Buying stocks from reputable companies in the UK requires a stock broker. It’s a no-brainer that finding the best stock broker is one sure-fire way to increase your chances of a successful investment. Therefore, if you are wondering how to choose the best, sit tight because this guide answers the question for you.
We are not only going to recommend the best stock brokers in the UK, but we will also state ways in which you can identify them. This is so that you can be well equipped with enough information when going about your trading ventures.
In this guide
Best Stock Brokers in the UK 2021
- 1. Plus500 – CFD Broker with one of the Lowest Fees in the UK
- 2. IG Markets – Stock Broker with the Most Investment Options in the UK
- 3. Interactive Brokers – Best for Advanced Traders in the UK
- 4. TD Ameritrade – Best Stock Broker for Research and Tools in the UK
- 5. CMC Markets – Best for Day Trading in the UK
- 6. eToro – Best Stock Broker for Beginners in the UK
- 7. Plus500 – One of the Best for CFD Stock Trading in the UK
- 8. IG Markets – Most Trusted Stock Broker in the UK
- 9. Hargreaves Lansdown – Best Stock Investment Broker in the UK
How we test?
Our test process is really based on two different aspects: our independent tests and research, as well as user reviews from Google Play, the App Store, and Trustpilot, etc.
The first thing we do when testing is to check every detail and test every tool and instrument. Our experts spend more than 200 hours on every article. We pay special attention to the specific function or the criteria that we’re comparing during the comparing stage. This means that we must determine which broker is more suited for beginners, and which is better suited for experts, for example. Find out more about our test process here.
Compare The Best Stock Brokers in the UK
Our team of professionals went out of their way to compare the best stock brokers in the UK. The following are the factors that we based our research on.
Apart from testing the best stock brokers in the UK, we also compare them according to honest user reviews from Trustpilot, Google Play, and App Store. Below are our findings.
1. Plus500 - CFD Broker with one of the Lowest Fees in the UK
Plus500 was founded in 2008 and has risen at full tilt to be one of the best brokers globally. You can rest assured of your investment safety because the broker is regulated by the best financial regulators, including the Financial Conduct Authority (FCA) and the Australian Securities and Investment Commission (ASIC). It is also listed on the London Stock Exchange.
One thing about Plus500 that caught our attention is the trading charges. The CFD broker offers zero commissions on all trades. Since they are in business to make profits, Plus500 benefits from the spread, which varies depending on the available instruments. You will also need to make a minimum deposit of £100 to start trading on this broker’s platform. This requirement is relatively low compared to most CFD brokers in the UK.
When it comes to Plus500 offerings, you can trade CFDs on more than 2000 instruments including, forex, shares, commodities, options, indices, and ETFs. Stock investors will never lack trading instruments on Plus500 because it has hundreds of stock CFDs.
Risk Warning: 76.4% 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.
- Regulated by top-tier jurisdictions, including the Financial Conduct Authority (FCA) and the Australian Securities and Investment Commission (ASIC).
- Zero commission on all trades
- More than 2,000 CFD trading instruments
- No deposit and withdrawal fee**
- Charges inactivity fees after three months
**Plus500 might charge for withdrawals after the monthly limit is reached
2. IG Markets - Stock Broker with the Most Investment Options in the UK
IG Markets is a pioneer broker that has risen to become one of the biggest stock brokers globally. You can invest in more than 17,000 markets, most of which are available all day, every day. This makes it a preferred stock broker with the most investment options in the UK.
IG Markets is a safe broker because it is regulated by tier-one financial authorities, including the Financial Conduct Authority (FCA). Rest assured that your investment funds are in an independent trust account where the broker cannot access them.
The trading platform of IG Markets is flexible and works on all devices, whether Android, Windows, or iOS. Investors can easily use and customise it to suit their trading requirements. With platforms like ProRealTime, MetaTrader 4, and L2 Dealer, you can create your own technical indicators and manage your trades as you see fit. Its Direct Market Access (DMA) feature also allows you to directly deal with the order books of available stock exchanges.
Trading on IG Markets is costly since they charge high commissions on shares and stock CFDs. The broker also charges inactivity fees, which kick off after two years. Therefore, to invest with this stock broker, make sure that you can afford it.
- More than 17,000 markets to invest in
- No deposit and withdrawal fees
- Fully digital trading platform that can be customised
- Various educational tools such as webinars and video tutorials
- High trading fees
3. Interactive Brokers - Best for Advanced Traders in the UK
If you are an advanced investor, you need to find a broker providing unlimited stock market access. Interactive Brokers (IBRK) will serve you best as it allows access to more than 70 stock exchanges globally. Rest assured that this broker is safe to trade in since it is regulated by top-tier jurisdictions.
Low-budget investors will love Interactive Brokers because it charges low fees on shares and ETFs. There is also no minimum deposit requirement with this broker. However, should you wish to trade on margin, a minimum deposit of £2,000 will be required.
When it comes to the trading platform, it is easy-to-use even for beginners. It has two account types, namely IBRK Lite and IBRK Pro. IBRK Lite best suits novice investors who are still familiarising themselves with trading activities. On the other hand, IBRK Pro offers various market instruments that are perfect for expert traders.
Additionally, Interactive Brokers has limitless educational and research tools. Traders have the opportunity to improve their trading experience through webinars, in-house academy, video courses, and even demo accounts. With demo accounts, the broker awards you with virtual trading funds to test how the live account works.
- Regulated by top-tier authorities, including the Financial Conduct Authority (FCA) and the Securities and Exchange Commission (SEC).
- No minimum deposit requirement
- Unlimited educational tools
- A wide range of market assets
- The trading platform is not customisable
- High inactivity fees
4. TD Ameritrade - Best Stock Broker for Research and Tools in the UK
TD Ameritrade is one of the biggest US-based stock brokers extending its services in the UK. Founded in 1975, this pioneer broker is regulated by the best financial authorities, including the Securities and Exchange Commission (SEC) and the Financial Conduct Authority (FCA). Because the TD Ameritrade has a long track record and is listed on various stock exchanges, we assure you that it is safe for use.
This stock broker excels when it comes to trading charges. Opening an account on this broker’s platform is easy and does not have a minimum deposit requirement. You also get to trade 0% commission on stocks and ETFs, which favors low-budget investors. However, when it comes to mutual funds and futures, TD Ameritrade charges relatively high fees.
This broker’s trading platform is out of this world. The thinkorswim feature, which is supported on both desktop, web, and mobile devices, gives you access to various trading tools that can assist you in accomplishing complex trades. Its unique research tools and news feed also helps you analyse trading activities and the stock market conditions, which can prove beneficial in your future investment.
You will find a plethora of educational materials, including fully immersive courses, webcasts, articles, videos, and even social events. Feel free to try TD Ameritrade. We assure you that your first experience will be one among many to follow.
- A plethora of research and educational tools
- 0% commission on stock and ETF trading
- No minimum deposit requirement
- Magnificent trading platform
- High mutual funds and futures fees
5. CMC Markets - Best for Day Trading in the UK
Are you looking for the best stock broker that will not inconvenience your day trading? CMC Markets is what you need to consider. This pioneer broker opened its curtains to investors in 1989. Since then, it has grown to become one of the best in the industry.
CMC Markets’ trading platform is fully digital, and the account opening procedure is also simple. There is no minimum deposit requirement with this broker. This means that as a new investor, you can try it out with smaller amounts, as you learn before making a more considerable investment. Its charges are also competitive, especially when it comes to trading stock index and forex CFDs. Stock CFD charges are high, and here is where the broker falls short.
We primarily recommend this broker to active day traders because of its CFD offerings that come in a wide range. Investors can trade CFDs on forex, shares, indices, commodities, ETFs, and government securities. Note that although CFD carries a lot of risks, succeeding with it can be all worth it. Therefore, before committing to this broker, ensure you are aware of the risks involved.
Ultimately, CMC Markets is the best stock broker for day traders in the UK because of its wide range of offerings and competitive trading costs. The world-class MetaTrader 4 platform, accompanied by educational and resource tools, is also customisable, making it suitable for all investors.