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

Best Online Stock Broker UK

There are hundreds of stock brokers active in the online trading scene. While some offer an all-round great service to the everyday UK investor – many don’t. As such, you need to make some serious considerations before trusting as a brokerage firm with your hard-earned cash.

Important metrics to look out for include an FCA license, competitive share dealing fees, an extensive offering of tradable stocks, and support for debit/credit cards and e-wallets.  This can take time, which is why we have done the legwork for you.

In this guide, we explore the best online stock brokers in the UK. We’ll also discuss the many factors that you need to assess before joining a new broker – and walk you through the process of getting started today.

Top 10 Stock Brokers for 2020

Here’s an overview of the top 10 best UK stock brokers that made our list!

1. eToro – Best All-Round UK Stock Broker with 0% Commission
2. Capital.com – Trade Share CFDs Commission-Free (Minimum Deposit £20)
3. Fineco Bank – Trusted Broker With Low Fees and Thousands of Shares
4. Plus500 – Commission-Free Stock CFD Trading Platform
5. IG – Established UK Broker With 10,000+ Shares
6. Hargreaves Lansdown – Best Stock Broker for Research and Analysis
7. Degiro – Competitively Priced UK Brokerage Website
8. Barclays – Buy Shares From Just £6 Per Trade
9. FXCM – Reputable UK Stock Trading Platform with MetaTrader 4
10. AvaTrade – Popular CFD Trading Platform With 0% Commissions

Best Online Stock Brokers UK Reviewed

Before you get to the stage of buying and selling shares – you need to do some homework on your choice of broker. There are hundreds active in the UK – many of which give you access to both UK and international stocks. Additionally, there are even FCA brokers that allow you to invest on a commission-free basis with no ongoing fees.

To help point you in the right direction – below you will find the top 10 best UK stock brokers of 2020 – all of which offer their services to UK investors.

1. eToro – Best All-Round UK Stock Broker (Commission-Free)

Hours upon hours of in-depth research resulted in eToro attaining our number spot as the best UK stock broker. First and foremost, the platform allows you to invest in shares without paying any fees or commissions. This is the case when you buy shares and again when you sell them.

Unless other commission-free brokers in the space – eToro does not charge any monthly or annual maintenance fees. This means that you can buy your chosen share in a super cost-effective manner. In terms of supported markets, eToro is home to over 1,700+ shares. This includes companies listed in the UK, US, Canada, Germany, and 14 other international marketplaces.

Additionally, eToro allows you to invest from just $50 per stock. This is especially useful if you want to invest large-cap US firms like Apple, Facebook, or Amazon – not least because these stocks carry a share price that runs into the hundreds of dollars (Amazin is now over $3,000 per stock). If you’re not too sure which shares to invest in, you might want to consider the eToro Copy Trading feature.

This allows you to choose an expert investor that has made consistent gains on the eToro platform – and then copy their portfolio like-for-like. You can do this from just $200. When it comes to funding your account, payment options include debit/credit cards, e-wallets, or a UK bank transfer. The minimum deposit is $200 and you will incur a 0.5% conversion fee. eToro is licensed by the FCA (as well as ASIC and CySEC) and your funds are covered by 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. Capital.com – Trade Share CFDs Commission-Free (Minimum Deposit £20)

If you like the sound of trading stock CFDs, Capital.com is another option worth considering. Much like Plus500, the platform is home to thousands of instruments. Each and every CFD asset comes with a 100% commission-free offering, as well as long/short-selling capabilities.

Additionally, Capital.com offers leverage to all UK retail clients – which again stands at 1:5 on stock CFDs. In particular, this trading site is a good choice if you have little to no experience of how the stock markets work. This is because you can get started with a non-consequential deposit of just £20.

The trading platform itself is newbie-friendly and comes packed with educational resources. If you want the option of trading stocks on your phone – Capital.com offers two native apps. One gives you access to its trading suite, while the other is dedicated exclusively to education. In terms of payments, instant deposit methods include a debit/credit card and several e-wallets. The platform is fully licensed by the FCA.

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.

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

Fineco Bank is a rising star in the UK stock brokerage space. Although it is a major financial institution – it is headquartered in Italy. As such, you might not have heard of it.

However, the online stock broker is well worth considering if you seek access to thousands of UK and international shares at competitive prices. In fact, you will pay just £2.95 pere trade at Fineco, which is very competitive. This does come with a small annual charge of 0.25%.

However, even on a balance of £10,000 – this would end up costing you just £25 per year. ETFs and funds are also supported by this broker – as is a fully-fledged CFD trading facility. You can buy and sell shares through the Fineco website or download the provider’s mobile app. The platform is authorised and licensed by the FCA.

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.

4. Plus500 – Commission-Free Stock CFD Trading Platform

This particular option is a CFD trading platform as opposed to a traditional stock broker. However, it is well worth considering – especially if you want access to a more diverse asset range and sophisticated trading tools. For example, Plus 500 is home to thousands of financial instruments – including heaps of stock CFDs.

This covers dozens of UK and international marketplaces – both large and small. All stock CFDs at Plus500 can be traded with leverage, too. This means that you can trade with more than you have in your Plus500 account. UK investors are capped at 1:50 on stock CFDs, and 1:30 on major forex pairs. You will also get to choose whether you think the stock CFD will increase (buy order) or decrease (sell order).

This isn’t something that you can do with a traditional stock broker – as you can only profit is the underlying shares go up in value. All CFDs at Plus500 can be traded on a commission-free basis. Spreads – which is the gap between the buy and sell price of your chosen instrument, are competitive here. Plus500 does not charge anything on deposits or withdrawals, either.

In terms of getting started with Plus500, opening an account takes minutes. The trading platform has a minimum deposit policy of just £100. It supports several UK payment methods – including debit cards, credit cards, Paypal, and a bank transfer. When it comes to safety, Plus500UK Ltd is authorised and regulated by the FCA (#509909). It’s parent company – Plus500 Ltd is listed on the London Stock Exchange with a current market capitalisation of £1.6 billion.

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

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

This UK-based online stock broker was first launched in 1974. It is home to hundreds of thousands of users and is fully regulated by the FCA. Much like Plus500 – its parent company is publicly-listed. One of the main attractions of using IG is that you will have access to over 10,000 shares.

This not only includes firms listed on the FTSE 100, FTSE 250, FTSE 350, and AIM – but heaps of international markets. In terms of pricing, IG charges £8 or £3 per trade. In order to get a lower price, you’ll need to trade at least three times per month.

On top of shares, IG also hosts ETFs, funds, and investment trusts. If you fancy trading stocks too, IG is home to a CFD and spread betting platform that contains 17,000 markets. This is ideal if you want the option of short-selling or applying leverage. You will need to meet a £250 minimum at IG -which you can do instantly with a debit/credit card.

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.

6. Hargreaves Lansdown – Best UK Stock Broker for Research and Analysis

A lot of newbie investors in the UK will choose Hargreaves Lansdown as their go-to broker. This is because the online platform is easy to use, requires a low minimum investment amount, and is very comprehensive when it comes to research. Regarding the latter, you will find heaps of important research materials on major stocks.

This includes regulatory updated stock insights and expert analysis – as well as details of recently published earnings reports. Additionally, you can view whether the Hargeaves Lansdown team view the stock as a buy, hold, or sell. In terms of tradable assets, Hargreaves offers thousands of shares and investment funds. This includes companies in the UK and overseas.

When it comes to pricing, Hargreaves Lansdown is a lot more expensive than the other brokers on our list. It charges an initial dealing fee of £11.95 – although you can reduce this by trading regularly. On the flip side, it is notable that Hargreaves allows you to invest from just £100 or £25 per month via direct debit. Finally, this brokerage firm is licensed by the FCA and your funds are protected up to the first £85,000 by the FSCS.

Pros:

• Invest in thousands of shares and investment funds
• Gain access to newly launched IPOs
• Minimum investment of just £100 or £25 per month
• Great reputation and heavily regulated
• Simple to use platform
• Deposit funds with a debit card or bank transfer
• First-class research department

Cons:

• Charges an initial fee of £11.95 per trade
• No CFD trading services

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

7. Degiro – Competitively Priced UK Brokerage Website

Although Degiro has its headquarters in the Netherlands – it has a major presence in the UK brokerage scene. Across more than 600,000 investors globally, Degiro allows you to buy and sell shares in a super cost-effective environment.

This starts at just £1.75 when investing in UK stocks, plus 0.014%.  If you’re on US stocks like Amazon, Apple, or Tesla – this costs just €0.50 + $0.004 per share. The platform recently revamped its online trading suite – subsequently making it much easier on the eye.

As such, Degiro is perfectly suited for newbies. As long as you meet a £1 minimum deposit, there is no account minimum in play. You won’t, however, be able to fund your account with a debit/credit card or e-wallet. Instead, only UK bank transfers are supported. Degiro is heavily regulated, including registration with the FCA.

Pros:

• Buy UK shares from just £1.75 + 0.014%
• No account minimum
• Thousands of stocks from the UK and overseas
• Its newly revamped platform is great for beginners
• Fully-fledged mobile app available

Cons:

• No debit/credit cards supported
• Although very competitive, the commission structure is somewhat confusing

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

8. Barclays – Buy Shares From Just £6 Per Trade

 

Much like the rest of the UK retail banking scene – Barclays offers online share dealing services. It gives you access to most UK shares listed on the London Stock Exchange and you will pay a flat fee of £6 per order. This is also the case with ETFs.

Investment trusts cost just £3 per order, although you will need to pay an annual fee of 0.2%. Shares and ETFs also carry an annual fee at 0.1%. You can get started with a minimum deposit of £50, which is great if you want to begin with low stakes.

The platform’s strong regulatory standing is also a plus-point. However, Barclays only gives you access to non-UK shares if you are prepared to sign up with its partner broker – Saxo Bank. This kind of defeats the object – as most of the platforms we have discussed so far offer UK and international shares through a single account.

Pros:

• £6 per trade on stocks and ETFs
• £3 on investment trusts
• Strong regulatory standing
• Easy to use – no experience needed
• A minimum deposit of just £50

Cons:

• Access to international shares only when you join its partner broker Saxo Bank
• Annual fees apply

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

9. FXCM – Reputable UK Stock Trading Platform with MetaTrader 4

FXCM (Forex Capital market) is an online trading platform that gives you access to CFD instruments. On top of commodities, forex, and indices – you’ll also be able to trade stock CFDs.

This established trading platform was launched way back in 1999 – so it carries a good reputation in the UK trading scene. Each and every stock CFD at FXCM can be traded commission-free and with tight spreads.

You can open an account from just £50 – which again, is good for first-timers. We really like the support for MetaTrader 4 – which is a third-party trading platform. Alongside a number of perks, MT4 allows you to install automated trading systems. FXCM is licensed by the FCA and offers a native mobile app on iOS and Android devices.

Pros:

• 100% commission-free
• Tight spreads
• Mobile app for iOS and Android users
• Established in 1999 and great reputation
• Support MetaTrader 4

Cons:

• CFDs only
• Asset library is somewhat limited

73.05% of retail investors lose money when trading CFDs at this site

10. AvaTrade – Popular CFD Trading Platform With 0% Commissions

AvaTrade is one of the best options on the table if you are looking to diversify across several asset classes and marketplaces. This is because the CFD trading site covers everything from stocks and commodities to futures and cryptocurrencies.

Across thousands of financial instruments – AvaTrade allows you to trade without paying any brokerage commissions. Spreads are also very competitive, and all deposits and withdrawals are fee-free.

This heavily regulated trading platform allows you to open an account in minutes and requires a minimum deposit of just £100. You also have the option of linking your AvaTrade account to MT4. As we briefly covered above, this gives you the opportunity to install an automated trading robot.

Pros:

• Regulated in several countries
• Great reputation
• No commissions and tight spreads
• Mobile trading app on iOS and Android
• Thousands of financial markets
• Support for MT4
• A minimum deposit of just £100

Cons:

• Not regulated by the FCA
• Does not support e-wallet deposits for UK traders

79% of retail investors lose money trading CFDs at this site

UK Stock Brokers Fees Comparison

All UK stock brokers charge fees. After all, they offer their brokerage services as a means to make money. There are several fee types that you need to look out for prior to opening an account with your chosen platform, such as:

• Dealing Fees/Commissions: Most brokers charge a dealing fee - otherwise referred to a commission. This is often charged as a flat fee - such as £8 per trade. This fee will apply when you buy shares and again when you sell them. Most of the platforms we have discussed today no not charge any commissions -= which is why they made our list.
• Account Fee: This is an ongoing fee that is usually charged on an annual basis. In other cases, it might be charged every month or quarter. The account fee can be charged as a flat fee - such as £10 per month, or on a various basis. For example, the broker might charge 0.5% per year.
• Inactivity Fee: Some brokers will charge you an inactivity fee when your account is marked as dormant. This is usually because you haven't placed a trade for several months. The inactivity fee is usually charged every month until you place an order or your account balance goes to zero.
• Transaction Fees: Some platforms will charge a transaction fee when you deposit and/or withdraw funds.

Below you will find a table outlining how the best online stock brokers in the UK compare in the fee department.

UK Stock Broker	Commission	Account Fee	Inactivity Fee	Deposits/Withdrawals
eToro	Free	Free	$10 per month after 3 months	0.5% FX conversion
Plus500	0% Commission	Free	0.50%	Free
Capital.com	0% Commission	Free	N/A	Free
IG	£3 or £8	£24 per quarter (less than 3 trades)	0.50%	0.5-1% on credit cards
Fineco Bank	£2.95	0.25% per year	N/A	Free
Hargreaves Lansdown	£5.95 to £11.95	Free	0.25% to 1%	Free
Degiro	£1.75 + 0.014%	Free	N/A	Free
Barclays	£6	0.2% (£48 min.)	N/A	Free
FXCM	0% Commission	Free	$50 per year	Free
AvaTrade	0% Commission	Free	$50 after 3 months	Free

How to Choose the Best Stock Broker for you

Although we have discussed the top ten UK stock brokers currently active in the space, there might come a time where you want to research your own platform. If so, there are many things to look out for before opening an account.

Here's how to choose the best online stock broker in the UK that matches your needs:

• Regulation: It's crucial that your chosen UK stock broker is fully regulated. Ideally, this should be with the UK's FCA. The broker gets additional points if it is covered by the FSCS.
• Tradable Shares: You need to check what shares you will be able to buy with your chosen online stock broker. For example, eToro hosts 1,700+ shares from 17 international markets - giving you ample opportunity to diversify.
• Fees: It goes without saying that you need to choose a UK stock broker that offers competitive fees. When opting for our top-rated platform eToro - you won't pay any share dealing fees or ongoing charges.
• Trading Platform: You also need to ensure that the broker offers a user-friendly platform. This is especially the case if you are just starting out in the world of stocks and shares.
• Education: If you are relatively new to online trading, then it's best to stick with a broker that offers in-house educational tools. Capital.com, eToro, and Hargreaves Lansdown are particularly strong in this department.
• Banking: You should also check to see what payment methods the online stock broker supports - such as debit/credit cards, e-wallets, or bank transfers. Also, check whether any deposit or withdrawal fees apply.
• Customer Support: The best UK stock brokers offer customer service on at least a 24/5 basis. We prefer platforms that offer live chat and telephone support.

As you can see from the above, researching a broker can be very time-consuming. However, it's a crucial process nonetheless to ensure the platform meets your financial goals.

How to Use a UK Stock Broker

So now that you know what to look out for before choosing a new provider, we are now going to show you how to use a UK stock broker. By following the steps below - you'll learn how to open an account, deposit funds, search for shares, and finally - make an investment.

Take note: The steps below are with FCA broker eToro as the platform is simple to use and allows you to invest commission-free. You are, however, free to use any broker of your choosing. 

Step 1: Open an Online Stock Broker Account

Irrespective of which provider you opt for, all UK stock brokers will ask you to open an account. As such, head over to the eToro website and click on the 'Join Now' button.

This will require you to provide some personal information - such as your name, address, and date of birth. On top of your contact details, you will also need to supply your national insurance number. You will also need to choose a username and a strong password.

Step 2: Verify Your Identity

You will now need to upload a copy of your driver's license/passport and a utility bill/bank account statement. This ensures that eToro complies with the FCA and UK regulations on anti-money laundering.

Note: You can upload the above documents later if you do not plan on depositing more than $2,250 right now.   

Step 3: Make a Deposit

You will now be asked to deposit some funds at a minimum of $200.

You can choose from the following:

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

All deposit methods are instant apart from a bank wire.

Step 4: Search for a Share

Once your eToro stock broker account has been funded, you are ready to make an investment. The easiest way to buy a share is to search for the company that you wish to access. In our example, we are looking to buy shares in GlaxoSmithKline - so we enter the company into the search box. 

On the next page, click on the 'Trade' button.

Step 5: Buy a Share

You will now see an order box pop-up. All you need to do here is enter the amount that you wish to invest - ensuring you meet a $50 minimum. As you can see from the below, we are looking to buy $250 worth of GlaxoSmithKline shares.

In order to complete our investment, we simply click on the 'Open Trade' button (or 'Set Order' outside of market hours).

Conclusion

With hundreds of top UK stock brokers to choose from - never has the market been so congested. While this is great for consumer choice - knowing which platform to sign up with can be daunting.

To help clear the mist - we have outlined the 10 best UK stock brokers currently offering their services to UK investors. With that said, we feel that eToro is unchallenged in this particular segment of the investment space.

Not only does it allows you to buy shares commission-free, but you won't pay a single penny in ongoing maintenance charges. Furthermore, you can instantly deposit funds with a debit/credit card or e-wallet - and you'll have access to over 1,700+ shares from 17 UK and international markets!

eToro – Best UK Stock Broker With 0% Commission

Your capital is at risk.

FAQs