Best ETF Brokers & Trading Platforms in the UK November 2024

As the popularity of exchange-traded funds (ETFs) continues to soar in the UK, investors are increasingly drawn to their cost-effectiveness and the opportunity to diversify their portfolios across various assets. To capitalise on the potential returns, selecting the best ETF broker UK is paramount. As experts in this field, we took it upon ourselves to conduct extensive market research and share our top picks for ETF brokers in the UK with you. Whether you are seeking a low-cost option or a platform with expansive offerings, rest assured we have got you covered. Our guide also sheds light on additional information regarding ETF trading, helping you start off on the right foot.

List of the Best ETF Brokers in the UK 2024

• Pepperstone – Top UK ETF Broker With Social Trading Features
• Admiral Markets – Best ETF Brokers For Mobile Trading
• Plus500 – One of the Best* ETF CFD** Brokers for Desktop Trading
• Spreadex – Best ETF Broker With No Minimum Deposit Requirement
• FP Markets – Best ETF Broker For Advanced Traders in the UK
• XTB – Commission-Free ETF Broker in the UK
• AvaTrade – Best ETF Broker With Automated Features
• eToro – Easy-to-Use ETF Broker in the UK
• Saxo – Best Overall ETF Broker in the UK
• FreeTrade – Best ETF Broker for Beginners in the UK
• AJ Bell – ETF Broker with the Best Customer Support
• Hargreaves Lansdown – Best ETF Investment Broker 

*Investment Trends 2022

**80% of CFD retail accounts lose money

Compare Best ETF Brokers in the UK

To trade ETFs effectively in the UK, you need the best ETF platform UK that suits your specific requirements. To simplify your decision-making process, we have carefully compared the best ETF trading platforms available. Below, we present a detailed comparison table highlighting the key features of each platform for informed choices.

Best ETF Brokers	Licence	Support Service	Software	Payment	Demo Account	Money Insurance
Pepperstone	FCA, ASIC, DFSA, CySEC, BaFin, SCB, CMA	24/7	MetaTrader 4, MetaTrader 5, cTrader, TradingView	Credit cards, Bank transfer, PayPal	Yes	Yes (up to £85,000)
Admiral Markets	FCA	24/5	MT4, MT5, MT WebTrader, Admiral Markets Platform	Bank Wire Transfer, Credit/debit cards, Skrill, Neteller, Paypal, Klarna, iDEAL	Yes	Yes (up to £85,000)
Plus500	FCA, CySEC, ASIC, MAS, FSA	24/7	Plus500 Webtrader	Bank Wire Transfer, Credit/debit cards, Paypal, Skrill	Yes	Yes (up to £85,000)
Spreadex	FCA, SEBI	24/5	IPHONE App, IPAD App, ANDROID App, TradingView	Bank Wire Transfer, Credit cards	No	Yes (up to £85,000)
FP Markets	CySEC, ASIC, FCA, SEBI	24/7	MT4, MT5, cTrader, Iress,	Credit/debit cards, Bank transfer, PayPal, Neteller, Skrill, PayTrust FasaPay	Yes	Yes (up to $500,000)
XTB	FCA, KNF, CNMV	24/5	xStation 5, xStation Mobile	Credit/debit cards, Bank Transfers, Skrill	Yes	Yes (up to £85,000)
AvaTrade	CBI, CySEC, ASIC, BVIFSC, FSA, SAFCSA, ADGM, ISA	24/5	MT4, MT5, AvaTradeGO, AvaOptions, AvaSocial, DupliTrade, Capitalise.ai	Credit/debit cards, Wire transfer, Paypal, Skrill, NETELLER, WebMoney	Yes	Yes (up to $1,000,000)
eToro	ASIC, CySEC, FCA, FSAS	24/5	eToro investing platform, Multi-asset platform, Copy Trader	Debit cards, Bank transfer, Neteller, Skrill, eToro Money, Online Banking	Yes	Yes (up to $250,000)
Saxo	FSA, MAS, SEBI	24/5	SaxoTraderGO, SaxoTraderPRO	Bank Wire Transfer, Debit cards	Yes	Yes (up to EUR 100,000)
FreeTrade	FCA	24/5	MetaTrader 4	Bank Wire Transfer, Apple/Google Pay	No	Yes (up to £85,000)
AJ Bell	FCA	24/5	–	Debit cards, Bank Wire Transfer, online banking	No	Yes (up to £85,000)
Hargreaves Lansdown	FCA, CySEC	24/5	WebTrader	Credit cards, Bank Wire Transfer	Yes	Yes (up to £85,000)

Brief Overview of Our Recommended ETF Brokers’ Fees and Assets

Selecting an ideal ETF broker that matches your trading style and financial objectives is pivotal. In the subsequent tables, we’ve compiled crucial information outlining the fees and available assets across our recommended ETF brokers. This concise breakdown allows you to compare and contrast their offerings, empowering you to make well-informed decisions aligned with your investment strategies. 

Fees

Best ETF Broker	Fees	Minimum Deposit Requirement	Transaction	Inactivity
Pepperstone	From 0.0 pips	£0	Free	None
Admiral Markets	From 0.0 pips	£250	Free, but 1% exchange fee	€10 monthly
Plus500	From 0.0 pips	£100	Free	£10 monthly
Spreadex	From 0.6 pips	£0	Free	None
FP Markets	From 0.0 pips	£100	Free	None
XTB	From 0.1 pips	£0	Free	£10 monthly
AvaTrade	0.03 pips	£100	Free	£50 quarterly
eToro	From 2 pips	$100	$5 withdrawal	$10 monthly
Saxo	From 0.6 pips	£0 (for Classic account)	£0	£0
FreeTrade	From £0	£0	£0	£0
AJ Bell	From £4.95	£0	£0	£0
Hargreaves Lansdown	From 1%	£1	£0	£0

Assets

Best ETF Broker	Forex	Stocks	Commodities	ETFs	Options
Pepperstone	Yes	Yes	Yes	Yes	Yes
Admiral Markets	Yes	Yes	CFDs on commodities	Yes	No
Plus500 (CFDs)	Yes	Yes	Yes	Yes	Yes
Spreadex	Yes	Yes	Yes	Yes	Yes
FP Markets	Yes	Yes	Yes	Yes	No
XTB	Yes	Yes	Yes	Yes	Yes
AvaTrade	Yes	Yes	Yes	Yes	Yes
eToro	Yes	Yes	Yes	Yes	No
Saxo	Yes	Yes	Yes	Yes	Yes
FreeTrade	No	Yes	No	Yes	No
AJ Bell	No	Yes	No	Yes	No
Hargreaves Lansdown	Yes	Yes	No	Yes	No

Our Opinion & Overview of the Best ETF Trading Platforms UK

As professionals in the UK’s financial space, we are pleased to present our informed opinion and overview of the best platform for ETF trading in the UK. This comprehensive assessment aims to offer valuable insights into the most reliable and effective platforms available. Our goal is to ensure traders like you confidently navigate the ETF market.

1. Pepperstone – Top UK ETF Broker With Social Trading Features

If you are looking for an ETF broker with social trading features in the UK, Pepperstone is your go-to option. From our hands-on experience, social trading is featured on its third-party MT4, MT5, cTrader, and TradingView platforms. With social trading, it’s easy to connect with other global traders and learn some trading tips that could benefit your activities. Plus, you will follow the most experienced traders and mirror their potentially profitable positions if need be. The best part is that these platforms are user-friendly and feature quality trading tools for all traders. 

When it comes to ETF trading, Pepperstone offers over 100 ETFs that track the performance of sectors, including mining, energy, technology, bond markets, and retail. And although you can only explore ETFs as CFDs, expect to incur low commissions from £0.02 per share, per trade. Other 1200+ CFD securities are also at your disposal for portfolio diversification. These include forex, shares, indices, commodities, and more. 

2. Admiral Markets – Best ETF Brokers For Mobile Trading

Mobile trading encourages flexibility in the financial landscape. With the Admiral Markets app you may get really valuable trading experience, whether you are using an Android or iOS mobile device. We tested this ETF broker and like the fact that its app is user-friendly with a modern design interface. Plus, the app lists some of the most popular ETFs across the US and EU ,markets. The best part is that Admiral Markets also supports ETF investing where the fee per each trade varies depending on the market: 0,2 USD per trade on the US market, 0,1% of trade value on the UK market, 0,15% of trade value on the European market. To find out more details, please, visit the page https://admiralmarkets.com/start-trading/contract-specifications/etf

We started trading ETFs at Admiral Markets with minimum deposits of £250. The best part is that the app is among the most highly rated by users on Google Play, the App Store, and Trustpilot. With a fast trade execution speed and access to MT4 and MT5 platforms, we believe that this broker fits any UK ETF trader. Simply ensure it features elements aligning with your trading requirements. You can test it using its demo account for informed decisions.

3. Plus500 – One of the Best ETF CFD Brokers for Desktop Trading

Plus500 stands out as a top online trading platform, renowned for its desktop and especially mobile trading capabilities.This broker provides access to a range of exchange-traded funds to trade as CFD, including USO-Oil fund, iShares Silver, and Global X Lithium & Battery Tech ETF.

With the Plus500 platform, you gain access to all the essential tools for analyzing and trading global ETFs*. What’s more, this platform is entirely proprietary to Plus500, designed in-house.

*note that Plus500 provides CFD trading only

4. Spreadex – Best ETF Broker With No Minimum Deposit Requirement

Spreadex stands out as one of our premier choices for investors seeking a flexible and accessible ETF broker in the UK. With an extensive offering of over 200 different ETFs from around the world, Spreadex empowers traders to easily diversify their portfolios. What’s more, the broker is committed to providing traders with the freedom to start trading ETFs without any minimum deposit requirement. This makes it an ideal choice for investors of all experience levels, from beginners to seasoned traders.

Spreadex offers the versatility of trading ETFs through both spread betting and CFD trading products, giving traders the flexibility to choose the approach that best aligns with their investment strategy. Whether you’re interested in tracking global indices, commodities, or specific market sectors, Spreadex’s comprehensive selection of ETFs caters to various investment preferences.

5. FP Markets – Best ETF Broker For Advanced Traders in the UK

FP Markets is another ETF broker for UK traders offering over 290 ETF instruments to choose from. These ETFs include those that track various indices, commodities, currencies, and bonds. As a result, you will have access to a broad range of options when building your portfolio.

We primarily recommend this broker to advanced ETF UK traders because of its vast collection of learning resources. Rest assured of a seamless research experience using FP Markets’ technical indicators, charting tools, a news feed, an economic calendar, and more. On top of that, the broker provides advanced MT4 and MT5 trading platforms, which are widely regarded as one of the best trading platforms available. There is also the Direct Market Access feature on the FP Markets’ Iress platform to ensure you enjoy your activities without intermediaries.

Lastly, FP Markets has competitive pricing for ETF trades starting from 0.0 pips. This allows professional ETF traders to manage their costs effectively when exploring different types of ETFs.

6. XTB – Commission-Free ETF Broker in the UK

XTB provides an effective gateway for investing in global companies, commodities, and sectors through ETFs. With a user-friendly interface and a minimum transaction value of £10 for ETF trades, the broker ensures accessibility and ease of use. Note that XTB stands out by offering commission-free trading on over 300 ETFs, catering to traders seeking cost-effective investment avenues. Based on our experience, we recommend this broker primarily to newcomers venturing into ETF trading. They can benefit from an intuitive user interface and access to high-quality learning materials to develop their skills.

In addition to ETFs, XTB offers a wide array of additional securities, such as stocks, commodities, cryptocurrencies, and more, available for trading through CFDs. Moreover, the broker provides traders excellent market analysis tools, including a market calendar, news feed, and price tables, aiding in informed decision-making. Additionally, XTB provides competitive interest rates on uninvested funds, offering potential earnings of up to 5%, with rates set at 3.8% for EUR and 5.0% for USD deposits.

7. AvaTrade – Best ETF Broker With Automated Features

AvaTrade stands out as one of the best ETF brokers with automated features since it hosts some of the most traded ETFs globally. The broker’s cutting-edge trading platform provides users with a streamlined and user-friendly interface while incorporating a range of automated features that make trading ETFs more efficient and effective. For instance, you can automate your activities on AvaTrade’s AvaSocial, DupliTrade, and ZuluTrade platforms. With these platforms, you can connect with like-minded CFD traders, learn various trading ideas, and copy positions with increased potential from expert traders. 

Besides the copy and social trading platforms, AvaTrade hosts the Capitalise.ai platform with automated features. The standout feature of the Capitalise.ai platform is that it hosts a huge library of high-performance and proven strategies to choose from. Your trades are also automatically executed with the help of AI, and you get real-time alerts on your mobile device once certain conditions have been met. To use the Capitalise.ai platform, you need an MT4 account to connect it with.

8. eToro – Easy-to-Use ETF Broker in the UK

eToro is one of our personal favourite online brokers and definitely one of the best ETF brokers in the UK at the moment. With over 200 different ETFs on offer, you should not have an issue finding a few that suits your strategy and ability.

Trading with eToro is always an enjoyable experience, especially if you make use of all the social trading tools such as copy trading. These tools allow you to trade ETFs in a much easier fashion.

9. Saxo – Best Overall ETF Broker in the UK

Trading with Saxo gives you access to over 3,000 instruments across more than 30 global markets. The pricing at Saxo is low, which is best for any trader trying to diversify their portfolio.

Moreover, this ETF broker provides the SaxoTraderGo platform, known for its powerful yet user-friendly interface. It offers access to quality trading resources and reliable customer service. Additionally, the broker offers various trading accounts tailored to meet each trader’s needs for seamless ETF trading.

10. FreeTrade – Best ETF Broker for Beginners in the UK

Beginners can easily start trading with FreeTrade thanks to its user-friendly ETF platform. You can select from over 200 ETFs without paying trading commissions, enabling you to explore diverse markets.

FreeTrade also offers a dependable trading app designed for beginners who are often on the move. Compatible with any mobile device, this app allows you to trade conveniently from anywhere. Their customer service is also highly responsive and supportive, available via phone, email, or live chat whenever you need assistance with your trading.

11. AJ Bell – ETF Broker with the Best Customer Support

AJ Bell is an award-winning platform known to have the best customer support when it comes to ETF trading in the UK. It also offers thousands of ETF assets to get you started. Regular investors also benefit from various incentives AJ Bell provides periodically.

AJ Bell offers a variety of trading accounts to cater to different types of traders. The broker also prides itself on providing an excellent ETF platform that keeps you engaged in your trading activities.

12. Hargreaves Lansdown – Best ETF Investment Broker

Hargreaves Lansdown has a wide array of ETF instruments that both novice and expert investors can benefit from. Alongside comprehensive trading information and investment ideas, it stands out as an excellent choice for individuals looking to invest in ETFs.

Trading charges of Hargreaves Lansdown are low, especially for those instruments listed under its “best buys”. It also provides flexibility by not imposing investment limits, allowing you to invest according to your capacity.

What Do Other Traders Say?

The voice of experience speaks volumes when it comes to selecting the right ETF broker. For this reason, we analysed user opinions and insights on Google Play, the App Store, and Trustpilot, shedding light on their experiences with the best ETF brokers in the UK. These real-world testimonials aim to provide you with a well-rounded understanding to guide your decisions effectively. See below some of the comments we bumped into during our research. 

Plus500

Traders highlight Plus500’s user-friendly interface and the ability to trade CFDs on ETFs as appealing features. However, some users mention the need for a broader range of ETFs on the platform.

eToro

Users praise eToro’s diverse ETF offerings and the platform’s social trading features. Many appreciate the ease of navigating the platform and the ability to track and replicate successful traders’ portfolios, making it a compelling choice for ETF investments.

XTB

Traders commend XTB for its comprehensive educational resources and a user-friendly platform that simplifies ETF trading. The availability of a broad range of ETFs and analytical tools received positive feedback, aiding traders in informed decision-making.

Spreadex

Users appreciate SpreadEx’s diverse ETF portfolio and the platform’s intuitive interface, making it accessible for both beginners and seasoned traders. The competitive fees and responsive customer support have also garnered favourable reviews.

FP Markets

FP Markets stands out for its extensive range of ETFs and robust trading infrastructure. Traders praise the platform’s reliability and fast execution, which are crucial factors in ETF trading.

AvaTrade

AvaTrade’s diverse range of ETFs and educational resources for traders have been positively acknowledged. Users appreciate the platform’s intuitive interface and access to automated trading tools.

Saxo

Saxo is commended for its vast ETF selection and comprehensive research tools. However, some users mention that the platform might be more suited for experienced traders due to its complexity.

FreeTrade

Users value FreeTrade’s commission-free ETF trading and the simplicity of its platform. However, there are occasional remarks about the limited range of available ETFs.

AJ Bell

AJ Bell receives praise for its user-friendly interface and comprehensive ETF research tools. Traders appreciate the platform’s educational resources but highlight the need for more diverse ETF options.

Hargreaves Lansdown

Hargreaves Lansdown is lauded for its extensive ETF offerings and robust research tools. However, some users mention concerns about high fees for smaller investments.

The Ultimate Guide About ETF Trading

ETF trading goes beyond simply choosing a broker; it’s about understanding the nuances of this dynamic market. Keep reading the sections below to acquire valuable insights and equip yourself with the knowledge needed to make informed decisions in the world of ETF trading.

What Are ETFs?

An exchange-traded fund (ETF) stands out as a unique investment vehicle, blending the characteristics of both investment funds and exchange-traded products. Essentially, an ETF is a type of investment fund that operates as an exchange-traded product, meaning it’s traded on stock exchanges just like individual stocks.

ETFs pool investors’ money to purchase a diversified portfolio of financial assets, including stocks, bonds, currencies, futures contracts, and even commodities like gold bars. This innovative structure offers investors the opportunity to gain exposure to a broad range of assets through a single investment, providing diversification benefits and trading flexibility.

How Do ETF Work?

ETFs work like this: A company or institution creates a mix of investments like stocks, bonds, or commodities. The company then sells shares of that mix to investors. So, when you buy shares of an ETF, you are essentially buying a piece of that mix. However, you don’t directly own the individual assets in the mix. Instead, you own a share of the entire basket.

ETFs are designed to track the value of something specific, like a group of stocks or a commodity. But here’s the exciting part: Even though an ETF is supposed to match the value of its underlying assets, its price on the stock market can be different. That’s because things like fees and demand can affect its market price.

In simple terms, here’s how ETFs operate.

1. A financial institution puts together a mix of assets, like stocks or bonds in a basket, and gives it a unique name, like a nickname.
2. Investors can buy shares of this mix, just like buying shares of a company.
3. Throughout the day, people trade these ETF shares on the stock market, just like they do with regular stocks.

How Does an ETF Broker Make Money?

ETF brokers employ various methods to generate revenue and sustain their operations. Here are some key ways the best ETF brokers make money.

1. The Spread – ETF brokers earn profits from the difference between the bid and ask prices of ETFs. This difference, known as the spread, serves as compensation for facilitating trades.
2. Commission – Brokers typically charge commission fees on each trade executed by investors. These fees vary depending on the broker and the type of transaction.
3. Overnight Fees – Some brokers may charge overnight fees for holding ETF positions overnight. These fees are often associated with leveraged ETFs and are incurred based on the size and duration of the position.
4. Deposit and Withdrawal Fees – ETF brokers may impose fees for depositing funds into or withdrawing funds from trading accounts. These fees can vary depending on the payment method and currency.
5. Trading Against Users – In certain cases, brokers may engage in trading against their users, profiting from the difference between the bid and ask prices or other market inefficiencies.
6. Guaranteed Stop Premiums – Brokers may offer guaranteed stop orders to investors, providing protection against significant losses. However, investors typically pay a premium for this service, contributing to the broker’s revenue.
7. Extra Services – Additionally, ETF brokers may offer premium services such as advanced trading tools, research reports, or personalised investment advice for a fee. These services provide added value to investors while generating revenue for the broker.

How to Choose the Right ETF Broker in the UK

Choosing the right ETF broker UK is a critical step towards successful investing in exchange-traded funds. With many options available, it’s essential to consider several factors to ensure you select a broker that meets your needs and preferences. Here’s a comprehensive guide on choosing the right ETF broker in the UK.

How to Register a Broker Account to Trade ETF

To begin ETF trading in the UK successfully, careful planning and execution are essential. Below, we outline the key steps to help you start off on the right foot.

ETF vs Stocks

ETFs and stocks share some similarities/differences, and we want to clear any doubts to ensure you are fully prepared to make your first investment. Stocks represent ownership in a publicly traded company, entitling shareholders to a portion of its profits and voting rights in corporate decisions. Conversely, ETFs are diversified investment vehicles comprising various assets, including stocks, bonds, commodities, or currencies. A single ETF can encompass various securities, offering investors exposure to multiple industries, sectors, or regions.

Due to their diversified nature, ETFs exhibit lower risk than individual stocks. They provide investors with broad market exposure while minimising the impact of fluctuations in any single security. Like stocks, ETFs can be bought and sold throughout the trading day on stock exchanges, offering liquidity and flexibility to investors.

Fund managers manage ETFs, selecting and allocating assets within the fund based on its investment objectives. Investors buy and sell shares of the ETF itself on stock exchanges, such as the New York Stock Exchange or NASDAQ. These shares represent ownership in the underlying assets held by the ETF.

From a taxation perspective, ETFs are subject to capital gains tax, similar to stocks. Depending on the holding period, gains realised from ETF investments may be taxed at short-term or long-term capital gains rates. This tax treatment allows investors to manage their tax liabilities based on their investment horizon.

Popular Exchange-Traded Funds

If you are still uncertain about exchange-traded funds (ETFs) and their appeal, here’s a glimpse into five of the most popular ETFs currently in the market. These ETFs represent a unique investment opportunity based on different underlying assets and market segments.

1. Vanguard S&P 500 ETF (VOO) – VOO is an ETF that tracks the performance of the S&P 500 index, one of the most widely followed benchmarks for the U.S. stock market. This ETF provides investors with exposure to 500 of the largest publicly traded companies in the United States, covering various sectors of the economy.
2. ProShares UltraPro Short QQQ (SQQQ) – This ETF aims to provide investors with three times the inverse daily performance of the Nasdaq-100 index. It is designed for traders who seek to profit from short-term declines in the technology-heavy Nasdaq-100 index.
3. SPDR S&P 500 ETF Trust (SPY) – Similar to VOO, SPY also tracks the performance of the S&P 500 index. As one of the oldest and largest ETFs, SPY offers investors exposure to the entire U.S. stock market through a single investment vehicle.
4. Vanguard Information Technology ETF (VGT) – This ETF focuses on companies in the technology sector, including hardware, software, and semiconductor firms. It provides investors with exposure to some of the leading technology companies driving innovation and growth in the global economy.
5. INVESCO QQQ TRUST (QQQ) – This ETF tracks the performance of the Nasdaq-100 index, which comprises 100 of the largest non-financial companies listed on the Nasdaq stock exchange. It exposes some of the most innovative and dynamic companies in the technology, consumer discretionary, and healthcare sectors.

Pros and Cons of ETF Trading

Exchange-traded funds (ETFs) offer investors a range of benefits, but they also come with certain drawbacks. Let’s explore the pros and cons of ETF trading.

FAQs

Conclusion

Choosing the right ETF broker in the UK is crucial for a personalized trading experience. Fortunately, our recommended options above offer a variety of choices to kickstart your ETF trading journey effectively. As an ETF trader or investor, it’s essential to not only have a trustworthy broker or platform but also conduct thorough market analysis to develop sound strategies. Additionally, monitoring your open positions and implementing risk management measures are key to minimizing potential losses from unfavorable trades. With time and experience, navigating the ETF market becomes more intuitive and rewarding.