Buy Shares

Part I - Stock Market Basics

• Chapter 01: Intro to Investing
• Chapter 02: Buy Shares Online
• Chapter 03: First Stock Purchase
• Chapter 04: Lowering Risk
• Chapter 05: Dividend Stocks
• Chapter 06: Short or Long Term

Part II - Account Investments

• Chapter 07: Account Types
• Chapter 08: What Are Stocks
• Chapter 09: Purchasing Bonds
• Chapter 10: Mutual Funds
• Chapter 11: ETF Investments
• Chapter 12: Types of Trades

Part III - Research and Analysis

• Chapter 13: Terms and Ratios
• Chapter 14: Researching Stocks
• Chapter 15: Dow Jones and FTSE
• Chapter 16: Reading Tickers
• Chapter 17: UK Brokerage Firms

Part IV - Advanced Tips

• Chapter 18: Penny Stocks / IPOs
• Chapter 19: Day Trading
• Chapter 20: Options Trading
• Chapter 21: Forex Trading
• Chapter 22: Commodities Trading
• Chapter 23: Gold Markets
• Chapter 24: Silver Investments

How to Buy Shares Online in the UK

UK investors have never had it better. Not only can you now buy shares at the click of a button, but there are many online brokers that now allow you to do this on a commission-free basis.

In even better news, UK investors can now benefit from fractional ownership. This means that you can buy just a few pounds worth of shares – rather than having to meet a huge minimum requirement.

On this page, we are going to guide you through the super-easy process of buying shares in the UK. We’ll discuss which stock brokers should be considered, what you need to know before getting started, and how to pick shares on a do-it-yourself basis. All in all – this Buy Shares UK Guide has you covered.

How to Buy Shares in 5 Quick Steps

1. Register an account with a commission-free broker that is regulated by the FCA. We’d suggest eToro.
2. Quickly upload a copy of your passport or driver’s license
3. Instantly deposit some funds with a UK debit/credit card or e-wallet
4. Search for the shares you want to buy
5. Enter the amount you want to invest and confirm the order

And that’s it – the above five steps can be completed in less than 10 minutes!

How to Buy Shares for Beginners – Tutorial

The process of buying shares in the UK could not be easier. As noted above, it’s simply a case of opening a stock broker account, depositing some funds, and choosing how much you wish to invest in your chosen share.

With that said, this can be an intimidating process of you’ve never invested online before – so we are now going to show you what needs to be done step-by-step.

Note: The guidelines below are based on top-rated UK broker eToro. This platform allows you to buy shares without paying any commission and there are no ongoing fees. 

Step 1: Open an Online Trading Account

To get the ball rolling, you will need to open an account with an online stock broker. You can do this by visiting the eToro website and clicking on the ‘Join Now’ button.

As eToro is licensed by the Financial Conduct Authority (FCA), it is required to collect some personal information from you. This will include:

• Full Name
• Home Address
• Date of Birth
• National Insurance Number
• Email Address
• Mobile Number

You will also need to choose a username and password – which is to be used each time you wish to log in to your account. eToro will also send a unique code to your mobile phone. Enter the code into the eToro website to confirm your phone number.

Step 2:Verify Your Identity

As per UK anti-money laundering laws, eToro is required to verify your identity. The process takes just a couple of minutes and simply requires you to upload a copy of:

• Valid passport or driver’s license
• Utility bill or bank account statement (issued within the past three months)

eToro is usually able to verify your documents in just a few minutes via automated technologies.

Note: eToro allows you to skip the identity verification process on the proviso that you do not deposit more than $2,250. However, you will need to upload the aforementioned document before a withdrawal is permitted.  

Step 3: Make a Deposit

You will now be asked to make a deposit. The minimum at eToro is just $200 – which amounts to about £160. There is also a very small 0.5% currency conversion fee. This then gives you access to 17 UK and international marketplaces without you needing to worry about fluctuating FX rates.

Nevertheless, eToro supports the following payment methods:

• Debit Card
• Credit Card
• Bank Transfer
• Paypal
• Skrill
• Neteller

We would suggest opting for a debit/credit card or e-wallet, as the payment will be added to your eToro account instantly. Bank transfers, on the other, can take several days.

Step 4: Search for a Share

As soon as you have made a deposit you can proceed to purchase a share. The easiest way to do this is to enter the name of the company that you want to invest in the search box. When your chosen share pops up, click it. In our example, we are searching for ‘Natwest’.

 

Upon click on the ‘Trade’ button, you will be presented with an ‘order box’. Don’t worry – this part of the process is very straight forward.

Step 5: Buy Shares

All you need to do is enter the amount that you wish to invest. This needs to be at a minimum of $50. The good news is that you don’t need to buy a full share.

In other words, even if a company has a stock price of $500, you can invest just $50. In doing so, you would 10% of the respective share. Finally, confirm the order by clicking on the ‘Open Trade’ button.

What you Need to Know Before Buying Shares

Although buying shares online in the UK is super-easy, it’s still a good idea to have a firm understanding of how the markets work. This is because you will be investing your hard-earned money – so you should avoid going into this blindly.

With this in mind, below we discuss some of the things that you need to know before buying shares.

What are Shares?

When a company goes ‘public’, it will go through the process of being listed on a stock exchange. Think along the lines of the London Stock Exchange or the New York Stock Exchange. In doing so, this will allow investors to purchase ‘shares’ in the company. By purchasing a share yourself, you effectively own a slice of the respective firm.

For example:

• Let’s suppose that Company ABC joins the London Stock Exchange
• The firm is valued at £200 million
• In turn, Company ABC issues 400 million shares
• This values each share at £0.50

We’ll then say that you decide to purchase £1,000 worth of shares in Company ABC. As such, you now own 2,000 individual shares. In effect, this means that you own a very small part of the company – somewhere around 0.0005%!

Irrespective of how many shares you own in a company, this will entitle you to ‘dividends’. Although we cover this in more detail later on – dividends are payments made from the company to shareholders – i.e. you. Your payment will be directly correlated to the number of shares you hold.

How Share Prices Fluctuate

As soon as a company is listed on a stock exchange, its shares will go up or down in value. In the UK, shares are denominated in pence, while in the US its dollars. Either way, the movement of a share price is dictated by ‘market forces’.

• In simple terms, this means that the shares will increase in value if there as demand goes up. This is the case when there are more people looking to buy shares than sell.
• At the other end of the spectrum, the shares will decrease in value if demand goes down and thus – there are more sellers than buyers.

However, there are many factors that go on behind the scenes that can and will influence the demand of shares. For example, if the company in question has a financial quarter that outperforms market expectations – its shares will likely increase in value (as more people will want to buy).

If, however, there is negative news on the company – such as planned redundancies or a corruption scandal – the shares will likely go down.

Buying Shares

If you are a UK retail client – meaning that you are not investing from a professional or intuitional background, then you will only be able to buy shares via a third-party stock broker. Things have changed a lot in this respect, as you would have needed to make a purchase over the telephone in a time not so long ago.

However, the rapid growth of digitalisation in the financial markets means that you can now buy shares at the click of a button. You can do this online or even through your mobile phone. With that said, there are now thousands of UK stock brokers that allow you to buy shares quickly and conveniently.

• The broker itself sits between the respective stock exchange and buyers/sellers.
• This means that in order to buy your chosen share, there also has to be a seller.
• Similarly, if you want to sell your shares, somebody needs to be prepared to purchase them from you.

This isn’t anything to worry about though – as the stock markets are home to billions of pounds worth of trading volume each and every day. This means that you will be able to purchase your chosen shares as and when you like – as long as its during standard market hours. In the UK, this is any time between 8 am and 4.30 pm, Monday to Friday.

Market Orders

When it comes to placing an order, this is essentially an instruction to your broker. That is to say, you need to let the broker know:

• What shares you wish to buy
• How much you want to invest
• What price you wish to enter the market at

All of the above information will be found on the order form – which you can full out electronically in a matter of seconds. Leading UK brokers also give you additional options to consider. For example, by placing a ‘take-profit’ order, you will be instructing your broker to sell your shares automatically when your investment increases by a certain amount.

Selling Shares

You can sell your shares at any given time during standard market hours. . In order to do this, you simply need to head over to your chosen stock broker website, and click on the shares that you want to sell.

You can sell some, or all, of your shares. Once you do, the proceeds will be placed into your stock broker account. Then, you can either reinvest them into other shares or simply withdraw the cash back to your bank account.

How to Make Money From Shares

The overarching objective of buying shares is, of course, to make money. There is no guarantee that this will be the case though, so always have a firm understanding of the risks. In particular, you should consider holding on to your shares for at least five years, as this will allow you to ride out short-term volatility.

Nevertheless, there are two ways that you can make money by investing in shares – capital gains and dividends.

Capital Gains

In its most basic form, when you sell your shares for more than you initially paid – the profit is known as capital gains. This will happen if the shares increase in value, and then you sell them.

For example:

• Let’s suppose that you buy £5,000 worth of BT shares
• When you make the purchase, BT has a share price of £1
• This means that you own 5,000 shares
• Five years later, BT shares are priced at £3
• This means that each share is worth £2 more than you originally paid

In selling the shares, you will receive a total of £15,000 (5,000 shares x £3). As you originally invested £5,000, this leaves you with £10,000 in capital gains.

In the UK, capital gains are liable for tax. The specific amount that you need to pay will vary and is dependent on several factors. For example, if you placed your shares in a UK Individual Savings Accounts (ISA), the first £20,000 will be shielded from HMRC.

You can read more about UK capital gains tax here.

Dividends

In addition to capital gains, you can also make money through dividend payments. As we briefly touched upon earlier, dividends allow companies to share some of their profits with stockholders. Not all companies pay dividends, as some prefer to focus on long-term growth.

This is especially the case when investing in newly launched firms that are still up and coming. Nevertheless, if your chosen stock does pay dividends, this is usually distributed every three months. The funds will be sent to the broker that you purchased the shares from, and immediately available for withdrawal.

The size of the dividend that you receive will be dependent on:

• The dividend per share – which is in pounds and pence
• The number of shares you hold

For example, if the company pays a dividend of £0.50 per share and you hold 500 shares, then you will receive £150. The easiest way to assess the strength of a dividend payment is to look at the ‘yield’.

This is expressed in percentage terms, by taking the size of the annual dividend and dividing it into the company’s current stock price.

For example:

• Let’s say that Company ABC paid out £0.15 per share in dividends this year
• It has a current share price of £3
• This means that the yield on the dividend is 5%
• If you have £10,000 worth of shares, then you know that you made £500 in dividends

Top Tip: If you’re looking to focus on shares that have a long-standing track record of paying dividends, you might want to consider an ETF (Exchange-Traded Fund). By making a single investment (just $50 with eToro), the ETF provider will purchase dozens (sometimes hundreds) of dividend-paying stocks on your behalf. 

Compound Interest

Make no mistake about it  – compound interest is one of the most important terms that you will ever learn in the stocks and shares space. The main concept here is that by reinvesting your dividends each and every quarter – you will earn ‘interest on your interest’.

This has the desired effect of growing your money significantly faster. This is especially the case if you commit to a regular investment plan – say at the end of each month.

In order to show you how this works, check out the example below.

• Let’s say that you invest £20,000 into the stock markets
• We’ll say that your investment makes average annualised gains of 10%
• This includes dividends and capital growth
• Most importantly, you reinvest each dividend payment by purchasing new shares
• In 20 years time, your £20,000 investment would be worth £144,191

Now let’s look at what would happen if you added just £100 per month into the above scenario.

• You invested £20,000 into the stock markets as a lump sum
• Your investment makes average annualised gains of 10% – which includes dividends and capital growth
• On top of reinvesting your dividends each quarter, you add £100 at the end of each month
• In 20 years time, your £20,000 investment would be worth £220,569

As you can see from the above, by adding in £100 at the end of each month, your investment would be £106,000+ more.

How to Choose the Best Shares to Buy

While the online process of buying and selling shares is easy – knowing which companies to invest in can be challenging. After all, there are tens of thousands of stocks to choose from. This conundrum is further amplified when you consider that platforms like eToro give you access to 17 different stock exchanges.

This includes everything from the UK and US, to Germany and Canada. With this in mind, we would strongly suggest that you consider an ETF, mutual fund, or index fund.

Put simply, you will be investing money with a large-scale provider like Vanguard or iShares – who will then buy and sell stocks on your behalf. This means that you can sit back and let your money work for you in a 100% passive manner.

On the other hand, if you have your heart set on picking and choosing shares yourself – we would suggest reviewing the following tips:

Tip 1: Learn Key Stock Ratios

Stock market ratios allow us to assess the strengths and weaknesses of a company. These ratios can tell us a lot about a stock – such as whether its potentially over/undervalued. Ratios can also let us know whether the company has too much (or even too little) debt, and how the stock is performing against its industry counterparts.

Some of the most important stock market ratios to learn are:

• P/E Ratio: The price-to-earnings ratio (P/E) is used to assess whether a stock is potentially undervalued or overvalued. All you need to do is divide the ‘current stock price’ into the firms ‘earnings per share’. This will then leave you with a ratio. You then need to look at how this ratio compares to [A] the wider stock market average and [B] the sector average
• Trialling Dividend Yield: This is one of the most underrated stock market ratios in the space. Put simply, this looks at the firm’s dividend payments over the past 12 months, in relation to its stock price. The higher the yield, the more attractive the shares are to those who seek competitive dividend payments.
• Earnings Per Share: As the name suggests, this ratio looks at how much profit a company is making in relation to the number of shares it had outstanding. The higher the EPS, the money income there is to distribute to shareholders.

There are dozens of other stock market ratios that help you become a more informed investor. As such, dedicate some time learning a few more to help take you investment endeavours to the next level.

Tip 2: Stay Informed of the Fundamentals 

We can’t stress enough just how important it is to keep abreast of key stock market developments. Known as ‘fundamental’ research, this means that you will be keeping an eye out on financial news.

After all, the stock markets are based on demand and supply. If a positive news story breaks about a company, then naturally, its share price will increase. The opposite will likely happen if a negative news story breaks.

For example:

• When the ‘FinCEN Files’ leak broke in September 2020, evidence showed that several UK banks were behind major money laundering failings.
• In turn, the stock value of those mentioned in the leaks was negatively impacted

At the other end of the spectrum:

• Apple smashed through market expectations upon releasing its Q3 earnings report
• As such, its shares increased by 6% in a single day of trading

Ultimately, while you might not have the capacity to check financial news stories each and every day, you should at least have a grasp of key developments.

Tip 3: Assess What the Future Holds for the Company 

It is important that you make some considerations as to where the company will likely be in 5, 10, or even 20 years. At one end of the spectrum, the likes of Microsoft and IBM are established companies with a solid balance sheet. They have already enjoyed much of their growth, meaning that much of the focus is on dividends.

However, this isn’t the case with the likes of Netflix and Tesla. The former, for example, is still operating in a huge growth industry that is year-by-year inching away at traditional TV content. And the latter – although Tesla is already one of the largest companies in the world in terms of market capitalisation – it is only just about making a profit.

Furthermore, it is involved in an industry that is likely to dominate in years to come – electric vehicles. The key point here is that you need to have a long-term entry and exit plan in place. In doing so, you’ll give yourself the best chance possible of choosing companies that can meet your financial goals.

Tip 4: Diversification is Crucial

Divirficiation is super important when investing in shares – even more so if you’re a beginner. This simply means that you are ‘diversified’ across multiple shares that come from several industries and sectors. In doing so, you are not overly exposed to a specific market. Instead, you are well-diversified and thus – are able to mitigate your long term risk.

An example of a badly-diversified portfolio:

• A portfolio that is badly-diversified might hold £5,000 worth of shares in Natwest and £5,000 in HSBC
• Put simply, if the wider UK banking scene takes a hit (like it did in 2008), then you are overly exposed
• In other words, your portfolio is going to get dragged down as you are only focused on banking stocks

An example of a well-diversified portfolio:

• Let’s suppose you have £10,000 to invest
• You decide to purchase shares in 200 different companies at £50 each
• These companies operate in multiple sectors – including but not limited to tech, retail, automobile, industrials, and tobacco
• As such, if a particular industry were to struggle, you likely wouldn’t feel the impact anywhere near as much as you are well-diversified

It is important to note that an effective diversification strategy can be both time-consuming and costly when doing it on a do-it-yourself basis. For example, if you sign up with a broker that charges £10 per trade, a portfolio of 200 shares would cost £2,000 in fees!

You’d then need to pay the £10 commission when you get around to selling each share. Fortunately, brokers like eToro allow you to buy and sell commission-free. With that said, the easiest way to diversify is to invest in an investment fund. Whether that’s an ETF, mutual fund, or index fund – you’ll be investing in heaps of shares through a single trade.

Tip 5: Time the Market  

Timing the market well can often be the difference between making or losing money. After all, the stock markets typically move in cycles. For example, the vast majority of UK and US shares went on a downward spiral on the back of the 2008 financial crisis.

Then, from 2013 onwards the trend reversed. In more recent times, the FTSE 100 lost over 30% in the space of a few in March as per the COV-19 pandemic.

On the one hand, those holding shares would have encountered huge losses. However, those buying shares towards the bottom of the dip are now looking at substantial gains. As such, choosing the right stocks is often about timing the market!

Where to Buy Shares Online?

So now that you how stocks and shares work, you now need to start thinking about which broker you plan to use. There are hundreds of such platforms active in the space that allow you to invest at the click of a button. However, many of these platforms won’t be conducive for your needs – either because they charge too much or don’t give you access to your chosen market.

Some of the things you need to look out for before signing up with a broker are as follows:

• Is the stock broker regulated by the FCA?
• Are your funds protected by the FSCS?
• How much does the broker charge in share dealing fees and commission?
• What stocks will you have access to?
• What payment methods does the broker support?

As you can imagine, researching hundreds of providers is going to take you a significant amount of time. With this in mind, below you will find a selection of the best stock brokers offering their services to UK traders.

1. eToro – Best All-Round UK Stock Broker (0% Commission and No Stamp Duty)

When it comes to the best all-round online broker for UK residents – it really doesn’t get much better than eToro. The trading platform is highly sought-after by UK investors because it allows you to buy and sell shares in a 100% commission-free basis. This means no dealing charges or monthly/annual fees.

This is in stark contrast to the kind of stock trading fees charged by high street banks. This commission-free offering is available on all 1,700+ shares at eToro. This covers companies from 17 exchanges – including but not limited to the UK, US, Canada, France, Germany, and Sweden. You can also invest in ETFs and cryptocurrencies, and trade CFDs with leverage.

In terms of user-friendliness, eToro is perfect for newbies. The trading platform is super-easy to use and you can find your chosen stock by searching for it. It’s then just a case of entering your investment size and confirming the purchase. Additionally, eToro offers a Copy Trading feature that allows you to invest passively. This is because your chosen investor will buy, sell, and trade shares on your behalf.

In terms of the specifics, eToro allows you to deposit funds with a UK debit/credit card, e-wallet, or bank account. The minimum deposit stands at $200, which is about £160. You can, however, invest just $50 into each share – which is great for diversifying. There is no stamp duty on UK share purchases, but a small 0.5% conversion fee does apply when you make a deposit. Finally, eToro is regulated by the FCA, ASIC, and CySEC – and is partnered with the FSCS.

Pros:

• Regulated by the FCA, CySEC, and ASIC
• Your funds are protected by the FSCS
• You can buy and sell shares in a 100% commission-free manner
• No monthly or annual fees
• Over 1,700+ shares and 150+ ETFs
• Trade cryptocurrencies, indices, commodities, and forex via CFDs
• Leverage and short-selling facilities
• Super-easy to use platform – great for newbies
• Fully-fledged mobile app available on iOS and Android

Cons:

• Lacking in the technical and fundamental research department
• Somewhat too basic for advanced users
• 0.5% conversion fee on your deposit

75% of retail investors lose money trading CFDs at this site.

2. Plus500 – Commission-Free Stock CFD Trading Platform

Plus500 is somewhat different from eToro, insofar that it does not allow you to ‘buy’. shares. On the contrary, you will be ‘trading’ stock CFDs. For those unaware, CFDs track assets like stocks, gold, and oil in real-time. In other words, if the price of Royal Mail shares increases by 1.2% by the London Stock Exchange, as will a Plus500 CFD.

On the one hand, you won’t own the underlying stock by trading CFDs. However, you will benefit from several perks. For example, you will have the option of going ‘long’ or ‘short’ – meaning that you can profit from rising and falling markets. You can also apply leverage to your CFD trades. This stands at 1:5 when trading stock CFDs – meaning that you can trade with five times the size of your account balance.

This goes as high as 1:30 when trading major currencies. Additionally, all CFD products at Plus500 can be traded commission-free. Spreads are also competitive – which is the difference between the buy and sell price of the CFD. You can also get started with a deposit of just £100. This can be funded with a debit/credit card or Paypal for an instant deposit.Plus500UK Ltd is authorised and regulated by the FCA (#509909) – so your funds are safe at all times.

Pros:

• Thousands of CFD instruments in the form of stocks, indices, commodities, forex, and more
• All financial instruments can be traded commission-free
• Tight spreads available on most CFDs
• A minimum deposit of just £100
• Supports debit/credit cards, Paypal, and bank transfers
• Heavily regulated and the parent company is listed on the London Stock Exchange

Cons:

• CFDs only
• More suitable for experienced traders

80.5% of retail investors lose money trading CFDs at this site

3. IG – Established UK Broker With 10,000+ Shares

Although IG does not allow you to buy shares on a commission-free basis, it should be noted that you will have access to a whopping 10,000+ shares. In the UK, for example, this includes firms listed on the FTSE 100, FTSE 250, FTSE 350, and even the AIM. Then, you have dozens of international markets – covering everything from the US, Australia, South Africa, and more.

In terms of pricing, IG charges a reasonable £8 per slide. This means you’ll £8 irrespective of how much you invest. It will be charged when you buy shares and again when you sell them. You can get this commission down o £3 per slide if you place three of orders in a calendar month. There are no deposit fees unless you use a credit card. This stands at 0.5% and 1% on MasterCard and Visa, respectively.

IG also offers CFD and spread betting facilities. This will suit those of you that wish to place more sophisticated market orders – such as short-selling or margin trading. This segment of the IG platform comes with even more assets at over 17,000+. This brokerage firm also stands out in terms of reputation. Launched back in 1974, it is now itself listed on the London Stock Exchange. IG is also FCA-licensed.

Pros:

• Launched in 1974 and listed on the London Stock Exchange
• Over 10,000+ shares, ETFs, and funds available
• 17,000+ CFD and spread betting markets
• £8 per investment down to £3 when you trade regularly
• Supports debit/credit cards and bank transfers
• Advanced trading tools and features

Cons:

• A minimum deposit of £250
• Not suited for newbie investors
• Does not offer e-wallet deposits to UK investors

Your capital is at risk.

4. Capital.com – Trade Share CFDs Commission-Free (Minimum Deposit £20)

This UK trading platform is suitable for newbies that wish to try out share CFD trading. This is because it is simple to use and comes packed with key educational resources. You will also benefit from a super-low minimum deposit – which stands at just £20.

You’ll need to fund your account with a debit/credit card or e-wallets though, otherwise, the minimum jumps up to £250. Nevertheless, Capital.com gives you access to thousands of financial instruments. This includes heaps of share CFDs from several UK and international marketplaces. In particular, the platform allows you to trade smaller-cap firms that are listed on the UK AIM.

All markets at Capital.com allow you to go long and short, and leverage is available at the click of a button. We also like Capital.com for its stock trading app. This can be downloaded free of charge on iOS and Android devices. The provider also offers a separate mobile app that is purely dedicated to education. This comes packed with mini-courses and trading tips. Capital.com is licensed by the FCA and carries an excellent reputation in the online trading scene.

Pros:

• Great share CFD platform for first-time traders
• Thousands of financial instrument supported
• 100% commission-free and tight spreads
• Trade shares from heaps of the UK and international exchanges
• Leverage and short-selling facilities provided
• Easy to use
• Minimum deposit just £20
• Fund your account with a debit/credit card, e-wallet, or bank transfer

Cons:

• CFDs only
• No support for MT4

Your capital is at risk.

5. Fineco Bank – Trusted Broker With Low Fees and Thousands of Shares

This online broker offers one of the largest suites of shares, ETFs, and funds in the UK market. It is actually backed by a large-scale Italian financial institution, albeit, the platform is tailored specifically to UK investors. In fact, this platform is fully licensed by the FCA and protected by the FSCS.

In terms of what you can invest in, you will have access to 26 markets. This does, of course, include heaps of UK stocks. But, this also means that you can buy shares in international firms. When it comes to fees, Fineco is very competitive. It charges just £2.95 per trade, which is much cheaper than many of its industry counterparts.

Once you go through the account opening process, you can invest via the main Fineco website or through its mobile app. The main drawback to this platform is that it does not support debit/credit or e-wallet deposits. Instead, you will need to transfer funds from your UK bank account. This can, however, be achieved without paying any transaction fees.

Pros:

• A heavily regulated financial institution offering investment services to UK residents
• Thousands of stocks and ETFs from 26 different markets
• CFD trading is also supported - meaning leverage and short-selling
• Fees of just £2.95 per trade
• Allows you to invest online or via your mobile phone
• Very clean and crisp website - perfect for newbies

Cons:

• No social or copy trading features
• Does not allow you to deposit funds with a debit/credit card or e-wallet

There is no guarantee you will make money with this provider.

Buying Shares Fees

As you may have gathered - stock brokers and share dealing sites are in business to make a profit. They do this every time you buy, sell, or trade an asset. With that said, more and more new-age brokers are joining the industry - offering UK residents the opportunity to invest commission-free.

Here's an overview of what fees you will pay with our top-rated UK stock brokers:

UK Broker	Dealing Fee	Annual Fee	Conversion Fee
eToro	FREE	FREE	0.50%
Plus500	0% Commission	FREE	0.50%
IG	£3 or £8	£24 per quarter (less than 3 trades)	0.50%
Capital.com	0% Commission	FREE	N/A
Fineco	£2.95	0.25%	N/A

Pros & Cons of Investing in Shares

Pros:

• Chance to grow your money much faster than a UK bank account pays in interest
• Thousands of shares to choose from
• The best UK brokers now give you access to foreign shares
• Increase your investment through capital gains and dividends
• ETFs and index funds allow you to invest in shares passively
• Get started with a minimum investment of £50-ish
• Cash-out your investment whenever you see fit

Cons:

• There is no guarantee that you will make money
• You will need to pick which shares to invest in

Conclusion

Buying shares online from the UK can now be achieved in a matter of minutes. All you need to do is select a suitable broker, meet a minimum deposit with your debit/credit card or e-wallet, and that's it - you simply need to choose which shares you wish to invest in.

When using new-age brokers like eToro, this process can be achieved without paying a single penny in commission. You won't need to pay any stamp duty or ongoing maintenance fees, either - meaning that investing has never been so economically viable!

eToro – Invest Online With 0% Commission

Your capital is at risk.

FAQs