Top 11 Trading Brokers 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.
The stock market can be a great way for savers to invest their money, and the idea that it is just for the wealthy is not true. In fact, there are stockbrokers in the UK suited for different types of investors.
This article will look at the 11 top stockbrokers UK, the main benefits of each platform and some of the challenges you may face when looking for the best brokers UK.
The 11 Top UK Stockbrokers
Below are the top 11 UK online stockbrokers and stock trading platforms in the UK and the pros and cons for each one.
This is not an exhaustive list, and professional financial advice should be sought before investing sums of money.
Plus500 – Best for exposure to different markets to invest in
eToro – Best platform for help from others
Pepperstone – Best UK stockbroker for customer service
XTB – Best for learning how to trade
Vantage Markets – Best mobile app for features
AvaTrade – Best joining bonus
City Index – Best for spread betting
DEGIRO – Best for retail trading
CMC Markets – Best for serious and top-earner traders
Robinhood – Best for millennial traders
Markets.com – Best for technical markets
After looking more closely at these top UK brokers, you can then assess the advantages and disadvantages of each platform to find out which one would best suit you.
1. Plus500
Plus500 has a wealth of knowledge for traders to access to help with their investments.
Withdrawals are free of charge, no matter the number of withdrawals per month.
It has great customer service, 24 hours a day, and is FCA regulated.
Plus500UK Ltd is authorised and regulated by the Financial Conduct Authority (FRN 509909).
The withdrawals are free of charge, no matter the number of withdrawals per month.
Plus500 is expanding and currently offers three platforms: Plus500CFD with more than 2800 CFD instruments, Plus500Invest with more than 2700 shares (available in certain countries), and Plus500Futures - a futures platform available in the US only.
80% 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.
2. eToro
Some of the main reasons eToro is popular with both new and experienced traders is because of its social trading/copy trader feature.
This means that beginners or those who need to make an investment quickly can see what successful traders are doing and copy their movements.
It is regulated by the Financial Conduct Authority (FCA), Markets in Financial Instruments Directive (MiFID) and Australian Securities and Investments Commission (ASIC), and allows traders to invest all over the world, including the London and New York stock exchanges.
There is commission-free trading on stocks, however, it does require a £200 deposit and charges £3 for a withdrawal, so is not for those with small funds. It is one of the more expensive platforms but still very popular.
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
Pepperstone has a high-quality interface that is very user-friendly and easily accessible for traders in the 170+ countries it is available.
In addition, Pepperstone is regarded as the best for customer service, helping investors at all times of the day with a range of queries.
This is great for new and experienced customers alike.
What isn't good for new and inexperienced traders is that it is only for investors of CFDs and not stocks and shares.
There is no withdrawal fee or minimum of deposit required.
81.7% of retail investor accounts lose money when trading spread bets and CFDs
4. XTB
This platform is great for customer service, with live chat available, an easy and quick withdrawal system, a trading academy to help investors learn the trade and a user-friendly interface.
XTB also has two account types, which are great for different traders – those who have small investments and those with more to spend.
There is access to 2,100 different stocks and shares, giving everyone an option.
However, a £250 deposit is needed, which isn't ideal for those with minimal funds, and high trading fees for those wanting to invest in CFDs.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% 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.
5. Vantage Markets
Vantage Markets is regarded as a safe, reliable, inexpensive and accessible trading platform. It offers three types of accounts, from the novice to the professional, and has access to 15 stock markets and more than 200 CFDs.
There are no inactivity or withdrawal fees, making it a less costly platform. It also has a trading app full of many helpful and interactive features.
However, CFD trading can come with risks. It also costs $200 to set up an account.
6. AvaTrade
AvaTrade is a CFD online stock and forex broker, regulated in Northern Ireland and offering 1,000 different instruments and multiple online trading platforms.
Not only that, but you get a sign-up offer of 20% bonus up to $10,000 and can even sign up for a 21-day free demo account to see if it is the best trading platform for you.
However, although there are many options for CFD trading, you cannot buy stocks or trade in some of the most popular countries for trading, such as the US.
You will also get charged for inactivity, and the customer service is not rated.
7. City Index
City Index is regarded as the best for spread betting – a great option for those looking for tax-free investment who can trade on the rise and fall of price movements rather than purchasing stock.
It also has a great dashboard accessible for traders to view the market and make decisions based on this.
For those wanting to trade at the weekend, though, there is no customer service at this time and it does charge for inactivity.
8. DEGIRO
DEGIRO is Europe’s leading investment platform and its largest retail broker, with its own banking licence. This makes it hugely popular globally.
One of the reasons is that it is very easy to open an account – you just need identification and a bank account.
There are no inactivity fees or minimum deposits, either, and with five different types of accounts, there is something for all levels of traders.
However, you can only make transactions with your bank account, not a credit or debit card, which can be limiting.
You cannot trade cryptocurrencies, CFDs or forex.
9. CMC Markets
With a breadth of downloadable guides, trading tools and a fully featured mobile trading app, CMC Markets prides itself on being a platform for serious traders.
With no minimum deposit required and low forex fees, it gives the trader lots of opportunities for investment.
However, using the platform will not lead to ownership of trading assets, and you can only use spread betting or invest with CFDs, and there are high fees for using these.
10. Robinhood
Some of the best features on Robinhood – no deposit needed, instant access to cash, real-time data and a range of trading options – explains why this platform is popular with the younger generation.
It means they can practise trading, and invest in something even with a small budget.
What it features in benefits, it lacks in educational resources, customer support and product offering.
11. Markets.com
This platform is another one with access to real-time data, making it popular with experienced and serious traders who can view and understand the market.
Markets.com doesn’t charge fees or commission but does charge highly for spread betting.
Though it has lots of data and market research, it does have a limited offering on the products you can invest in – so not for everyone who likes more options.
What Is an Online Broker?
Now, let’s look at online brokerage and how trading like this started.
Online brokerage really took off in the mid-nineties and onwards, when increasingly more people had access to the internet in their homes and at work.
An online broker is not to be confused with the traditional model of brokerage, where investors phone to place orders and stocks.
This newer model works commonly through a proprietary platform and offers the buying and selling of foreign currencies, stocks, shares and investments securely through this online platform.
Advantages of Using an Online Broker
With most things online these days, online brokers can be accessed and used from anywhere in the world. Most of these platforms have user-friendly apps that mean you can trade on the go when you have a spare 10 minutes.
This compares to traditional brokers where you have to call on the phone within certain hours and cannot do it from anywhere, as there is a cost and may not be possible to connect.
The online brokerage also has real-time data and a plethora of information, resources, guides and live chats that are not available through traditional brokers. You do not have to actively find out and teach yourself so much, giving you more time to focus on the investing process.
Real-time data also means trades can happen quicker, and investors can take advantage of changes to the stock exchange, for example.
Traditional brokers often partner with mutual funds and will try to offer these packages to the investors, pushing their offerings over others. Online brokers do not do this though, giving no bias to the investor.
Disadvantages of Online Brokers
There are always two sides to each story and with advantages also come disadvantages.
Technology can fail us often, and errors can be made on investments and trades due to typos, failings in load time and general technical miscommunications.
Using a technical device to trade also means there is no personalisation. Traditional brokers will give a personal touch, giving advice and one-to-one guides. This doesn’t happen with online brokers.
There is also a risk of becoming addicted to online brokers. As it is accessible anywhere at any time, it is easy to keep checking on your stocks, making changes, adding investments and spending more money. It is imperative to be mindful of this.
How to Start Trading Online
After reading about the challenges and benefits of trading online, it may be time for you to start the process of trading online.
Here, you will learn more about how to begin trading online.
Finding an online stockbroker is the first place to start. As well as looking at the list above, it is best to research more about each platform before deciding which one to use.
You could read reviews, seek financial advice, speak to a financial adviser or chat with friends before making this informed decision.
Once you have decided on which online stockbroker you want to use, you will need to download the app, create a trading account and read all the terms and conditions.
You will then need to check the minimum amount of investment to open the account and start trading. There will be instructions on how to add funds, and you’ll need to add bank details.
You are then ready to start trading. You’ll need to read up on the best stocks and shares, looking at real-time data and information on the relevant websites. You can always try and speak to the live chat for help too.
Tips for Online Trading
Trading successfully is not about luck; some people make their career out of it after working hard, intensive researching and keeping ahead of the game. There are some tips to follow to ensure a successful trade.
First, ensure you start small, as you will make mistakes and will need to spend time experimenting a bit. It is recommended to risk no more than 2% of financial value.
Whilst you’re starting small, you will also need to make a plan and stick to it. Research heavily on the different stocks available and which ones are recommended to invest in.
To do this, you need to put time into your trading journey – do not just pick something random to invest in; it should be carefully thought out, based on the latest market news, shares and the financial space, your budget and the options available to you.
It is also important to know when to cut your losses. Sometimes pumping money into something will not eventually yield results. In an industry where shares can drop as soon as they rise, a trader needs to know this and ensure they do not waste any more time or money on something that will not be successful.
There are a few things to avoid, and the most common one is penny stocks. These are stocks generally out of the national exchanges, trading ‘over-the-counter’ for a low share price.
They are considered very high risk, though, and most full-service brokers will not offer them as an option. It is not recommended due to its high-security risk and the very high risk of not being able to sell them again.
With careful planning, careful spending, considerable time and cutting losses when you need to, trading with an online broker can be successful.
Frequently Asked Questions
How do I start trading stocks in the UK?
You can start trading stocks by finding an online broker that suits your needs and requirements, and then creating an account. After you have entered the money you want to start trading with, you are good to go.
What are the key factors to consider when choosing a stockbroker in the UK?
When choosing a stockbroker in the UK, you need to look at what it offers in terms of stocks and investments. It is also important to look at the minimum cost to start trading with, all fees, customer service, security levels, usability and if it is regulated or not.
What is the best broker for beginners UK?
The best online stockbroker for beginners is either eToro or XTB, as they both have features suited to a trader just starting out.
Are the online stockbrokers in the UK safe?
All online stockbrokers in the UK who are regulated by financial bodies are considered safe. It is always good to do your research, though.
What is the most popular stockbroker in the UK?
The most popular stockbroker in the UK is eToro, mainly due to the fact that it is liked by both beginners and experienced traders.
Final Thoughts
It is important to find a good stockbroker and this is achievable by finding the best brokers in UK that suit your needs and have the features that you require.
Always seek financial advice before choosing a broker and trading, and remember that your finances are always at risk in this type of stock trading.