Best Stock Trading Platform UK 2021 – Cheapest Platforms Compared

If you’re looking to buy and sell shares online – you’ll first need to find a trusted stock trading platform.

Put simply, there are dozens of FCA-regulated providers that allow you to trade stocks – so you need to focus on a set of key metrics. This should include fees and commission, tradable stocks, payments, user-friendliness, and customer support.

In this guide, we review the best stock trading platforms UK for 2021. We also show you how to get started with a stock trading account through a simple step-by-step walkthrough

Best Stock Trading Platform UK List

In our search for the best stock tracking platform UK – we found that the following providers are worth considering. You can scroll down for a review of each trading platform below!

1. eToro – Overall Best Stock Trading Platform UK
2. Libertex – Best Online Stock Broker UK for ZERO Spreads
3. Capital.com – Best Share Trading Platform UK for Beginners
4. Plus500 – Best Online Share Trading Platform UK for Market Diversity
5. Skilling – Best Stock Trading Platform App UK
6. IG – Best UK Stock Trading Platform for ISAs
7. Hargreaves Lansdown – Best Share Trading Platform UK for IPOs and Research

Best Stock Trading Platforms UK Reviewed

With so many stock trading platforms to choose from in the UK, knowing which provider to open an account with can be a time-consuming task. After all, not only do you need to ensure that your desired stock markets are supported, but you also need to look at how much the broker charges in day trading fees.

To ensure you find the best stock trading platform UK for your needs- below we review a selection of top-rated providers.

1. eToro – Overall Best Stock Trading Platform UK

We found that eToro is the overall best stock trading platform UK for several key reasons. First and foremost, this user-friendly platform gives you access to 17 stock markets. This covers everything from the UK, US, Germany, Sweden, France, the Netherlands, and Hong Kong.

With over 2,400 stocks supported and more being added on a weekly basis – you’ll never be short of options. We also like the eToro stock library as it gives you two options in terms of strategy.

If you simply want to invest in stocks on a long-term basis – this can be achieved at the click of a button. But, you also trade stocks at eToro in the shape of CFDs – which gives you more flexibility.  Either way, eToro is also one of the cheapest stock trading platforms in the UK – as you won’t pay any commissions to invest, trade, or sell shares.

There are no ongoing platform fees either and withdrawals cost just $5. The main fee that you need to factor in is the 0.5% FX conversion charge that you pay on deposits. This shouldn’t put you off – as it’s important to remember that you won’t pay a surcharge to access non-UK markets.

Plus, eToro goes one step further in the fee department as it waivers the 0.5% stamp duty tax that you would otherwise pay on UK-listed stocks. This essentially counters the 0.5% deposit fee. When it comes to account minimums, eToro offers fractional shares.

This means that you can invest in any stocks of your choosing from just $50 upwards. This makes eToro a great choice if you wish to create a diversified portfolio of stocks with a small amount of money. We should also make reference to the automated trading platform features offered on eToro.

This includes a Copy Trading facility that allows you to mirror the positions of experienced traders. Or, you might opt for an eToro CopyPortfolio – which is professionally managed by the eToro team. This covers a variety of strategies and sectors – such as a basket of vaccine stocks, renewable energy stocks, and dividend stocks.

In terms of payments, this social trading platform allows you to fund your stock trading account with a UK debit or credit card. E-wallets like Paypal and Skrill are also supported – as are bank transfers. You can open your account online or via the eToro mobile app – which is available on iOS and Android.

The latter is great for those of you that wish to trade stocks while on the move. Finally, when it comes to regulation, eToro is authorized and licensed by the Financial Conduct Authority (FCA). Even more importantly, the platform is covered by the FSCS.

Pros:

Cons:

75% of retail investors lose money trading CFDs at this site

2. Libertex – Best Online Stock Broker UK for ZERO Spreads

Although we discuss fees in more detail later, we should note that all stock trading platforms charge spreads. The one exception to this rule is Libertex – which allows you to trade stocks without paying a spread – meaning the bid/ask price is the same.

This gives you the best chance possible of day trading stocks and subsequently targeting much smaller profit margins. Libertex – which was launched way back in 1997 – offers an extensive range of stock CFDs – most of which are based in the US.

This includes stocks from a variety of sectors – including but not limited to tech, finance, consumer goods, cannabis, and telecommunications. When it comes to commissions, this will vary depending on the stock that you wish to trade. This can vary from 0% to 0.5%  – so you’re always getting a good deal nonetheless.

As a specialist CFD trading platform, Libertex allows you to go long or short on your chosen stock. You can also apply leverage of up to 1:5 on all stock trades – meaning a £100 account balance translates into £500 in trading capital. Libertex offers a native trading platform that is suitable for newbies – which you can access online or via the mobile app.

The MetaTrader 4 trading platform (MT4) is also supported, should you want access to more advanced trading tools and features. The minimum deposit at Libertex is just £100 – and the provider supports a range of convenient payment methods. This includes debit/credit cards, bank transfers, and several e-wallets. Once you fund your account for the first time, the minimum deposit drops to just £10.

Pros:

Cons:

83% of retail investors lose money trading CFDs at this site.

3. Capital.com – Best Share Trading Platform UK for Beginners

Alongside eToro, Capital.com is one of the best stock trading platforms in the UK for newbies. This top-rated CFD and forex trading platform gives you access to thousands of markets – covering stocks, indices, commodities, currencies, and ETFs.

In terms of what stocks you can actively trade, this covers over 2,400 share CFDs from a wide spectrum of UK and international markets. For example, you can trade UK shares from the London Stock Exchange and AIM, as well as the NYSE and NASDAQ in the US.

Less liquid stock marketplaces include Spain, Ireland, Singapore, Russia, Hong Kong, Norway, and more. What we really like about this beginner-friendly stock trading platform is that the minimum deposit is just £20. This is the lowest we have seen in the online trading platform scene and thus – it allows you to trade with a small amount of capital.

Alternatively, you might even consider trading via the Capital.com demo account facility. This will ease you into the world of stock trading in a risk-free manner – before staking real pounds and pence. You can also make use of the many educational guides and trading courses available for free at Capital.com.

This popular trading platform is heavily regulated – including a fully-fledged license with the FCA and CySEC. Best of all, Capital.com doesn’t charge any commissions at all – so it’s only the spread you will pay. This is very competitive at the platform, but you need to check each market before placing an order – as Capital.com operates a variable spread system.

Pros:

Cons:

71.2% of retail investors lose money trading CFDs at this site.

4. Plus500 – Best Online Share Trading Platform UK for Market Diversity

Plus500 carries a lot of similarities to Capital.com – insofar that it specializes in CFDs, allows you to trade in a 100% commission-free manner, and offers very tight spreads. With that said, Plus500 stands out for us when it comes to market diversity.

This is because it offers thousands of markets from dozens of UK and international exchanges – all in the form of CFD instruments. In the UK, for example, you can trade hundreds of FTSE 100 and FTSE 250 stocks at the click of a button.

If you’re interested in trading non-UK stocks, some of the markets covered by Plus500 include the US, Australia, Germany, Italy, Hong Kong, Japan, Denmark, South Africa, Singapore, Hungary, the Netherlands, and more. As such, have access to a super diverse range of stock markets.

In terms of the platform itself, Plus500 allows you to trade directly from within your web browser. Additionally, the platform offers a mobile trading app – which is available on iOS and Android devices. The minimum deposit at this FCA-regulated provider is just £100. You can choose from Paypal, a debit/credit card, or bank transfer.

Pros:

Cons:

76.4% of retail CFD accounts lose money.

5. Skilling – Best Stock Trading Platform App UK

Skilling is a recently launched stock trading platform that specializes in CFDs. The provider – which is regulated by the FCA, offers a number of stand-out features. At the forefront of this is the highly intuitive and user-friendly Skilling trading app.

The app – which is available to download for free on Android and iOS phones, gives you access to hundreds of markets. This includes a great selection of US-listed stocks, alongside indices, forex, and commodities.

Irrespective of which stocks you decide to trade, Skilling won’t charge you any commissions. Spreads on its stock CFDs are also very competitive. For example, Apple stocks can be traded with a spread of just $0.49, Facebook at $1.09, and Tesla at $2.50. You can also apply leverage to your stock CFD trades, with UK retail investors capped at 1:5.

Getting started with an account takes minutes at this top-rated stock trading platform – with the minimum deposit standing at just £100. You can deposit funds at the click of a button with a debit/credit card, e-wallet, or bank transfer. Finally, Skilling is also compatible with MT4 and cTrader – should you want access to advanced trading tools and technical indicators.

Pros:

Cons:

Your capital is at risk when trading CFDs with this provider.

6. IG – Best UK Stock Trading Platform for ISAs

As you likely know, if you’re thinking about investing via a Stocks and Shares ISA – you will need to find a suitable online broker. One of the best stock trading platforms in this respect is IG. The brokerage – which was launched more than four decades ago, offers a huge selection of stocks.

This includes thousands of UK stocks from both the London Stock Exchange and AIM, as well as dozens of international markets. If you are planning to add your stock investments to your ISA, then IG charges a flat commission of £8 per trade.

If, however, you place 3 or more trades in a 30-day period, the commission goes down to just £3. Take note, IG will charge you a quarterly custodial fee of £24 should you fail to trade at least three times over a 3-month period. As such, this does make IG somewhat expensive – especially when you factor in its share dealing account fees.

On the other hand, if you are a regular trader – you’ll benefit from free US stock trades – on the proviso that you place at least three orders per month. Additionally, IG also offers a CFD stock trading facility. This isn’t suitable for ISAs and you will pay a variable commission. This stands at 0.10% on UK stocks. Non-UK stocks are charged at different rates depending on the market.

If making tax-efficient trades is important to you, then you might consider the IG spread betting facility. This allows you to trade in a similar way to stock CFDs – but you won’t pay any tax on your capital gains. In terms of payments, IG requires a minimum deposit of £250 and it supports debit cards and bank account transfers.

Pros:

Cons:

Your capital is at risk.

7. Hargreaves Lansdown – Best Share Trading Platform UK for IPOs and Research

We are not huge fans of Hargreaves Lansdown – simply because the online brokerage firm is one of the most expensive investment platforms in the UK. As noted earlier, you’ll pay £11.95 per trade when you buy and sell stocks.

With that said, not only does Hargreaves Lansdown have a great reputation, but it is arguably the best online stock broker UK if you’re interested in IPOs. All you need to do is register your interest on the Hargreaves Lansdown website, and you’ll be noticed when a new IPO has been announced.

Then, it’s just a case of deciding how much you wish to invest in the IPO, and Hargreaves Lansdown will take care of the rest. Additionally, this popular online broker is also one of the best platforms for research and analysis. You’ll find detailed market insights, stock price analysis, and fundamental research tools – all of which can be accessed free.

You don’t, however, need to open an account with Hargreaves to read its research materials. Nevertheless, if you do decide to proceed with this broker, the minimum deposit is just £1 – which you fund with your UK debit card. The platform offers thousands of shares and is regulated by the FCA. Your capital is also protected by the FSCS.

Pros:

Cons:

Best Stock Trading Platform UK Fees Comparison

As you may have noticed, stock trading fees in the UK can and will vary depending on which platform you use. Below you will find a fee comparison table of the best share trading platforms UK.

Fees at stock trading platforms can change, so always check this before opening an account.

How to Choose the Best Stock Trading Platform UK for You

We have covered the best stock trading platforms currently active in the UK investment scene. However, it’s also a good idea to perform a bit of extra research yourself to ensure the platform is right for your trading needs. The best way to do this is to focus on a number of core factors – such as regulation, tradable stocks, commissions, user experience, and payment methods.

To help you find the best stock trading platform UK for you, below we elaborate on these key metrics in more detail.

Regulation

Before you sign up with a UK stock trading platform – it’s crucial that you check the provider’s regulatory standing. In most cases, the best stock trading platforms UK will be regulated by the FCA. This means that you can avoid the worry of choosing a shady broker – as the FCA is one of the most stringent regulators in this space.

For example, all FCA-regulated stock trading platforms must:

• Comply with all UK laws surrounding securities trading and investments
• Install a KYC (Know Your Customer) program – meaning all active traders need to have their identity verified
• Keep client money in segregated tier-one bank accounts – ensuring the platform doesn’t use your capital for its own day-to-day expenses
• Adhere to regular audits

In addition to choosing an FCA-regulated provider, the best stock trading platforms will also be covered by the Financial Services Compensation Scheme (FSCS). This means that in the unlikely even the platform runs into financial problems – your capital is protected up to the first £85,000 – should they go bankrupt.

At the other end of the spectrum, choosing a stock trading platform that isn’t licensed by the FCA – or is regulated by an offshore body, meaning that your capital is at risk. Ultimately – this is why we rate eToro as the best stock trading platform UK  – as the provider is regulated by the FCA, ASIC, and CySEC, as well as being covered by the FSCS protection.

Tradable Stocks

Some traders in the UK prefer to stock with UK-listed stocks. This would mean that you are trading equities listed on the FTSE 100, FTSE 250, or even the AIM (Alternative Investment Market).

However, there might come a time where you also wish to add some international stocks to your portfolio – especially those listed in the US.

For example:

• The NASDAQ and NYSE exchanges contain some of the largest and most recognized companies in the world. Think along the lines of IBM, Disney, Tesla, Facebook, Amazon, Visa, and Microsoft.
• Additionally, if you want to trade stocks listed in the emerging markets, the best stock brokers UK give you access to high-growth exchanges in Singapore, Brazil, Indonesia, Thailand, and Russia.
• You should also look to see whether the stock trading platform gives you access to IPOs. This will allow you to invest in or trade companies that have just gone public.

In the case of our best stock broker UK pick – eToro, you can trade over 2,400 companies from 17 different markets. Additionally, we find that eToro typically adds newly listed IPO stocks on its platform the day after it goes public.

Fees

It goes without saying that you should always check what fees and commissions you will be liable for when trading stocks online. This can come in various forms, so below we explain what fees to keep an eye on in your search for the best stock brokers UK.

Share Dealing Fees

When you buy stocks online through a traditional brokerage, you will pay a share dealing fee. This is a flat fee that is charged when you buy a stock and again when you cash out.

This means that irrespective of how much you are investing – the fee will always remain the same. This will actually suit large-scale traders more than those investing small amounts.

For example:

• Popular stock trading platform Hargreaves Lansdown charges a share dealing fee of £11.95
• Let’s suppose you buy £150 worth of BP stocks
• In paying £11.95 on this trade, your commission actually amounts to just under 8%
• In other words, you need to value of BP stocks to rise by at least 8% just to break-even

Fortunately, low-cost stock trading platforms like eToro do not charge any share dealing fees. This means that in the above example – you could have invested £150 into BP shares and saved £11.95.

Stock Trading Commission

While share dealing fees are aligned with traditional share investments, variable commissions are charged when you engage in actual trading. By this, we mean buying and selling stocks throughout the trading day – as opposed to investing over several years.

• For example, let’s say your chosen platform charges a commission of 0.1% to trade UK stocks
• We’ll then say you placed a buy order on HSBC stocks at a value of £100
• In doing so, you would pay a commission of £0.10
• Then, we’ll say you close your HSBC stock trade when it is valued at £150
• Again paying a small commission of 0.1%  – this time your fee amounts to £0.15

A variable commission is much more viable for small stock trading stakes, as your fee is relative to the amount you stake. However, keep an eye on platforms that have a ‘minimum’ commission in place – as many do.

Once again, this is why we like eToro as the best stock trading platform UK – as you can buy and sell equities commission-free. This is the case whether you trade $50, $100, or $200 at the platform – meaning eToro is suitable for investors of all budgets!

Note: You might have noticed that when discussing eToro – all figures are quoted in US dollars. Although this is the platform’s primary currency, this FCA-regulated broker allows you to deposit and withdraw funds in pounds and pence with ease. 

Stock Spreads

Once you have assessed whether you will be paying a share dealing fee or variable commission – don’t forget to check what spreads you will be charged! This is typically overlooked by newbie traders, so allow us to explain further.

In a nutshell, all stock trading platforms in the UK – with the exception of Libertex, make money through the spread. This is how they are able to offer commission-free trading. The spread is simply the difference between the ‘bid’ and ‘ask’ price of a stock. If the gap between these two prices is too big, then you are indirectly paying more to trade.

To give you an idea:

• eToro offers an average variable spread of 0.20% on major stocks
• This means that when you open your stock trade  – the value of your position will immediately stand at negative 0.20%
• In other words, you need the value of your stock to increase by 0.20% to get back to the break-even point
• Any gains above 0.20% is pure profit

Now, the key problem is that many stock trading platforms in the UK fail to state what the spread is on a particular market. As such, to ensure you are not getting a bad deal – it’s best to quickly calculate this yourself.

For example, in the image above – you can see that Hargreaves Lansdown is offering a bid (buy) and ask (sell) price on GlaxoSmithKline shares of 1,224.40p and 1,225.00p respectively. This works out at a spread of just 0.049% – which is super competitive.

Unfortunately, you’ll then get hit with an £11.95 share dealing fee – which completely wipes out the competitiveness of the spread!

Overnight Financing

Another stock trading fee that is overlooked by newbies is that of overnight financing. This is a daily fee charged when you keep a leveraged CFD stock position open overnight. Each stock trading platform will have a set time when this kicks in – such as 6 pm.

This means that for each day you keep a CFD trade open past 6 pm, you will pay a small fee. This is why CFD trading platforms – although great for low fees, leverage, and short-selling – are best suited for short-term strategies.

Trading Tools & Features

If you’re the type of individual that is simply looking for a platform to buy and sell stocks – then you might not be too concerned about trading tools. However, this might be somewhat short-sighted, as we came across a plethora of notable features that can take your stock trading endeavors to the next level.

This includes the following:

Short-Selling

The best thing about stock trading – as opposed to buying shares, is that you get to determine whether you think the equity will rise or fall in value. In order to do this, you need to choose a stock trading platform that offers CFDs (contracts-for-differences). This is simply a financial instrument that tracks the real-time price of the stock – meaning that you don’t actually own it.

All of the best stock trading platforms discussed on this page offer CFDs – so you can choose from a ‘buy order’ if you think the share price will increase or a ‘sell order’ if you think it will decrease!

Leverage

An additional benefit of choosing a stock trading platform that offers share CFDs is that you can apply leverage. This allows you to ‘multiply’ the size of your stake. In the UK, retail investor clients can apply leverage of up to 1:5 when trading stocks. 

For example, if you had an account balance of £200 and applied leverage of 1:5 on a Royal Mail stock CFD – this means that you can enter a stock trade worth £1,000. Once again, all of the best shares trading platforms UK that we have reviewed today offer leverage.

Copy Trading

This particular tool is a must if you wish to engage in passive stock trading. In a nutshell, the Copy Trading feature offered by eToro allows you to mirror the buy and sell positions of a successful trader. 

For example:

• You invest £500 into a stock trader that uses eToro
• The trader stakes 10% of their balance on BT stocks
• In turn, you automatically allocate £50 into this trade (10% of £500 investment)
• The trader you are copying makes a 25% profit on this BT stock position
• As such, you walk away with a profit of  £12.50 (25% of £50 stake)

As you can see from the above, the Copy Trading tool allows you to sit back and actively trade stocks without lifting a finger. This means no stock analysis, charting research, or market evaluation!

Fractional Shares

The best online stock broker UK that we came across – eToro, allows you to buy ‘fractional shares’. This means that you can buy a small fraction of one stock – rather than needing to spend more than your budget allows. The minimum investment will vary from platform to platform – but at eToro, it’s just $50. That amounts to about £35 at current exchange rates. 

For example:

• Let’s say that you wish to invest in Google (Alphabet) stocks
• At current prices, one Google share is worth $2,003 – or about £1,400
• You decide to stick with the minimum – so invest £35 into Google
• This means that you own approximately 2.5% of a single Google stock!

Crucially, your profits and losses will still work out the same when engaging in fractional ownership. For example, if Google stocks increase in value by 50%, your £35 investment would now be worth £52.50. As such, the specific number of shares that you own is irrelevant, as gains are based on the amount you invest.

Stock News

Unless you are thinking about using a Copy Trading tool, then it’s important to choose a stock trading platform that offers relevant, up-to-date financial news. This will allow you to make informed decisions about which stock trades to place.

• For example, if Vodafone announces that it has just won a government contract on 5g technology – this will all-but-certainly result in an increased stock price.
• As such, you would want to be made aware of this, and any other important news, as soon as the story breaks!  

On the other hand, if you’re chosen stock trading platform doesn’t offer real-time news – this isn’t overly problematic. This is because you can obtain this information from a third-party website for free.

Demo Account

All of the best stock broker UK providers discussed on this page offer a demo account – barring Hargreaves Lansdown. Put simply, this allows you to trade stocks with your chosen broker without depositing or risking any money.

Instead, the stock trading platform will give you an allocation of ‘paper funds’. This allows you to buy, sell, and trade stocks in live market conditions – in a 100% risk-free way.

Demo accounts are not only suitable for first-time traders – but seasoned pros that wish to test out new systems and strategies!

Payment Methods

When you open an account with a stock trading platform, you will then be asked to make a deposit. After all, in order to make financial gains from your stock trading endeavors, you need to risk your own money. As such, check to see what payment methods your chosen platform supports.

All of the best stock trading platforms UK reviewed on this page allow you to make a deposit with a debit/credit card or UK bank transfer. In the case of eToro, Libertex, Capital.com, and Skilling – you can also deposit and withdraw funds with Paypal. Transaction fees will vary from platform to platform – so be sure to check this yourself.

Customer Service

Finally, it’s crucial the pick a stock trading platform that puts the customer experience at the heart of everything. This means offering a top-notch support system around the clock – preferably via a Live Chat facility.

Some of the platforms discussed today – such as Hargreaves Lansdown, also offer a telephone service. Be careful with this though, as if you place a telephone trade at Hargreaves, you need to pay a surcharge for this.

How to Get Started with the Best Stock Trading Platform UK

If you’re ready to start buying and selling shares online – we are now going to walk you through the stock trading process like-for-like. For our tutorial, we are showing you the required steps with commission-free stock trading platform eToro.

Step 1: Open a Trading Account

You will first need to open an account at eToro. You can do this online or via your mobile phone by heading over to the provider’s website and clicking on ‘Join Now’.

Follow the on-screen instructions by providing your:

• Personal information
• Contact details
• National insurance number
• Creating a username and password
• Verifying your email address and mobile number

Step 2: Confirm Identity

You will now be asked to provide a copy of your passport or driver’s license as part of the KYC process. Additionally, eToro needs a copy of a recently-issued utility bill or bank account statement.

Note: You can upload the above documents later, but you will need to do this before you can request a withdrawal. 

Step 3: Deposit Funds

You will need to deposit some funds into your eToro account before you can start trading stocks.

Choose from one of the following supported payment types:

• Visa
• MasterCard
• Maestro
• Paypal
• Skrill
• Neteller
• Bank Transfer

Step 4: Search for a Stock 

Now that you have a fully-funded account, click on the ‘Trade markets’ button, followed by ‘Stocks’. This will give you a full breakdown of which stocks you can trade. You can use the filter buttons to narrow your search down by the exchange (e.g. NYSE) or sector (e.g. consumer goods).

If you already know which stock you wish to trade – you can instead search for it. When the respective stock loads up, click it.

Step 5: Place a Stock Trade

The final part of the stock trading walkthrough at eToro requires you to place an order. As you can see from the example below, we are trading $50 worth of BT stocks. You can trade any amount you like – as long as you meet the $50 minimum.

If you want to apply leverage (maximum 1:5 on stocks), you can select your multiple.

To place your commission-free stock trade, click on the ‘Open Trade’ button.

Best Share Broker UK – Conclusion

All in all, finding the best stock trading platform UK for your needs can take a lot of time. As we have covered extensively, there aremany important factors to consider before taking the plunge.

This includes everything from regulation, user-friendliness, and supported markets to fees, spreads, and payment methods. You also need to check whether the provider offers tools like Copy Trading, leverage, short-selling, and financial news.

To save you hours of mundane research, we would argue that eToro is by far the best stock trading platform UK. The provider – which is FCA regulated and FSCS protected, offers thousands of stocks across 17 different UK and international markets. There are no share dealing fees or commissions charged and the minimum investment is just $50 – or about £35!

eToro – Best Stock Trading Platform UK with 0% Commission

Your capital is at risk.

67% of retail investor accounts lose money when trading CFDs with this provider.

FAQs

About Kane Pepi

Kane Pepi is a British researcher and writer that specializes in finance, financial crime, and blockchain technology. Now based in Malta, Kane writes for a number of platforms in the online domain. In particular, Kane is skilled at explaining complex financial subjects in a user-friendly manner. Kane has also written for websites such as MoneyCheck, Motley Fool, InsideBitcoins, Blockonomi, Learnbonds, Buysharesand the Malta Association of Compliance Officers.

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