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, whose objective is to replicate the performance of a benchmark index, such as the NIFTY 50, S&P 500 or the MSCI World.

Unlike actively managed traditional 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 numerous advantages:

• Diversification immédiate : en achetant un ETF, l’investisseur se positionne sur plusieurs actifs en une seule transaction.
• Frais réduits : les frais de gestion des ETF sont généralement bien inférieurs à ceux des fonds d’investissement classiques.
• Accessibilité : il est possible d’investir dans des ETF avec un montant modeste, et certains courtiers proposent des achats fractionnés.
• Transparence : la composition des ETF est généralement accessible en temps réel, permettant aux investisseurs de savoir exactement dans quoi ils investissent.

Avantages des ETFs

ETFs offrent une diversification instantanée : une seule transaction permet d'investir dans un ensemble d'actifs reflétant la composition de l'indice suivi. Par exemple, un ETF répliquant le Nifty 50 permet d'accéder aux 50 plus grandes entreprises de l'Inde, tandis qu'un ETF basé sur le BSE Sensex donne une exposition aux principales entreprises cotées en Inde.

What is an ETF broker?

An ETF broker is an investment platform or stockbroker that allows investors to buy and sell Exchange-Traded Funds (ETFs) listed on stock exchanges. These platforms offer different ways to invest in ETFs depending on your financial goals, investment horizon, and risk tolerance.

In India, there are two main types of ETF brokers:

• Brokers offering direct access to ETFs listed on Indian exchanges (like NSE and BSE), via a Demat and trading account.
• Brokers offering ETFs through CFDs (Contracts for Difference), which allow you to speculate on ETF price movements without owning the actual ETF — typically via international platforms.

Here is a comparison between both approaches:

Your decision depends on your investment profile and goals:

• If you're a long-term investor looking to build wealth through a passive strategy, it's advisable to use a registered Indian broker (like Zerodha, Groww, ICICI Direct, or Upstox) and invest in physical ETFs via your Demat account. This is more cost-effective and suitable for SIP-based investing or tax-efficient portfolios.
• If you're a short-term trader looking to speculate on global ETF movements and willing to take on higher risk, CFD brokers (like eToro or Plus500) offer access to ETFs with leverage. However, these are not regulated by SEBI, and trading CFDs can involve significant risk, including loss of capital.

How to Choose an ETF Broker?

Choosing an ETF broker is an essential step for investing effectively in the stock market. Some brokers allow you to buy ETFs directly, while others 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 disponibles : Certains courtiers offrent une large sélection d’ETFs physiques, tandis que d’autres proposent uniquement des CFDs sur ETFs.
• L’accès aux ETFs internationaux : Certains courtiers permettent d’investir sur des ETFs européens et américains, tandis que d’autres restreignent leur offre à certaines zones géographiques.
• L’éligibilité au PEA : Si vous souhaitez optimiser votre fiscalité, privilégiez un courtier proposant des ETFs compatibles avec un Plan d’Épargne en Actions (PEA).

2. Frais de courtage et de gestion

Les frais influencent directement la rentabilité de votre investissement. Voici les principaux coûts à comparer :

• Order fees: commission applied to each purchase or sale of an ETF. Some stock brokers offer free orders, while CFD brokers often apply a spread (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. Ergonomie et outils de la plateforme

Que vous soyez un investisseur débutant ou expérimenté, une plateforme intuitive et performante est essentielle. Vérifiez :

• 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 those trading CFDs.

4. Type of Account and Taxation

The type of account you use to invest in ETFs in India directly affects how your returns are taxed.

• Demat + Trading Account: This is the standard setup required for buying and selling ETFs listed on Indian exchanges (NSE/BSE). You’ll pay Securities Transaction Tax (STT) on trades, and your capital gains will be taxed based on the duration of holding:
• Short-Term Capital Gains (STCG) (held ≤12 months): taxed at 15%
• Long-Term Capital Gains (LTCG) (held >12 months): taxed at 10%, with a ₹1 lakh exemption per financial year
• No PEA Equivalent in India: India does not offer a tax-advantaged investment account specifically for ETFs like France's PEA. However, Equity-Linked Savings Schemes (ELSS) offer tax deductions under Section 80C, though they are mutual funds, not ETFs.
• CFD Trading (via foreign brokers): If you trade ETFs via Contracts for Difference (CFDs) on platforms like eToro or Plus500, the profits are considered speculative income and taxed at your marginal income tax rate (up to 30% or more, depending on your slab). Additionally, you may be liable for foreign income reporting and compliance under FEMA.

5. Leverage and Risk Management

If you wish to use leverage, only brokers offering CFDs on ETFs will allow you to amplify your positions (typically with a maximum leverage of 1:2 for retail investors in India). However, the risk of loss is also increased, as leverage can magnify losses as well as gains. Make sure your broker offers the following features:

• Negative balance protection to ensure you don't lose more than your initial investment.
• Stop-loss and take-profit orders to help you 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:

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

7. Security and Regulation

Choosing a safe and regulated broker is crucial for protecting your capital and ensuring fair trading practices. Always verify that the broker is registered with a recognised financial authority.

In India, the key regulator is:

• SEBI (Securities and Exchange Board of India) – All Indian brokers (like Zerodha, Upstox, Groww, ICICI Direct) must be registered with SEBI and comply with its investor protection guidelines.

If you're considering foreign brokers, check if they are regulated by credible international authorities:

• FCA (UK – Financial Conduct Authority)
• ASIC (Australia – Australian Securities and Investments Commission)
• CySEC (Cyprus – European Economic Area)
• SEC and FINRA (USA)

Which ETF broker is suitable for a beginner in India?

If you're new to ETF investing in India, it’s important to start with a broker that offers a user-friendly interface, low fees, and strong educational support to help you build confidence. The right broker should also make it easy to open an account and provide access to a broad selection of ETF options.

Here are some of the key criteria to look for:

• Intuitive and clean platform, suitable for first-time users
• Low brokerage charges and no hidden fees
• Wide range of ETFs, including low-cost index-based ETFs
• Support for long-term investment tools, like SIPs in ETFs
• Responsive customer support in English and local languages
• Educational resources, such as beginner guides, explainer videos, and webinars.

What are the different types of ETFs available in India?

In India, 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 Indian 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. Choosing a Suitable Broker

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

• Brokerage Fees: Prioritize platforms with reduced fees.
• ETF Offering: Ensure that the broker offers a wide selection of ETFs (stocks, bonds, sector-specific, thematic...).
• Account Type: Check if you want to invest through a Demat account (tax advantages may apply to certain ETFs) or a regular trading account for unlimited access to global ETFs.
• Security and Regulation: Opt for a broker regulated by SEBI (India) or other recognized authorities.

2. Opening an Investment Account

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

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

Account verification can take 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/Debit 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 suit your strategy. You can invest in:

• Index ETFs (MSCI World, S&P 500, NIFTY 50) 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 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 the allocation of your assets if a 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 are the fees 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 buy or sell order of ETFs. They can be fixed (example: ₹80 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 Rs 80,000 avec des frais de 0,5 % → Rs 400 de frais.

Achat du même ETF avec un courtier offrant un ordre gratuit par mois → Rs 0 de frais.

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.

Exemple de frais de gestion ETF

• Un ETF mondial avec 0,40 % de frais de gestion entraîne un coût annuel de ₹ 40 pour ₹ 10 000 investis.
• Un ETF S&P 500 à 0,07 % ne coûte que ₹ 7 pour ₹ 10 000 investis sur une année.

3. Currency Conversion Fees

If the ETF is listed in US dollars (USD) or British pounds (GBP) and the account is in Indian Rupees, currency exchange fees apply to buying and selling. These fees vary between 0.1% and 1% depending on the platform.

Example of Currency Conversion Fees

Buying a Nasdaq-100 ETF in dollars for ₹ 160,000 (approximately), with a currency exchange fee of 0.5% → ₹ 800 in fees.

4. Inactivity Fees

Certain brokers charge fees if no orders are placed for several months. These fees are generally levied after 6 to 12 months of inactivity and can be fixed or proportional to the account balance.

Example of inactivity fees

• An inactive account for 1 year with a fee of ₹890 per month results in a cost of ₹10,680 over the year.

5. Withdrawal fees

Some platforms charge fees for withdrawing funds to a bank account. These fees can be fixed (example: ₹445 per withdrawal) or proportional (example: 1% of the amount withdrawn).

Example of Withdrawal Fees

A withdrawal of ₹41,650 with a fixed fee of ₹416.5 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: the difference between the buying and selling price, which can be fixed or variable.
• Overnight fees: applied when you hold 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 80 000 INR → 160 INR de frais.
• Conservation du CFD pendant 5 jours, avec des frais overnight de 0,01 % par jour → 40 INR de frais cumulés.

What Investment Strategies Can You Use with ETFs?

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 for income from ETFs in India?

The taxation of ETF income in India depends on the type of income (capital gains or dividends), the type of ETF (equity or debt-oriented), and the holding period. ETFs are typically held through a Demat and trading account, and India does not offer a tax-advantaged ETF-specific account like France’s PEA.

1. Taxation of ETFs Held in a Regular Demat Account

ETF investors in India are taxed based on whether the ETF is classified as equity-oriented or non-equity-oriented (debt or gold), and the duration for which the investment is held.

Example

You sell an equity ETF after 14 months with a ₹1,50,000 profit → ₹1 lakh is tax-free, and you pay 10% on ₹50,000 = ₹5,000 tax.

You receive ₹10,000 in dividends from a debt ETF → taxed at your slab rate (e.g. 20% = ₹2,000).

2. No PEA Equivalent in India

India does not offer a tax-sheltered investment vehicle specifically for ETFs like the Plan d’Épargne en Actions (PEA) in France. However, the Tax-Free Bonds and Equity Linked Savings Schemes (ELSS) provide tax benefits, but they are not ETFs and follow different rules.

3. Taxation of Foreign ETFs and Withholding Tax

If you invest in international ETFs (e.g., S&P 500, Nasdaq-100, MSCI World) through platforms like INDmoney, Vested, or Interactive Brokers, the taxation becomes slightly more complex:

• Capital gains from foreign ETFs are treated as capital gains on foreign assets, and taxed:
• STCG (<36 months): taxed as per your income tax slab
• LTCG (≥36 months): taxed at 20% with indexation
• Dividends received from foreign ETFs are taxed as foreign income, and also subject to withholding tax in the source country (e.g., 25%–30% in the US).

Example

You earn $500 in dividends from a US ETF → $75 (15%) withheld at source if W-8BEN is submitted.

You must declare the gross amount (₹41,000 approx) as income and claim any applicable relief under the India–US tax treaty

.

4. Tax on Leveraged ETFs and CFD Trading

Leveraged ETFs or ETF CFDs (offered via platforms like eToro or Plus500) are not regulated in India, and any gains from such trades are generally classified as business income (if frequent) or speculative income (if high-risk, short-term).

Example

You make ₹1,00,000 from CFD trading on a US ETF → taxed as regular income. If you're in the 30% bracket, you pay ₹30,000 in tax.

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.