What are UK Stock Brokers?
A stockbroker is a professional trading services provider that executes buy and sells financial instruments on behalf of clients – both retail and commercial. A section of stockbrokers in the UK, the full-service brokers, offer trade advice and help clients make investing decisions. The majority of online stock brokers the UK, however, do not offer trading advice or manage their client’s trader accounts.
They only provide an online trading platform that gives traders access to the London Stock Exchange (LSE) or the over-the-counter exchanges (OTC). Most will also let you access instruments listed with stock exchanges in other countries. They may even give you access to resources like financial news to help with research. And most will integrate several trading and analysis tools to assist with technical analysis.
These stock trading platforms UK are licensed and regulated by the Financial Conduct Authority (FCA). They have also been given a verifiable license number.
How Do the Best Online Stock Brokers UK Work?
A stockbroker is ideally meant to provide traders with a platform where they can trade stocks and other financial instruments. But there are different types of brokers and they all play different roles. The three most popular roles played by UK brokers include trade execution, advisory, and discretionary brokerage service providers.
Execution-only brokers are the most common among online stock companies in the UK. And as the name suggests, these will only provide you with a platform where you can access the market and complete buy and sell orders on your behalf. They do not offer trading advice.
Advisory brokers, on the other hand, provide you with a trading platform and offer trade advice. But you get to make the investment decision based on the information provided. The broker will only enter into trades or close positions of your choice.
Discretionary brokers not only provide a trading platform and trading advice but also execute trades on behalf of clients. They manage your investment portfolio, research the markets, and independently open and close trades as they fit.
Most UK stockbrokers will charge you a fee, spread, or commission when you use their trading platform or services. The broker’s commission is usually common among full-service brokers. The best online stock brokers the UK, on the other hand, offer no-commission brokerage services. They only maintain bid-ask spreads for stock trades and such other trading and non-trading fees as rollover, withdrawal-processing, currency conversion, and inactivity charges.
What Services do UK Stockbrokers Offer to Their Clients?
Different UK stockbrokers provide different services. These include;
- Connect trader to market: The brokerage company provides traders with a platform through which they can access financial instruments listed in local and international stock exchanges.
- Access to research and trading tools: Both execution-only and full-service brokers will also provide you with access to a wide range of free but premium research, trading, and risk management tools.
- Facilitate fractional trading: The best stock trading apps UK will also let you buy fractional shares, which is ordinarily not possible for independent traders.
- Free trading services: There is a host of best free stock trading platforms UK available today. These provide you with a free and resource-rich platform where you can buy and sell stocks and stock ETFs.
- Facilitate leverage trading: The majority of online stock companies will also let you buy stocks with leverage. Retail traders have access to leverages of up to 30:1 while professional traders have access to leverages of up to 500:1.
- Researching markets and advising traders: Some stockbrokers, especially full-service brokers, will research the markets, and advise traders. Most will also enter into and close trade positions without consulting their clients.
A Quick Three-Step Guide to Buying Stocks in the UK
Step 1: Choose a UK Stock Broker
Identify a reliable UK stock broker and register a stock trading account with them. In this account creation process, the broker will usually ask for your personal information and demand that you verify your identity.
But in an industry where every stock broker claims to be the best, you need to learn how to vet and identify the best brokers. We will be telling you what to look for in a broker below and discussing what we consider to be the best list of UK stock brokers with you.
Step 2: Select a stock to buy
Once the stock trader account is approved, deposit funds therein. There are several best brokers for London stock exchange UK markets only and a host of others will grant access to stocks listed with foreign stock exchanges. From this list, select the stock you wish to buy.
Step 3: Place a trade
After creating a trader account and identifying the stock you wish to buy, place a trade. In most brokerages, placing a trade is as easy as entering the amount you wish to spend on the stock, setting maximum leverage, setting the take profit, stopping loss levels, and hitting the buy button. Note that there also are a host of online stock companies the UK, especially stock CFD brokers, who will let you short local and international stocks.
What Are the Different Types of Stock Brokers in the UK in 2022?
There are multiple types of stockbrokers in the UK today. Let us go over three of the most popular briefly, to understand what they are and how they work:
Full-service brokers offer highly personalized trading services. They are actively involved in how you make investment decisions and execute them. Most will also take over the management of your stock portfolio.
They will carry out market research on your behalf, make recommendations on the best stock to buy, and even enter into or close these trades. The full-service broker serves a commission for the portfolio management services. And most are typically biased towards high net worth investors looking for passive income-generating opportunities.
Discount brokers help traders fulfill stock trades at reduced fees. Unlike full-service brokers, they do not offer trading advice and neither do they manage investment portfolios on behalf of clients. They do not research markets or advise on the best stock to buy or the best time to sell.
Instead, they provide users with a self-service platform on which they can execute their trades. These platforms are resource-rich and feature premium research, analysis, trading, and risk management tools. They charge reduced commissions, compared to full-service brokers, and appeal to retail investors.
Online Stock Brokers
As the name suggests, online stock brokers are trading companies that facilitate buying and selling of stocks over electronic networks. These refer to stockbrokers UK that let you trade stocks via proprietary web trading platforms and apps or such convectional trade platforms as the MT4 and MT5.
They maintain some of the lowest stock trading fees and give traders access to the widest range of local and international stocks. In fact, some of the best free stock trading platforms UK are online-based. The few that maintain trading fees are mostly commission-free. A majority of these will only charge a competitive spread and an overnight fee for margined trades.
What are the Pros and Cons of UK Stock Brokers 2022
- Portfolio diversification: Stockbrokers UK present you with a wide variety of both local and international stock that you can use to diversify your portfolio.
- Fractional trading: Most online stock brokers UK allow you to buy fractional shares, allowing you to own a portion of the most valuable stocks in the market. This option is not available to individuals who choose to buy company shares directly from the exchange.
- Leverage trading: Most stockbrokers in the UK allow for leverage trading that allows you to open large trade positions with little capital.
- Multi-directional trading: A majority of UK stockbrokers let you go long (BUY) or short (SELL) on a stock.
- Insured client deposits: The majority of FCA-regulated stockbrokers in the UK insure their client deposits for up to £85,000 with the FSCS (Financial Services Compensation Scheme).
- Stock trading is risky: Stock trading can be rather risky – especially if you are day trading with borrowed funds (leverage). Stock prices are also considerably volatile and highly unpredictable.
- Costly: Trading could also be rather costly especially if your stock broker maintains high trading, non-trading fees, or maintains hidden fees.
- Low maximum leverage for stock trades: There have been a lot of complaints from retail traders that the maximum leverage availed by online and discount brokers is insignificant. Most of the stockbrokers in the UK will only give you access to leverage of 1:5.
How Much Does it Cost to Use a Stock Broker in the UK?
There is no standard trading cost when it comes to stock investing. Different stockbrokers maintain different types of charges on their trading platforms. But while there is no way of telling how much it costs to trade stocks in the UK, most of the stock brokerages are rather transparent. They are upfront with the charges on their platform and will let you view the cost of a trade before you hit the buy or sell order.
That said, you need to understand the cost of trading can be split into trading and non-trading fees. Trading fees comprise the actual spreads and overnight fees for leveraged trades. Non-trading fees, on the other hand, range from deposit and withdrawal processing fees, currency conversion fees, inactivity fees, broker commission, and any other administrative charges imposed by a stockbroker.
Most online stock companies the UK are transparent with their trading and non-trading fees. But to learn about the charges imposed by a stockbroker and if they maintain hidden fees, go over the online reviews of the brokerage platform.
What To Look for in the Best UK Stock Brokers 2022?
In an industry where every stockbroker claims to be the best, finding one that speaks to your needs can be tough. To help you sort through this chaos and find the best stock broker UK, we ask that you consider these factors and use them to vet online stock companies.
- Regulation and reputation: A good UK stockbroker must be regulated by the FCA. They should also have a track record of reliability, especially when it comes to uptime and customer support.
- Stocks on offer: Check the number and variety of stocks supported by the broker. A good stockbroker should host a wide array of both local and international stocks from varying niches, allowing for easy portfolio diversification.
- Availability of Leverage Trading: Confirm that your preferred stock broker allows for leveraged stock trading and check their leverage limits.
- Associated fees: Check the cost of trading on the preferred stockbroker. Confirm all the costs affecting your trade, and the broker’s transparency, and ensure they do not maintain fees.
- Tools and resources: Your preferred stock broker platform should feature premium trading, analysis, and risk management tools, as well as, rich educational and financial news resources. Confirm, also, if the broker provides demo accounts to traders.
- Trade execution: How fast is the broker platform in executing trades? Are there incidences of slippage and how often does this happen? Confirm these from the stockbroker reviews published on different online review platforms and social media.
- Account types and minimums: Check the types of trader accounts offered by the broker. From micro, mini, standard, and PRO account to ECN Accounts and Islamic accounts. Confirm their trading minimums and associated fees.
You now understand how stockbrokers work, how to buy trades with UK stockbrokers, the types of brokers available in the UK, and what to look for in a stockbroker. But to help you get started with stock trading, we look at the 5 best UK stockbrokers in 2022.
1. eToro – Best for 0% Commission Stock Trading
eToro tops our list of the best UK stockbrokers because it is a no-commission broker. We also include the broker here because it not only maintains highly competitive but transparent fees. You, for instance, will not pay any spread or additional broker fee when you buy real stock on the platform.
The only fees that you need to look out for when trading on the platform are the variable spread for stock CFD trades and an equally variable rollover fee for margined trades. A currency conversion fee of between 50 and 150 pips for non-USD deposits and a $5 withdrawal-processing fee. Importantly, eToro will let you view all the changes impacting your stock trade before you hit the buy/sell button.
eToro is one of the few online brokerages that let you buy actual stocks from LSE-listed brands – entitling you to dividend earnings. But in addition to actual stocks, it exposes you to a wide range of stock CFDs and stock indices like the all-popular FTSE 100 that you can trade with leverages of up to 1:5.
But before you can start trading these stock options on eToro you will need to create a trader account and verify your identity. The account creation process is straightforward and the approval process fast. And seeing that eToro is a multi-trader platform, you can register and start trading on either its official website or mobile app.
You can start buying or shorting stocks on eToro after making a $10 deposit ($500 for bank deposits). The online broker also supports fractional trading, allowing you to invest in virtually any stock, index, or ETF – regardless of its market value. Supported payment methods include credit cards, debit cards, bank transfers, e-wallets (PayPal, Skrill, Neteller, and SOFORT), Trustly, and RapidTransfer.
Note that eToro (UK) Ltd. is licensed and regulated by the FCA. Client deposits are insured by the FSCS for up to £85,000 and eToro further insured these accounts for up to £1 million with Lloyds of London. The broker even has a registered office in One Canada Square, Canary Wharf, London E14 5AB.
In addition to supporting the majority of stocks listed on the London stock exchange, eToro exposes you to stocks from these 16 foreign stock exchanges:
|Stock exchange||Most popular stock|
|Milan||Eni Energy Company|
|Oslo||Norwegian Air Shuttle|
|Paris||LVMH Moet Hennessy|
|Saudi Arabia||Aramco Saud Arabia|
What are the Pros and Cons of Buying Stock on eToro UK?
- Learn and earn: eToro’s social and copy trading features let you earn as you learn how to trade by copying stock trading settings of popular investors (note that eToro maintains a 20% commission on potential profits made from copied trades).
- Free demo account: eToro presents all its platform users with a free demo account with $100,000 in virtual funds for practice trading.
- Intuitive interface: eToro maintains one of the most intuitive and beginner-friendly user interfaces. Appealing to both beginner and pro traders.
- Resource-rich platform: Both the web trader and eToro mobile app feature a wide range of trading, research, and risk-management tools. They are also rich in educational content.
- Subscription-based support: Only traders that have subscribed to eToro club have access to fast customer support via phone and live chat. The rest can only request help through support tickets and email.
- High non-trading fees: eToro has been criticized for maintaining high non-trading fees, especially the withdrawal processing fees.
2. Capital.com – Best for Stock CFD Trading
Capital.com ranks highly among the best CFD stockbrokers in the UK. On this platform, you get to trade the stocks of 1000+ companies across the world and stock CFDs, equities, and Indices for different brands in markets across Europe, Australia, Canada, France, the UK, Hong Kong, and Japan, Singapore, and the USA. Note, however, that Capital.com – like eToro – lets UK traders interact with both stock CFDs and real stocks on the platform.
Much of Capital.com’s appeal is attributable to its beginner-friendliness and innovative trading platform. The CFD broker, for instance, has one of the easiest account registration processes. It only asks for bits of your personal information and requires you to verify your identity.
Note that Capital.com was among the earliest CFD brokerages to integrate artificial intelligence on its trading platform. This tool comes in post-trade behavior analysis and is complemented by a plethora of market research, trading, charting, and risk-management tools. Key among them are the 75+ premium indicators and drawing tools. The integration of AI and these advanced tools makes it appealing to both beginner and pro stock traders.
To start buying stocks on Capital.com, you will need to deposit a minimum of £20 (£250 for bank transfers). And you can set GBP as the base currency for your live trader account. The supported payment methods include credit cards, debit cards, Skrill, Neteller, Trustly, GiroPay, QIWI, WebMoney, and bank wire transfers. Stock CFD traders have access to leverages of up to 5X their trading capital and the broker supports fractional trading for real stock.
Capital.com is registered in England. It is licensed and regulated by the Financial Conduct Authority (FCA) and ensures client deposits of up to £85,000 with the FSCS.
Capital.com is also a commission-free brokerage. It is also transparent with fees and doesn’t maintain non-trading fees. When trading on the platform, you will only have to pay a highly variable but competitive buy/sell spread. Leveraged stock CFD trades that remain open overnight will also attract a discounted but highly variable rollover fee. And the broker lets you view the trading costs before you hit the buy/sell button.
For example, if you chose to buy Barclays stock on Capital.com, you will only have to pay a variable buy/sell spread. And if you are trading the Barclays stock CFD, you will pay this spread, plus a rollover fee if the trade remains open overnight.
In addition to the London stock exchange, other exchanges whose popular stocks are featured on Capital.com include:
|Exchange||Most popular stock|
|Tokyo Stock Exchange||Toyota Motor Corporation|
|Saudi Stock Exchange||Saudi Aramco|
|Frankfurt Stock Exchange||BMW AG|
|Paris Stock Exchange||LMVH Met Hennessey Louis Vuitton|
|Singapore Exchange||Singapore Airlines|
|Hong Kong Stock Exchange||Alibaba|
|Toronto Stock Exchange||Aurora Cannabis Inc.|
|Italian Bourse||S.S Lazio|
|Brussels Stock Exchange||Aena S.M.E|
What are the Pros and Cons of Buying Stock on Capital.com?
- Safety-focused broker: Capital.com is a safety-focused broker and will not share your personal data with third parties. Plus it holds client funds in segregated accounts.
- No maximum buy limits: There is no upper limit to the amount of stock you can buy on Capital.com
- Excellent customer support: Capital.com has an excellent customer support team available on the phone, email, live chat, Telegram, Facebook messenger, Viber, and even WhatsApp.
- Resource-rich platform: The capital.com platform features rich trading and educational content, including real-time financial news, economic calendar, and even price alerts.
- No automated trading: Though Capital.com is a multiplatform broker available on the mobile app, web trader, and TradingView, it doesn’t support automated trading.
3. Degiro – Best for International Stocks and Shares
Degiro gives you access to the widest range of international stocks, seeing that its features shares from companies listed in 50+ markets across the world. It lets you diversify your portfolio and invest in key developed markets across Europe, North America, and emerging markets, especially Asia.
Unlike most other online stock brokers operating in the UK, Degiro does not offer stock CFDs. You can only trade real stocks on the platform. Therefore, a majority of stock investments purchased on Degiro will most likely earn you dividends. The upside to this is, unlike most stock brokerage companies, Degiro lets you buy real stocks with borrowed funds i.e. leverage (debt money).
Note, however, that while such brokers as eToro and Capital.com have their leverage limits fixed at 1:5 of the trade capital, Degiro’s maximum leverage limit is highly variable. The broker employs a ‘Risk System’ to calculate how much leverage each trader can access.
The account creation process on Degiro is quite straightforward. Like all other online stock brokers, you only need to provide the broker with bits of personal information and verify your identity. The broker doesn’t maintain a minimum deposit amount and neither do they have a maximum buy limit. And you can only deposit or withdraw funds via bank transfers when trading on Degiro.
Degiro supports fractional trading and doesn’t have a minimum or maximum buy limit. If you are trading stocks listed on the London Stock exchange on Degiro, you will be charged a fixed fee of £1.75 per trade. Degiro doesn’t charge a broker fee for US and Canadian stocks. The cost of trading Australian, Singaporean, Japan, and Hong Kong stock trades is fixed at €5 while all other stocks trades carry a €3.90 fixed charge.
Other fees charged by Degiro include a currency conversion fee of 0.25% if you deposit with any other currency other than your account’s base currency. Short selling stocks attract a fixed fee of between 1% and 2%, while leverage (Debit Money) attracts a 3% interest charge.
We must observe that Degiro is licensed and regulated by the Financial Conduct Authority (FCA). UK trader deposits into eToro aren’t, however, insured with the FSCS though the broker claims they hold 100% of client funds in a segregated bank account.
In addition to trading key stocks listed with the London Stock Exchange, Degiro will let you buy select stocks from the following popular exchanges:
|Stock Exchange||Most Popular Stock|
|Oslo||Norwegian Air Shuttle|
|Istanbul||Turkish Bank A.S.|
|Australian Securities Exchange (ASE)||BHP Group|
|Prague||Moneta Money Bank|
|Dublin||CRH PLC Ord|
What are the Pros and Cons of Buying Stock on Degiro?
- Multi-platform broker: Degiro is a multi-platform broker that lets you trade on both their proprietary web trader and mobile app.
- Security-focused: Degiro is a security-focused broker that lets enable 2FA, face ID, and touch ID security measures on trading app. It also doesn’t share client data with third parties.
- Competitive fees: Degiro is a commission-free online stock broker with no deposit or withdrawal fees, and highly competitive transaction fees.
- Limited trade options: Unlike most online stock brokers that let you buy real stock, Degiro doesn’t support Stock CFD trading.
- Limited trading tools: The Degiro trading platforms feature limited trading, analysis, educational, and risk management tools.
4. XTB – Best for Customers Support
XTB also makes it to the list of best stock companies in the UK because of its superior customer support services. This support team is available 24/5, is highly responsive, and highly qualified. It is also easily accessible on phone, through live chat on the website and app, and by email. It is then complemented by a rich FAQs section and XTB blogs on the website that provides quick redress to the most common problems affecting stock CFD traders.
To enjoy these stellar support services from XTB, start by creating a stock trader account with XTB. The registration process is straightforward and the approval time fast.
Unlike other UK stock brokerages like eToro and Capital.com, XTB doesn’t support the purchase of real stocks on its trading platform. Here, you can only trade stock CFDs. You nevertheless get to buy and sell 1800+ CFDs for some of the most popular stocks on the London stock exchange and stock exchanges across the world.
Note that the online stock company doesn’t maintain a minimum deposit limit. The minimum trade limit, however, varies from one supported stock market to another. For example, you need a minimum $50 to buy stocks on NASDAQ or NYSE and 1000 SEK to buy stocks listed on the Stockholm stock exchange.
Nevertheless, you can open sizeable trades when you use their maximum leverage of 5X the trade capital. And the supported deposit and withdrawal methods on XTB include credit cards, debit cards, bank wire transfers, Skrill, and Paysafe.
Note that XTB is a no-commission broker. Therefore, when trading stock CFDs on the platform, you will only have to pay a highly variable but competitive spread and an equally variable roll-over fee for margined trades that remain open overnight. Deposits are also free but withdrawals below the £60 limit attract a fixed processing fee of £12. The UK stock broker is also quite transparent with its trading fees, in that it allows you to view the cost of trade before you hit the buy or sell button.
XTB is also registered in the UK and licensed by the Financial Conduct Authority (FCA). Client deposits into UK are also insured with the FSCS for up to £85,000. The online broker even maintains a physical office in One Canada Square, Canary Wharf, E14 5AA, London.
In addition to listing some of the popular shares for companies listed on the London stock exchange, XTB exposes you to stock CFDs from the following foreign stock exchanges.
|Stock exchange||Most Popular Stock|
|Prague||Moneta Money Bank|
|Helsinki||Metso Outotec Corp.|
|Paris||Air France – KLM|
|Frankfurt||Airbus Group NV|
|Italian Bourse||Juventus Football Club|
|Oslo||Golden Ocean Group Ltd.|
|Lisbon||Galp Energies SGPS|
|Madrid||Amadeus IT Holding|
|Zurich||Credit Suisse Group AG|
What are the Pros and Cons of Buying Stock on XTB?
- Rich educational tools: The XTB website is rich in trade education content on the Learn-to-Trade section and you are also presented with a free demo account where you practice trade and perfect trade strategies.
- Multi trader platform: XTB is available on the proprietary web trading platform, xStation5, and mobile app xStation Mobile.
- Appeals to both pro and novice traders: Both the web trader and mobile app are rich in research, analysis, trading, and risk management tools. This makes XTB appealing to pro stock CFD traders while its rich learn to trade platform and intuitive interface make it appealing to beginner traders.
- Solid reputation: XTB has a solid reputation of reliability, cultivated over the 15 years that the online stock broker UK has been available.
- Not available on MT4: You can only access XTB via the broker’s proprietary trading platform. It is not available on universal trader platforms like MT4 or MT5.
5. Plus500 – Best for Beginners
Plus500 features on our list of best brokers UK as the best trading platform for beginners. It makes it here because it has one of the easiest onboarding processes and maintains a highly intuitive user interface. It also features a wide range of educational content, especially the Trader’s Guide which teaches novice investors how to interact with different financial instruments. These newbies are then allowed to practice trade and perfect a strategy in the free Plus500 demo trader account.
After creating an account and verifying your identity, you can start trading stock CFDs (Plus500 doesn’t support trade of real shares). But you first need to make a deposit of at least £100. Supported deposit and withdrawal options for UK residents include credit cards and debit cards, eWallets like Skrill, and PayPal, and bank transfers.
There is no maximum investing amount and you have access to leverages of up to 1:5 when trading stock on Plus500.
Deposits and your first 5 withdrawals of the month are free. Plus500 is also a commission-free brokerage that maintains highly competitive trading fees. These include a highly variable spread for different stocks and an equally variable rollover fee for overnight funding. The only other fee Plus500 charges is the currency conversion fee for non-GBP deposits and a £10 inactivity fee for dormant trader accounts.
Like all the other stockbrokers featured on this guide, Plus500 is secured, registered in the UK and licensed by the Financial Conduct Authority (FCA). It is also highly reputed and is one of the few brokerages that are listed and actively traded on the London stock exchange.
Among the 2000+ instruments listed on Plus500 is a host of stocks and shares listed on the LSE and foreign stock exchanges in 25 other countries including:
|Stock Exchange||Most Popular Stock|
|Australian Securities Exchange||OZ Minerals|
|Italian Bourse||Banca Generali|
|SIX Swiss||Credit Suisse|
What are the Pros and Cons of Buying Stock on Plus500?
- Excellent support: Plus500 maintains a highly responsive support team available online 24/7 on live chat, email, and social media.
- Resource-rich platform: The Plus500 trading platform is rich in market research, trading, charting, and risk management tools, as well as educational content.
- Multi-trader platform: You can trade shares on Plus500 via its proprietary web trader and mobile app.
- Competitive trading fees: Plus500 also maintains some of the most competitive trading and non-trading fees.
- Only CFD trades: Unlike competitor online stock brokers like eToro or Capital.com, Plus500 does not support the trade of real shares.
Other Benefits of Using a UK Stock Broker?
You now understand the different types of stockbrokers available in the UK, how they work, and how to pick the best broker. We have even discussed what we consider the best online stock brokerages in the UK today.
But why should you use a stock broker? What are the benefits of buying shares through an online stocks company? We look at the five most potent below:
- Easy access to stock markets: The London stock exchange is not open to the public. Therefore, online stock companies come in handy in connecting both professional and retail traders to the stock market.
- Allows you to invest in foreign companies: The best stock brokers UK will also provide you with a platform that you can use to access foreign stock markets.
- Allows you to earn doubly: Stock brokerages like eToro and Capital.com let you buy and own real shares. They give you a chance to earn doubly when the shares are distributed and the stock price rallies.
- Trade advise and portfolio management: Full-service stock brokers also provide you with investment advice and some offer to professionally manage your stock portfolio.
- Trade with minimal capital: From this UK stock brokers comparison guide, you learn that the majority of stock brokers will let you trade stocks on leverage – as much as 5X your trading capital.
What are The Risks of Using a UK Stock Broker?
Regulatory agencies like the FCA and FSCS play a key role in shielding clients from exposure to unnecessary risks. FCA ensures strict compliance with trading rules while FSCS insures investors’ deposits. That notwithstanding, investors are exposed to numerous trade risks, most of which can be attributed to investing via UK stock brokers. These most common include:
- Exposure to unnecessary risk from churning: Professional portfolio managers are paid a commission every time they trade on behalf of clients. Gullible traders may expose you to unnecessary risks by churning trades – entering into multiple not-so-well-thought trades as they chase this commission.
- Leverage misuse: Novice traders often misuse leverage, exposing them to such unnecessary risks as blown accounts or even negative balances.
- A stockbroker may go under: You can lose your investment if your stockbroker is declared insolvent and there aren’t sufficient assets to settle their liabilities. Even though each investor is covered by FSCS, the £85,000 may not be enough for traders that maintained relatively larger accounts.
- Misrepresentation of trading information: Malicious full-service brokers and discretion brokers may offer misleading or biased trading advice that may result in losses.
- Inordinate trading advice: In the age of trading signals, unlimited webinars, and unsolicited advice from self-proclaimed trading ‘gurus’ it is easy to be lost in the wealth of trade advice, both factual and cooked. This primarily affects novice traders who are yet to master analysis and research.
Is stock day trading legal in the UK?
Yes, it is legal to day trade shares and stocks in the UK. You are free to open as many stock trades as possible in different markets. To be a successful day trader, however, you will need access to premium trading, market research, and risk-management tools.
Since day trading involves taking advantage of even the slightest adjustments in stock prices, you will need significant trading capital if you are to make tangible incomes off the trade. Note, however, that day trading carries relatively high risks. You will also need extensive stock trading experience.
What do Reddit & Quora users say about the Best UK Stock Brokers 2022
There is a lot of investor interest in stock brokers in the UK on Reddit. There is a host of discussions and even subreddits dedicated to debating about the best stockbroker in UK on Reddit. Much of these discussions center on the stock broker features, how they work, minimum and maximum buy limits, types of financial instruments listed on these platforms, their ease of use, and the depth of their trading, analytics, and risk management tools.
The responses to most of these queries are actually personal views of the different stock traders in the UK. A majority are honest reviews by users who have actually interacted with the different brokerages. From these, we read a lot of optimism towards some of the online stock companies that we have already featured in this post as we compared stock brokers the UK.
There is a similar level of interest by the quora community towards the best stockbrokers in the UK, as there is on Reddit. This is evidenced by the flurry of questions raised on the platform about the state of stock trading and investing in the country.
Here, we find a lot of users asking for recommendations for the best online stock companies in the UK, Others are more specific and ask about the best places to buy both UK and non-UK stocks in the country. And even more, are looking to compare stock brokers in the UK by raising questions about their reliability, the number of financial instruments on offer, available markets, trading costs, and user-friendliness.
Just like on Reddit, there are a lot of helpful answers. A lot of investors and traders have poured their hearts out on these discussion forums, narrating their experiences with one or different stock brokers UK. Even here, several brokerages on our list of best UK stockbrokers feature prominently among the most popular stockbrokers on the platforms.
The list of UK stockbrokers, registered and licensed to operate in the country is long. And they all are designed to appeal to different clientele. While some appeal to beginner stock traders, others appeal to experienced investors. There even are best brokers for the London stock exchange and the UK market while others pool in the widest range of international stocks listed with foreign stock markets.
This article guides you through this chaos and helps you identify the best online stock broker UK. It starts by introducing you to the different types of online stock companies operating in the country, how they work, and what to look for in the best stock trading app in UK. It then goes through the operation of listing 5 of the finest brokers in the country, telling you the stocks on offer, their trading costs, their onboarding process, and their deposit/buy limits.
Go over this stock brokers comparison UK guide again, find the broker that appeals to your trading needs, and register a trading account with them.
Q & A
Different stockbrokers have their fair share of strengths and weaknesses. In this post, we have shared with you what we consider to be the best stock trading platforms in the UK and highlighted their key strengths and weaknesses. Go through this list again and chose one that speaks to your needs.
In this post, we have singled out Plus500 as one of the best stock brokers for beginners in the UK. It not only has one of the friendliest user interfaces but its platform is rich in educational content. One could also point to eToro as a beginner-friendly stockbroker because of its copy and social trading features.
Different stockbrokers maintain different trading fees. While all the stockbrokers we have featured in this stock brokers comparison UK guide do not maintain broker commission, the majority maintain spreads and rollover fees on both real stock and stock CFD trades.
You first need to figure out your investment strategy and investment goal. Identify the stocks you would like to buy, the leverage you would like to use and the level of support you will need to trade effectively. Go through the Stockbroker websites and online reviews, check the broker that best appeals to your needs, and register a trader account with them.