Investing in the stock market can be lucrative and an effective way to grow your long-term wealth. While stock investing in the UK may sound easy, it carries risks due to market volatility.
The good news is that we guide you on how to invest in stocks and maximise your potential. We also recommend the top three stock brokers to consider in the UK market that have been thoroughly reviewed and approved by our experts. On top of that, we list the best stocks with growth potential in 2024 to get you started.
In This Guide
Top Three Brokers to Invest in Stocks UK
You need the best UK stock brokers to invest and increase your chances of succeeding. Being best means that a broker should meet all your trading requirements and be regulated by UK’s Financial Conduct Authority (FCA). Most importantly, the broker should not only allow you to purchase and own company shares but also let you trade the assets as CFDs and indices.
Sadly, there are hundreds of brokers claiming to be legitimate in the UK, making it challenging for investors to make the right choice. For this reason, we reviewed and compared as many stock brokers in the UK as we could and recommend the top three below based on our findings.
1. eToro
eToro stands out among others because it allows you to access plenty of global stocks, including Adidas, Netflix, Amazon, Tesla, Microsoft, etc. Besides, you will be able to try out additional financial assets hosted by the broker, including currency pairs, cryptocurrencies, commodities, etc. The broker is user-friendly and has a minimum deposit requirement of $100. If you are a newbie, eToro lists a plethora of learning resources for skills development.
Investing in stocks using eToro is commission-free, and you will not incur fees for deposits. Also, its inactivity charges kick in after 12 months, giving you enough time to adjust your schedule accordingly. On of that, it features excellent social and copy trading platforms, where users socialise and copy each other’s positions with increased profitability. You should test it out on its £100,000 funded demo account to see if it suits your needs.
Disclaimer: eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.
Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. {etoroCFDrisk}% 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.
Zero commission means that no broker fee will be charged when opening or closing the position and does not apply to short or leveraged positions. Other fees apply including FX fees on non-USD deposits and withdrawals. Your capital is at risk. For more information, click here.
✔Low minimum to fund an account and begin investing
- Access to numerous global stocks, including Microsoft, Tesla, Amazon, and more, on a user-friendly and customisable platform
- Award-winning social and copy trading features that allow users to mingle and copy the trades of successful traders
- No commission fees on stock investments
- Limited research and analysis tools for advanced traders compared to what its peers offer
- Withdrawal fees apply
2. IG Markets
IG Markets is highly recommended for stock investors looking for advanced resources for their activities. Although its minimum deposit requirement is $300, you get exposed to a plethora of global shares, which you get to trade as CFDs. IG Markets also offers indices trading, whereby you put your money into a group of shares in a single investment. Like eToro, this broker has social trading and an IG Academy platform to simplify your experience.
Regarding trading charges, IG Markets is rather costly with high commissions on share CFD and indices trading. There is also an inactivity fee if your account remains inactive for over two years. Overall, this broker is worth investing in stocks with since it hosts quality trading resources and platforms suitable for all traders. Plus, you get exposed to over 17,000 additional assets like forex, cryptocurrencies, etc., for portfolio diversification.
✔ Leading broker with low fees
- A well-established broker with a strong reputation in the UK, especially when it comes to hosting advanced resources
- Over 13,000 shares to diversify your portfolio with on superior platforms, including the L-2 Dealer
- Strong customer support options available 24 hours, five days a week
- Higher commission fees on stock trades compared to most stock brokers, thus limiting low-budget investors
- High minimum deposit requirements to access its featured global shares
3. Interactive Brokers (IBKR)
Interactive Brokers has powerful trading platforms suitable for professional investors but are designed with all investors in mind. With IBKR, you can access more than 90 stock exchanges globally, with unlimited opinions to choose from. Also, you get to trade commission-free on its standard account and pay a small commission when using the IB SmartRouting account. On top of that, the broker offers ETF trading.
While IBKR is highly recommended for advanced traders and investors, newbies can also use it since it has an IBKR Lite account that is user-friendly and easily customisable. Most importantly, the broker hosts plenty of learning resources and a demo account to help you practice stock trading/investing before using the live account with real money.
✔ Top trading platform for advanced
- Low commission fees on stock investing, making it an excellent choice for active and low-budget UK investors
- Hosts thousands of shares across 90+ market centers
- Advanced trading tools and research resources for maximum experience
- Complicated and less user-friendly platform for beginners, making it challenging for them to navigate
- Withdrawal fees apply
How to Invest in Stocks With eToro
To ensure you are fully familiar with stock investing and are ready to kickstart your venture, we guide you below on the process involved when investing in stocks in the UK. Note that you can apply the below procedures to any eligible broker. We only use eToro as an example.
To create a share investment account with eToro, click on any of the links we’ve shared on this page and be redirected to the broker’s website. Note that eToro also has a trading app, which we highly recommend you install on your mobile device to easily monitor your investments on the go. Most importantly, ensure you read, understand, and accept eToro’s terms and conditions before you start registering for an investment account.
The next procedure will be registering for an investment account which normally takes a few minutes to complete. You will be required to share your personal details, including name, email, phone number, source of income, age, location, etc. Plus, it is essential that you also create a username and password for safe logins. Remember, the information you provide will be verified, so ensure it is accurate to quickly complete the account setup and start investing.
As a standard procedure by all FCA-regulated brokers, traders and investors must verify their accounts to keep imposters away, thus keeping online trading/investment safe. Since eToro is one of the FCA-regulated brokers, you must participate in the verification procedure. Here, you will share a copy of your original identification card to verify your identity and a copy of a recent utility bill or bank statement to verify your location. Without accurate documents, your account will not be verified, so ensure you abide by the broker’s requests.
You need to make a deposit of at least $100 to access eToro’s stocks and start investing. Fortunately, the broker has made it easier for you to deposit funds by supporting various payment methods, including debit cards, e-wallets, and bank transfers. As a trader/investor, consider a mode of payment you can afford and can transact quickly to avoid inconveniencing your investment schedule.
eToro will confirm your deposit and redirect you to the exchanges that list various stocks to invest in. With this broker, you can also trade stocks as CFDs and indices, whereby you take a position on an investment that holds multiple stocks. Overall, ensure you understand how you want to invest in stocks for maximum potential. Luckily, eToro has plenty of learning resources and a demo account to help you improve your skills and get started.
Read about the Elliot Wave Principle to catch tops and bottoms in the market.
Tips for Choosing the Best Stock Investment Broker in the UK
As mentioned earlier, there are numerous stock investment brokers in the UK, and choosing the best can be daunting for investors in the region. While we recommend the best three above to choose from, you may want to research on your own to find a suitable one. To simplify the research procedure for you, here are the things to consider.
There are legitimate stock investment brokers in the UK, but how do you identify them? Well, ensure they are regulated by the Financial Conduct Authority (FCA), which is UK’s financial regulator that ensures safe investing and trading. The last thing you want is to invest with a broker that ain’t regulated and risk losing your hard-earned money to fraudsters. Using FCA-regulated brokers also allows you to enjoy the best trading conditions since they adhere to the authorities’ stringent regulations.
Make sure the broker you choose hosts the stocks you want to invest in. It’s a no-brainer that portfolio diversification is one of the risk management strategies. Therefore, find a stock broker hosting additional assets for this purpose. These can include forex, cryptocurrencies, commodities, mutual funds, etc. Most importantly, the stock broker should support your prefered investment style, whether you want to purchase a company’s shares or trade the assets as indices.
The stock market is volatile, and while you can make profits, losses are inevitable. Therefore, have a budget before beginning your ventures and ensure you spend what you are comfortable losing in case your investment turns against your predictions. A budget helps you identify a suitable broker by confirming commissions/spreads, minimum deposit requirement, inactivity fees, transaction costs, etc.
You first need to understand your skill level before selecting a stock broker, whether you are a newbie or professional investor. Then select a stock broker with a platform suitable for your skill level. You can consider the availability of research and learning resources and ensure the broker is fast in executing trades so you never miss out on any opportunity. Most importantly, the best stock broker should host a reliable support service to contact in case of any challenges. There should also be a demo account for practising stock investment and preparing for the live market.
It is crucial to consider what other stock investors had to say regarding their experiences with a broker before making a commitment. So, go to Google Play, the App Store, or Trustpilot and analyse the honest reviews left by users. This helps you understand what to expect from a stock broker and prepare accordingly.
Top Stocks For 2024
There are hundreds of company stocks you can invest in, but you need to find the best with growth potential in 2024. This means you must conduct thorough market research by analysing stocks’ historical prices to easily predict and make the best choice. To help you get started, below are the top stocks for 2024 recommended by our expert researchers:
Starbucks
Founded in 1971, Starbucks is a coffee maker and top roaster with a global reputation. It is currently headquartered in Washington, US and has additional branches spread across over 88 markets globally. In total, Starbucks has more than 33,000 coffee houses. It is listed on the NASDAQ exchange under the ticker symbol SBUX.
Besides coffee, this company offers food products and ready-to-drink beverages, including pastries, sandwiches, lemonades, iced teas, etc. Over the years, the company prides itself on experiencing steady growth despite fluctuating share prices. With many individuals trying to live healthy lifestyles, Starbucks has growth potential, considering people are now replacing soft drinks with coffee and natural beverages.
Tesla
Tesla is another US-based company founded in 2003. It is one of the best electric car manufacturers and produces other products, including batteries, clean energy generation, and storage products. Tesla is listed on the NASDAQ exchange under the symbol TSLA, and its share price is currently valued at around £700. You can confirm its accurate share price and learn more about the Tesla company here.
Overall, Tesla has shown remarkable growth in recent years, with billions of revenue to account for. With electric cars and clean energy taking over space, the company has growth potential in 2024. However, you must conduct a thorough market analysis to identify the best time to invest.
Aviva Plc
Aviva came into existence due to a merger between Norwich Union and insurer CGU. Currently, it is UK’s largest insurer for cars and homes. The company also provides life insurance services on general insurance, and asset management. It is listed on the London Stock Exchange under the symbol AV. You simply need to find a broker with access to this exchange to invest.
Although Aviva has its headquarters in London, its services go beyond the UK market to Australia, Asia, Europe, New Zealand, etc. Like other companies, its share price keeps fluctuating, and Aviva ensures it still earns good revenue regardless. This is through improved performance strategies, making it a considerable investment stock in the UK in 2024.
Britvic
Founded in 1845, Britvic is a British soft drink manufacturer with a global reputation. Recently, the company has witnessed remarkable growth, especially after Simon Litherland took over as its CEO. You should find a broker with access to the London Stock Exchange to access this company’s shares under the symbol BVIC. Also, trade it on the FTSE 250 index and be exposed to additional company shares.
Besides selling its products to UK consumers, Britvic also serves global clients in Brazil, Ireland, France, etc. Some of this company’s products include MiWadi, Teisseire, Robinsons and Maguary. On top of that, Britvic has partnered with Pepsi since 2020 and has experienced increased growth since then.
International Airlines Group (IAG)
IAG was established in 2011 due to a merger between British Airways and Iberia. Every year, the IAG transports over 113 million passengers across more than 268 destinations globally — proof of its increased revenue. It is, to date, one of the largest multinational airlines globally, with over 533 aircrafts spread in different regions globally. You can trade its shares through a broker with access to the London Stock Exchange, where you will find it listed under the ticker IAG.
Note that the International Airlines Group is also a parent company to LEVEL, Aer Lingus, and Vueling. It depends on these companies for growth, which is why its leaders develop solid management strategies to ensure IAG delivers a long-term vision. The strategies also help companies under IAG operate easily and focus on client satisfaction.
Learn how to buy Tesco shares, Carnival stock or Astrazeneca stocks in our other guides!
FAQs
Before starting your ventures in the stock market, it is crucial to understand how it works and conduct a thorough market analysis for solid strategies. Most importantly, ensure you select the best stock and broker to maximise your experience. We list the best three stock brokers for investing in our mini-reviews above to choose from.
Absolutely. Buying US stocks is easy if you use a broker with access to the exchanges where the US stocks are listed. However, ensure the broker you select is FCA-regulated and meets all your investing requirements.
Yes. While it is possible to purchase shares directly from companies, the process is challenging. Luckily, there are stock brokers like the ones we recommend in this guide to investing in shares. Simply find one you can afford for maximum potential.
You can invest in stocks with as little as £10. This is because stock brokers allow you to purchase fractional shares, thus attracting budget-conscious investors.
Conclusion
Stock investment is popular in the UK, but many traders and investors still lose money in the activity. Our ultimate guide above will help you mitigate the risks that come with stock investing. You should be able to make the best decisions regarding choosing a stock broker or a company stock. Overall, investing in stocks is one of the best ways to grow wealth. Therefore, identify your investment style, choose the best stock broker, strategise, and try your luck.
25,000 hours of testing 70+ brokers. Our recommended broker is Plus500.
Our recommended broker is Plus500.