Best Brokers For Ethical Investing

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James Barra
James is an investment writer with a background in financial services. As a former management consultant, he has worked on major operational transformation programmes at prominent European banks. James authors, edits and fact-checks content for a series of investing websites.
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Jemma Grist
Jemma is a writer, editor and fact-checker focused on retail trading and investing. Jemma brings a unique perspective to the forex, stock, and cryptocurrency markets and works across several investment websites as a researcher and broker analyst.
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William Berg
William contributes to several investment websites, leveraging his experience as a consultant for IPOs in the Nordic market and background providing localization for forex trading software. William has worked as a writer and fact-checker for a long row of financial publications.
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Finding the best brokers for ethical investing is one of the most direct ways we can contribute to positive change in the world. Ethical investing is an umbrella term for all approaches to investing whereby trading can be both socially and environmentally responsible.

While fighting climate change and making changes to our lifestyle may seem a daunting task, technological advancements enable traders to support sustainability efforts. Using the best ethical investing brokers will help you invest your capital in green stocks, renewable energy, clean water and much more. In our review of the best brokers for ethical investing, we explain what it is, its pros and cons and the types of ethical investments you can make.

Best Brokers For Ethical Investing

These 5 firms offer the best selection of trading products for ethically-conscious investors:

Click a broker for details
  1. 1
    Interactive Brokers

    Ratings
    4.5 / 5
    3.5 / 5
    4.6 / 5
    4.3 / 5
    3.3 / 5
    3 / 5
    4.4 / 5
    4.3 / 5
    4.3 / 5
    4.5 / 5

    $0
    $100
    1:50
    FCA, SEC, FINRA, CFTC, CBI, CIRO, SFC, MAS, MNB, FINMA, AFM
    Stocks, Options, Futures, Forex, Funds, Bonds, ETFs, Mutual Funds, CFDs, Cryptocurrencies
    Trader Workstation (TWS), IBKR Desktop, GlobalTrader, Mobile, Client Portal, AlgoTrader, OmniTrader, eSignal, TradingCentral
    Cheque, ACH Transfer, Wire Transfer, Automated Customer Account Transfer Service, TransferWise, Debit Card
    USD, EUR, GBP, CAD, AUD, INR, JPY, SEK, NOK, DKK, CHF, AED, HUF
  2. 2
    eToro USA
    Invest $100 and get $10
    Securities trading offered by eToro USA Securities, Inc. (“the BD”), member of FINRA and SIPC. Cryptocurrency offered by eToro USA LLC (“the MSB”) (NMLS: 1769299) and is not FDIC or SIPC insured. Investing involves risk. https://www.daytrading.com/ is not an affiliate and may be compensated if you access certain products or services offered by the MSB and/or the BD.

    Ratings
    4.3 / 5
    3 / 5
    3.9 / 5
    3.4 / 5
    4 / 5
    3 / 5
    4.3 / 5
    4.5 / 5
    4.3 / 5
    4 / 5

    $100
    $10
    SEC, FINRA
    Stocks, Options, ETFs, Crypto
    eToro Trading Platform & CopyTrader
    ACH Transfer, Debit Card, PayPal, Wire Transfer
    USD
  3. 3
    IG
    Forex trading involves risk. Losses can exceed deposits.

    Ratings
    4.9 / 5
    4 / 5
    4.5 / 5
    3.5 / 5
    4.9 / 5
    4.5 / 5
    4.9 / 5
    5 / 5
    4.6 / 5
    4 / 5

    $0
    0.01 Lots
    1:30 (Retail), 1:250 (Pro)
    FCA, ASIC, NFA, CFTC, DFSA, BaFin, MAS, FSCA, FINMA, CONSOB, AFM
    CFDs, Forex, Stocks, Indices, Commodities, ETFs, Futures, Options, Crypto, Spread Betting
    Web, ProRealTime, L2 Dealer, MT4, TradingView, AutoChartist, TradingCentral
    PayPal, Wire Transfer, Mastercard, Credit Card, Visa, Debit Card
    USD, EUR, GBP, CAD, AUD, JPY, ZAR, SEK, DKK, CHF, HKD, SGD
  4. 4
    Uphold
    Terms Apply. Cryptoassets are highly volatile. Your capital is at risk.

    Ratings
    3 / 5
    3.4 / 5
    4.3 / 5
    3.8 / 5
    4.5 / 5
    2.3 / 5
    3 / 5
    1.5 / 5
    4.6 / 5
    4.4 / 5

    $0
    $1
    Cryptos
    Desktop Platform, Mobile App
    Wire Transfer, ACH Transfer, Bitcoin Payments, Debit Card, Credit Card, Mastercard, Visa, Ethereum Payments
    USD, EUR, GBP
  5. 5
    Zacks Trade

    Ratings
    3.5 / 5
    3 / 5
    3 / 5
    3.5 / 5
    3.8 / 5
    3.5 / 5
    3.9 / 5
    1 / 5
    0 / 5
    0 / 5

    $2500
    $3
    FINRA
    Stocks, ETFs, Cryptos, Options, Bonds
    Own
    Wire Transfer, ACH Transfer, Cheque
    USD, EUR, GBP, CAD, AUD, NZD, INR, JPY, ZAR, TRY, SEK, NOK, DKK, CHF, HKD, SGD, RUB, PLN, CZK, HUF

Here is a short overview of each broker's pros and cons

  1. Interactive Brokers - Interactive Brokers (IBKR) is a premier brokerage, providing access to 150 markets in 33 countries, along with a suite of comprehensive investment services. With over 40 years of experience, this Nasdaq-listed firm adheres to stringent regulations by the SEC, FCA, CIRO, and SFC, amongst others, and is one of the most trusted brokers for trading around the globe.
  2. eToro USA - eToro is a social investing platform that offers short-term and long-term trading on stocks, ETFs, options and crypto. The broker is well-known for its user-friendly community-centred platform and competitive fees. With FINRA and SIPC oversight and millions of users across the world, eToro is still one of the most respected brands in the industry. eToro securities trading is offered by eToro USA Securities, Inc.
  3. IG - Founded in 1974, IG is part of IG Group Holdings Plc, a publicly traded (LSE: IGG) brokerage. The brand-US offers spread betting, CFD and forex trading across an almost unrivalled selection of 17,000+ markets, with a range of user-friendly platforms and investing apps. For 50 years, IG has maintained its position as an industry leader, excelling in all key areas for traders.
  4. Uphold - Uphold is a digital asset platform offering a range of services, from crypto trading and staking to payment cards that provides rewards and easy multi-currency payments. The company was established in 2015 and has enabled $4+ billion in transactions. Uphold is now active in 180+ countries and deals in 200+ crypto and fiat currencies.
  5. Zacks Trade - Zacks Trade is a FINRA-regulated US broker offering trading on stocks, ETFs, cryptocurrencies, bonds and more through a proprietary terminal. The broker is geared toward active traders and offers very affordable fees on most assets as well as an app and a vast amount of market data.

Interactive Brokers

"Interactive Brokers is one of the best brokers for advanced day traders, providing powerful charting platforms, real-time data, and customizable layouts, notably through the new IBKR Desktop application. Its superb pricing and advanced order options also make it highly attractive for day traders, while its diverse range of equities is still among the best in the industry."

Christian Harris, Reviewer

Interactive Brokers Quick Facts

Demo AccountYes
InstrumentsStocks, Options, Futures, Forex, Funds, Bonds, ETFs, Mutual Funds, CFDs, Cryptocurrencies
RegulatorFCA, SEC, FINRA, CFTC, CBI, CIRO, SFC, MAS, MNB, FINMA, AFM
PlatformsTrader Workstation (TWS), IBKR Desktop, GlobalTrader, Mobile, Client Portal, AlgoTrader, OmniTrader, eSignal, TradingCentral
Minimum Deposit$0
Minimum Trade$100
Leverage1:50
Account CurrenciesUSD, EUR, GBP, CAD, AUD, INR, JPY, SEK, NOK, DKK, CHF, AED, HUF

Pros

  • There's a vast library of free or paid third-party research subscriptions catering to all types of traders, plus you can enjoy commission reimbursements from IBKR if you subscribe to Toggle AI.
  • The TWS platform has clearly been built for intermediate and advanced traders and comes with over 100 order types and a reliable real-time market data feed that rarely goes offline.
  • With low commissions, tight spreads and a transparent fee structure, IBKR delivers a cost-effective environment for short-term traders.

Cons

  • IBKR provides a wide range of research tools, but their distribution across trading platforms and the web-based 'Account Management' page lacks consistency, leading to a confusing user experience.
  • You can only have one active session per account, so you can’t have your desktop program and mobile app running simultaneously, making for a sometimes frustrating trading experience.
  • TWS’s learning curve is steep, and beginners may find it challenging to navigate the platform and understand all the features. Plus500's web platform is much better suited to new traders.

eToro USA

"eToro remains a top pick for traders looking for leading social investing and copy trading services. With a low deposit, zero commissions and an intuitive platform, the broker will meet the needs of newer day traders."

Jemma Grist, Reviewer

eToro USA Quick Facts

Bonus OfferInvest $100 and get $10
Demo AccountYes
InstrumentsStocks, Options, ETFs, Crypto
RegulatorSEC, FINRA
PlatformseToro Trading Platform & CopyTrader
Minimum Deposit$100
Minimum Trade$10
Account CurrenciesUSD

Pros

  • The broker's Academy offers comprehensive learning materials for beginners to advanced-level investors
  • eToro USA Securities is a trustworthy, SEC-regulated broker that is a member of FINRA and SIPC
  • A free demo account means new users and prospective day traders can try the broker risk-free

Cons

  • There's no MetaTrader 4 platform integration for traders who are accustomed to using third-party charting tools
  • There's a narrower range of day trading instruments available compared to competitors, with only stocks, ETFs and cryptos
  • The proprietary terminal doesn't support trading bots and there are no additional stock market analysis tools

IG

"IG continues to provide a comprehensive package with an intuitive web platform, best-in-class education for beginners, advanced charting tools bolstered by its recent TradingView integration, real-time data, and fast execution speeds for experienced day traders."

Christian Harris, Reviewer

IG Quick Facts

Demo AccountYes
InstrumentsCFDs, Forex, Stocks, Indices, Commodities, ETFs, Futures, Options, Crypto, Spread Betting
RegulatorFCA, ASIC, NFA, CFTC, DFSA, BaFin, MAS, FSCA, FINMA, CONSOB, AFM
PlatformsWeb, ProRealTime, L2 Dealer, MT4, TradingView, AutoChartist, TradingCentral
Minimum Deposit$0
Minimum Trade0.01 Lots
Leverage1:30 (Retail), 1:250 (Pro)
Account CurrenciesUSD, EUR, GBP, CAD, AUD, JPY, ZAR, SEK, DKK, CHF, HKD, SGD

Pros

  • IG is amongst the best in terms of its range of instruments, which includes stocks, forex, indices, commodities, and cryptocurrencies, plus recently added US-listed futures and options, providing ample diversification opportunities.
  • As a well-established broker, IG operates under strict regulatory guidelines in multiple jurisdictions, maintaining a high level of trust.
  • IG offers an extensive collection of professional and engaging educational resources, including webinars, articles, and analysis.

Cons

  • While there is negative balance protection in the UK and EU, there is no account protection or guaranteed stop losses for US clients.
  • IG has discontinued its swap-free account, reducing its appeal to Islamic traders.
  • Stock and CFD spreads still trail the cheapest brokers like CMC Markets based on tests.

Uphold

"Uphold remains a top choice for crypto investors looking for a one-stop-shop solution to accessing the markets. There are over 250 tokens to buy, sell and trade through flexible platform options."

William Berg, Reviewer

Uphold Quick Facts

Demo AccountYes
InstrumentsCryptos
PlatformsDesktop Platform, Mobile App
Minimum Deposit$0
Minimum Trade$1
Account CurrenciesUSD, EUR, GBP

Pros

  • The proprietary app is extremely easy to use with a slick design and navigation
  • Over 250 cryptos are available including major tokens like Bitcoin and Ethereum
  • Crypto staking is available on 30+ tokens with above-average rates up to 16%

Cons

  • There is a 2.49% fee if you want to use debit or credit cards
  • Customer service is slow based on tests, with limited contact options
  • Uphold operates with limited regulatory oversight

Zacks Trade

"Zacks Trade will suit active day traders with experience using powerful platforms. Fees and margin rates are low while the market research is excellent."

Tobias Robinson, Reviewer

Zacks Trade Quick Facts

Demo AccountYes
InstrumentsStocks, ETFs, Cryptos, Options, Bonds
RegulatorFINRA
PlatformsOwn
Minimum Deposit$2500
Minimum Trade$3
Account CurrenciesUSD, EUR, GBP, CAD, AUD, NZD, INR, JPY, ZAR, TRY, SEK, NOK, DKK, CHF, HKD, SGD, RUB, PLN, CZK, HUF

Pros

  • 20+ account denominations
  • Regulated by FINRA with access to the Securities Investor Protection Corporation
  • Customizable proprietary trading platform and mobile app

Cons

  • Withdrawal fees apply if removing funds more than once per month
  • High minimum requirement of $2,500
  • Shortcomings regarding platform loading times and technical glitches

What is Ethical Investing?

Before comparing the best brokers for ethical investing, let us first define the term. Ethical investing refers to the practice of aligning your moral compass and ethical values (environmental, social, political, religious, etc) to your selection of securities investing. The term encompasses all approaches to investing that consider ethical principles as well as profits. Ethical investing is entirely subjective, depending on a trader’s views.

Ethical investing often aims to stop traders from profiting from activities that may be considered harmful to society and the environment. It encourages traders to invest in companies, projects, funds and other assets that are committed to sustainable operations and consider issues like climate change, gender equality, animal testing, firearms and gambling, for example.

Typically, the best brokers for ethical investing filter out harmful activities (negative screening) and seek out those investment options that are committed to making positive changes and impacts through their environmental, social and governance (ESG) practices (positive screening):

Types Of Ethical Investing

This practice has lots of variations, even within just one of the best brokers for ethical investing, including green, socially responsible, impact and ESG investing. While most of these centre on the same idea and are often used interchangeably, we have explored them in more detail below:

Green Investing

Green investing specifically focuses on the environmental impacts of businesses and their commitment to the reduction of pollution and greenhouse gases, the conservation of natural resources and other environmentally friendly practices. Traders can buy green indices, ETFs, bonds and mutual funds or hold stocks in environmentally-conscious companies that support green initiatives. Pure-play green investments are those that generate all or most of their profits from green business activities.

Green business activities can be companies engaging in renewable energy research, developing eco-friendly alternatives to plastics or seeking to reduce pollution and the environmental impact from their operations.

This can be split into three categories, dark, medium and light green investing. Dark green investing is a strictly screened approach, avoiding any company or industry that does not meet the criteria, whereas light green investing seeks companies that are doing good rather than excluding companies that are considered to cause harm. Medium green approaches are a combination of the two.

ESG Investing

ESG stands for Environmental, Social and Governance and is one of the most common forms offered by the best brokers for ethical investing. It is a form of ethical trading that considers an investment’s financial returns as well as its behaviours. Their impact on the world is measured using a score based on the following principles:

Socially Responsible Investing (SRI)

Socially responsible investing (SRI) does what it says on the tin: it is an investment that is considered socially responsible based on the nature of the business. SRI actively eliminates ‘sin stocks’ or selects investments according to specific ethical guidelines, like the ESG scoring system. The best brokers for ethical investing of this form blend positive and negative screening to capture the best of both worlds.

Socially responsible investments usually mimic the current social, economic and political climate. Therefore, the investments may suffer if something changes within that climate. Traders should be aware that just because an investment is socially responsible does not mean that it will provide investors with a good return.

An example of SRI is community investing, which goes towards companies that have a track record of helping the community but have also been unable to generate funds from other sources like financial institutions. By investing in these types of companies, they can continue to provide services to communities like affordable housing and loans, without depending on governmental assistance.

Impact Investing

Impact investing is a method that delivers measurable social and/or societal effects and benefits, alongside financial gains. The best brokers for ethical investing of this type focus on generating specific social or environmental outcomes whereby investments are put into market segments dedicated to solving certain issues.

A basic goal of impact investing is to help reduce the negative effects of business activities on the social environment and can often be considered an extension of philanthropy.

Using impact investing as a strategy involves considering a company’s commitment to corporate social responsibility (CSR). Impact investing is mostly done by institutional investors such as hedge funds, banks and pension funds. Traders may choose to invest their money into emerging or developed economies and an array of industries including agriculture, education, energy (particularly clean and renewable), and healthcare.

Ethical Company Stocks

The best brokers for ethical investing will allow you to invest in companies with strong environmental commitments, which is the simplest and most popular form of ethical investing. Many new start-ups are seeking to develop alternative energies and greener materials, while established companies are betting on a low-carbon future. It can be time-consuming to pick stocks and keep track of their performance and green credentials.

However, it results in a bespoke portfolio that matches your sense of what is ethical and important.

Top ethical stocks to invest in can include Tesla, which has reached high valuation by targeting environmentally-conscious consumers. Salesforce also does well on ESG criteria as it has maintained net-zero greenhouse emissions since 2018 and is over half the way towards its 100% renewable energy by 2022 target. Other top investments include 3M (MMM), Colgate-Palmolive, and Kimberly-Clark.

Ethical Indices

Several indices seek to track environmentally favourable and sustainable businesses. Some organisations have created ethical indices that calculate benchmarks whose underlying is selected based on ESG criteria.

The starting point is a traditional index to which filters are applied (negative or positive criteria) to eliminate companies that do not satisfy social responsibility criteria. The investment spectrum will be filtered to a greater or lesser extent depending on the stringency of the SRI or ESG policies applied. Features like capitalisation, sector and geographical diversification are nearly always retained to give financial credibility to the index.

For example, the NASDAQ Clean Edge Green Energy Index and the MAC Global Solar Energy Index both target the renewable energy sector. The Dow Jones Sustainability Index (DJSI) was launched in 1999 and the FTSE4Good index was designed to measure the performance of companies that comply with recognised global sustainability standards.

These are two of the most well-known ethical investment indices for UK companies. The MSCI indices are global benchmarks that exclude companies operating in certain business segments that investors might prefer to avoid and includes companies with high ESG standards. The best brokers for ethical investing through indices will offer a wide range of such assets to allow clients to specialise or diversify their portfolios within the boundaries of their beliefs.

Ethical Funds

There is estimated to be more than £19 billion invested in ethical funds in the UK and $80 billion globally. Mutual funds, ETFs and index funds can provide wider exposure to ethical companies. Ethical funds that invest in renewable energy companies, for example, allow traders to support new technologies while perhaps tapping into any potential growth.

Ethical funds are provided by asset or investment management firms. They apply negative and/or positive value-based screening to help sift through socially responsible investments.

Ethical Cryptos

There has been a lot of attention on Bitcoin’s environmental impact recently, so some of the best brokers for ethical investing have been looking for ways that crypto traders can find the best of both worlds.

Bitcoin relies on the proof of work verification system for its blockchain, involving huge numbers of calculations and amounts of processing power to produce a single coin. While efforts are being made to reduce the digital currency’s carbon footprint, traders have started looking for greener options. Cryptocurrencies that use a proof of stake system, for example, use far less energy.

Smaller cryptos have a lower energy footprint as they involve fewer daily transactions, while some are just generally more energy efficient. Below we have listed some more sustainable cryptocurrencies:

Pros

There are many obvious advantages of using the best brokers for ethical investing:

Cons

Despite making a positive impact, even the best brokers for ethical investing has some drawbacks:

Final Word

Ethical investing is a growing phenomenon among traders as it balances earning profits with making positive environmental, ecological, political and social changes in the world. From an investor’s point of view, buying stocks in companies that fit into ESG criteria is a simple way to make a difference but doing the research can often be time-consuming. Using an ethical investment fund or a broker for ethical investing is a simpler way but is an expensive option.

FAQs

How Can I Invest Ethically?

Before getting involved with the best brokers for ethical investing, some research is required. Firstly, consider what you are passionate about. Choose an issue (or several) that you care about as this will help narrow your search for investments. Next, choose an approach: do you want to exclude certain sectors completely, invest in problematic companies to improve their operations or invest your money into finding solutions. Following that, you need to pick a fund, asset or company by checking their mission statement to see if your values are aligned (or not) with theirs.

Is Islamic Trading A Type Of Ethical Investing?

Yes, Islamic trading accounts are a popular example of a religious-based approach, offered by many of the best brokers for ethical investing. The main attraction of brokers offering Islamic accounts is that it allows those who follow Sharia Law to trade on the markets without breaking with their faith. It also allows traders to stay true to their morals and ethics, avoiding investments involving alcohol, pork, gambling and other forbidden items.

How Do Ethical Investing Returns Compare?

No investment method or strategy is guaranteed to generate more or fewer profits than another. The performance of ethical funds is similar to that of traditional funds, if not somewhat better, and the greater depth of research and analysis of companies may mean that you invest in better ones. However, excluding certain industries may also limit your growth prospects and diversification opportunities.

What Is The Difference Between ESG Vs SRI Vs Impact Investing?

ESG investing has set criteria, looking at a company’s environmental, social and governance practices while also using more traditional financial measures to enhance analysis. Socially responsible investing involves negatively screening companies or excluding certain investments based on personal ethical criteria. Impact investing is focused on generating specific social or environmental outcomes and investments are put into market segments dedicated to solving certain issues.

Who Are The Best Brokers For Ethical Investing?

Interactive Brokers have ESG scores on all its platforms and you can receive alerts where ESG news may affect the scores of the companies you are investing in. With OpenInvest, you can declare what you care about most, whether that is climate change or social equality, and they will handle your investments accordingly. Ellevest is a platform built “for women by women” that considers the reality of women’s lives, including the gender pay gap. With its impact portfolio, traders can invest in women in leadership, sustainable practices and community development.