What is a Broker — and How Do I Choose the Right One?

You cannot simply call Oslo Stock Exchange and buy stocks directly. To trade stocks you need a middleman — a broker. The broker is licensed to execute purchases and sales on your behalf, and provides the platform you trade through.

Today almost all brokers are digital, and you trade via an app or website — not by phone as in the old days.

Two types of brokers

Full-service broker

Provides personal advice, portfolio management and tailored investment solutions. Used by larger investors and institutions. Expensive — high fees and commissions. Examples: private banking divisions at DNB and Nordea.

Online broker (discount broker)

No personal advice — you make all decisions yourself. In return, costs are far lower. This is what the vast majority of private investors use today. Examples: Nordnet, DNB Aksjehandel, Kron.

For most people: An online broker is more than enough. You get access to Oslo Stock Exchange, foreign exchanges, funds and ETFs — all from your phone.

What does a broker cost?

Brokers make money in several ways:

Brokerage commission: Fee per trade — fixed amount or percentage of trade value
Spread: The difference between the buy and sell price — the broker takes a small share
Currency conversion: Fee when trading foreign stocks in another currency
Custody fee: Some brokers charge an annual fee to hold your securities
Inactivity fee: Fee if you do not trade over a certain period

Watch out for currency fees! Some brokers charge 0.25% for currency conversion, others charge 1.5%. On an investment of 100,000 kroner in American stocks, that is 250 kroner vs. 1,500 kroner — just for converting currency.

The most popular brokers in Norway

Nordnet

Market leader for private investors in the Nordic region. Wide selection of stocks, funds and ETFs. Offers share savings account (ASK), investment account and pension savings. Competitive brokerage and monthly savings without brokerage fees.

DNB Aksjehandel

Norway is largest bank offers stock trading integrated into its online banking. Convenient if you are already a DNB customer. Slightly higher brokerage than Nordnet on individual stocks.

Kron

Norwegian app aimed at beginners. Simple interface, low costs on fund savings and automatic monthly savings. Limited selection compared to Nordnet.

DEGIRO

Dutch online broker with very low brokerage on foreign stocks and ETFs. Popular among experienced investors who trade frequently. Does not offer ASK — important to note for Norwegian tax purposes.

What should you look for?

Brokerage on Oslo Stock Exchange — important if you trade Norwegian individual stocks
Brokerage on foreign stocks — important if you want to trade American or European stocks
Currency conversion fee — often overlooked, but can add up significantly over time
Offers ASK — necessary for tax-efficient fund savings
Monthly savings without brokerage — invaluable for automatic fund savings
User interface — if you use it frequently, it should be simple and clear

Do you need more than one broker?

Many experienced investors use one broker for fund savings (often Nordnet via ASK) and another for individual stocks with low brokerage (often DEGIRO for foreign stocks). There is no reason to limit yourself to one broker if you can save money by combining them.

"No man is your enemy, no man is your friend, every man is your teacher."

— Florence Scovel Shinn

Rule of thumb: For most beginners, Nordnet is an excellent first choice — wide selection, ASK, monthly savings without brokerage and a good interface. Start there, and consider alternatives once you know what you need.