Picking a broker is one of the most consequential decisions for long-term investors. Fee differences compound. Tax-regime differences consume annual hours. The right broker for Luca differs from the right broker for Giorgio.
Today: head-to-head comparison of the main brokers available to Italian-resident investors in 2025. Opinionated, no affiliate links.
The two fundamental choices
1. Regime amministrato vs dichiarativo
- Amministrato: broker handles tax at source. You receive net amounts; year-end document summarizes for your 730/Redditi. Minimal hassle.
- Dichiarativo: you report everything yourself. Every trade, every dividend, every foreign holding (Quadro RW). Significantly more paperwork.
Most Italian retail investors want amministrato. It’s worth paying slightly more in fees to avoid the annual tax complexity.
2. Italian-domiciled vs foreign broker
- Italian-domiciled (Fineco, Directa, IWBank, BNL, etc.): banking + broker; Italian customer service; automatic Italian tax reporting.
- Foreign EU brokers (Degiro-DE, Trade Republic-DE, Scalable Capital-DE, IBKR-IE): often cheaper; may or may not offer amministrato depending on broker.
Most foreign brokers used to force dichiarativo. In 2024-2025, some (Scalable, Trade Republic) moved to amministrato for Italian clients. IBKR still dichiarativo.
The main brokers, detailed
Fineco
Italian bank + broker hybrid.
- Per-trade fee: €19 for ETF/stock on Borsa Italiana.
- PAC fee: €19 per automated buy.
- Regime: amministrato.
- Strengths: integrated banking (stipendio → conto corrente → brokerage), full customer service in Italian, banking plus investing in one app, very stable.
- Weaknesses: expensive per-trade fees. High PAC costs over decades.
- Best for: users who want integrated banking + investing; high-net-worth with infrequent large trades; those who dislike managing separate accounts.
Directa
Italian independent broker (not a bank).
- Per-trade fee: €5 for stocks/ETF on Borsa Italiana.
- PAC fee: supports PAC at €5/trade.
- Regime: amministrato.
- Strengths: established Italian broker (since 1995), Italian customer service, lower fees than Fineco, solid platform.
- Weaknesses: older interface, smaller institutional presence.
- Best for: cost-conscious investors who want Italian regime amministrato.
Scalable Capital
German broker, European license, Italian market access since 2019.
- Per-trade fee: €0.99 for stocks/ETFs, or €0 for PAC on “Prime” plan.
- Prime plan cost: €4.99/month.
- Regime: amministrato (since 2024 for Italian residents).
- Strengths: very cheap for PAC; modern mobile app; good UX; now amministrato.
- Weaknesses: customer service not as polished as Italian banks; newer; some may feel uneasy with non-Italian broker.
- Best for: PAC-heavy investors; modern UX preference; cost optimization.
Trade Republic
German broker, European license, Italian market since 2020.
- Per-trade fee: €1 per trade.
- PAC fee: €0 for automated PAC on most ETFs.
- Regime: amministrato (since 2023 for Italian residents).
- Strengths: simple mobile-first app; €0 PAC; very simple UX.
- Weaknesses: fewer features (no advanced order types); German support for complex issues; small Italian presence.
- Best for: beginners who want simplest possible experience.
Degiro
Dutch broker, very established in Europe.
- Per-trade fee: €2-3 for most ETFs; €0 on their “Core Selection” list.
- Regime: dichiarativo (requires Italian self-reporting).
- Strengths: cheap; wide product range; established since 2013.
- Weaknesses: dichiarativo means annual Italian tax paperwork (Quadro RW, manual capital-gains). Many Italians find this burdensome.
- Best for: experienced investors comfortable with self-filing, or those who use a commercialista.
Interactive Brokers (IBKR)
US-based broker with European operations. The “Ferrari” of brokers — powerful but complex.
- Per-trade fee: very low, often < €1 for most trades.
- Regime: dichiarativo (Italian residents self-file).
- Strengths: broadest product range (US stocks, options, futures, every market); extremely low fees; multi-currency account; sophisticated tools.
- Weaknesses: complex UX; English-language support; dichiarativo only (requires serious self-filing).
- Best for: sophisticated investors, freelancers/multinationals with international needs.
IWBank
Italian bank + broker.
- Per-trade fee: €9 for ETFs on Borsa Italiana.
- Regime: amministrato.
- Strengths: mid-range fees; Italian bank; integrated banking available.
- Weaknesses: less modern UX than Fineco; not as cheap as Scalable.
- Best for: middle-ground between Fineco and cheaper options.
The decision matrix
| Investor profile | Recommended broker |
|---|---|
| PAC-heavy, €100-500/month | Scalable Capital Prime or Trade Republic |
| Large lump sums (€50k+), infrequent trades | Fineco or Directa |
| Wants Italian bank + investing together | Fineco or IWBank |
| Experienced, wants maximum flexibility | IBKR |
| Student / small amounts | Trade Republic or Scalable |
| Ok with manual Italian tax filing | Degiro or IBKR |
A worked example: Sofia’s choice
Sofia: €3,500 lump + €500/month PAC. 28 years old.
Annual costs analysis:
Fineco
- Lump-sum €3,500: 1 trade × €19 = €19.
- PAC 12 trades × €19 = €228.
- Total year 1: €247 in fees (ignoring TER and imposta di bollo).
Scalable Capital Prime
- Prime subscription: 12 × €4.99 = €59.88.
- Lump-sum trade: €0 (within Prime).
- PAC 12 × €0 = €0.
- Total year 1: ~€60.
Sofia saves €187/year at Scalable vs Fineco. Over 30 years with portfolio growth, savings magnify.
Decision: Scalable Capital Prime. Save ~€200/year ongoing.
Giorgio’s choice
Giorgio: €80,000 existing portfolio, €500/month new, large infrequent rebalances.
He already has Fineco since 1995. Switch?
Benefit of switch: €200/year saved. Over 13 remaining pre-retirement years: ~€2,500.
Cost of switch: 1-2 days of paperwork, possible transaction costs on sales if he’s in fondi comuni. Psychological adjustment to new platform.
Decision: Stay at Fineco. At his stage, not worth disrupting. But he should shift fondi comuni into ETFs.
Luca’s choice
Luca: just started, €100/month PAC.
With €100/month and minimal assets:
- Fineco PAC fee €19 on €100 trade = 19% fee. Absurd.
- Scalable Prime fee €4.99/month on €100 PAC = 5% fee. Also absurd but less so.
- Trade Republic €0 PAC fee = 0% fee.
Decision: Trade Republic for Luca. Zero friction on small amounts. Can upgrade later.
Hidden broker differences
Things that don’t show up in fee tables but matter:
Fractional shares
Some brokers (Scalable, Trade Republic) let you buy €100 of an ETF whose shares cost €120 each. You get fractional shares. Smooth for PAC.
Fineco and Directa: typically require whole shares. Your PAC may result in leftover cash.
Order types
IBKR: every order type imaginable (stop-limit, trailing stop, algorithmic orders). Fineco: basic types (market, limit, stop). Trade Republic: market only.
For long-term investors: basic is enough.
Stock loan and securities lending
Some brokers lend your shares to short-sellers, earning fees from it (which they may or may not share). IBKR, Degiro known to do this more. Italian banks less.
Low risk but a detail some prefer to avoid.
Customer service quality
Italian-language support: Fineco, Directa, IWBank. English-language: IBKR, Scalable (some Italian). Chat/email only: Trade Republic, Degiro.
For complex issues (tax, inheritance, complaints), Italian-language support is meaningfully better.
Platform stability
Fineco, BNL, IWBank: multi-decade track records, unlikely to disappear.
Scalable, Trade Republic: newer, well-funded, likely to persist but unproven through long crises.
Degiro: established 2013, passed 2020 stress test.
IBKR: listed Nasdaq company, very stable.
None are likely to disappear suddenly, but stability has value.
The “I hear bad things about X” factor
Reddit r/ItaliaPersonalFinance, Mr Rip podcast, and Italian financial blogs discuss brokers at length. Read recent experiences before committing.
Recent concerns in 2024-2025:
- Trade Republic: some reports of delayed executions, interface bugs. Mostly minor.
- Degiro: some reports of order failures. Tax complexity a frequent complaint.
- Scalable: relatively few complaints recently; used to have concerns pre-2023.
- Fineco: periodic outages on busy days but generally reliable.
Check fresh reviews before committing.
Multi-broker strategy
Some investors split across brokers:
- Main broker (Scalable or Fineco): everything.
- Secondary (IBKR or Directa): for specific purposes (US stocks, Italian government bonds).
Usually not necessary for beginners. Adds accounting complexity. Consolidation is simpler.
What to do with this lesson
Three steps:
- Pick one broker that matches your profile (see decision matrix).
- Open the account this week. Don’t research for months.
- Don’t switch brokers unnecessarily. Once every 5-10 years if circumstances change, not annually.
Sources
- Broker fee schedules (public pages): Fineco, Directa, Scalable, Trade Republic, Degiro, IBKR.
- r/ItaliaPersonalFinance — active community with current user experiences.
- Mr Rip (Matteo De Marchi) — Italian FIRE podcaster with broker reviews.
- La Repubblica / Corriere Economia — occasional broker comparisons.
Next lesson: taxation of investments in Italy — 26% vs 12.5%, plusvalenze, minusvalenze, the one tax topic every Italian investor must learn cold.