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I've experimented quite a bit with different brands while working on my projects, and my experience matches what people have already mentioned here. Scheepjes and Drops really don't fade like generic yarn, but there's one detail nobody brought up: cotton yarn and blends with natural fibers hold their color better than pure acrylic, even from a good brand. If you want something that really won't fade, look for yarns that combine cotton or merino wool with synthetics, not just cheap dyed acrylic.
The pitfall is that a lot of people buy expensive yarn but then wash it any old way - and that wastes the investment. Quality brands work, but only if you wash in cold water, never lukewarm. Starch on your fingers, using regular soap instead of gentle soap, machine on a hot cycle: all of that ruins good yarn just as much as cheap yarn. So Scheepjes and Drops are solid bets, but the real secret is pairing a decent brand with proper care when washing. If you can't guarantee proper care afterward, even the best brand will fail.
Avoid really cheap, generic brands because those fade something awful. Scheepjes and Drops have a great reputation for keeping their color even after several washes, and I can get them easily here in Portugal. Look for yarns with quality fibers - merino wool, cotton, or well-made blends make a difference. If it's natural dye, then yeah, expect some color loss, but decent industrial dye holds up well to the washing machine.
I buy yarn pretty regularly and I've noticed the secret isn't just the brand, but also washing in cold water with neutral soap - warm water fades it a lot. Scheepjes and Drops really do hold color well, but if you want to save money, look for mid-range quality acrylic yarns that already come with better-set dye, like those imported ones from less-known but reliable brands; it completely changed my experience.
The most important thing really is the type of dye: yarns dyed with natural or semi-natural dyes hold their color much better than cheap synthetic ones, and Scheepjes is usually good at that. Washing in cold water with neutral detergent makes a difference, but if the yarn is already good quality you won't have any problems.
When I started knitting at home, I bought cheap yarn from one place and Drops from another, just to compare them. After about five washes in cold water, the cheap yarn had lost a lot of color while the Drops kept everything intact - it really does make a difference. I've been using mainly Drops and Scheepjes for a while now and I'm happy with both, but I think Drops is a bit more affordable around here. The real secret is cold water and neutral soap - if you wash it in warm or hot water, it ruins everything.
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