Best Online Trading Platform for Beginners in the UK [Updated 2024]
Trading is risky and you might lose part, or all, of your capital invested. The information provided is for informational and educational purposes only and does not represent any type of financial advice and/or investment recommendation.
Our picks for the best online trading platforms for beginners UK are:
Plus500 – Best for user-friendly interface
eToro – Best overall trading platform
Pepperstone – Best for customer service
AvaTrade – Best for a demo account
City Index – Best for research and trading tools
DEGIRO – Best for low fees
Due to the advancement of technology, online trading has never been easier. However, this doesn't mean it's entirely risk-free or that you can trade on any platform.
With all the different platforms available at their disposal, new traders should always do their due diligence and research all the options before choosing the best for their needs.
Here we look at the best trading platform for beginners UK and their benefits and drawbacks.
You'll also receive a few tips on what to look out for choosing your first trading platform and what to consider when you start trading as a novice to avoid making costly mistakes.
Let's get started!
Top 6 Best Trading Platforms for Beginners UK
1. Plus500
Advantages
Regulated by the Financial Conduct Authority
Over 2,500 significant financial instruments
Negative balance protection
24/7 customer support"
Disadvantages
Not currently available to US clients
No API integrations
CFDs only
No social copy trading
Plus500 is a popular choice for beginners in the UK due to its user-friendly interface and efficient account opening process. It offers an intuitive platform and a demo account, allowing new traders to practice without financial risk. However, Plus500 primarily focuses on CFD trading and may have high CFD fees. It also lacks extensive educational resources and advanced research tools, which might be a downside for beginners seeking comprehensive learning support. Overall, Plus500 is well-suited for those starting in online trading who prioritize a straightforward, easy-to-navigate platform.
Beginners must use the demo account and the Trading academy to gain experience before trading with real capital due to the risks involved.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 80% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
2. eToro
Advantages
Designed for social and copy trading
Regulated by the FCA, ASIC
Zero-commission for trading
No withdrawal fees outside the UK
Disadvantages
Larger start and maintenance costs
MetaTrader 4 and 5 platforms aren't available
Isn't available in all states
Established in 2007, eToro is a leading multi-asset trading platform and one of the best trading platforms for beginners UK.
Its features include 0% commission fees on stock - and only up to 1% commission on other assets, and no withdrawal fees for UK and US users. For private clients, there is a $500 minimum deposit.
You can invest in CFDs, thousands of stocks, and crypto assets, through the over 40 fully allocated, balanced investment portfolios.
eToro focuses on social and copy trading, allowing clients to make matches based on their needs, budget and style.
As one of the top trading platforms UK, they provide a $100,000 demo account for free, along with valuable educational material.
This allows you to practice trading until you become confident to open a real account, making it easy to get started.
Plus, there is a news feed with open trading discussions, where you can support notifications. While eToro doesn't have a banking license, it's regulated by the FCA.
However, if you're looking for the cheapest trading platform UK, you should probably look elsewhere.
74% of retail investor accounts lose money when trading CFDs with this provider. Don’t invest in unless you’re prepared to lose all the money you invest.
3. Pepperstone
Advantages
No minimum deposit or withdrawal fees in the UK
Excellent customer service
Low fees in general
Regulated by the FCA
Disadvantages
No protection outside the UK and EU
Available for CFD trading only
Withdrawal fees outside the EU and Australia
With no minimum deposits and low trading fees, Pepperstone is another contender for the best beginner trading platform UK.
In business since 2010, the company has provided plenty of brokerage options for forex and CFD trading.
There is a minimum deposit of $200, after which clients in the UK, the EU, and Australia can withdraw their earnings at no charge. Withdrawal fees apply in the US.
Pepperstone provides plenty of educational resources, including general stock market analysis and trading ideas. These simple features make it perfect for beginners who don't want to delve into complex information pools just yet.
Customer service is available online via live chat, phone and email. Data protection is also available in the UK and the EU.
Although Pepperstone isn't yet listed on the London stock exchange, it's regulated by the FCA, making it safe to use.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 77.6% 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.
4. AvaTrade
Advantages
Demo account
Generous welcome bonus
Negative balance protection
Regulated by several agencies worldwide
Disadvantages
Quarterly and annual inactivity fees
Not available in many countries
Limited customer support
Stock unavailable for purchase
Founded in 2006, AvaTrade is a brokerage platform that offers numerous benefits for beginners who want to learn fast and diversify their portfolio as soon as possible.
As one of the best online trading platforms UK, you can start trading with a minimum deposit of $100. You'll even receive a generous welcome bonus of 20%.
Depending on the type of asset you're investing in, there are annual and quarterly inactivity fees.
AvaTrade provides a free 21-day demo account with $100,000, through which you can learn anything from simple tricks to advanced capabilities.
There is negative balance protection, so you won't have to worry about fees even if you lose money, even after opening an account.
You can switch between multiple platforms and choose from over 250 financial instruments, including metals, oil, commodities, exchange-traded funds (ETFs), CDFs, Stocks, shares, cryptocurrencies, forex and more.
AvaTrade is regulated by several agencies worldwide, providing protection wherever you're brokering from.
5. City Index
Advantages
Low forex fees and minimum deposit
FCA-regulated
Available for social trading and copy trading
A wide range of research and trading tools
Disadvantages
High inactivity fees
High commission for CFD shares
Limited customer service
Established in 1983, City Index is one of the oldest brokerage platforms. You can open your account for free, but there is a minimum deposit of $250 to get started.
The free trading platform UK is focused on forex, and stock index CFD trading, the fees per deal start around 5%.
For CFD, the costs are a little higher. Depending on your trading style, you may have additional non-trading charges, such as inactivity and withdrawal fees.
Another feature that makes it a contender for the best trading platform UK is that City Index offers valuable education and research tools, including a handy demo account, making it the ideal choice for beginners.
The interface on all platforms can be customized to fit any trading style and comes with an excellent trading news flow.
While the portfolio isn't broad, this is suitable for new traders just learning the ropes.
There is 24/5 customer support available via phone and live chat, so if you ever get stuck, you'll get help in a timely manner.
The best trading broker UK is listed on the London stock exchange and is regulated by the FCA, making it a safe choice.
6. DEGIRO
Advantages
Low trading fees
No minimum deposit, inactivity, and withdrawal fees
Regulated to the FCA and BaFin
User-friendly online and mobile platforms
Disadvantages
No demo account
No debit or credit card deposits
CDF, forex, and crypto trading aren't available
No 24/7 customer support
DEGIRO was founded in 2008 and soon became an award-winning investment broker and the best day trading platform UK.
There is no maximum deposit, inactivity or withdrawal fee.
You need to pay around $2 per deal in UK stocks and only $0.5 per deal when trading in US stocks.
Apart from stocks, you can also invest in bonds, options, EFTs, warrants, certificates, and many more assets through a broad range of international exchanges.
You can choose from five different accounts, including Active, Day Trader and Custody.
While there is no demo account, beginners usually have no trouble getting started using the web-based platform and the mobile app.
On each, there is a tab labeled "knowledge, where you can find tutorials and articles on assets and basic trading strategies.
Customer support is available during work days, and the broker is regulated by the BaFin and the FCA.
What to Consider When Choosing the Best Trading Platforms for Beginners?
Since each platform offers certain benefits, you may wonder how to pick the right one.
Here is a quick guide on what to consider when choosing the best trading platforms UK as a beginner.
Educational Material to Understand Trading
While some platforms mentioned article is also designed for advanced traders, they also offer plenty of research tools for beginners.
As a novice, you'll need to look into platforms that provide educational tools and possibly a demo account to help you understand the basics of online trading.
Opt for stockbrokers that offer beginner-friendly research and analytical tools. Otherwise, you'll not have access to educational features and may make more mistakes while learning to trade.
Ability to Practice Trading With a Demo Version
If the platform offers a demo account, feel free to take advantage of it.
For a limited amount of time, you'll have free access to all the tools you need to understand the basics of trading tactics.
Plus, you'll be able to see how easy it is to use the platform in question.
You'll be able to access how easy the interface is on the eye, whether it's mobile optimized or not, and what features it offers.
Consider all the features you'll need and see if you can find them easily on the demo account.
For example, you'll want every command related to executing orders quickly so you can answer to market fluctuations.
If you want to improve your ability, there are also many other great resources, such as YouTube channels for trading.
Your Goals and Abilities
Your goals and abilities also matter when choosing the best online trading platform UK.
You should consider, for example, the time you can dedicate to trading.
If you have a lot of time to spend monitoring your shares, you probably don't need a platform that provides (and charges for) alters.
However, if you have a busy schedule, you'll definitely benefit from alerts. Some platforms will also execute orders for you, so you won't miss out on the best opportunities.
If you're looking for a long-term investment, choose a platform that allows trading in stock and shares that yield a high return over an extended period.
If not, get an account that enables you to earn short time returns, and start generating an income from trading as soon as possible.
You should also consider how much money you have to invest on a regular basis. Some platforms will require a minimum deposit to start trading, even though they won't charge commissions later.
However, several have inactivity, withdrawal fees, and charges for bank transfers. Opt for a platform without inactivity fees if you don't have money to invest regularly.
Having a trading journal can help you better manage your money.
The regularity of your withdrawals will also affect your charges. If you want to reduce them, choose a platform without withdrawal fees, or opt for long-term investments, so you won't have to withdraw or transfer money too frequently.
The Type of Trading
Not all platforms offer every type of trading. If you want access to all trading types, choose a broker that provides this.
On the other hand, if you wish to focus on forex or crypto trading, you may opt for a platform designed only for these purposes.
Likewise, you should consider whether you want to trade internationally or only in the UK (and eventually the EU) market.
Consider all your trading preferences, and see which platform will cater to you best. Some specialize in specific types of stocks and shares, which can also be beneficial if you aim to invest only in those.
Easy to Comprehend Fee Structures
As mentioned before, there are several types of fees on trading platforms. Each one has a different fee structure, so make sure to understand them before you decide which one suits your budget and needs.
Some brokers offer welcome bonuses or require no minimum deposits, but they can upcharge you other fees later on.
Go over the listed expenses, and see if you can comprehend what you'll be charged and at what intervals.
Understanding what you're getting into payment-wise is one of the prerequisites of successful trading.
Real-Time Access
Whether you need constant alerts or can monitor everything yourself, you'll want to ensure you've real-time access to information when you switch to live trading.
Some platforms offer regular updates containing small bits of information.
Others provide delayed updates with more informative data. Keep in mind that sharing platforms may not provide details on specific stocks. If you require this, opt for a platform where you are granted access to a real-time view of every stock.
Good Customer Support
Apart from access to information about stocks and shares, you should also look into the level of customer support the platform provides.
Customer support varies from one broker to another, so make sure to choose according to the level you require.
Some platforms only offer email support, excluding weekends. As a beginner, you should opt for a platform that provides 24/7 customer support, preferably online.
Regardless of how apt you are with trading, finances, or technology, the more support you can get in the beginning, the easier it'll be for you to grow your portfolio.
Strong Security and Regulatory Framework
When registering on an online trading platform, you're handing over sensitive information, including personal data, banking, and insurance details. This puts you at risk of data theft and financial loss if the information gets into the wrong hands.
This is one of the critical reasons why the FCA doesn't recommend trading without brokers or dealing with unregulated brokers.
Platforms regulated by the FCA have a secure interface that allows data and privacy protection.
Before opening an account on any platform, remember to look into its login options, privacy policy, and the level of protection it offers its customers. Look if the broker is listed on the London stock exchange - this usually means they're FCA regulated.
Things to Remember Before You Start Trading
Before you start trading, you should remember a few key points. First and foremost, you'll need to learn the basic terminology used in trading.
Even if you have a financial background, trading has a specific language you'll need to familiarize yourself with.
Go over the basic terms and see if there are any that are unfamiliar to you. If there is, look up its meaning and memorize it.
Learning the basic terminology will also help you avoid the danger of trading. You'll be able to understand all the risks involved, including the possible loss of money.
While trading can be the perfect way to produce high returns, your investment can go down too, and you may not get your money back.
You may not be able to avoid making every mistake beginners make. Still, you can reduce their occurrences to a minimum.
Investing in a diversified portfolio and shared funds can help you with this.
If you're unsure of the possible risks, you can also seek financial advice. Using regulated and trusted platforms is another way to minimize your risks.
Nowadays, it's possible to trade without brokers. And offshore brokers may offer seemingly better deals. However, these aren't regulated by the UK Financial Conduct Authority (FCA).
To avoid loss of time and money, use only FCA-regulated platforms.
Frequently Asked Questions
What is the best trading platform for beginners in the UK?
Offering commission free-trading and very low starting costs, eToro is the leading trading platform for beginners in the UK.
Other platforms, such as DEGIRO or Pepperstone, also charge no commission when trading, provide plenty of other advantages for traders and guide you on your path to being a great trader.
What is the minimum deposit to start trading online in the UK?
Most investment platforms in the UK allow you to start trading with a minimum deposit of $25-$100. Some will go lower on the deposit. However, these usually have other costs, which makes them unsuitable for beginners.
What online brokers offer a demo account?
Several online brokers offer a demo account for trading in the UK. For beginners, the most recommended option is Pepperstone. This allows prospective traders to gain trading experience before opening an active account.
How do I open an online trading account?
To open an online trading account in the UK, you'll need to visit the website of the platform you want to use for trading.
There, you'll open a General Investment Account. This account will enable you to buy, sell and hold any investment you choose.
What is the average income of a day trader in the UK?
The average base income of a day trader in the UK is around £37,428 per year.
However, this amount may differ in different types of trading and on various trading platforms.
For example, Foreign Exchange can earn up to £46,000, annually.
What are the key factors to consider when choosing a trading platform for beginners?
The key factors every beginner should consider before they start trading in the UK include: analyzing the risks involved with trading, understanding the basic terminology, and using only verified, regulated, and trusted platforms with good reviews.
Is online trading legal in the UK?
Online trading is legal in the UK. In fact, traders who use regulated platforms are legally protected by the Financial Conduct Authority (FCA). Forex brokers in this country cant offer trading services without an FCA license.
Can I trade online as a part-time job?
Beginners should start trading in small amounts and only beside their regular job. Once you've learned how trading works and know how to avoid risks, you can slowly transition to using online trading as a part-time job.
Depending on your active and effective trading skills, you can earn enough not to rely fully on your day job.
Can I trade online without a broker in the UK?
While it's possible to trade online without a broker (or with offshore brokers), the FCA doesn't recommend either of these options.
By investing in shares on your own, you won't be protected legally or financially; you're assuming all the risks of trading without protection.
What online brokers have the most user-friendly interface?
DEGIRO is one of the most beginner-friendly platforms. Other brokers also offer benefits like mobile friendly interface, which is perfect for trading on the go and keeping up with your shares at all times.
Do you need a bank account to start trading online?
To open a brokerage account in the UK, you'll need to hand over your bank account details and your National Insurance number.
Your trading account will be linked to your bank account, through which you'll be making the deposits for trading.
What is the minimum age requirement to be able to trade in the UK?
You'll need to be at least 18 to open an account in the UK. This applies to trading accounts too.
While you can trade above this age, some platforms may limit your account until you gain some experience and can prove you have the financial capability to assume the risks of losses.
Final Thoughts
As you can see, there are several trading platforms that beginners can take advantage of in the UK. Each has its advantages and disadvantages.
Some offer low startup costs, while others are known for having a fast, social, and mobile-friendly interface.
In the end, your choice depends entirely on your budget and preferences. Regardless of your choice, you must remember that online trading comes with many risks.
Before you start trading, it's a good idea to familiarize yourself with all of them (along with the basic terminology used in trading) to avoid losing time and money.