Investors might choose an ETF (Exchange-Traded Fund) trading platform for a variety of reasons, as ETFs have become a popular investment vehicle due to their flexibility, diversification benefits, and relatively low costs.
In short: The best ETF platforms for UK investors are InvestEngine, eToro, Freetrade, Interactive Investor and Hargreaves Lansdown. You will find that they are all easy to open an account and have a good range of ETFs for UK investors.
It’s important for investors to carefully evaluate different ETF trading platforms based on factors such as trading fees, account minimums, available ETFs, research tools, and customer service. The choice of platform will depend on the investor’s specific needs, investment goals, and preferences.
Top ETF trading platforms at a glance: Click to read more…
- Best ETF platform for low-cost ETFs: InvestEngine
- Best ETF platform for beginners: Freetrade
- Best ETF platform for copy trading: eToro
- Best ETF platform for range of investments: interactive investor
- Safest ETF Platform: Hargreaves Lansdown
- Best ETF platform for research: Saxo Markets
- Best ETF platform for education: DEGIRO
- Easiest ETF platform to use: Moneybox
- Best expert ETF platform: IG Investments
- Best ETF platform for automated investing: AJ Bell
- What is an ETF trading platform?
- How does an ETF trading platform work?
- Why choose an ETF trading platform?
At InvestEngine they have kept costs low across the board with zero platform fees, set up fees, dealing fees, ISA fees, or withdrawal fees.
This really is one of the lowest-cost ways to invest in ETFs, and ETFs are what they do best. They have managed to bring to market a way of investing in ETFs that would suit both novice and experienced investors with both a robo-advisory service and DIY options.
Why I like InvestEngine for ETFs
The choice of ETFs here is extensive, with over 550 ETFs to choose from and zero fees on the DIY portfolio. Even the managed service is excellent value at just 0.25% a year and anyone can get started with just £100.
Fees: 0.25% platform fee for managed portfolios, £0 DIY portfolio
Minimum balance: £100
Products available: Stocks and Shares ISA, Personal Account, Business Account
With investment, your capital is at risk. This could mean the value of your investments goes down as well as up.
Open an account with Freetrade using our link, and your first deposit of at least £50 will automatically trigger a free share up to the value of £200.
Of course, while free shares are always welcome, there are a multitude of other reasons why Freetrade make it onto my top list.
Freetrade is a really cost-effective platform with zero platform fees if you are happy to trade via the general investment account. If you do require a tax wrapper, you can access the stocks and shares ISA with the standard plan at just £4.99 a month alongside automated order types, and 1% AER on any uninvested cash.
Why I like Freetrade for ETFs
Whilst they don’t have the biggest number of ETFs available, 400 is still enough to satisfy most investors and Freetrade also have a plethora of other assets, including fractional shares for creating a diversified portfolio.
Fees: Commission-free trading on all stocks, shares and ETFs
Minimum balance: £0
Products available: General Investing Account, Stocks and Shares ISA, SIPP, Freetrade Plus
When you invest your capital is at risk, the value of your investments can go down as well as up and you may get back less than what you invest. Eligibility to invest into an ISA and the value of tax savings depends on personal circumstances and all tax rules may change. Other charges may apply. ISA Promotion free share terms and conditions apply.
eToro boasts one of the largest copy trading communities in the UK so if you are interested in following what successful ETF traders are doing, this is the platform for you.
Another stand-out feature at eToro is the 0% commission on trades which is helpful for keeping costs low.
If you feel that you need to practice before risking any of your actual funds, then eToro provide an excellent demo platform with virtual money. You can engage in copy trading from the demo platform as well.
Why I like eToro for ETFs
eToro is home to over 300 ETFs in addition to a range of other assets should you wish to expand beyond just ETFs.
They also offer a great selection of educational tools including ‘Digest and Invest’, eToro’s podcast where they provide investment guidance including their latest episode which covers how ETFs can be a great tool for diversification.
Fees: Zero commission trading, $5 withdrawal fee, $10 inactivity fee, currency conversion fees
Minimum balance: £10
Products available: General Investment account
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. Your capital is at risk. Other fees apply. For more information, visit etoro.com/trading/fees
interactive investor have a fixed pricing structure that can work out very cost-effective for large investment pots. There is also a good range of account options, including ISAs and pension accounts, to keep your gains safe from Capital Gains Tax.
Why I like interactive investor for ETFs
Being the second largest platform in the UK, interactive investor are well known for their excellent range of assets and the selection of ETFs is almost unrivalled here with over 1,000 ETFs to choose from.
interactive investor have also recently launched their new Essentials Plan which brings the cost of investing in ETFs via a tax-efficient ISA down to just £4.99 a month.
Another great reason to choose interactive investor for ETFs is the level of education and data on ETFs. There is an up-to-date list of the most purchased ETFs in recent months as well as the top performers.
Fees: £5.99 per trade, annual custody fee starting at £4.99, £40 bonds fee
Minimum balance: £0
Products available: Stocks and shares ISA, Junior cash ISA, Junior stocks and shares ISA, Self-Invested Personal Pension, company account, cash savings
Important information - investment value can go up or down and you could get back less than you invest. If you're in any doubt about the suitability of a Stocks & Shares ISA, you should seek independent financial advice. The tax treatment of this product depends on your individual circumstances and may change in future. If you are uncertain about the tax treatment of the product you should contact HMRC or seek independent tax advice.
Hargreaves Lansdown are the biggest platform in the UK by market share, meaning you never need to worry about the longevity of the platform holding your long term investments.
Here you can open an account with just £1 with a range of accounts designed to meet all your investment needs.
Why I like Hargreaves Lansdown for ETFs
You can hold ETFs for free in the fund and share account at Hargreaves Lansdown, but if you did decide to move to a tax wrapper, the ISA can be accessed for a 0.45% annual charge with a maximum of £45.
Hargreaves Lansdown also publish their most popular ETFs and there is a research section of the website dedicated to ETFs where you can register to receive updates.
Fees: £11.95 per trade, 0.45% annual custody fee
Minimum balance: £1
Products available: Stocks and shares ISA, Fund and Share Account, SIPP, Lifetime ISA, Active Savings, Junior Stocks and Shares ISA, Junior SIPP, Junior Investment Account
As with any investment the value can go down as well as up. Past performance is no indicator of future performance. The tax treatment of ISAs depends on your individual circumstances and may be subject to change in the future.
Saxo Markets offer access to over 40,000 financial instruments on an award-winning trading and investing platform.
Saxo really stand out with their leading research and market analysis, helping investors make informed decisions. This includes features such as market analysis using a comprehensive screener, product analysis using charting data and key stats, risk management features such as stop loss orders, and portfolio tracking analysis using performance history.
Why I like Saxo Markets for ETFs
There are over 6,700 ETFs to choose from at Saxo, in sectors that include tech, healthcare, and environment to name a few. You can buy ETFs for as little as USD 3 commission and Saxo will even provide you with investment inspiration, live market updates, expert analysis, podcasts, webinars and research across sectors and markets.
Fees: ETFs from $3
Minimum balance: £416
Products available: Saxo account, Joint account, Corporate account, Professional account, ISA account, SIPP, Trust account
61% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs, or any of our other products work, and whether you can afford to take the high risk of losing your money. The value of your investments can go down as well as up. Losses can exceed deposits on some margin products. Professional clients can lose more than they deposit. All trading carries risk.
If you are looking to enhance your investing skills, or even find out what sort of investor you are, then DEGIRO is an excellent choice. Their Investor’s Academy is full of information and lessons to help you on your journey.
Why I like DEGIRO for ETFs
DEGIRO offer a wide range of ETFs on 19 major exchanges, so regardless of whether you are looking to invest in local or global ETFs, they have you covered.
DEGIRO will also provide information on the three most traded ETFs on their platform for the previous year so you can harness the wisdom of crowds. This includes the popular Vanguard S&P 500 UCITS ETF.
You can also access a Core Selection of 200 ETFs that come completely commission free which can help keep your costs low.
Fees: Commission free for dealing ETFs
Minimum balance: £1
Products available: GIA
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Have you tried eToro?
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. Your capital is at risk. Other fees apply. For more information, visit etoro.com/trading/fees
As with any investment the value can go down as well as up. Past performance is no indicator of future performance. The tax treatment of ISAs depends on your individual circumstances and may be subject to change in the future.
Moneybox are part of a new wave of apps that combine saving with investing. They offer an excellent range of products including automated savings and round-ups alongside an expansive list of account options including tax wrappers and savings accounts.
This all comes at a very low cost and requires very little intervention from the user and is therefore perfect for anyone looking for an easy-to-manage solution.
What I like about Moneybox for ETFs
Moneybox offer a total of 12 ETFs which may not sound like a lot, however, the beauty of Moneybox lies in its simplicity.
They have chosen not to overwhelm investors with too many choices, but instead provide them with a good selection of ETFs managed by the key players of the investment world including Vanguard, BlackRock, and Legal and General.
Fees: £1 per month
Minimum balance: £1
Products available: Stocks and Shares ISA, General Investment Account, Junior Stocks and Shares ISA, Cash Lifetime ISA (3% AER), Stocks and Shares Lifetime ISA, Personal Pension
As with any investment the value can go down as well as up. Past performance is no indicator of future performance. The tax treatment of ISAs depends on your individual circumstances and may be subject to change in the future.
IG are one of the most established platforms in the UK, providing a multitude of investment services at low cost and with excellent levels of customer service.
Another draw card for IG is that they are listed on the London Stock Exchange which provides additional security. They also have a very robust education section, the IG academy, with several elements to help develop your investment skills.
Why I like IG for ETFs
IG provide investors with both execution and fully managed accounts, meaning you can either be actively involved in buying and managing your ETFs or, you can choose to have their team of experts invest on your behalf with an IG Smart Portfolio.
In addition, the ETF screener at IG is a useful tool for finding ETFs that can match your investment objectives. There are more than 2000 global ETFs to choose from that can be categorised by asset class, performance, or ISA eligibility.
Fees: ETFs from just 0.4%
Minimum balance: £250
Products available: Stocks and shares ISA, share dealing account, Smart Portfolio account, Smart ISA Portfolio account
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.
AJ Bell provide investors with an excellent platform that is a breeze to navigate and use. They also have a range of accounts, including tax wrappers.
The price structure here is best suited to those who plan to buy and hold their investments, rather than frequent traders who may find the share dealing price prohibitive.
Why I like AJ Bell for ETFs
AJ Bell have created their Favourite Funds list to help investors make decisions when picking ETFs. They also provide a regular saving service, from just £25 a month which can easily and quickly be set up online and left to operate automatically. This means you can drip-feed funds into the ETF of your choice.
There are a good range of account types at AJ Bell including several tax wrappers.
Fees: £9.95 for buying and selling ETFs.
Minimum balance: £25
Products available: Stocks and Shares ISA, SIPP, Dealing account, Junior Stocks and Shares ISA, Lifetime ISA
Remember that investments go up and down in value, and you could lose money as well as make it. How you’re taxed will depend on your circumstances, and the rules can change.
What is an ETF trading platform?
An ETF (Exchange-Traded Fund) trading platform is an online platform or digital service that enables investors to buy, sell, and manage their investments in ETFs. ETFs are investment funds that trade on stock exchanges, similar to individual stocks, and represent a diversified portfolio of assets such as stocks, bonds, commodities, or other securities.
An ETF trading platform provides a convenient and user-friendly way for investors to access and engage with these funds.
How does an ETF trading platform work?
- Account Setup: Investors need to open an account with the ETF trading platform. This involves providing personal information, completing necessary forms, and agreeing to the platform’s terms and conditions.
- Fund Research: The platform typically provides tools and resources to help investors research and analyze various ETFs. This can include information about the ETF’s holdings, performance history, expense ratios, and other relevant data.
- Investment Selection: Investors can choose from a wide range of available ETFs listed on the platform. These ETFs cover different asset classes, sectors, regions, and investment strategies. The platform usually provides filters and search options to help investors find ETFs that match their investment objectives.
- Buying and Selling: Once an investor selects an ETF, they can place orders to buy or sell shares of that ETF through the platform. The trading platform connects the investor’s order with the relevant stock exchange where the ETF is listed. Orders can be executed at current market prices.
- Portfolio Management: ETF trading platforms often include portfolio management features. Investors can view their holdings, monitor their portfolio’s performance, and make adjustments as needed. Some platforms may offer tools for rebalancing portfolios to maintain desired asset allocations.
- Market Data and Analysis: The platform typically provides real-time market data, price charts, historical performance data, and other analytical tools to help investors track their investments and make informed decisions.
- Education and Research: Many ETF trading platforms offer educational resources, articles, videos, and market insights to help investors learn about ETFs, investing strategies, and market trends.
- Customisation and Automation: Some platforms allow investors to create custom portfolios by selecting a mix of different ETFs. Additionally, certain platforms offer automated investing options, where investors can set up periodic investments or use robo-advisory services that create and manage a diversified portfolio on their behalf.
- Account Management: Investors can manage their account details, track transaction history, and view statements through the platform.
- Customer Support: ETF trading platforms typically offer customer support channels, such as live chat, email, or phone, to assist investors with any questions or issues they may encounter.
Why choose an ETF trading platform?
Here are some reasons why investors might prefer using an ETF trading platform:
- Diversification: ETFs often track a specific index, sector, or asset class, providing investors with instant exposure to a diversified portfolio of securities. This can help spread risk and reduce the impact of poor-performing individual stocks.
- Cost-Efficiency: ETFs typically have lower expense ratios compared to actively managed funds. This means investors can achieve broad market exposure without incurring high management fees.
- Liquidity: ETFs are traded on stock exchanges like individual stocks, offering high liquidity. Investors can buy and sell ETF shares throughout market hours, potentially benefiting from tighter bid-ask spreads and reduced trading costs.
- Transparency: ETFs often disclose their holdings on a daily basis, allowing investors to see exactly what assets the fund holds. This transparency can help investors make informed decisions about their investments.
- Flexibility: ETFs cover a wide range of asset classes, from stocks and bonds to commodities and real estate. Investors can choose ETFs that align with their investment goals and risk tolerance.
- Intraday Trading: ETFs can be traded throughout the trading day, giving investors the ability to react to market developments and news by adjusting their positions.
- Tax Efficiency: ETFs are structured in a way that can potentially result in fewer capital gains distributions compared to mutual funds. This can lead to tax advantages for investors.
- Ease of Access: ETFs can be bought and sold through brokerage accounts, making them accessible to both individual investors and institutional investors.
- Global Exposure: Investors can easily access ETFs that provide exposure to international markets and specific sectors that might be difficult to invest in directly.
- Customisation: Some ETF platforms offer tools that allow investors to create customized portfolios that align with their specific investment strategies.
- Low Minimum Investments: Many ETFs have low minimum investment requirements, making them accessible to a wide range of investors.
- Automation: Some platforms allow investors to automate their ETF investments through features like periodic investment plans or robo-advisors.
- Research and Education: ETF trading platforms often provide resources, market data, research, and educational materials to help investors make informed decisions.
- Portfolio Management: Investors can use ETFs to build a well-diversified portfolio tailored to their risk tolerance and investment goals.
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