Best Online Brokers in the UK
Dom Farnell
Co-Founder
Dom is a Co-Founder and of TIC. A passionate investor and seasoned blog writer with a keen interest in financial markets and wealth management.My goal is to empower individuals to make informed investment decisions through informative and engaging content.
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Please bear in mind that trading involves the risk of capital loss. 68% to 84% of retail investor accounts lose money when trading CFDs with the providers below. You should consider whether you can afford to take the high risk of losing your money.
Quick Answer: Which is the Best?
The broker to be used online in the UK is Saxo. Saxo offers a comprehensive range of trading options, excellent customer service, and an intuitive trading platform, making it a top choice for both novice and experienced traders seeking to navigate the financial markets.
Here are the Top 10 Online Brokers In the UK
- 1st Saxo – All Round Best
- 2nd IG – Great to Access a Range of Different Account Types
- 3rd Lightyear – Good Choice for general investing
- 4th Trading 212 – Best for Low Fees and Zero Commission Trading
- 5th Plus500 – Great choice to Trade Assets using CFDs
- 6th Hargreaves Landsdown – Best to access a range of Invesment Funds
- 7th Interactive Investor – Outstanding Customer Service
- 8th eToro – Good option if you want to include Crypto under 1 account
- 9th – Pepperstone – Our Top option for access to low Forex Fees
- 10th AvaTrade – A Top Option for Beginners looking to Start Trading
Page Contents:
Online Broker Comparison Chart
Platform Focus | Advanced | User-friendly | Mobile App | User-friendly | User-friendly | User-friendly | Web-based | User-friendly | Advanced | User-friendly |
Trading Fees | Tiered (spreads, commissions) | Varies (CFDs, Spread Betting, Shares) | Commission-free (US Stocks & ETFs) | Commission-free (Stocks, ETFs, CFDs - ISA) | Spreads (CFD) | Commission-based | Tiered commissions | Commission-based (stocks & ETFs) | Commission-based (Razor) or Spreads (Standard) | Spreads (CFD) + Commissions (some assets) |
Account Types | Classic, Platinum, VIP | Standard, ISA, Islamic | Standard | Standard, ISA | Standard | Standard, ISA | Standard, ISA | Standard | Standard, Razor | Standard, Demo, Islamic |
Options Trading | Yes | Yes | No | Limited (CFDs only) | No | No | No | No | Yes | Yes |
Comments | Powerful platform, best for experienced traders, lower fees for higher tiers | Wide range of products, ISA tax benefits, consider fees for different products | Beginner-friendly, fractional shares, limited investment options | Low fees, good for beginners, ISA tax benefits (restrictions apply) | Simple platform, CFDs only, high risk of loss | Established platform, good for share dealing, ISA tax benefits (restrictions apply) | Research & charting tools, ISA tax benefits (restrictions apply) | Social investing features, good for beginners | Powerful platform for active traders, lower fees for Razor accounts | Islamic accounts, various features, consider CFD risks |
Top 10 Online Brokers
TIC Score 5/5
Pros
Cons
81% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
- User-friendly mobile and desktop platforms with high customizability for charts and workspace
- Comprehensive product portfolio covering all asset classes with competitive pricing on FX options and access to over 1,200 listed options from 23 exchanges worldwide.
- No deposit or withdrawal fees and a variety of convenient funding options, including bank wire transfer and credit/debit cards.
- Diverse account types with tailored benefits, including dedicated support and exclusive invitations for Platinum and VIP account holders.
- High minimum deposit for certain regions and premium account types.
- Limited mutual fund selection compared to competitors.
- Not available for residents of the US, Iran, Cuba, Sudan, Syria, and North Korea.
- Limited funding options, with a preference for traditional methods over more modern or diverse choices like online payment processors or cryptocurrency.
Platform
Saxo offers a powerful and customizable web-based platform (SaxoTraderGO) and mobile app with advanced charting and order types. Fees may apply for specific platform features.
Trading fees
Saxo has a tiered account structure (Classic, Platinum, VIP) with varying fee structures. Generally, spreads are lower and commissions decrease for higher tiers. Overnight financing and guaranteed stop-loss orders may incur additional fees. (Check Saxo’s website for detailed fee schedules).
Account Types
Classic, Platinum, VIP. Each tier offers different minimum deposit requirements, fee structures, and features.
TIC Score 4.5/5
Pros
Cons
69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
- Extensive regulatory oversight from multiple top-tier authorities, ensuring a high level of client fund protection and broker transparency.
- Wide range of trading platforms including IG’s proprietary platform, MetaTrader 4, ProRealTime, and L2 Dealer, catering to all levels of traders from beginners to professionals.
- No withdrawal fees and a selection of deposit methods including bank transfer, credit/debit card, and PayPal, making account funding easy and affordable.
- Comprehensive educational resources and research tools available on both web and mobile platforms, helping traders make informed decisions.
- Account verification process can be slow, taking around 3 business days, which is longer than some competitors.
- CFD trading fees can be high, particularly for stock CFDs, which might affect cost-efficiency for some traders.
- Limited account base currency options, and changing the account currency requires contacting customer service, which could be inconvenient.
- Professional clients and non-EU clients do not receive negative balance protection, which adds a layer of risk.
Platform
IG offers a user-friendly web-based platform and mobile app with various features like charting tools and news feeds.
Trading fees
IG offers CFDs, spread betting, and share dealing, each with distinct fee structures. Spreads typically differ between CFDs and spread bets. Commissions apply to share dealing (percentage or fixed fee per trade). Overnight financing (CFDs) and guaranteed stop-loss orders may incur additional fees. (Check IG’s website for detailed fee schedules).
Account Types
Standard, ISA, and Islamic accounts. Fees may differ depending on the account type.
TIC Score 4.5/5
Pros
Cons
- Commission-free ETFs and low stock trading fees, making it a cost-effective option for investors.
- High interest on uninvested cash, offering an attractive return for cash holdings in GBP, EUR, and USD.
- Quick and easy account opening process, with verification often completed within minutes, facilitating immediate trading.
- User-friendly mobile and web platforms with an intuitive interface and a solid range of features for a streamlined trading experience.
- Limited investment products, focusing mainly on stocks and ETFs without options for cryptocurrencies, options, mutual funds, or bonds.
- Basic customer support options, with assistance available only through email, lacking immediate support channels like live chat or phone.
- Restrictions on deposit and withdrawal methods, with a notable fee for debit card deposits over a threshold and withdrawals limited to bank transfers.
- Minimal educational resources, offering less support for traders looking to expand their investing knowledge and skills.
Platform
Lightyear offers a user-friendly mobile app with a focus on fractional share investing. Their platform is designed for beginners and focuses on a limited selection of US stocks and ETFs.
Trading fees
Lightyear offers commission-free trading on US stocks and ETFs. Account inactivity fees may apply. (Always check Lightyear’s website for the latest fee information).
Account Types
Currently, Lightyear offers only one standard investment account.
TIC Score 4.5/5
Sign up, Deposit and Get a Free Share Worth Up to £100 Using Code ‘TIC’
Pros
Cons
67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
- Zero commission on real stocks and ETFs, offering a cost-efficient entry point for stock market investments.
- Instant and simple account setup, enabling investors to quickly commence trading.
- Impressive trading platforms, with intuitive design suitable for traders at all levels of experience.
- Attractive interest on uninvested cash balances, maximizing the potential returns for traders.
- Restricted range of trading instruments, primarily focusing on stocks, ETFs, and CFDs, limiting opportunities in other markets.
- Higher forex trading fees compared to some competitors, impacting cost-efficiency for currency traders.
- Limited analytical tools, which may not fully satisfy the needs of more advanced traders seeking in-depth market analysis.
Platform
Trading 212 offers a user-friendly web-based platform and mobile app with basic charting tools and social features.
Trading fees
Trading 212 offers commission-free trading on stocks, ETFs, and CFDs (for ISA accounts). Account inactivity fees may apply. (Always check Trading 212’s website for the latest fee information)
Account Types
Standard Invest and ISA accounts. The ISA account offers tax benefits for UK residents but comes with restrictions on tradable assets.
TIC Score 4.5/5
Pros
Cons
82% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
- User-friendly proprietary platform, ensuring a seamless trading experience across all devices without the need for additional software.
- No commissions charged on trades, with competitive spreads on a vast range of CFD products.
- Regulated by multiple top-tier authorities, ensuring high levels of trust and security for your trading activities.
- Robust risk management tools and real-time alerts, aiding in effective trading and risk mitigation.
- Limited customizability on its web trading platform, which may not satisfy traders used to more personalized setups.
- Overnight holding and inactivity fees may apply, adding to the cost of trading for some users.
- Does not support automated trading, which might be a limitation for traders employing complex strategies.
- High spreads on certain instruments compared to other brokers, potentially impacting cost-efficiency
Platform
Plus500 offers a user-friendly web-based platform and mobile app designed for CFD trading.
Trading fees
Plus500 doesn’t disclose specific CFD fees. Fees are typically rolled into the spread (difference between buy and sell price). Overnight financing and guaranteed stop-loss orders may incur additional fees. (Always check Plus500’s website for the latest fee information).
Account Types
Standard account. Plus500 offers a simple account structure with one main account type.
TIC Score 4/5
6th Hargreaves Landsdown - Best to access a range of Invesment Funds
Pros
Cons
- Extensive range of investments: Offers a wide variety of shares, funds, and other investment vehicles across global markets.
- High-quality research and analysis: Provides exceptional market insights and research tools, even for non-customers, with more detailed information upon login.
- Variety of account types: More account types than any other UK stockbroker, increasing the odds of having the most efficient account for personal situations.
- Robust mobile and web trading platforms: Both platforms are user-friendly, facilitating easy access to investments.
- High fees for stocks and ETFs: Notably higher trading fees compared to the industry average, making it less attractive for frequent stock traders.
- Limited to GBP base currency: Accounts are only available in GBP, which may incur conversion fees for international investors.
- Offline account opening for non-UK clients: The process is not fully digital for clients outside the UK, potentially complicating access for international investors.
Platform
Hargreaves Lansdown offers a user-friendly web-based platform and mobile app for share dealing, investment trusts, and ISAs.
Trading fees
Hargreaves Lansdown charges a commission fee per trade, with discounts for frequent traders. Account inactivity fees may apply. (Always check Hargreaves Lansdown’s website for the latest fee information).
Account Types
Standard investment accounts and ISAs. ISAs offer tax benefits for UK residents but come with restrictions on tradable assets.
TIC Score 4/5
7th Interactive Investor - Outstanding Customer Service
Pros
Cons
- Flat-fee pricing structure: Benefits investors with larger portfolios, making costs predictable regardless of the portfolio size.
- Diverse investment choices: Access to over 40,000 trading products spanning shares, funds, trusts, and ETFs, including high-risk investments not widely available on most platforms.
- Excellent customer service and community features: Highly rated on Trustpilot, with a robust online community and forums for investors.
- Interest on cash balances: Pays interest on cash held in accounts, with rates depending on the account type and balance.
- Monthly account fee: Charges a monthly fee ranging from £4.99 to £19.99 depending on the chosen service plan, which may deter some investors.
- Limited to traditional investment products: While offering a vast range of products, it focuses on traditional ones like UK market funds and stocks, potentially limiting for those seeking broader options.
- Basic trading platform: The trading platform is straightforward and user-friendly but lacks advanced charting and analytic tools, which might not satisfy all users.
Platform
Interactive Investor offers a web-based platform and mobile app with a wider range of features than Hargreaves Lansdown, including charting tools and research.
Trading fees
Interactive Investor offers a tiered commission structure with lower fees for larger trade sizes. Account inactivity fees may apply. (Always check Interactive Investor’s website for the latest fee information).
Account Types
Standard investment accounts and ISAs. ISAs offer tax benefits for UK residents but come with restrictions on tradable assets.
TIC Score 34/5
8th eToro - Good option if you want to include Crypto under 1 account
Pros
Cons
76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
- Commission-free real stock and ETF trading provides a cost-effective option for investing.
- Social trading capabilities stand out, allowing users to copy trades from successful investors, fostering a learning and community-driven investment environment.
- VIP club and Popular Investor program offer additional benefits, including discounted fees and dedicated account managers for eligible investors.
- $5 withdrawal fee and the necessity for all accounts to operate in USD could incur conversion costs for international traders.
- Limited customer support might not meet the expectations of all users.
- Cryptocurrency trading fees are at 1% for buying and selling positions, which is around the industry average, but still a cost to consider.
Platform
eToro offers a user-friendly web-based platform and mobile app with social investing features like copy trading.
Trading fees
eToro charges a commission fee on stock and ETF trades. No account inactivity fees are currently charged. (Always check eToro’s website for the latest fee information).
Account Types
Standard account. eToro offers a simple account structure with one main account type.
TIC Score 4/5
Pros
Cons
74-89% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
- Fast and fully digital account opening process, making it quick and easy for new users to start trading.
- Exceptional customer service with seamless and free deposit and withdrawal processes.
- Competitive forex and CFD trading fees, with low spreads and commissions, particularly through its Razor account offering spreads from 0.0 pips plus commission.
- Primarily offers CFDs, which may not be suitable for all investors due to their complexity and risk.
- Basic MetaTrader platform that might not meet the needs of traders seeking advanced features, although alternatives are available.
Platform
Pepperstone offers powerful web-based platforms (cTrader, MT4, MT5) and mobile apps designed for advanced traders. They cater to various trading styles with advanced order types and charting tools.
Trading fees
Pepperstone offers commission-based accounts (Razor) with lower spreads and standard accounts with wider spreads but no commissions. Overnight financing and guaranteed stop-loss orders may incur additional fees. (Always check Pepperstone’s website for the latest fee information).
Account Types
Standard and Razor accounts. Razor accounts are better suited for active traders due to the commission structure.
TIC Score 4/5
Pros
Cons
71% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
- Accessible account opening: The process is straightforward, encouraging quick start-up for new traders.
- Free deposits and withdrawals: AvaTrade does not charge for these transactions, enhancing user convenience.
- Rich educational and research tools: Provides valuable resources for traders to make informed decisions.
- Limited product range: Focuses on CFDs, forex, and cryptos, which may not cater to all trading preferences.
- High inactivity fees: Charges substantial fees for accounts inactive for three months or more, which can add up over time.
Platform
AvaTrade offers a user-friendly web-based platform (AvaTradeGO) and mobile app with various features like social trading and technical analysis tools.
Trading fees
AvaTrade charges spreads (difference between buy and sell price) on CFDs and commissions on some asset classes (check AvaTrade’s website for details). Overnight financing and guaranteed stop-loss orders may incur additional fees. (Always check AvaTrade’s website for the latest fee information).
Account Types
Standard, Demo, and Islamic accounts. Islamic accounts cater to those following Sharia law and offer swap-free trading options.
What is an Online Broker?
An online broker is a platform that allows individuals and traders to buy and sell securities over the internet.
Unlike traditional brokers, who often make trade decisions on behalf of their clients, online brokers provide a do-it-yourself model where users can execute trades without direct broker intervention.
This platform gives users access to various financial markets, including stocks, bonds, forex, commodities, and cryptocurrencies.
Key features of online brokers include:
Digital Platforms: Accessible via web or mobile applications, enabling trading anytime, anywhere.
Lower Fees: Generally, online brokers offer lower fees compared to traditional brokerage services due to reduced overhead costs.
Tools and Resources: Many offer educational resources, analytical tools, and real-time data to help users make informed trading decisions.
The History of Brokers
The concept of brokers facilitating the buying and selling of commodities, securities, and other assets dates back hundreds of years. Initially, transactions were made in physical marketplaces where brokers would match buyers with sellers.
Over time, the role of brokers expanded with the creation of stock exchanges, such as the London Stock Exchange in the late 17th century, offering a more organized venue for trading.
The evolution towards online brokerage began in the late 20th century with the advent of the internet. The first online trade was executed in 1994, marking the beginning of digital trading platforms.
This innovation transformed the brokerage industry by democratizing access to financial markets, making it more accessible to the general public.
What Role do they play in the UK
In the UK, online brokers play a crucial role in the financial marketplace by:
Providing Access to Markets: They offer retail investors access to both domestic and international markets.
Facilitating Investment: Online brokers enable individuals to invest in a wide range of financial products, catering to diverse investment strategies and risk tolerances.
Offering Guidance and Education: Many platforms provide educational content, market analysis, and investment advice to help users navigate the complexities of investing.
Promoting Financial Inclusion: By lowering the barriers to entry, online brokers allow a broader segment of the population to participate in investing.
In summary, online brokers have revolutionized the way individuals and traders interact with financial markets.
They provide the tools and platforms for making informed trading decisions independently, contributing significantly to the accessibility and efficiency of global financial markets, particularly in the UK.
What Types of Investments are there in the UK
In the UK, individuals have access to a wide range of investment vehicles. These include stocks, bonds, mutual funds, pension schemes, and more contemporary options like cryptocurrencies and peer-to-peer lending.
Each investment type offers different risk levels, return potentials, and tax implications, catering to the diverse financial goals and risk tolerance of investors.
SIPPS and Retirement Accounts
Self-Invested Personal Pensions (SIPPs): Offer investors the autonomy to make their own investment decisions, including stocks, bonds, and funds.
Workplace Pensions: Automatically set up by employers, often with employer contributions alongside the employee’s investment.
Personal Pensions: Private pension plans with tax relief benefits, suitable for individuals without access to workplace pensions.
Trading Accounts
Trading accounts are designed for buying and selling financial instruments like stocks, forex, commodities, and derivatives. They cater to investors looking to actively manage their portfolios and capitalize on market movements.
These accounts often come with tools for analysis, real-time trading capabilities, and sometimes leverage options for increased exposure.
General Investming Accounts
General investing accounts, or dealing accounts, allow for investment in a broad range of assets without the tax advantages of ISAs or pensions. They offer flexibility and no limits on contributions or withdrawals.
These accounts are ideal for investors looking to build a diversified portfolio across various asset classes, including equities, bonds, and investment funds.
How to Open an Investment Account with an Online Broker
Opening an investment account with an online broker involves a detailed process that includes researching to select a suitable broker, registering on their platform, verifying your identity, funding your account, and finally beginning to invest.
Each broker may have specific requirements and processes, but generally, the steps involve detailed personal and financial information submission, and compliance with regulatory checks.
It’s important to understand the fees, the range of investments offered, platform usability, and support services before deciding. Always ensure the broker is regulated by relevant authorities, like the FCA in the UK, for security and reliability.
Research Brokers: Compare fees, investment options, tools, and reviews.
Check Eligibility: Ensure you meet the broker’s requirements, like age or residency.
Register Online: Fill out the application form on the broker’s website, providing personal and financial details.
Verify Identity: Submit documents for identity and address verification, such as a passport and utility bill.
Deposit Funds: Transfer money into your account using accepted methods.
Start Investing: Use the platform to research, buy, and manage your investments.
Choose a broker that aligns with your investment goals and offers educational resources if you’re a beginner.
Tax Treatment of your UK Investing Account
In the UK, tax treatment of investment accounts varies based on the type of account and investments held. Profits from stocks and shares may be subject to Capital Gains Tax if beyond the annual exempt amount.
Dividends have a tax-free allowance, with tax rates depending on your income tax band. ISAs offer tax-free gains and dividends. SIPPs provide tax relief on contributions but are taxed upon withdrawal, except for a 25% tax-free lump sum. Always consult current HMRC guidelines or a financial advisor for precise tax obligations.
References
FAQs
The Financial Services Compensation Scheme (FSCS) is a UK statutory fund designed to provide security and trust in the financial markets, including the realm of online stock brokers.
If your online stock broker fails and cannot meet its financial obligations, the FSCS can compensate you up to £85,000 per eligible person, per firm.
This protection covers various investment products, including trading accounts, making it a critical consideration when choosing the best online stock broker for your needs.
Yes, most online trading platforms allow you to invest in Exchange Traded Funds (ETFs), which are popular investment vehicles that trade on major exchanges, like the New York Stock Exchange.
ETFs offer the flexibility of trading stocks combined with the diversified exposure of mutual funds, making them an attractive option for many investors. When selecting an online stock broker, ensure they offer a broad selection of ETFs, allowing you to diversify your portfolio efficiently.
Deciding on the best online stock broker for trading on the New York Stock Exchange (NYSE) involves evaluating several factors, including the broker’s fees, the range of investment options available (such as stocks, ETFs, and bonds), platform usability, customer service quality, and regulatory compliance.
Additionally, consider the broker’s access to international markets, including the NYSE, and whether they offer real-time data and analysis tools to help you make informed decisions.
Comparing these features among the leading online stock brokers will help you find the one that best suits your trading needs.
When looking for an online trading platform to trade exchange traded funds (ETFs) and stocks, prioritize features like user-friendly interface, comprehensive market research tools, real-time data and charting capabilities, low transaction fees, and robust security measures.
Also, consider platforms that offer educational resources to help you understand the market dynamics.
The best online trading platforms provide a seamless trading experience, whether you’re a novice or an experienced trader, facilitating easy management of your investment portfolio.
Online stock brokers operating in the UK are regulated by the Financial Conduct Authority (FCA), which ensures they adhere to strict standards of operation, protecting investors’ interests.
This regulatory framework impacts your investments on the New York Stock Exchange by ensuring that your broker operates with transparency, integrity, and in your best interest.
It provides a level of security and confidence, knowing that your investments are handled by a broker that is monitored and compliant with regulatory requirements.