.

Example

You receive $100 in dividends from a US ETF → the US withholds $15 to $30, depending on your W-8BEN form submission.

Note: If you're classified as engaged in business abroad or regularly trade, additional taxes may apply locally. Consult a Philippine tax adviser for complex cases.

3. Taxation of Leveraged ETFs and CFD-Based ETF Trading

If you're trading ETF CFDs (contracts for difference) through platforms like eToro or Capital.com, tax treatment is based on BIR income rules.

• Gains from frequent or speculative trading may be treated as ordinary income.
• There is no capital gains tax, but traders may need to file as self-employed or professional income earners, and pay graduated income tax rates (up to 35%) or a flat 8% under certain conditions.

Example

You earn ₱150,000 in annual gains from CFD trading → you may owe income tax at applicable BIR rates based on your total income.

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.