10+ Stock Trading Platforms in the UK December 2023 – Low Fees Platforms Compared

7. Plus500 – Trade over 1000 financial instruments; 24/7 support available; trade with leverage up to 30:1

Established in 2008, Plus500 is a rapidly growing CFD broker in Europe and Asia, serving over a million clients with a portfolio of over 1000 instruments. The platform emphasizes transparency, professionalism, and user-friendly services. Plus500 stands out by not charging commissions; instead, it earns mainly through the bid/ask spread of trades.

Plus500 provides a safe and seamless trading experience, backed by 24/7 professional customer support. The platform has attracted over 430 thousand active customers and facilitated trades worth $1.7 trillion in 2020 alone, indicating its reliability and popularity.

With Plus500, you can trade a diverse range of financial instruments, including cryptocurrencies, indices, forex, commodities, shares, options, ETFs, and more. The platform offers leveraged trading, allowing users to magnify potential gains with relatively small investments.

In the forex market, Plus500 provides access to over 60 major, minor, and exotic currency pairs with leverage of up to 30:1. Risk management tools like Stop Limits and Stop Loss orders help users safeguard profits and limit losses.

For stock trading, Plus500 covers shares from major exchanges in the US, UK, and Europe, offering leverage of up to 5:1 with zero commissions and competitive spreads. Indices, commodities, and cryptocurrencies can also be traded with leverage, adding diversity to your portfolio.

The platform’s user experience is commendable, featuring an intuitive webtrader interface that allows customization and offers demo accounts for practice. Charting and technical analysis tools are available, empowering traders to make informed decisions.

Plus500 offers three account types: Demo Account, Retail Account, and Professional Account. The Professional Account provides higher leverage but requires meeting certain criteria.

Your money is at risk. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 81% 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.

8. Alvexo – Regulated by the FCA; trade stocks, ETFs, commodities and indices in the UK; over 450 assets available

With over 650,000 customers worldwide, Alvexo is a regulated online broker offering a wide range of products including CFD on Commodities, Indices, Stocks, and ETFs. “Trading real brokers for real traders” is how the company describes itself.

In 2014, market veterans founded Alvexo, providing real-time quotes on over 450 assets and a range of intuitive trading platforms. Several tools are available for market analysis for less-experienced and advanced traders.

It’s a known fact among traders that Alvexo offers educational resources and customer service. The Alvexo trading platform offers clients a wide range of economic news, a trading academy, webinars, and seminars in addition to daily market signals.
Alvexo fees:

*not available for existing ECN clients, other fees may apply

76.22% 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.

9. Skilling – Regulated by the FCA; available on desktop and mobile; 0% commissions on stock trading

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 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 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 UK stock trading platform – with the minimum deposit standing at just £100. You can deposit funds 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.

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

10. IG – Commission-free UK stock trading platform; invest in stocks and shares ISAs in the UK

One way to invest in stocks in the UK is through a stocks and shares ISA. These investment accounts are offered by some brokers in the UK. One of the UK stock trading platforms that supports ISAs 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 could receive free US stock trades if 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.

Your capital is at risk.

11. Hargreaves Lansdown – Established UK stock trading site; FCA regulated; funds are protected by FSCS

Not only does Hargreaves Lansdown have a positive reputation, but it is a notible 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 online broker is also one of the well-known 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.

Your money is at risk.

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 share trading platforms UK wise.

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

Our Ranking Criteria for UK Stock Trading Platforms

We have covered the 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 way to do this is to focus on a number of core factors – such as regulation, tradable stocks, commissions, user experience, and payment methods.

Below is an overview of features to look out for when researching UK stock trading platforms.

UK Stock Trading 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, stock trading platforms in the 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, reputable 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, means that your capital is at risk.

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 reliable 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.

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 stock brokers in the 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.

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, 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 – 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 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 appropriate for low fees, leverage, and short-selling – are 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 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 UK trading platforms reviewed 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 shares trading platforms UK that we have reviewed today offer leverage.

Copy Trading

This particular tool is ideal for traders who 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

One 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

I’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 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 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 – 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 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.

Why buy stocks?

Based on this article, stocks are one of the most popular assets chosen by investors in the modern economy because they are best suited for both long-term and short-term trading. By becoming an owner of a stock, investors also become partial owners of the company in which they invested. That means that traders can also benefit from the company’s profits, which are equal to the value of the stock, and it also grants investors a part of the company’s assets.

One more pretty good reason to invest in stocks in the UK is that it may give the investors the opportunity to benefit from possible fluctuations in the stock market. It is a common fact that a lot of investors use the tactic of buying undervalued stocks and investing cash in them with a higher regularity than they usually would.

This tactic is based on the fact that the stock market is not as volatile as crypto one so there is always persists the possibility that some companies to have a more positive increase and outperform others. Although, it is stil important for investors to be aware of the iminent risks involved with investing in stocks and to make a proper research before starting their investment journey.

Best Stocks to Buy Now UK

Since we talked about why stock may be a good investment, let’s now check out what are some of the best stocks to buy now UK.

Rivian

Rivian is expecting to seek in the near future a valuation ranging from $53 billion to $60 billion due to the fact that it has raised at least $10.5 billion from investors, including Amazon, Ford, and T. Rowe Price Group. Rivian Automotive, founded in 1995 by Robert “RJ” Scaringe, is a privately held electric vehicle maker that filed for an initial public offering (IPO) for $80 billion in August 2021. Amazon CEO Jeff Bezos visited Rivian’s headquarters in 2018 and announced it would buy 100,000 Rivian vehicles for its cargo delivery fleet. Ford’s stake in Rivian is primarily due to its skateboard platform with an electric motor for each wheel.

Tesla

Tesla, an American electric car and clean energy firm, is known for its electric vehicles, solar panels, and battery energy storage. The company has made headlines in 2021 for accepting BTC payments and causing a massive stock surge. Tesla’s fundamentals have improved over the last year and a half, with a record quarterly net income of $1.1 billion in Q2, 813% higher than Q2 2020. Tesla has never declared dividends on its common stock and intends to retain all future earnings to finance growth.

74% 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.

Apple

According to the source, the capitalization of the Apple company in 2023 reached $2796.18B.This tech giant, went public in 1980 and was initially priced at $22 per share. In April 2023, one share was worth over $134, setting a record. Apple has split its stock four times since then, resulting in faster price growth. If you bought 1,000 shares in 1980, you would now own 56,000 shares, with an initial expense of $22,000. In March 2020, investors bought Apple shares at a discount due to the coronavirus pandemic, but they recovered and continued to move upward. If you invested in Apple shares in March 2020, your return would be 150%.

74% 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.

Should I buy stocks?

Still not sure whether to buy stocks? Whenever you invest in any company, be it Apple or a company like Tesla or Rivian, it is always important to do your research. Below we outline a number of reasons why investors typically add stocks to their portfolio.

One of the reasons for Apple stock, for example is that the argue revenue of its opponents growth slows, but the company has $192 billion in large cash reserves worldwide, a significant advantage compared to companies like Amazon and Facebook, which have smaller reserves.

On the other hand, investors who are are looking beyond the immediate future tend to choose Tesla, comparing it to Apple. Key factors giving Tesla a competitive edge include its global sales, continuous data collection, and its supercharging stations. Tesla’s valuation is expected to reach $750 billion per year by 2030. The company also manufactures rooftop solar products and solar panels.

Concluding every argument we provided above, there both advantages and disadvantages of investing in stocks in the UK, therefore we can not firmly make a statement whethever investors should buy stocks. So, before making any decision investors should perform their own research and take count of all the risks that are involved in investing before choosing from one of the stocks we mentioned.

What Is a Free Stock Trading Platform in The UK?

There are a number of free stock trading platforms available to UK traders can investors. One option to consider is eToro which allows users to practice trading for free via the demo account. You don’t need to make a deposit to use the demo trading feature, simply create an account and begin practicing your skills. However, eToro does charge some fees for live trading (as do most stock trading platforms).

Occasionally, trading platforms may launch new customer offers that reduce fees for a specific time period. If you are looking to trade for free, it is a good idea to look out for these offers and make the most of them. Never the less, it is possible to trade with no funds through eToro’s demo trading account.

In the UK, most trading platforms will charge commissions on trades that are placed. This fee is charged to generate profit which is used to develop the platform, pay staff salaries and maintain excellent standards. While fees can be annoying, traders should consider the fact that fees often indicate a good quality trading platform.

How to buy shares UK? Step by Step Guide

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 to join a commission-free stock trading platform and step by step guide how to buy shares UK.

Step 1: Open a Trading Account

You will first need to open an account at a regulated platform. You can do this online or via your mobile phone by heading over to a provider’s website.

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, 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 stock trading 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

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.

Conclusion

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

This includes everything from regulation, 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.

When choosing a stock trading platform in the UK many opt for one that’s FCA regulated and FSCS protected, with a range of stocks across different UK and international markets.

74% 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.

FAQs

References: 

• Copy Trading: Assessing the regulatory landscape and licensing requirements
• Financial Services Compensation Scheme
• Financial Conduct Authority
• Is There a Catch to Free Stock Trading?
• Overnight Trading: What it is, How it works, Benefits and Examples
• Volatility Definition
• Apple Market Cap 2010-2023 | AAPL