The experts at BrokerChooser have analysed global brokers on a number of factors including ESG education and research tools as well as the number of ESG products available to reveal the best brokers for sustainable investments.
The top 10 ESG brokers for 2022:
|Rank||Broker||ESG research tools quality||ESG products fees classification||ESG educational tools quality||ESG ETFs||ESG funds||ESG score|
|1||Interactive Brokers||High-quality||Extremely Low||High-quality||300+||300+||4.9|
|3||Merrill Edge||High-quality||Extremely Low||Medium quality||100-200||50-100||4.8|
|4||E*TRADE||Medium quality||Extremely Low||High-quality||100-200||100-200||4.4|
|4||Vanguard||Medium quality||Extremely Low||High-quality||100-200||300+||4.4|
|6||Charles Schwab||Medium quality||Extremely Low||Medium quality||100-200||300+||4.2|
|7||Interactive Investor||Medium quality||Low||High-quality||200-300||200-300||4.1|
|8||J.P. Morgan Self-Directed Investing||Medium quality||Extremely Low||Low quality||100-200||100-200||4|
|9||TD Ameritrade||Medium quality||Extremely Low||Low quality||100-200||50-100||3.8|
|10||DEGIRO||Medium quality||Extremely Low||Low quality||300+||0-50||3.7|
Further findings reveal:
- Fidelity is the ESG broker with the best online trading app. This is followed by Merrill Edge and E*TRADE.
- The worst online trading app is Admiral Markets with a score of 4.92, while City Index and Forex.com were also in the bottom three.
- There are 4 brokers with low quality research tools, including Barclays, Webull, Freetrade and Hargreaves.
- Some big names including Robinhood and eToro scored poorly, with both brokers having low quality ESG education tools.
The experts at BrokerChooser commented on why ESG is important,“ESG investing is a powerful force for change, as it combines a very human need to create a better world, both environmentally and socially, with the hard reality of economics. As such, ESG provides economically-driven change that is sustainable in the long run as it doesn’t rely on charitable donations and goodwill alone.
Not only does this model incentivise investors to support green companies and industries, but it equally empowers activists to take action and claim a financial stake in the green revolution. As this system of investing rewards ethical companies and green technology, it could become the driving force behind the global effort to save the planet.
At the end of the day, ESG investment is a force for good that unites investors and activists to drive economically sustainable change. By using trusted brokers with the best research tools, you’ll be able to navigate this exciting investment space and make a difference by considering aspects other than your strict bottom line.”