Best Trading Platforms UK

Best UK trading platforms at a glance

A trading platform is basically a neat bit of software that allows you to buy and sell stocks through an online broker. Trading platforms have opened up the world of trading to everyone in the UK and across the globe, regardless of wealth or knowledge.

So, if you’ve had your eye on AstraZeneca stock or would like a piece of the Tesla pie, then an online trading platform could be just the ticket. It’s surprisingly easy to start buying and selling stock online in the UK, less so to actually turn a profit doing it. However, the best trading platforms in the UK have a wealth of tools and features at your disposal to help you make a success of it and with fees that are a far cry from what a traditional broker would charge, more and more people, from beginners to seasoned traders, are turning to online trading platforms for their investment journey.

Best overall trading platform

IG Investments

Best trading platform for beginners

eToro

68% 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. Your capital is at risk. Other fees apply. For more information, visit etoro.com/trading/fees

Best trading platform for tools and research

Hargreaves Lansdown

Best trading platform for low cost trading

Freetrade

Best trading platform for investing in funds

Interactive Investor

Best trading platform for ease of use

AJ Bell Youinvest

Best trading platform for frequent traders

Fineco Bank

How I’ve chosen this list of best trading platforms in the UK

I have conducted hours of vigorous research in order to identify the trading platforms in the UK that I believe will best meet your needs as an investor. To clarify how I have gone about this process, here are some of the factors that I have taken into consideration:

Fees and Charges

Custody fee – This is the fee that you pay to the platform for taking care of and managing your investments. This fee is a major consideration as small costs can really start to erode your investment gains.

Cost per trade – This is the fee you will pay every time you buy or sell stocks and shares. Some platforms have zero trading fees which is great, however, you need to weigh up whether they are providing you with all the other features you require from a trading platform.

Frequent trader – some trading platforms UK will reward you for trading more frequently with a reduced fee. This is only relevant if you feel you would be trading more than a certain amount of times each month. Otherwise you will need to pay the cost per trade fee.

Investment trusts fee – Investment trusts allow you to pool your money together with other investors into a ‘trust’. The trust manager will then use these pooled assets to invest in shares and financial assets on your behalf. The charge for an investment trust is usually based on a percentage of the amount of money you put into the trust.

Ease of Use

Trading can be a complex endeavour and the design and usability of the platform you choose can have an impact on how efficient you are at managing your portfolio. I have therefore assessed each UK trading platform to identify which ones will allow you to make quick, accurate trades in an online environment that can help instill a sense of confidence.

Market Research and Education

This section is especially important for beginners who require high levels of research and education in order to help them learn trading and make profitable decisions regarding their investments. Webinars, blogs, videos, seminars and tracking options are all important educational tools to help beginners get up to speed.

Investment Choice

This will be especially important for experienced traders who are creating a highly diversified portfolio. Having a broad spectrum of global investment options including stocks, ETFs, index funds, trusts etc from various stock markets, is what seasoned investors have come to expect. Of course this can be overwhelming for novice investors who may prefer to invest in a pre-made portfolio or engage in copy trading.

Accounts on Offer

This is an important consideration in order to ensure you are being as efficient as possible with your investing. If you are between the ages of 18 and 40 and saving for your first home, then the most efficient account would be the Lifetime ISA as this attracts a government bonus of 20%. Remember that outside of the personal allowance, all income and returns from your investments are subject to tax at your usual rate. Therefore, you may want to consider a tax wrapper, such as an ISA. However, if you are already at the annual allowance for your ISA then a General Investment Account might be more attractive.

Safety

Here at Investing Reviews, we always ensure that the trading platforms UK we recommend meet minimum safety standards. This includes being authorised and regulated by the Financial Conduct Authority as well as adequate security and protection of data within the site or app. Some apps also utilise biometric identification and many of the providers listed above are covered by the Financial Services Compensation Scheme which means your account balance is protected up to the sum of £85,000 should the provider go out of business.

Demo Account

If you would like to practice trading before you risk any of your money then you may be best to select a trading platform UK that provides its users with a demo account.

A demo account will give you a certain amount of ‘virtual money’ with which to trade on the stock market. These are useful tools to help you get to grips with the setup of the trading platform UK and to familiarise yourself with the various assets on offer.

Some common trading platform terminology explained

What is online stock trading?

Online stock trading is when you buy shares using an online trading platform UK, in the hope that you will then sell them at a higher price, thus turning a profit. Online stock trading has replaced more traditional stock brokers in the UK and around the globe, and often presents a more accessible and affordable way of stock trading.

What is an ETF (Exchange Traded Fund)?

An EFT is a collection of investments which can include stocks, commodities, bonds, and other investment assets which are all then traded on exchanges just like stocks.

Exchange Traded Funds (ETFs) provide a passive investment strategy that is often low in cost and can help diversify your portfolio.

What is a diversified portfolio?

A diversified portfolio contains a mix of stocks and bonds, from around the globe, in companies of various sizes and sectors. This is to ensure that if one sector, or country was to experience a sudden fall in value for any reason at all, the remainder of your portfolio would be robust enough to prevent you from experiencing a complete loss.

What is a stock broker?

A stock broker is a professional body that buys and sells shares on behalf of a client. In this case the trading platform UK is the stock broker and you are the client. It is impossible for anyone to buy or sell stock without first becoming a member of an exchange or belonging to a firm that is a member.

What is a stop-loss order?

A stop-loss order enables you to instruct your trading platform UK to buy or sell a specific stock, once that stock reaches a predetermined price. This can act to limit your potential loss on a security position. As an example, were you to buy shares in a company that are worth £10, and you were then to place a stop-loss order for £8, should the price of the shares fall below £8 your shares will then be sold automatically to prevent you from experiencing a further loss.

What are retail investor accounts?

Retail investor accounts belong to investors who are buying and selling stocks and shares for their own personal profit rather than on behalf of an organisation.

Most asked questions about UK trading platforms

What’s the best online trading platform for social trading UK?

eToro is one of the world’s leading platforms for social trading with a vast array of social features including copy trading which allows you to copy successful traders. There is also The Popular Investor program which encourages successful traders onto the platform by incentivising them with rewards of up to 2% of their assets under management.

How do you choose a share dealing platform in the UK?

Choosing the best share dealing platform for you is a very personal journey that will depend largely on your financial goals and aspirations. Are you saving for retirement? Then you will require a SIPP account. Perhaps you just want a tax efficient way to grow your wealth, in which case a Stocks and Shares ISA will be required. You will then need to ascertain whether the share dealing platform in question has a suitable range of investment options and compare the fees charged between the providers you are considering.

What trading platforms can I use in the UK?

There are a number of trading platforms available in the UK, however, identifying the best online trading platform UK for you should be aligned to your unique needs. Here at Investing Reviews, all our recommended platforms cater to UK customers, therefore it is simply a matter of selecting a platform that meets your needs from our list on this page.

How much starting capital do you need to start investing?

You can start investing with as little as £1 depending on the online trading platform you select, and their minimum investment amounts. However, we would caution you to be aware of the fees associated with the platform as these can soon eat away at your investment capital should you be starting with a small amount.

If you are new to investing and would like to try your hand without risking too much of your money, then we would recommend selecting online trading platforms with free demo accounts like eToro where you can use virtual money risk free.

Do I pay UK tax on share dealing?

Yes, any gains you make from share dealing on a trading platform UK are subject to capital gains tax at your normal rate, unless you are share dealing from within a tax wrapper, such as a Stocks and Shares ISA.

What should a beginner invest in?

Choosing your investments is a lengthy process that requires a lot of painstaking research. There are certain metrics that can help you identify great businesses that should be long term performers including price to earnings ratio, the price to earnings growth ratio and the payout ratio.

However, if you are looking for a quick way to get started and want to ensure that you are fully diversified in order to mitigate your exposure to risk, then you may be better off investing in a fund.

A fund is where lots of investors pool their money together in order to invest in plenty of different shares.

Fully managed funds are managed by professionals who will regularly make strategic adjustments in order to maximise returns. These are slightly more expensive than fixed allocation funds which are designed to perform with minimum human intervention.

Usually the best investment websites uk will have the historical returns of their funds listed on their website, and this is certainly worth checking before you select a fund with the correct level of risk for your circumstances.

Who has the cheapest online trading?

Trading 212, eToro and Freetrade all have the edge when it comes to cost effective share dealing, however, at the time of writing, Trading 212 have suspended all new UK accounts in order to catch up with unprecedented demand.

Freetrade have the same zero-commission trading, and also offer a free stock when you open a new account and deposit for the first time. The value of your free stock can be anywhere from £3 to £200 and this could possibly give them the edge when it comes to finding the cheapest online trading platform.

What do I need to open an account with an online trading platform in the UK?

Different trading apps in the UK will require different documents in order for you to open an account and start trading.

Most trading platforms in the UK will require the following:

• Full name
• Valid ID
• Email address
• Phone number
• National Insurance Number
• Bank account details.

Trading Platform FAQs