BGL BNP Paribas: The Bank For A Changing World

August 20, 2020
Brokers
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BGL BNP Paribas is a Luxembourg bank that offers brokerage services and the possibility for its clients to trade stocks, ETFs, warrants and bonds. After a deep analysis, we think that this is a broker for high-income investors because of the fee structure it offers and because it requires an initial deposit of 50,000 EUR of capital so that you can choose an account that allows you to operate. However, if you are looking for a Luxembourg bank where you can also trade, you can consider BGL BNP Paribas because it also meets the highest Luxembourg regulatory standards.

BNP Paribas offers you several features that could attract your attention. However, we think that Capital.com is a better alternative because you can open an account with as little as 20 USD. In addition, it offers you an ultra-fast investment platform with a large number of tools and a clean and easy-to-use interface that will allow you to do much more robust analysis.

We analyzed hundreds of data points relevant to the costs, benefits and features of trading with BGL BNP Paribas and scored our findings on a 10-point scale across 10 distinct categories.
Fees 2
Signup Process 5
Minimum Deposit 0
Ease of Use 4
Deposit & Withdrawal Options 3
Customer Support 6
Asset Classes 4
Referral Program 0
Demo Account & Educational Resources 0
Safety & Regulation 10
Total 34

What is BGL BNP Paribas?

BGL BNP Paribas is a Luxembourg bank that has been operating in the market since 1919 and has been able to adapt to market trends to offer one of the best financial intermediation services in Luxembourg. Also, the bank offers brokerage services that will allow you to invest in stocks, ETFs, warrants and bonds. The bank offers a multi-currency platform so that you can choose any currency in the world as the base currency.

BGL BNP Paribas offers its services in the following countries:

MoroccoSingaporeLuxembourgTurkey
ChinaBelgiumMonacoUnited Arab Emirates
Hong KongFrancePolandUnited Stated of America
TaiwanGermanySpainBrazil
IndiaItalySwitzerlnad

BGL BNP Paribas Pros & Cons

Pros

  • High regulatory standards.
  • Excellent protection of funds.
  • You can have a bank account and an investment account at the same institution.
  • No deposit fees.

Cons

  • There is no demo account.
  • Educational resources are limited.
  • You will have to pay an account maintenance fee.
  • There are fees to trade financial instruments.
  • The minimum initial deposit is too high.
  • The investment platform is not powerful.

Account Types

Direct Invest Account

It is an investment account intended for Luxembourg residents with which you can operate with the advice of qualified personnel of the institution. In other words, you will have a privileged relationship with the team of specialists who will support you so that you build profitable portfolios.

Self Invest International Account

It is a standard trading account with which you can make your own decisions and trade as an independent investor.

Here’s a breakdown of our 10 scoring categories, each scored out of 10 for a total of 100 points.

#1 BGL BNP Paribas Fees

The fee structure of BGL BNP Paribas depends on the type of account you wish to operate with. You must take into account that there is a maintenance fee for using the investment account and that after a year and a half of inactivity in the account you will have to pay an inactivity fee of 120 EUR per month.

Because BGL BNP Paribas is a bank, there are no fees for withdrawing or funding the investment account. Below you will see the fee structure for each of the accounts offered by the bank:

FeesDirect InvestSelf Invest International
Monthly subscription 2.50 EUR/month (Multi-currency account: 11 base currencies) 15 EUR/month (Multi-currency account: all base currencies)
Stocks0.45% (min. EUR 50)0.75% (min. EUR 50)
Bonds0.65% (min. EUR 50)0.65% (min. EUR 50)
Funds1%2%

The bank loses quite a few points in this category because, in addition to charging commissions for each transaction, there are costs that you must incur to operate in the investment accounts.

It is important that you take into account that, in the market, there is a great variety of brokers that offer lower rates and there are even brokers such as Capital.com that do not charge any type of fees for having an account or for trading. That is, zero fees!

BGL BNP Paribas Fees Score: 2/10

#2 BGL BNP Paribas Signup Process

The account opening process at BGL BNP Paribas is completely online if you meet some of the following requirements:

  • Being a resident in Luxembourg.
  • Have an employment contract in Luxembourg (fixed-term, permanent, internship, etc.).
  • Being a student in Luxembourg.
  • Being eligible for a CEDIES loan: student grant paid by Luxembourg if at least one parent works in Luxembourg.
  • Earn an income in Luxembourg, e.g. retirement pension, even if not a Luxembourg resident.
  • Collect rent in Luxembourg.

Whether or not you’re a resident, you must supply the following documents:

  • ID document.
  • Your employment contract (if it is dated within the last three months), or a recent payroll (dated within the last three months).
  • Proof of address: certificate of residence dated within the last three months, electricity, gas, water bill, home insurance, certificate, or landline bill (dated within the last three months).
  • Your Tax number.

It is important that you take into account that in the case of people who do not reside in Luxembourg and who do not comply with the aforementioned requirements, they must provide additional information that will depend on the nationality, profile and activity of each investor and you may have to send some documents by mail.

This aspect makes the account opening process for non-residents of Luxembourg very cumbersome and it can take between 2 and 3 weeks. This feature is very significant because if you are interested in taking advantage of an investment opportunity, this broker is not the most suitable. For this reason, the bank loses half of the points in this category.

If you are looking for a broker in which you can open an account and invest as soon as possible, we recommend Capital.com because you will be able to open an account and operate in the financial market in just 20 minutes.

BGL BNP Paribas Signup Process Score: 5/10

#3 Minimum Initial Deposit

The criteria set by BGL BNP Paribas so that you can operate on the investment platform consists of a minimum investment of 50,000 EUR.

While it is true that with higher capital it is possible to obtain higher profits, the minimum amount required by Paribas is extremely high compared to other brokers. Also, if you are a retail investor, this sum can be too high to begin with.

For your reference, below we present the minimum initial deposits from other brokers:

Broker                       Minimum Initial Deposit
Capital.com$20 USD
eToro$50 USD
Forex.com$100 USD
Vantage FX$200 USD

As you have seen, there are other alternatives in the market so that you can continue or start your trading career without having to accumulate large sums of money. For this reason, this is one of the worts’scoring brokers in this category.

BGL BNP Paribas Minimum Initial Deposit Score: 0/10

#4 Ease of Use

 The investment platform offered by BGL BNP Paribas is really basic. In it, you will not find powerful technical analysis tools or customization possibilities so that you can adapt the platform to your trading style. However, you will be able to track your investments and see in real-time the evolution of the prices of the financial instruments in which you have invested your capital.

 The investment platform offered by BGL BNP Paribas is really basic

BGL BNP Paribas App

BGL BNP Paribas offers an investment platform app so that you can access your investments at any time from your cell phone. Nevertheless, you must take into account that the app is very simple and that it is not very well rated by its users on the different download pages. The app has a score of 3.1/5 in the Apple App Store and 3/5 in Google Play Store.

The Paribas investment platform is very basic and, although in one of the accounts offered by the bank you may have recommendations from qualified investment analysts, the truth is that the platform does not offer many alternatives so that you can robustly analyze your investments.

This aspect is really important because, in order for you to make the best investment decisions, your analysis must be based on descriptive indicators and statistics that allow you to fully exploit your profits. For this reason, the bank loses quite a few points in this category.

In this aspect, Capital.com and AJ Bell Youinvest can offer you much more powerful investment platforms with very friendly and intuitive interfaces. These platforms will allow you to make the most effective and efficient analysis so that you exploit all the opportunities that you find in the market to the maximum.

BGL BNP Paribas Ease of Use Score: 4/10

#5 Deposit & Withdrawal Options

BGL BNP Paribas only allows you to use bank transfers to make your deposits and withdrawals. Take into account that it is actually a bank and that the investment account is a service that the bank offers as a complement.

You may want to use other alternatives such as e-wallets, credit/debit cards or even use cryptocurrencies to finance your investment account, but, unfortunately, it is not possible with BGL BNP Paribas and for this reason, the bank loses valuable points in this category.

If you are interested in a broker that offers you many more alternatives, we recommend taking into account Capital.com and Vantage FX.

BGL BNP Paribas Deposit & Withdrawal Options Score: 3/10

#6 BGL BNP Paribas Customer Support

BGL BNP Paribas offers customer support in English, French and German from Monday to Friday, 08:30 to 18:30 (GMT + 1). The attention of the technical staff via phone is immediate. However, responses to emails usually take up to 24 hours. Here are the alternatives offered by Paribas so that you can communicate with the technical staff:

Although you can communicate with the technical staff by email and phone in three languages, BGL BNP Paribas loses points in this category because it could offer other alternatives such as live chat. Also, in some cases, you will have to wait up to 24 hours to receive responses to your emails.

BGL BNP Paribas Customer Support Score: 6/10

#7 Asset Classes

Stocks

You can buy stocks in different international markets such as:

  • USA
  • Paris
  • Brussels
  • Milan
  • Amsterdam
  • Frankfort
  • London
  • Zurich

Bonds

BGL BNP Paribas offers fixed income instruments.

ETFs

You can trade ETFs on the BGL BNP Paribas investment platform.

Although BGL BNP Paribas will allow you to trade instruments internationally, you will have limitations when building diversified portfolios because the bank does not offer cryptocurrencies or currency pairs. Furthermore, the bank does not offer an opportunity to invest in Asian markets. For these reasons, the bank is not well rated in this category.

BGL BNP Paribas Asset Classes Score: 4/10

#8 Referral Program

At this moment, BGL BNP Paribas does not contemplate a referral program so that you can earn extra money by inviting a friend to invest in financial instruments. For this reason, it is not possible to assign points in this category.

BGL BNP Paribas Referral Program Score: 0/10

#9 Demo Account & Educational Resources

Unfortunately, BGL BNP Paribas does not offer a demo account and you will not find educational resources with which you can complement your strategies. Take into account that the main activity of the entity is financial intermediation and thus, the brokerage services are a complement within the services offered by the institution. Due to this, it is not possible to assign points to Paribas in this category.

If you are looking for a broker that offers you excellent educational resources and an excellent demo account so that you can complement your investment strategies, we recommend Capital.com and OctaFX.

BGL BNP Paribas Demo Account & Educational Resources Score: 0/10

#10 Safety & Regulation

BGL BNP Paribas is regulated by the competent authority responsible for financial regulation and supervision in Luxembourg, The Commission de Surveillance du Secteur Financier (CSSF). Also, BGL BNP Paribas offers insurance of 100,000 EUR or the foreign currency equivalent, per investor (natural person or legal entity) and per credit institution.

In this category, BGL BNP Paribas gets an excellent score due to its level of security. It is important that when you decide to invest your capital, you do so in a reliable and safe institution that also guarantees your funds, which is the case with BGL BNP Paribas.

BGL BNP Paribas Safety & Regulation Score: 10/10

BGL BNP Paribas vs. Capital.com
While researching 100+ of the world’s top brokers, we’ve noticed what works and what doesn’t from the customer’s point of view. That’s why our final test for any broker is to compare it to Capital.com, which scores 91/100 points across the 10 categories mentioned in this review.

BGL BNP Paribas vs. Capital.com

Selecting the broker that best suits your investment strategies and plans is one of the decisions you must make with the greatest amount of information available so that you can operate without distractions and focus on making money. Moreover, it should also allow you to be confident when investing your money by letting you do the best analysis possible at the same time offering you the lowest rates. Taking into account the most relevant aspects for an investor, we prefer Capital.com over BGL BNP Paribas for the following reasons:

It Has An Unlimited Demo Account

One factor that is essential when testing an investment platform is being able to access a demo account. In this aspect, BGL BNP Paribas falls short because it does not offer demo accounts. With Capital.com you can truly test the platform since you will be able to use an unlimited demo account to test each one of the tools and features of the investment platform.

It has the best fees

Capital.com doesn’t charge any fees on any asset that you trade: stocks, commodities, cryptocurrency, indices, forex, ETFs, or anything else. It doesn’t charge monthly or annual fees, inactivity fees, or deposit or withdrawal fees, either. It also offers tight spreads on trades, unlike other zero-fee brokers, who make their money on wide spreads. Capital.com only makes money on the overnight fees on leveraged trades, so if you trade without leverage, you’ll never pay any fees.

It Provides More Educational Resources

At Capital.com you have a lot of tools and options so you can study the market and create the best investment plans. For example, you will be able to access:

  • Free financial webinars.
  • Educational courses for traders.
  • Extensive market glossary.
  • Comprehensive CFD trading guide.
  • Cryptocurrency trading tutorial.
  • Investmate, Capital.com’s investor education app.

It’s Easier To Use

The BGL BNP Paribas investment platform is really basic. We believe Capital.com is a better alternative because it has a very stable platform, it is easy to use and it is intuitive. In addition, it has an interface that follows the best data processing standards for merchants.

 The Capital.com platform is easy to use and is intuitive

Far better Deposit & Withdrawal Options

BGL BNP Paribas does not offer many deposit and withdrawal options. In contrast, we can affirm that Capital.com is a better choice because you can use a credit card, bank transfer, debit card, SOFORT, iDeal, Giropay, Multibanko, Przelewy24, QIWI, Webmoney, Trustly, Neteller and Skrill. You’re never charged a fee to deposit or withdraw money with Capital.com.

BGL BNP Paribas In Summary

  • BGL BNP Paribas is a Luxembourg bank that has been operating in the market since 1919.
  • The fee structure of Paribas depends on the type of account you wish to operate with.
  • The investment platform offered by Paribas is really basic.
  • The minimum amount to be able to operate with the bank is really high.
  • Unfortunately, the bank does not offer a demo account and you will not find educational resources with which you can complement your strategies.

If you are interested in a Luxembourg bank where you can trade, Paribas is a good alternative because it meets high regulatory standards.

However, if you are looking for a broker with which you can start a trading career or raise your profession to the next level, you should put your capital in a broker that provides you with tools, security and that allows you to save money with each transaction you make.

For this reason, we recommend Capital.com. This is a broker that does not charge transaction fees and also offers you a demo account so that you can put your strategies into practice without running the risk of losing money with a real money account. Also, Capital.com offers very good educational content with which you can constantly level up.

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