Best Broker for Italian Investors (2026):
DEGIRO, IBKR, Fineco & more compared
Picking a broker in Italy isn’t just about commissions. The choice between regime amministrato and regime dichiarativo, the 0.2% IVAFE on foreign accounts, and Italy’s flat 26% CGT all shape which broker delivers the best after-tax outcome for you.
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Top picks at a glance
Widest UCITS ETF catalogue, near-zero cost on the free ETF list, clean interface. Best starting point for most Italian investors building a passive portfolio.
Open DEGIRO →Multi-currency accounts, institutional FX rates, options and bonds access. The clear choice once your portfolio scales above €50k and FX drag starts to compound.
Open IBKR →Italian broker, regime amministrato. Tax is withheld automatically — nothing to declare. No IVAFE. Higher trading fees, but often worth it for the simplicity.
Visit Fineco →€1 flat per trade, free ETF savings plans, fractional shares from €1. Simple mobile-first app ideal for monthly PAC investors just getting started.
Open Trade Republic →What every Italian investor needs to know before choosing a broker
Generic “best broker” guides ignore the Italian-specific factors that determine your actual after-tax outcome. These three things matter most.
1. Regime amministrato vs regime dichiarativo
Who offers it: Italian-regulated brokers — Fineco, Directa SIM, Banca Mediolanum.
How it works: The broker withholds 26% on each realised gain and remits it to the Agenzia delle Entrate automatically.
Tax return: No investment income to declare in your 730 or Redditi PF. Losses are tracked internally by the broker.
Who operates under it: All foreign brokers — DEGIRO, IBKR, Trade Republic, Scalable Capital, XTB, eToro.
How it works: You declare all gains, dividends, and foreign income in Quadro RT and Quadro RM of your annual return.
Tax return: More complex — you aggregate transactions, convert to EUR at trade-date rates, and calculate net gains yourself (or via a commercialista).
2. IVAFE — the hidden cost of foreign brokers
Italian residents holding assets at foreign brokers pay IVAFE at 0.2% per year on the year-end market value of those assets. You must also complete Quadro RW (monitoraggio fiscale) if aggregate foreign financial assets exceed €5,000 at any point during the year.
For a €20,000 portfolio: €40/year. For €100,000: €200/year. This applies equally to DEGIRO, IBKR, Trade Republic, and all other non-Italian platforms. Fineco Bank is exempt.
3. Italy’s 26% CGT — key points
- Rate: 26% flat on capital gains (plusvalenze) from ETFs, equities, and most bonds.
- BTP / BOT / CCT: Reduced rate of 12.5%.
- Dividends: 26% on non-Italian company dividends; treaty rates may reduce withholding at source.
- Loss offsetting: Losses (minusvalenze) can offset future gains within a 4-year carry-forward window — but only within the same tax regime.
- US ETFs: Not available to Italian retail investors under PRIIPs/MiFID II. Use UCITS equivalents (VWCE, CSPX, IUSQ).
Each broker reviewed for Italian investors
DEGIRO
Best for ETF investorsThe most popular broker among Italian retail investors and a deserving default for most people. The free ETF list covers all major UCITS index funds (VWCE, CSPX, IUSQ, MEUD) — for a passive investor making monthly contributions, annual trading fees can be close to zero.
| Fee type | Cost |
|---|---|
| Free ETF list (1 trade/month per ETF) | €0 |
| Other UCITS ETFs (Euronext Amsterdam) | €2.00 + €1.00 connectivity |
| Italian stocks (Borsa Italiana) | €3.90 + 0.059% |
| Currency conversion | 0.25% + €0.50 |
| Annual custody fee | €0 |
- Regime dichiarativo — self-report in Quadro RT.
- IVAFE 0.2%/year + Quadro RW filing required.
- DEGIRO provides an annual transaction overview — usable with a commercialista.
- Regulated by Dutch AFM; investor compensation up to €20,000.
Interactive Brokers
Best for larger portfoliosThe institutional-grade option. IBKR’s multi-currency accounts mean you can deposit EUR, convert once at near-interbank rates, and hold USD permanently — eliminating repeated FX conversion costs that compound painfully on large portfolios. The platform also supports options, bonds, margin, and fractional shares in a way no other broker in this list matches.
| Fee type | Cost |
|---|---|
| UCITS ETFs (European exchanges) | €1.25 minimum |
| US stocks / ADRs | $0.005/share, min $1.00 |
| Currency conversion (IBKR Ideal FX) | ~0.002% of trade value |
| Annual custody fee | €0 (with ≥1 trade/month) |
- Regime dichiarativo — same admin burden as DEGIRO.
- IVAFE 0.2%/year + Quadro RW required.
- IBKR’s activity statements are detailed — easy for a commercialista to use.
- Stock yield enhancement available (lend your shares, split the income).
Fineco Bank
Zero tax adminItaly’s largest combined bank-broker. Operating under regime amministrato, Fineco withholds 26% on every realised gain automatically — nothing to declare, no IVAFE, no Quadro RW. If you value simplicity and integrated Italian banking above all else, Fineco is the answer. Trading fees are meaningfully higher than foreign brokers, but for investors making fewer than 10 trades per year, the gap in absolute euros is often modest.
| Fee type | Cost |
|---|---|
| Italian stocks / ETFs (Borsa Italiana) | From €2.95 |
| European stocks (online) | From €9.95 |
| US stocks (online) | From $12.95 |
| ETF savings plans (PAC) | €0 per execution |
| IVAFE | None (Italian broker) |
- Regime amministrato — broker handles all tax withhholding.
- No IVAFE, no Quadro RW filing — zero investment-related tax declarations.
- Loss carry-forward tracked automatically for up to 4 years.
- Full Italian banking: IBAN, debit card, mortgage, BTP primary market access.
Trade Republic
Best for beginners€1 flat per trade, free ETF savings plans (PAC), fractional shares from €1, and competitive interest on uninvested cash. Trade Republic’s mobile-first app is deliberately minimal — ideal for investors who want to set up a monthly PAC and leave it alone. The ETF catalogue is narrower than DEGIRO’s but covers all major UCITS index funds. Regime dichiarativo applies — self-reporting required.
Open Trade Republic →Scalable Capital
Flat-fee subscriptionFree tier at €0.99 per trade; Prime subscription at €2.99/month unlocks unlimited free trades on ETFs, stocks, and crypto. For investors making more than 4 trades per month, Prime effectively gives free trading. ETF savings plans are free on both tiers. Regime dichiarativo, IVAFE applies. Best for investors who are slightly more active but still primarily ETF-focused.
Open Scalable Capital →Full comparison
| Broker | ETF trade cost | Tax regime | IVAFE | Free PAC | Banking |
|---|---|---|---|---|---|
| DEGIRO | €0 (free list) / €3 | Dichiarativo | 0.2%/yr | No | No |
| IBKR | From €1.25 | Dichiarativo | 0.2%/yr | No | No |
| Fineco | From €2.95 | Amministrato | None | Yes | Yes |
| Trade Republic | €1 flat | Dichiarativo | 0.2%/yr | Yes (€0) | IBAN card |
| Scalable Capital | €0.99 / €0 (Prime) | Dichiarativo | 0.2%/yr | Yes (€0) | No |
IVAFE (0.2%/yr) not included — applies equally to all foreign brokers. Scalable Prime = €2.99/month × 12. Always verify current fee schedules on each broker’s official website.
How to choose the right broker for your situation
- You want the widest UCITS ETF catalogue at the lowest possible cost.
- You build a simple passive portfolio (e.g. VWCE + bond ETF) and trade infrequently.
- You use a commercialista or are comfortable with Quadro RT.
- Your portfolio is under €100,000.
- Your portfolio exceeds €50,000 and FX costs are becoming a real drag.
- You trade frequently or across multiple asset classes.
- You want multi-currency accounts and institutional FX rates.
- You want the ability to earn income on lent securities.
- You want zero investment-related tax administration.
- You want a full Italian banking relationship alongside brokerage.
- You invest primarily in BTP, Borsa Italiana ETFs, or Italian equities.
- You make fewer than 10 trades per year and value simplicity above cost.
- You are just starting out and want a simple mobile-first experience.
- You invest regularly via automated ETF savings plans at €0 commission.
- You want fractional shares (Trade Republic) or flat-fee unlimited trading (Scalable Prime).
- You are comfortable managing Quadro RT and the IVAFE obligation.
Ready to open an account?
Choose your lane based on your situation — not just the lowest headline commission. Tax regime and IVAFE matter as much as trading fees for Italian investors.
Go deeper
Frequently asked questions
What is the difference between regime amministrato and regime dichiarativo in Italy?
Regime amministrato means your Italian broker automatically withholds and pays the 26% capital gains tax on your behalf — nothing to declare in your tax return. Regime dichiarativo applies to all foreign brokers (DEGIRO, IBKR, Trade Republic): you must declare all gains, losses, and dividends yourself in Quadro RT and Quadro RM of your annual return. Dichiarativo gives more flexibility on loss offsetting but requires significantly more administrative work.
Do I pay IVAFE on a DEGIRO or IBKR account in Italy?
Yes. Italian tax residents holding financial assets at foreign brokers must pay IVAFE at 0.2% per year on the year-end market value of those assets, and must complete the Quadro RW section of their tax return for monitoraggio fiscale purposes. This does not apply to Italian-domiciled brokers like Fineco Bank.
Can Italian investors buy US ETFs like VOO or VTI?
No. EU MiFID II / PRIIPs regulation prevents Italian retail investors from buying US-domiciled ETFs because they lack an EU-format Key Information Document (KID). Italian investors must use UCITS-compliant equivalents such as VWCE (Vanguard FTSE All-World Acc), CSPX (iShares Core S&P 500), or IUSQ (iShares MSCI World) instead.
What is the capital gains tax rate in Italy for investments?
Italy applies a flat 26% tax on capital gains from ETFs, equities, and most bonds. Italian government bonds (BTP, CCT, BOT) benefit from a reduced rate of 12.5%. The same 26% applies to dividends from non-Italian companies. Losses can be carried forward for four years to offset future gains within the same tax regime.
Which broker is best for a beginner Italian investor?
DEGIRO is the most popular starting point due to its low fees and broad UCITS ETF catalogue. Investors who do not want to handle their own taxes should consider Fineco Bank, which manages tax withholding automatically under regime amministrato. Trade Republic is also a strong beginner option with free ETF savings plans and €1 flat commission per trade.
When does Interactive Brokers make more sense than DEGIRO for Italian investors?
IBKR makes more sense for portfolios above €50,000 where multi-currency accounts eliminate repeated FX conversion costs, for active traders needing options and bonds, or for investors who want access to stock yield enhancement. The tax complexity is the same as DEGIRO (both are dichiarativo), but IBKR’s detailed activity statements make annual reporting easier to handle with a commercialista.
QuantRoutine provides educational content only. Nothing on this page is an offer, solicitation, or recommendation to buy or sell any security or to open an account with any specific broker. Investments can lose value, and past performance does not guarantee future results. Tax treatment depends on individual circumstances and may change — consult a qualified commercialista for personal guidance. Always review each broker’s current terms, fees, and eligibility on their official website before opening or funding an account.