Smarter 24

LYNX

LYNX is a Netherlands-based stockbroker founded in 2006.

LYNX is an introducing broker of Interactive Brokers (IB). In practice, this means that your deposited funds will be held by IB but fees are charged by LYNX. You can also use IB’s trading platforms. 

LYNX is considered safe because both LYNX and Interactive Brokers are regulated by top-tier financial authorities.

LYNX’s market and product range is great, giving you access to the important international and also to some local European exchanges. Its stock and ETF trading fees are low, and the mobile trading platform is great.

Pros:

Wide range of markets and products
Low stock and ETF trading fees
Great mobile platform

Cons:

Deposit and withdrawal options limited
€3,000 minimum deposit
Overly complex desktop platform

2021 Ratings

4.3/5

4.3 out of 5

Trading fees and Costs

We ranked LYNX’s fee levels as low, average or high based on how they compare to those of all reviewed brokers.

To get things rolling, let’s go over some lingo related to broker fees. What you need to keep an eye on are trading fees, and non-trading fees.

  • Trading fees occur when you trade. These can be commissions, spreads, financing rates and conversion fees.
  • Non-trading fees include charges not directly related to trading, like withdrawal fees or inactivity fees.

LYNX has low stock and ETF commissions compared with the rest of the online brokerage market. Note that LYNX’s fee structure is a bit different in each country they operate in. We checked Lynx.nl fees (applicable to Dutch clients).

The inactivity fee is a maximum €5 per month. It is calculated as €5 minus transaction costs incurred during the month. So for example, if your trading costs added up to only €3 in a month, a further €2 would be debited to make it €5 in total.

If you have a portfolio exceeding €100,000, you will be exempt from this fee. New customers are also exempt from the platform fee after making their first deposit and in the following three months.

Trading platforms

LYNX offers two web trading platforms: LYNX Basic and Account Management

LYNX Basic is LYNX’s own web trading platform, while Account Management is provided by Interactive Brokers. For transferring money and managing your account, you can only use the Account Management platform.

The search functions are OK. You can search based on tickers and company names, but search results aren’t ranked by relevancy. For example, if you search for Apple, the German stock exchange appears first and not the US NASDAQ.

The LYNX mobile trading platform is available for both iOS and Android. In this review, we tested it on Android.

The mobile trading platform is available in English, German, Spanish, French, Italian, Russian, Dutch, Turkish, Chinese and Japanese.

The mobile trading app is handier compared with the web platform. Still, its overall look and user-friendliness lags behind the mobile platforms of many other brokers.

You can use two-step authentication during login, which is safer than a simple login. Furthermore, if your device has a fingerprint reader, you can also use biometric authentication for added convenience.

The search function works well, just like on the web trading platform. You can access the search button easily from any menu.

Safety

LYNX is an introducing broker of Interactive Brokers. This means that Interactive Brokers will hold your assets (both cash and securities). In the unlikely case that LYNX defaults, your assets would still be with Interactive Brokers.

Interactive Brokers’s UK entity is regulated by the Financial Conduct Authority (FCA), while the US entity is regulated by the Financial Industry Regulatory Authority (FINRA).

You will get the same investor protection as the regular clients of Interactive Brokers. This investor protection is slightly complicated, as it depends on the products you trade:

  • If you trade non-US stock index options or futures, the money involved in these trades is covered by the FCA’s £85,000 investor protection scheme. 
  • If you trade stocks, bonds, funds or US stock index options, the money involved in these trades is protected by US investor protection of $500,000, including a cash limit of $250,000.

Our best advice is to ask customer service from time to time about the exact protection amount applicable to your actual portfolio.

LYNX also provides negative balance protection for spot trading, but only for retail clients from the European Union. Professional and non-EU clients are not covered by any negative balance protection.