This article explains everything you need to know before you set up an account with an online broker.
If you want to start investing or trading, you may find it’s easier to do so online, using a computer, laptop or smartphone, instead of using a telephone broker. If that’s the case, you will need to open a trading account with an online brokerage or investing platform. This will allow you to buy, hold and sell a range of assets, such as equities, currency, CFDs, options or cryptocurrency.
Quick Answer:
The best brokers for online trading in the UK are AJ Bell, eToro, Hargreaves Lansdown, IG, Interactive Investor, Pepperstone, Plus500 and Trading 212.
Jump to:
How to open an online brokerage account
What different account types are there?
Best Online UK Brokers
Here is a list of the best online UK brokers you can use to trade or invest in the UK markets.
Our pick of the best UK online brokerages | ||||
| Name | Link | Platform and trading fees | Access | Features |
| AJ Bell |  Get started | £5 share trading fee £1.50 fund trading fee 0.25% platform fee | App, online, telephone | 10,000 shares, over 2,000 funds, 3,400 ETFs, 450 investment trusts 24 markets including UK, US, Japan, Europe |
| eToro |  Get started | No account opening/ management fee/ $5 withdrawal fee *Other fees apply. | App | 5,500+ shares, 500 ETFs and range of indices Worldwide |
| Hargreaves Lansdown |  Get started | £11.95 share trading fee, No fund trading fee 0.45% platform fee for funds | App, Online, telephone | 8,500 shares, 3,000 funds, 1,400 ETFs, 400 investment trusts UK, US, Europe, Canada |
| IG |  Get started | £3 trading fee for UK shares Flat platform fee of £96 per year | App, online, telephone | 16,000+ shares, 2,000+ ETFs, 200 investment trusts UK, US, Europe, Australia |
| Interactive Investor |  Get started | £3.99 UK & US share trading fee £9.99 other international share trading fee £3.99 fund trading fee Flat platform fee from £60 per year | App, online, telephone | 40,000+ shares, ETFs, funds, investment trusts 18 markets including UK, US, Canada, Europe |
| Pepperstone |  Get started | Commission varies depending on market | Online | Spread betting and CFDs in UK, US, and EU |
| Plus500 |  Get started | No commission No deposit or withdrawal fees | App, Online | 2800+ traded assets including wide range of tradable CFD instruments |
| Trading 212 |  Get started | No trading fee No platform fee | App | 13,000+ shares and ETFs UK, US, Europe |
How To Open An Online Brokerage Account
The process of opening an account with an online brokerage is usually quick and easy. You will need to provide some basic information, such as your bank account details and debit card details. You will need to give your National Insurance number, and may have to supply further documents to help verify your identity.
Once the checks are complete, the account will be opened and you can deposit some funds into the account.
What Different Account Types Are There?
A general trading account lets you buy and sell investments, and take the money out of your account whenever you like.
There are also “tax wrapper” accounts which reduce the income tax or capital gains tax on any profits you make from your investing:
- Individual Savings Accounts (ISAs). An ISA allows you to invest up to £20,000 each year without paying tax on the returns.
- Self-Invested Personal Pensions (SIPPs). A SIPP allows you to invest money towards your retirement. Similar to an ISA, any income or capital gains is tax-free. You also receive tax relief on your contributions (the amount varies). You won’t be able to take money out of a SIPP until you are 55 (rising to 57 by 2028).
- Junior Stocks and Shares ISAs (JISAs). A JISA is a way to invest money for children. You can put up £9,000 a year tax-free, in case or equities. Funds cannot be withdrawn until the child is 18.
Whichever type of account you choose, the process of investing and trading is the same.
FAQs
1. Is trading online safe and secure?
Trading stocks online is safe if you use a regulated broker. Check that the broker is registered with the FCA before you sign up. However, remember that trading in stocks is inherently risky, and there’s always the possibility you will lose your money, so never put in more money than you can afford to lose. You can reduce the risk by educating yourself about how the markets work and reading news articles – do your research!
2. When can I trade?
Trading shares in the UK is done through the London Stock Exchange. Its hours are 8am to 4.30pm Monday to Friday. Cryptocurrency exchanges will usually let you trade 24/7.
3. How do I tell if a brokerage has good customer service?
To find out if a brokerage’s customer service is good, look at the options they provide for getting in touch. Do they have a telephone helpline, do they provide an in-app chat function, what about an email address to ask for help? Before you sign up try calling the helpline or sending an email to see how quickly they respond.
4. What makes stock prices change?
Stock prices rise and fall due to various factors, such as the company’s performance, new government regulations, global events (such as the Covid pandemic, wars and other turmoil). If there are more buyers than people willing to sell a stock, the price is likely to rise. If there are more sellers than buyers, then the stock’s price will likely drop.
5. How much money do I need to start trading stocks?
Some online platforms will let you start investing with as little as £25 a month. You could start out by putting one or two hundred pounds into your brokerage account, then slowly increase that amount as you learn how it works and gain better insight into the markets. If you reinvest your profits, the amount of your holdings can soon grow (but remember that there are no guarantees, and the value of your investments can go down as well as up).
Disclaimer:
The information provided in this article is for informational purposes only and should not be construed as financial, investment, or professional advice. The views expressed are those of the author and do not necessarily reflect the opinions or recommendations of any organizations or individuals mentioned. Always consult with a qualified financial advisor or other professionals before making any financial decisions. The author and publisher are not responsible for any actions taken based on the content provided.
All investments carry a varying degree of risk. It is important that you understand the nature of the risks involved. The value of your investments can go down as well as up. You may get back less than you put in. Only invest what you can afford to lose.