Have you ever considered setting aside some money and dabbling with day trading? If so, you’re living in one of the best possible times to take a spin on self-directed trading platforms. With each passing year, it’s getting easier for solo traders in the UK to swoop in and out of global financial markets thanks to a plethora of user-friendly brokerage platforms. Indeed, the major difficulty with getting started trading in the UK is choosing from the wide range of options in the current landscape. If you don’t feel comfortable with your trading interface, you’re going to have extreme difficulty getting the “swing” of swing trading.
Before jumping into the first UK platform you run across, take time to consider key features like their security, longevity, and fee structure. After careful consideration, you’ll be better positioned to determine the best UK trading platform for your preferences.
Best Trading Platforms in the UK for Active Traders
Day traders can’t settle for subpar performance when executing their time-sensitive orders. Whether you’re trading stocks, commodities, or forex, you need to be sure your brokerage has high standards for security and speed, plus a simple, accident-proof user interface. While many brokers claim to be the best day trading platform in the UK, everyone has to evaluate these choices against their unique needs.
| Platform | Annual Fees | Dealing Fees | Currency Conversion Fees | Star Rating |
|---|---|---|---|---|
| AvaTrade | No | Spread-based | 0.5% | ⭐⭐⭐⭐ |
| Pepperstone | No | $3.50/lot + spread | Competitive rates | ⭐⭐⭐⭐ |
| Freetrade | Basic: £0, Standard: £59.88, Plus: £119.88 | No | 0.99%-0.39% based on plan | ⭐⭐⭐⭐⭐ |
| Plus500 | No | Spread-based | Varies | ⭐⭐⭐⭐ |
| Interactive Brokers | No | £3/trade (WE stocks), 0.05% (UK stocks) | 0.02%-0.03% | ⭐⭐⭐⭐⭐ |
| IG | £96 | £3 (UK stocks, if >3 trades/month) | 0.5% | ⭐⭐⭐⭐ |
| Trading 212 | No | Free for stocks/ETFs, CFD fees apply | 0.15%-0.50% | ⭐⭐⭐⭐ |
| Saxo | Classic: 0.12%, VIP: 0.08% | UK Shares: 0.08% (min £3) | 0.5% | ⭐⭐⭐⭐ |
| eToro | No | £4 withdrawal fee, 0.8% (crypto) | Varies | ⭐⭐⭐ |
| Degiro | No | US/Canadian stocks: €2/trade | 0.25% (auto), €10 + 0.25% (manual) | ⭐⭐⭐⭐ |
AvaTrade
Annual fees: AvaTrade does not charge annual fees for maintaining an account. Dealing fees: The platform primarily earns revenue through spreads and does not charge separate dealing fees on trades. Spreads are competitive, with the EUR/USD spread at 0.9 pips for standard accounts. Available instruments: 55 forex pairs, over 1,200 CFDs (stocks, indices, commodities, etc.), cryptocurrencies through CFDs, and 44 forex options. Currency conversion fees: 0.5% Rating: ⭐⭐⭐⭐
Why We Picked AvaTrade
Headquartered in Dublin, Ireland, AvaTrade is an FCA-regulated exchange that has been around since 2006 and now counts over 400,000 traders in its user base. If you sign into AvaTrade, you can easily diversify your holdings with thousands of financial vehicles in various markets, including foreign currency pairs, CFDs, plus cryptocurrencies like Bitcoin. You can use manual trading interfaces like MetaTrader 4/MetaTrader 5, WebTrader, and AvaTradeGo with an AvaTrade account or opt for automated accounts and even a copy-trading feature via the AvaSocial app.
Given its long reputation and regulatory compliance in multiple nations, AvaTrade has excellent credentials for UK traders who want a diverse array of asset categories on both desktop and mobile platforms. However, remember that AvaTrade has sneaky charges, such as a £50 inactivity fee and an overnight funding premium. The fee structure and bid-ask spreads on AvaTrade are also complex and specific to the market you’re most interested in, so it will take extra research to determine whether this site’s features are worth it for your target asset category.
Pros ✅
- Over 19,000 tradable assets
- Minimum deposit of $100
- Wide range of trading instruments
- Regulated by several authorities
- Unique proprietary platform
Cons ❌
- Limited advanced features
About AvaTrade
Established in 2006, Avatrade has built a solid reputation for providing reliable and user-friendly trading services. The platform is designed to appeal to both novice and experienced traders, offering tools and resources that enhance the trading experience.
One of Avatrade’s standout features is its commitment to education. The platform provides a wealth of learning materials, from tutorials and eBooks to webinars and trading guides, helping traders sharpen their skills and strategies. This focus on education ensures that traders are well-equipped to navigate the complexities of the financial markets.
Avatrade is regulated by several top-tier authorities, including the Central Bank of Ireland and the Australian Securities and Investments Commission (ASIC). This strong regulatory framework adds a layer of security and trust for its users. Additionally, Avatrade offers a decent customer support, available 24/5, ensuring that traders can get assistance whenever needed.
The platform supports multiple trading platforms, including MetaTrader 4 and 5, AvatradeGO, and the AvaOptions app traders. With competitive spreads, leverage options, and a range of account types, Avatrade caters to a diverse trading audience.
In 2020, the Global Forex Awards recognised Avatrade as the best forex broker, underscoring its position as a leader in the industry. The company’s dedication to innovation and customer satisfaction continues to drive its growth and popularity among traders worldwide.
AvaTrade Fees
When it comes to fees, AvaTrade keeps things straightforward. The platform does not charge annual fees, making it more cost-effective for long-term use. Forex fees are low, which is great if you’re trading currency pairs frequently.
All fees are built into the spread, meaning there’s no separate commission. For example, the EUR/USD spread is 0.9 pips. On the downside, the inactivity fee is quite high. If you don’t trade for three consecutive months, you’ll be charged $50 per quarter, and after a year of inactivity, an annual administration fee of $100 kicks in. Deposits and withdrawals are free, but these inactivity fees can add up if you’re not consistently active.
AvaTrade also offers various deposit and withdrawal methods, including PayPal, Skrill, and traditional bank wires, ensuring flexibility. However, there are currency conversion fees of about 0.5%, which is something to keep in mind if you frequently trade in multiple currencies.
AvaTrade Safety
AvaTrade is regulated in four Tier-1 jurisdictions, including the Australian Securities & Investment Commission (ASIC) and the Japanese Financial Services Authority (JFSA). Client funds are segregated from business funds, providing an added layer of security.
AvaTrade’s compliance with WebTrust standards and its membership in the Investor Compensation Company DAC in Ireland further underscore its reliability. This means client funds are protected up to EUR 20,000 in the unlikely event of insolvency.
AvaTrade Investment Offerings
You can trade 55 forex pairs and over 1,200 CFDs, including stocks, indices, commodities, and even cryptocurrencies through CFDs. Their AvaOptions platform is impressive, allowing you to trade forex options using a variety of strategies.
Recently, AvaTrade introduced AvaFutures, giving access to exchange-traded futures on the CME, including different contract sizes like Standard and e-mini. If you’re into social trading, AvaTrade offers platforms like ZuluTrade and DupliTrade, making it easy to follow and copy the trades of successful investors.
AvaTrade TrustPilot Reviews
AvaTrade enjoys a 4.5 out of 5 rating on TrustPilot, with many users praising its responsive and helpful customer service, particularly the personalised assistance from account managers. Users appreciate the platform’s variety of trading tools, including AvaTradeGO and AvaOptions, and the educational resources available for beginners and advanced traders. However, a few users have faced issues with the software, such as login problems and transaction errors.
Pepperstone
Annual fees: 0 Dealing fees: Pepperstone charges a forex commission: $3.50 commission per lot per trade. Spread costs come on top of this, e.g. the EUR/USD spread is 0.1. Available instruments: Pepperstone offers over 1,200 CFDs across many markets. Currency conversion fees: Currency conversion fees at Pepperstone are competitive, but specific rates can vary. Rating: ⭐⭐⭐⭐
Why We Picked Pepperstone
Pepperstone is another regulated online broker with multiple accreditations— including the FCA — and a reputation for offering UK traders easy access to various asset categories. Specifically, this Melbourne-based broker focuses on forex and CFDs for assets like commodities, stocks, and indices, and it offers some of the tightest spreads for those who opt for its no-commission Razor platform. In addition to the standard MetaTrader 4/MetaTrader 5, you can integrate your Pepperstone accounts with the popular charting tool TradingView, the user-friendly cTrader, or Pepperstone’s proprietary Trading Platform.
Although some may find Pepperstone’s focus on forex and CFDs limiting, this is a highly-respected broker with multiple awards and some of the industry’s most competitive fees and spreads. Whether traders feel more comfortable with MetaTrader or TradingView, Pepperstone offers seamless integration and charting tools for expert analysis and execution. Many reviews on TrustPilot also praise Pepperstone’s responsive customer care division. However, keep in mind that some people aren’t as impressed with Pepperstone’s relative lack of educational offerings and beginner-friendly tools, which may be a turnoff for novices.
Pros ✅
- Founded in 2010, regulated in multiple Tier-1, Tier-2, and Tier-4 jurisdictions
- Dual offering of MetaTrader and cTrader suits algorithmic and copy traders
- Multiple platform add-ons enhance MetaTrader experience
- Research quality is above industry average, though behind leaders like IG or Saxo
- Offers a growing selection of tradable markets
- Competitive pricing for active traders on Razor accounts; average for retail traders
- Several social copy trading platforms available
- New proprietary mobile app with a good variety of features
Cons ❌
- Educational materials are average compared to top competitors
- Lacks interactive courses, progress tracking, and quizzes
About Pepperstone
Pepperstone, one of Australia’s leading online brokers, specialises in CFD trading. The company, established in 2010 by Owen Kerr and Joe Davenport, has grown impressively, now boasting offices in Melbourne, London, Düsseldorf, Dubai, Limassol, Nassau, and Nairobi.
Kerr and Davenport, recognised for their entrepreneurial prowess, won the Australian EY Entrepreneurs Of The Year award in 2014. Their leadership was crucial when Pepperstone played a significant role in uncovering Australia’s largest insider trading case in 2013, aiding the Australian Securities and Investments Commission and the Australian Federal Police.
In 2014, the firm was listed as the top BRW Fast Starter, with revenues hitting $60 million and a growth rate of 66%. However, later that year, Pepperstone stopped accepting Japanese clients due to licensing issues with the Japanese Financial Services Agency.
Pepperstone saw significant changes in 2016 when it sold the majority of its business to Champ Private Equity. By 2017, to comply with FCA regulations, it temporarily halted its UK operations. Two and a half years later, CHAMP Private Equity sold its stake back to Pepperstone’s senior management team, led by CEO Tamas Szabo and CHAMP managing director Fiona Lock.
Pepperstone has received numerous accolades, including the Best Forex Broker award at the 2021 DayTrading.com Broker Awards and the Best MT4 Broker at The Good Money Guide Awards in 2023. In the realm of sports, Pepperstone signed a global sponsorship deal with the Association of Tennis Professionals (ATP) in May 2022, securing naming rights to the official ATP rankings until February 2024.
Pepperstone Fees
Pepperstone offers two main types of accounts: the Razor and the Standard. The Razor account is particularly attractive for high-volume traders due to its competitive pricing structure. This account supports TradingView, MetaTrader 4 and 5 (MT4, MT5), and cTrader platforms. It operates on a commission-based pricing model, with spreads starting from 0.0 pips, though typical spreads for the EUR/USD pair are around 0.17 pips. When you include the commission of 0.70 pips, the effective cost becomes 0.87 pips, slightly above the industry average.
The Standard account, on the other hand, is commission-free and has an average spread of 0.77 pips for the EUR/USD pair, making it more cost-effective for those trading lower volumes. This account type may be more appealing for beginners due to the straightforward fee structure.
Pepperstone offers low forex fees and does not charge for inactivity or withdrawals, which is an advantage. Forex commissions are $3.50 per lot per trade, and the EUR/USD spread is as low as 0.1 pips. For index CFDs, all fees are built into the spread, with the S&P 500 index CFD spread at 0.4. Stock CFD fees are also low, with Apple CFD trading at $0.7. However, holding positions overnight can be costly due to high financing rates. Compared to competitors like IC Markets and Axi, Pepperstone’s fees remain attractive and competitive.
Pepperstone Investment Offerings
With over 1,000 markets available, including forex, CFDs, and cryptocurrencies (through CFDs), there are plenty of opportunities to explore. You should know that cryptocurrency trading is not available for UK retail clients. However, professional traders can still access these markets.
The platform’s support for social copy trading through multiple platforms, like myFxbook and DupliTrade, enhances its appeal, especially for those looking to follow and replicate successful trading strategies.
Pepperstone TrustPilot Reviews
Pepperstone boasts a TrustScore of 4.5 out of 5, reflecting high customer satisfaction across 2,500 reviews. Most traders highlight fast withdrawals, excellent customer support, and efficient problem-solving. Positive feedback often mentions specific account managers who provide personal assistance and perks. Some users noted issues with hidden charges and occasional service disruptions, but these are in the minority. Overall, the majority of traders appreciate the reliable platform, quick response times, and additional benefits that enhance their trading experience.
Freetrade
Annual fees:
- Basic: £0.00 per year
- Standard: £59.88 per year
- Plus: £119.88 per year
Dealing fees: Commission-free trades are offered across all plans. Other charges, such as currency conversion, may apply. Available instruments: Over 6,500+ stocks, ETFs, and Investment Trusts. Currency conversion fees:
- Basic plan: 0.99%
- Standard plan: 0.59%
- Plus plan: 0.39%
Rating: ⭐⭐⭐⭐⭐
Why We Picked Freetrade
The Freetrade investment platform feels like a breath of fresh air in a sector cluttered with overly complex interfaces and steep learning curves. Contrary to most trading platforms, Freetrade’s app is quite intuitive and easily usable by anyone. However, you should keep in mind that it is much more geared towards beginner traders. As such, it lacks many of the advanced functionalities that you might find on some of the other platforms listed in this article.
Pros ✅
- Free trading for stocks and ETFs
- Simple and quick account setup
- Excellent mobile trading app
Cons ❌
- Basic product range
About Freetrade
Founded in 2015 by Adam Dodds and Davide Fioranelli, Freetrade has grown impressively, now serving over 1.4 million customers. In their own words, Freetrade’s mission is to make investing simpler and more affordable for everyone. They want to break down the traditional barriers that have kept many people from engaging with the stock market. With over 1.4 million customers, it seems like they’re on the right track.
Freetrade fees
Freetrade’s fee structure is quite straightforward, which I appreciate. Knowing that the fees are fixed is a huge relief for investors like me who prefer to avoid nasty surprises. While these fees might seem steep for those just starting out or with smaller accounts, they are quite competitive for more sizable portfolios, particularly over £30,000.
At Freetrade, trading stocks and ETFs comes with no commission, making it an attractive option for many investors. You won’t encounter any account, inactivity, or standard withdrawal fees, which adds to its appeal. However, there’s a notable 0.45% fee for currency conversion when dealing with non-GBP trades.
For those looking to trade non-UK stocks, Freetrade offers Standard and Plus accounts. The Standard account has a monthly fee of £5.99, while the Plus account costs £11.99 per month. The Standard account provides access to a wider range of international stocks and ETFs, while Plus includes additional features like ISAs and SIPPs, as well as higher interest on uninvested cash.
Although there are no inactivity or standard withdrawal fees, Freetrade does charge £5 for same-day withdrawals. The currency conversion fee is based on the FX spot rate plus 0.45%, which can add up if you’re frequently trading in currencies other than GBP.
Freetrade safety
Freetrade is included under the UK’s Financial Services Compensation Scheme (FSCS), which ensures the security of cash savings up to £85,000.
Freetrade TrustPilot Reviews
Freetrade has a TrustScore of 4.0 out of 5, with more than half of users giving it five stars. Many users appreciate its user-friendly interface and suitability for beginners, highlighting its ease of use and zero transaction costs. The addition of new stocks and responsive customer service are frequently praised. However, some users report issues with customer support, account transfers, and clarity on fees. Despite these criticisms, the majority find the platform enjoyable and effective for casual and long-term investing, noting its intuitive design and helpful portfolio management features.
Plus500
Annual fees: No annual fee, but there is a monthly inactivity fee of $10/month for unused accounts. Dealing fees: Plus500 primarily earns through spreads on trades rather than dealing fees. There are no commissions on trades, except for a currency conversion fee per trade Available instruments: Over 2,800 leveraged financial instruments, including CFDs on forex, commodities, indices, global stocks, ETFs, cryptocurrencies, and options. Currency conversion fees: Varies Rating: ⭐⭐⭐⭐
Why We Picked Plus500
Plus500 is an Israeli-based broker that has been around since 2008 and offers a proprietary and regulated suite for traders. Approved by the FCA and publicly listed on the London Stock Exchange (LSE), this online broker focuses on CFDs for markets such as forex, stocks, indices, and commodities with zero commission fees. Instead, Plus500 earns its money from spreads, which some traders complain are often higher than those of competitors in the market.
There are also fees for inactivity of three months, currency conversions, and overnight funding. Keep in mind you can’t link Plus500 with interfaces like MetaTrader or TradingView, which may be a turnoff for traders who are already most comfortable on these platforms. It’s also worth mentioning that Plus500 doesn’t offer phone support, but you can contact them using WhatsApp or email.
Overall, Plus500 is attractive for UK traders looking for a secure and simplified desktop and mobile interface for trading CFDs. While the fees may not be as attractive, this platform is a highly regulated option and offers an easy way into the world of CFD trading.
Pros ✅
- Competitive, tight spreads
- Analytical charting with customisation options
- Well-designed and organised interface
- Demo account available for familiarisation
Cons ❌
- Only offers CFD trading; no stocks, mutual funds, or bonds
- Fixed leverage: There is no option to trade without or choose levels
- Monthly inactivity fee of $10 for unused accounts
About Plus500
Plus500 is an online trading platform offering clients access to financial markets via a user-friendly interface. Founded in 2008 and based in Israel, Plus500 has become a prominent player in the CFD industry, providing services in over 50 countries to 400,000 active clients. The company is publicly traded on the London Stock Exchange (LSE: PLUS).
The platform is accessible via web and mobile applications, ensuring that users can trade anytime and anywhere. Plus500 is regulated by several financial authorities, including the Financial Conduct Authority (FCA) in the UK, the Australian Securities and Investments Commission (ASIC), and the Cyprus Securities and Exchange Commission (CySEC). These regulations help ensure the platform’s reliability and the security of its clients’ funds.
Plus500 Fees
Overall, I found that Plus500’s pricing sits slightly above the industry average. It’s not the best choice for active traders compared to brokers like IG or Saxo. Plus500 doesn’t offer discounts to retail clients, but if you qualify as a Professional client, there are cash rebates available, similar to an active trader program.
Spreads For the EUR/USD pair, Plus500 had an average spread of 1.5 pips in April 2024, which is higher than the industry average.
Account Features The minimum deposit at Plus500 is £100, making it accessible for those just starting out. While active trader or VIP discounts aren’t offered, the platform does support various deposit and withdrawal methods. You can use PayPal, Skrill, Visa/Mastercard, and bank wire transfers.
| Feature | Plus500 |
|---|---|
| Minimum Deposit | £100 |
| Average Spread EUR/USD | 1.5 pips |
| All-in Cost EUR/USD | 1.5 pips |
| Active Trader or VIP Discounts | No |
| ACH or SEPA Transfers | No |
| PayPal (Deposit/Withdraw) | Yes |
| Skrill (Deposit/Withdraw) | Yes |
| Visa/Mastercard (Credit/Debit) | Yes |
| Bank Wire (Deposit/Withdraw) | Yes |
A study by the Financial Conduct Authority (FCA) highlighted that cost efficiency is crucial for traders. This puts Plus500 in a less favourable position for those who are cost-sensitive. The higher spread on EUR/USD might be a drawback for frequent traders who need to minimise trading costs. However, the accessibility with a low minimum deposit and multiple payment methods could appeal to beginners looking to get started without a large initial investment.
Comparing this to other brokers like IG or Saxo, they often provide better pricing for active traders, which could be a deciding factor if you trade frequently and need to keep costs down.
In terms of convenience, Plus500 supports popular payment methods like PayPal and Skrill, which is a plus if you prefer digital wallets over traditional banking methods.
Plus500 Safety
Being regulated by the FCA in the UK reassures that they adhere to strict guidelines protecting investors. The platform also offers negative balance protection, ensuring that clients can’t lose more than they’ve invested, which is a relief.
Plus500 Investment Offerings
The platform offers an impressive range of products. You can trade CFDs on many instruments, including forex, indices, stocks, commodities, and cryptocurrencies (subject to regulation). Plus500’s introduction of a Bitcoin CFD in 2013 was a pioneering move.
Plus500 offers CFDs on many markets for those interested in options and provides opportunities to speculate on price movements without owning the underlying assets.
Plus500 TrustPilot Reviews
Plus500 holds a TrustScore of 4.1 out of 5, with the majority of users praising its user-friendly platform and quick verification process. Many find the trading experience smooth and the customer support responsive. However, some users express concerns over withdrawal delays and issues with trade execution. Advanced traders appreciate the platform’s simplicity but suggest enhancements for stop-loss and buy-limit features. Despite mixed reviews, the general consensus highlights Plus500’s efficiency and reliability, making it a popular choice for beginners and seasoned traders.
Interactive Brokers
Annual fees: No annual custody fees Dealing fees: £3 per trade for Western European stocks, 0.05% for UK stocks (minimum £1 per trade) Available instruments: Stocks, ETFs, options, futures, forex, bonds, funds, CFDs, commodities Currency conversion fees: 0.02% to 0.03% of trade value Rating: ⭐⭐⭐⭐⭐
Why We Picked Interactive Brokers
If you’re looking for the ultimate selection of assets coupled with an advanced trading setup, Interactive Brokers UK (IBKR) may be your ideal match. This award-winning, FCA-registered trading platform is hailed for its wide array of tradable assets, which range from stocks, bonds, and ETFs to commodities, metals, and cryptocurrencies. IBKR also distinguishes itself by charging competitive commission fees rather than relying on added spreads. This fee structure works on per-share pricing or tiered commissions to make it more attractive for high-volume trading. UK traders can also take advantage of tax breaks with ISA trading through IBKR.
While IBKR stands out with its range of assets and competitive fees, this platform may not be the ideal choice for beginners. Although IBKR offers some educational resources, it often takes time to adjust to the overwhelming wealth of features and complicated interfaces. However, if you’re looking for the ultimate global trading experience and are OK putting in the work to study the IBKR platform, it’s hard to find fault with this site’s offerings.
Pros ✅
- Low commissions and fees
- Impressive platform with numerous features
- Extensive range of investment options
- Highly reliable trade execution
- The best margin rates in our study
- An extensive library of educational materials and research
Cons ❌
- Platform can be intimidating for beginners
- Complex tiered pricing plans
- Phone customer service can be subpar
- Client portal and website appearance could be improved
- Sells order flow of IBKR Lite accounts, disadvantaging those users
About Interactive Brokers
Interactive Brokers, established in 1978, is a premier global brokerage firm renowned for its advanced trading technology and range of financial instruments. Headquartered in Greenwich, Connecticut, the company offers access to a lot of markets and investment vehicles, catering to both retail and institutional clients.
Interactive Brokers is known for its low-cost trading, superior execution, and a wide variety of investment options, including stocks, ETFs, options, futures, forex, bonds, and mutual funds. The brokerage provides access to over 150 market centres across 33 countries, allowing clients to trade in multiple currencies and markets worldwide.
Interactive Brokers Fees
The fee structure at Interactive Brokers can be a bit tricky to grasp. They offer two different pricing systems (tiered and fixed), and you have to choose which one suits you best. The cost also varies depending on the stock market you’re trading on.
Their fixed pricing model is relatively simple. For example, buying an ETF on an Italian stock exchange incurs a fee of 0.05% of the trade value, with a minimum of £3.00. This uses their smart routing method, which seeks the best execution for your trade. You can opt for direct routing if you want more control over where your order goes, but it comes at a higher cost.
The choice between direct routing and smart routing depends on your level of expertise and control preference. Direct routing offers more control, while smart routing lets Interactive Brokers find the best possible execution for you.
The tiered pricing model is more complex. You pay a lower percentage based on the trade size, but additional exchange, clearing, and regulatory fees apply. These fees vary by exchange, so you might need a calculator to figure out the total cost. For simplicity, many stick with the fixed pricing, but it’s worth double-checking based on your specific needs.
Interactive Brokers’ fixed pricing for European investors is straightforward:
- Stocks: 0.05%, minimum £3
- ETFs: 0.05%, minimum £3
- Bonds: 0.05%, minimum £3
European investors can withdraw funds once every 30 days for free using SEPA. Additional withdrawals within the same period cost £1 each, or £8 for a bank transfer.
Interactive Brokers is one of the cheapest options for European investors. For instance, buying £1,000 worth of the iShares Core S&P 500 ETF costs just £3.00.
Interactive Brokers Safety
Interactive Brokers is a well-established brokerage firm, regulated by several top-tier financial authorities, including the SEC in the US and the UK’s FCA. Its parent company is publicly traded on the NASDAQ exchange, adding another layer of credibility.
They operate globally through various entities, and the level of investor protection and the regulating authority vary depending on the region. For instance, in Australia, Ireland, Hungary, and the United Kingdom, retail clients trading CFDs benefit from negative balance protection, though this does not extend to professional clients.
Interactive Brokers Investment Offerings
Interactive Brokers provide nearly every type of investment imaginable. A standout feature for me is their fractional share trading, allowing you to buy less than a full share of stock, which is great if you’re working with a specific budget.
One of the highlights is the extensive international investment opportunities. Interactive Brokers gives access to markets in 33 countries, making it easy to diversify globally. They really excel in this area compared to other brokers.
However, there are a couple of minor downsides. They don’t offer advisory services to help plan your portfolio, and while they don’t currently offer cryptocurrencies, they plan to add them by the end of the summer.
Here’s a quick rundown of what they offer:
- Stocks: Yes
- ETFs: Yes
- Mutual Funds: Yes
- Bonds: Yes
- Options: Yes
- Futures: Yes
- Forex: Yes
- International Markets: Yes
- Penny Stocks: Yes
- Advisory Services: No
- Cryptocurrency: Not yet, but they plan to
- Fractional Shares: Yes
- Cash Management Services: Yes
Interactive Brokers’ range of offerings is a major strong point, catering to a wide variety of investment needs and preferences.
Interactive Brokers TrustPilot Reviews
Interactive Brokers has a TrustScore of 3.4 out of 5, reflecting mixed reviews from users. Many praise the platform’s extensive range of trading products, competitive fees, and reliable execution. However, common complaints include long customer service response times, technical issues, and a complex user interface. Some users appreciate the educational resources and the app’s functionality, while others highlight problems with fund transfers and system freezes. Despite these challenges, Interactive Brokers remains a popular choice for its diverse offerings and potential for experienced traders.
IG
Annual fees: IG charges an annual custody fee of £96 for share dealing and ISA accounts, which can be waived under certain conditions Dealing fees:
- UK Shares: £3 per trade if more than three trades were made in the previous month, otherwise £8 per trade.
- US Shares: $0 per trade if more than three trades were made in the previous month, otherwise $15 per trade.
- European Shares: £10 per trade. Available instruments: Nearly 20,000 CFDs, forex pairs, indices, commodities, options, and cryptocurrencies (as CFDs only). Exchange-traded securities are available for UK, German, and Australian residents. Currency conversion fees: 0.5% on trades involving currency conversion Rating: ⭐⭐⭐⭐
Why We Picked IG
With a history dating back to the 1970s, IG is one of the oldest and most respected brokers for traders in the UK. While IG initially focused on spread betting, it has since branched out to markets like forex, options, and CFDs available on third-party platforms like L2 Dealer, ProRealTime, and MetaTrader 4. IG is also an FCA-registered company and publicly traded on the LSE.
Although IG focuses on offering a seamless trading experience with its desktop and mobile offerings, it also provides many ways to invest, including tax-advantaged stock ISAs, self-invested personal pensions (SIPPs), and ETFs. Traders will be happy to learn IG offers zero commission fees on US share trades and UK share trades of £3, provided you trade at least three times per quarter. However, IG’s complete fee structure is complex and depends on the asset categories you’re most interested in. Also, keep in mind that IG has additional fees, such as a custody fee of £24 if you make less than three trades per quarter. As a final note, most of IG’s lowest scores on sites like Trustpilot complain about the company’s poor customer service experience.
Pros ✅
- Renowned industry leader with extensive investment options
- Access to over 11,000 shares, investment trusts, and 2,000 ETFs
- ISA and SIPP trading options available
- User-friendly website, suitable for beginners
- Excellent educational materials and learning resources
- Competitive £3 trade fee for frequent traders
- IG Smart Portfolios for hands-off, diversified investing
Cons ❌
- Costly for infrequent, small trades
- No mutual funds or bonds available
- Basic charting tools unless using a Pro account
- Crypto trading is restricted to professional traders with high-value portfolios
- No demo account for share trading, only for spread betting and CFDs
About IG
IG Group Holdings plc, known simply as IG Group, is a prominent online trading provider based in the United Kingdom. Founded by Stuart Wheeler in 1974, IG Group has grown a lot over the decades. From its London headquarters, it offers services in spread betting and CFD trading, enabling traders to speculate on the price movements of equities, bonds, and currencies without actually owning the assets.
With a team of 1,950 employees, IG Group has established itself as a leader in the trading industry. As of 2021, the company had a market value of £2.9 billion and provided access to an impressive 17,000 investment markets.
IG Group is listed on the London Stock Exchange and is part of the FTSE 250 Index, reflecting its significant role in the financial market. The company’s success and extensive market reach make it a key player in online trading, continuing to innovate and expand its offerings to meet the needs of traders worldwide.
IG Fees
IG is known for its competitive costs, including spreads, commissions, and fees, which apply globally, including for U.S. clients. IG earns revenue primarily through the bid/ask spread on trades. For CFDs, a commission is added to both sides of the spread, and share-CFD trades incur a direct commission. There’s also a premium for guaranteed stop loss orders, which only activates if the order is triggered. Additionally, IG’s U.K. clients might encounter other charges that are clearly listed on their website.
For major pairs on IG’s U.S. platforms, the minimum spread starts at 0.8 pips, with average spreads varying from 0.9 pips for EUR/USD and USD/JPY to 5.4 pips for GBP/CAD. Swap fees, using tom-next rates, apply for positions held overnight, and currency conversion charges may apply if trading in a currency different from the account’s base currency. An inactivity fee of $12 per month kicks in after 24 months without trading activity, and there’s a $15 charge for wire withdrawals.
Globally, the minimum account deposit is 250 units of the base currency, which is $250 for U.S. accounts. Due to CFTC regulations, leverage is capped at 50:1 for U.S. clients. IG offers rebates for traders meeting specific volume thresholds, with three tiers ranging from 5% for at least $100 million in monthly trading volume to 15% for over $500 million.
IG also provides a clear and detailed breakdown of forex trading costs on their website, ensuring transparency. Their platform is designed to be user-friendly, although some manual configuration might be necessary due to the lack of predefined layouts.
IG Safety
IG is a well-established broker, publicly traded and operating a regulated bank. It’s authorised by eight Tier-1 regulators, considered highly trustworthy, and two Tier-2 regulators, deemed reliable. The broker has no Tier-3 (low trust) regulators but is overseen by one Tier-4 (high risk) regulator.
IG is authorised by several top-tier regulators, including the Australian Securities & Investments Commission (ASIC), Japanese Financial Services Authority (JFSA), Monetary Authority of Singapore (MAS), Swiss Financial Market Supervisory Authority (FINMA), Financial Conduct Authority (FCA) in the UK, Financial Markets Authority (FMA) in New Zealand, Commodity Futures Trading Commission (CFTC) in the US, and is also regulated in the European Union through the MiFID passporting system.
IG Investment Offerings
At IG, the range of available markets depends on the regulatory entity managing your account. If you’re in the U.K., New Zealand, Japan, or the U.S., you’ll need to choose the local IG entity corresponding to your location.
IG offers nearly 20,000 CFDs and exchange-traded securities (non-CFDs) to residents of the U.K., Germany, and Australia. These can be accessed via a share trading account, enabling international stock exchange trading. In Europe, IG provides access to forex options and Turbo warrants through its Multilateral Trading Facility (MTF), Spectrum. For U.S. clients, listed derivatives are available via tastytrade. Eligible clients can also consider IG Bank in Switzerland.
Cryptocurrency trading at IG is available through CFDs, though not for the underlying assets like Bitcoin. It’s important to note that IG doesn’t offer crypto derivatives to retail traders in the U.K.
Here’s a summary of the investment products available to IG clients:
- Forex Trading (Spot or CFDs): Yes
- Tradeable Symbols (Total): 19,537
- Forex Pairs (Total): 97
- U.S. Stock Trading (Non-CFD): Yes
- International Stock Trading (Non-CFD): Yes
- Social Trading / Copy Trading: No
- Cryptocurrency (Physical): No
- Cryptocurrency (Derivative): Yes
Remember, crypto CFDs are not available to retail traders from any broker’s U.K. entity or to U.K. residents except for Professional clients.
IG provides many trading opportunities across multiple markets, ensuring clients have access to a diverse set of investment products tailored to their needs and regulatory requirements.
IG TrustPilot Reviews
IG has a TrustScore of 4.0 out of 5 from over 6,792 reviews. Many users praise its extensive range of products, excellent mobile app interactivity, and reliable customer support. Positive feedback highlights the platform’s ease of use and the impressive handling of stocks and shares ISAs. However, some users report frustrations with long response times, complex administrative processes, and poor online chat support. Despite these issues, the majority find IG to be a dependable and efficient trading platform, appreciating its consistent improvements and trading tools.
Trading 212
Annual fees: No annual fees Dealing fees: Free on stocks and ETFs. CFD trading does incur fees. Available instruments: Over 10,000 stocks and ETFs, 179 forex pairs, 19 indices, 39 commodities, and 1,621 CFDs Currency conversion fees: Trading 212 charges a 0.15% currency conversion fee for stocks and ETFs, and a 0.50% fee for CFDs Rating: ⭐⭐⭐⭐
Why We Picked Trading 212
Trading 212 is a London-based, FCA-registered broker that has been around since 2004 and continues to attract attention for its user-friendly features. This platform’s top value proposition is its zero commission fees on CFDs with no custody fees. Trading 212 also makes it easy for new traders to get involved with trading stocks, forex, and indices with its intuitive interface, fractional share option, and automated investing strategies (aka “pies”). Traders who use Trading 212 get rewarded for keeping their cash on the platform with interest payments and the opportunity for share lending.
With all of these attractive features, it’s no wonder Trading 212 is one of the top-downloaded mobile apps for UK traders. However, this platform may not be best for traders who prefer access to more advanced technical analysis tools or the broadest range of asset categories.
Pros ✅
- Provides ISAs, so no tax worries on potential gains
- Intuitive mobile app
- Commission-free stock and ETF trades; fractional shares available
- Practice accounts are offered
Cons ❌
- No SIPP available
- Limited educational resources for investment research
- Only offers stocks and ETFs; no mutual funds or bonds
About Trading 212
Established in 2004 in Sofia, Bulgaria and headquartered in London since 2013, Trading 212 is dedicated to making trading accessible to everyone through its intuitive and user-friendly mobile app. The platform enables users to trade a wide variety of financial instruments, including stocks, ETFs, forex, commodities, and cryptocurrencies (which are not available in the UK).
Trading 212 Fees
Trading 212 has made waves in the brokerage world by offering commission-free stock trading, eliminating the barrier of dealing charges that often discourage small investors. Since launching this service in the UK in 2013, Trading 212 has enabled many to invest small sums without worrying about fees eating into their investments. Their simple fee structure means there are no charges for buying and selling shares. However, a small currency conversion fee of 0.15% applies when buying overseas stocks, such as those listed in US dollars.
One of Trading 212’s advantages is its transparent fee structure. You won’t face any inactivity fees, which is a relief if your account sits idle for a while. Withdrawals are also free, adding to the platform’s cost-effectiveness. However, if you deposit more than £2,000 using a credit/debit card or electronic wallet, a 0.7% deposit fee applies, though this can be avoided by using bank transfers.
Currency conversion fees are another consideration. Trading 212 charges a 0.15% fee for converting currencies when trading stocks and ETFs not in your account’s base currency. This is lower compared to other brokers, such as Halifax Share Dealing and Interactive Investor, which often charge over 1%. Additionally, you can hold multiple currencies in your account, such as USD, EUR, GBP, and CHF, which helps in avoiding conversion fees altogether.
For those interested in trading CFDs, Trading 212 also offers competitive rates. While CFD trading fees can be higher due to spreads and other charges, Trading 212’s costs remain competitive. The platform provides detailed information about daily swap rates, ensuring transparency.
Trading 212 Safety
Trading 212 is regulated by several top-tier authorities, ensuring a secure trading environment. In the UK, it’s under the watchful eye of the Financial Conduct Authority (FCA). Additionally, Trading 212 is regulated by the Australian Securities and Investments Commission (ASIC), the Cyprus Securities and Exchange Commission (CySEC), and Bulgaria’s Financial Supervision Commission (FSC).
A crucial aspect of Trading 212’s safety is its provision of negative balance protection. This means you won’t lose more money than you invest, which is a reassuring feature for traders, especially those new to the market.
Trading 212 Investment Offerings
Trading 212 grants access to over 10,000 stocks and ETFs, which span major markets worldwide, including the US, UK, and Germany. This extensive range ensures that whether you’re interested in tech giants like Apple and Tesla or emerging market stocks, there’s something for everyone.
Trading212 TrustPilot Reviews
Trading 212 holds a TrustScore of 4.6 out of 5, with more than 70% of users rating it five stars. Users praise the platform for its ease of use, generous interest rates on uninvested cash, and commission-free trading. Many appreciate the regular updates on earned interest and the seamless funds transfer between accounts. However, some users report issues with customer support response times and occasional technical glitches. Overall, the app’s user-friendly design and attractive features make it a favourite among both new and experienced traders, with many highlighting the benefits of daily interest notifications and free share incentives.
Saxo
Annual fees: Classic & Platinum Accounts: 0.12% custody fee, VIP Accounts: 0.08% custody fee, Funds in Classic Accounts: 0.4% fee Dealing fees: UK Shares/ETFs: 0.08% (min £3), European Stocks: €3 to €10 min, US Shares: $1 to $25 min, Bonds: 0.2% (min €20), lower for VIP, Investment Trusts: £8 per trade, Telephone Dealing: £50 per trade Available instruments: Forex, FX options, NDFs, CFDs, stocks, stock options, ETFs Currency conversion fees: 0.5% per conversion Rating: ⭐⭐⭐⭐
Why We Picked Saxo
Saxo is a Danish-based multinational bank founded in 1992 that offers UK traders a powerful FCA-registered suite with its SaxoTraderGO and SaxoTraderPRO platforms. Whether you use these advanced trading portals or link to a third-party tool like TradingView, Saxo boasts tight spreads and a transparent tiered commission fee model for assets such as CFDs, forex, futures, and commodities. UK traders can also open ISA, SIPP, and trust accounts to make tax-advantaged investments in vehicles like ETFs, bonds, and funds. As a bonus, Saxo rewards users for keeping their deposited funds on the platform with interest-accruing accounts.
Although many traders enjoy the customizability of SaxoTraderGO and SaxoTraderPRO, they aren’t the most beginner-friendly platforms. Overall, Saxo is more tailored to advanced traders who need minimal hand-holding for technical analysis and initiating trades. However, if you’re OK with the steeper learning curve, you may prefer taking advantage of Saxo’s sophisticated software suite and wide range of investable funds.
Saxo Pros ✅
- Excellent web and mobile trading apps
- Offers ISAs and SIPPs
- Now includes mutual funds
Saxo Cons ❌
- High fees for share and bond transactions
- A steep learning curve for new investors
About Saxo
Saxo Bank, began its journey in 1992 in Denmark, under the name Midas Fondsmæglerselskab, founded by Lars Seier Christensen, Kim Fournais, and Marc Hauschildt. In 2001, after securing a banking license, it rebranded as Saxo Bank. Saxo offers a diverse range of investment options including Forex, stocks, CFDs, futures, funds, bonds, and futures spreads.
What sets Saxo Bank apart is its dual role as an online broker and a bank, although it doesn’t provide traditional banking services. Instead, it focuses on trading and investment, with about half of its business coming from partnerships with institutional traders. Over 100 financial institutions globally use Saxo Bank’s platforms under white-label agreements, allowing them to offer Saxo’s services under their own brands.
Saxo Fees
Saxo Bank offers three types of accounts: Classic, Platinum, and VIP, each catering to different levels of investment and offering various benefits. Here’s a rundown of the charges and fees associated with each account type.
For Classic accounts, which are for those with less than £200,000, Saxo charges a custody fee of 0.12% annually. This means if you have £45,000 in your account, you’ll pay £54 per year in custody fees. In comparison, AJ Bell would charge £42 for the same amount, and some brokers like XTB or Trading 212 don’t charge any custody fees at all. If you hold funds in a Classic account, a higher custody fee of 0.4% applies. For a £45,000 portfolio, this amounts to £180 per year.
Platinum accounts, for investments over £200,000, benefit from lower fees and a wider range of services. The custody fee for Platinum accounts is also 0.12%, but it reduces to 0.08% for VIP accounts, which are for those investing over £1 million. For a £1 million portfolio, the annual management fee would be £800, compared to £875 with AJ Bell and £1,250 with Hargreaves Lansdown.
Trading fees vary by account type and the specifics of the trade. For example, UK stock transactions for Classic account holders incur a fee of either £3 or 0.08% of the transaction value, whichever is higher. European stock trades cost between €3 and €10, while US stocks have a fee ranging from $1 to $25.
Saxo has recently eliminated inactivity fees and reduced per-trade commissions, making it more competitive. However, it remains pricier for those with lower balances. For bond trades, fees range from 0.2% for Classic account holders to 0.05% for VIP clients, with a minimum charge of €20 per trade.
Investors can now access over 6,000 global mutual funds through Saxo, with fund trades being free. However, ongoing management fees apply, which are 0.4% for Classic accounts.
When considering the cost of trading with Saxo, the frequency of your trades and the size of your portfolio are key factors. For instance, with a £30,000 portfolio in a Classic account, five trades per year would cost you a minimum of £51 in fees, while 120 trades would cost £396.
Saxo Safety
Saxo Bank is a well-regarded and secure brokerage, operating under the regulatory oversight of multiple top-tier financial authorities. It’s regulated by the Financial Conduct Authority (FCA) in the UK, the Danish Financial Services Agency (FSA), and the Swiss Financial Market Supervisory Authority (FINMA), among others. This strong regulatory framework ensures that Saxo adheres to stringent rules designed to protect investors’ money.
A key aspect of Saxo’s safety is its banking background. Established in 1992 and based in Denmark, Saxo Bank holds a Danish banking license, which subjects it to rigorous financial regulations. This banking license is an assurance of the firm’s stability and compliance with strict financial practices. Additionally, Saxo Bank offers negative balance protection for retail clients in the EU and some MENA countries. That level of protection prevents investors from incurring more debt than their initial investments.
Saxo offers a range of investor protection schemes depending on the client’s location. For example, clients in the UK are protected up to £85,000 by the FCA, while those in most European countries are covered up to €100,000 for cash and €20,000 for securities by the Danish FSA.
Saxo Investment Offerings
You can trade over 70,000 tradeable symbols, making it a treasure trove for investors and traders like me. From spot forex and FX options to non-deliverable forwards (NDFs), Contracts for Difference (CFDs), and a range of stocks, the choices seem endless. This range is the broadest selection available among U.K. brokers we reviewed. The inclusion of indices from the Tokyo and Hong Kong stock exchanges is particularly noteworthy, as these are often not offered by many U.K. brokers.
Beyond individual shares, you can invest in ETFs, investment trusts, bonds, and mutual funds. This range allows you to create a well-rounded portfolio. Additionally, for more seasoned investors, Saxo provides the opportunity to trade forex, commodities, and futures, which are more suitable to those seeking higher risk and potentially higher rewards.
Saxo TrustPilot Reviews
Saxo Group has a TrustScore of 3.7 out of 5 from over 5,800 reviews. Users praise the platform’s wide range of trading instruments and commend individual customer service representatives for their helpfulness and expertise. However, many express frustration with the account closure process, frequent documentation requests, and slow response times from the compliance team. Some clients appreciate the sophisticated trading tools and positive experiences with support staff, while others report issues with account restrictions and communication difficulties. Overall, the platform is valued for its extensive offerings, though customer service experiences vary widely.
eToro
Annual fees: No annual fees, £8/month inactivity fee (applies after 12 months of no login activity) Dealing fees: £4 withdrawal fee, £24 minimum withdrawal amount, 0.8% fee for buying or selling crypto, 1.5% fee for transferring cryptoassets to eToro Money crypto wallet Available instruments: 23,500 shares on 50 stock exchanges worldwide, ETFs, Forex, Futures, CFDs, Mutual Funds Currency conversion fees: Accounts are based in USD, and deposits or withdrawals in other currencies incur a conversion fee that varies depending on the payment method used Rating: ⭐⭐⭐
Why We Picked eToro
The Israeli-based eToro has been an industry leader in emerging categories like “social trading” and “copy trading.” Once you set up an account with eToro, you’ll have access to this platform’s active trading community to generate trading ideas, and you could mirror top eToro traders to take away the stress of swapping assets. Although these unique features set eToro apart, you could also use this brokerage platform to create your own strategies for assets such as stocks, cryptocurrency, and indices.
eToro is well known for its commission-free stock trading structure, but keep in mind there are other fees for using the eToro desktop or mobile app. For instance, you’ll have to pay spreads, conversion fees, overnight fees, withdrawal fees, and inactivity fees. Also, while the eToro platform is user-friendly — and you can generate ideas from its unique social trading portal — it doesn’t offer the technical sophistication more advanced traders may find in other brokerages. That being said, if you prefer bouncing ideas off of others rather than working alone, trading with eToro may be an attractive option.
Pros ✅
- Very low costs: Commission-free trading and no custody fees
- Option to open a virtual account for practice
- Ability to trade cryptocurrencies and complex instruments like CFDs
- Excellent mobile application
Cons ❌
- Limited investment choices: No bonds, mutual funds, or investment trusts
- Hidden charges: $5 withdrawal fee and FX fees for non-USD transactions
- No eToro ISA account or SIPP available
eToro Fees
When it comes to charges and fees, eToro stands out with some of the lowest fees among brokers. Opening and holding an account is free, with no management or custody fees. Most investments can be bought and sold without any trading charges. In comparison, Hargreaves Lansdown and AJ Bell, two major U.K. platforms, charge £11.95 and £9.95 per trade, respectively. You can start investing on eToro with as little as £10.
However, there are a few hidden costs to watch out for. eToro generates revenue through currency conversion fees, charges for complex trades like crypto, and fees for CFD positions held overnight. It’s worth noting that CFDs are risky and suited for experienced investors only.
Withdrawing money from eToro costs $5, and the minimum withdrawal amount is $30. Trading is in U.S. dollars, so U.K. users will encounter currency conversion fees when depositing or withdrawing funds. A typical FX conversion charge is $0.005.
To illustrate, depositing £2,000 into an eToro account incurs a currency conversion fee of about $7 (£5.70), with rates at $1.23 per £1. This fee applies to both deposits and withdrawals, in addition to the $5 withdrawal fee (roughly £4). eToro has no annual custody fees, regardless of account size. There are no fees for corporate or government bonds, ETFs, or investment trusts either. Telephone dealing isn’t available.
eToro Safety
While some users praise eToro for being trouble-free and user-friendly, others highlight issues with withdrawal delays, technical problems, and customer service inefficiencies. The platform’s withdrawal fee is $5, and some users reported challenges with withdrawing funds. Opinions vary among users.
Some have had no issues over several years, while others recommend using more traditional brokers due to eToro’s approach and occasional service glitches. Despite mixed reviews, eToro remains a popular choice for many, especially for its social trading features. I personally had no real issues with eToro, but you must understand what you are getting yourself into, and eToro does not do a perfect job of explaining that.
eToro Investment Offerings
Beyond share and ETF trading, eToro allows users to dabble in forex, CFDs, and cryptocurrencies like Bitcoin and Ethereum. However, it doesn’t offer mutual funds, bonds, or investment trusts, which might limit options for some investors.
With thousands of investments available, eToro can seem overwhelming, especially for beginners. The virtual account feature is a great way to ease into it. They provide $100,000 in virtual money to help you practice trades and get comfortable with the platform.
For those looking to simplify their investment choices, eToro’s ‘Smart Portfolios’ are tailored for long-term investing. You can choose portfolios based on your interests, whether that’s tech, financial services, or real estate.
One of eToro’s standout features is the ‘CopyTrader’ system. This lets you mirror other users’ portfolios automatically. When they buy or sell shares, your account can do the same. While this can be convenient, it comes with risks. Copy trading relies heavily on the skill of the trader you’re following, and there’s no guarantee their moves will be profitable. I’d suggest researching a trader’s history thoroughly before diving in. Unlike diversified funds, there’s no assurance that proper risk management is in place.
eToro TrustPilot Reviews
eToro, with a TrustScore of 4.2 out of 5 from over 23,710 reviews, is widely praised for its user-friendly interface, social trading features, and exceptional customer support. Users appreciate the platform’s unique ability to offer copy trading, competitive interest rates, and membership rewards. Account managers receive high marks for their responsiveness and expertise, often going above and beyond to assist clients. However, some users have reported issues with fund withdrawals and compliance processes, which can be frustrating. Overall, eToro is valued for its ease of use and customer support, making it a favourite among both new and experienced traders.
Degiro
Annual fees: No annual fees Dealing fees: US & Canadian stocks: €2 per trade (€1 commission + €1 handling fee), European stocks: €4.90 per trade (€3.90 commission + €1 handling fee), other markets (Australia, Hong Kong, Japan, Singapore): €6 per trade (€5 commission + €1 handling fee) Available instruments: Various Currency conversion fees: Auto conversion: 0.25% above the spot rate, manual conversion: €10 + 0.25% above the spot rate Rating: ⭐⭐⭐⭐
Why We Picked Degiro
The Dutch-based multinational DEGIRO has steadily gained a foothold in the European trading market since its start in 2013. A significant reason for DEGIRO’s success for both UK and EU traders is its commitment to offering an ultra low fee experience with transparent pricing for shares, ETFs, and derivatives. At the time of writing, traders on DEGIRO pay £1.75 commission and £1 handling for stocks on the LSE and €1 commission plus €1 handling fees for US stocks. There are also no additional costs for inactivity, withdrawals, deposits, or custody.
Although DEGIRO is arguably most famous for its competitive fees, it also gains high marks for its user-friendly mobile app and desktop platform. On DEGIRO, traders can access products like stocks, ETFs, bonds, and options, but it’s not a suitable choice if you’re interested in asset categories like forex or cryptocurrency. Also, although DEGIRO is competitively priced and beginner-friendly, it may not be the ultimate option for traders who are interested in technical analysis and setting up advanced strategies with third-party tools.
Pros ✅
- Low commissions on share trading
- U.S. shares can be traded commission-free
- €0.75 per contract for futures and options trades ($0.75 for U.S. options/futures)
- 208 European ETFs with the first trade commission-free, subject to terms
Cons ❌
- Mobile app and trading platform are unimpressive
- Lack of in-depth fundamental research
- No SIPP or ISA accounts available
About Degiro
DEGIRO started in the Netherlands in 2013 (the platform technically started in 2008, but they launched their online retail brokerage service), founded by five ex-Binck Bank (now owned by Saxo) employees. Their goal was to shake up the brokerage scene with a low-cost alternative.
The appeal of low-cost trading quickly spread, and DEGIRO expanded to 18 European countries. This rapid growth allowed retail investors across Europe to access thousands of investment opportunities at significantly lower costs than traditional brokers.
DEGIRO’s expansion marked a fundamental change in the brokerage landscape, making investing more accessible to everyday investors. This strategy has positioned DEGIRO as one of the most popular brokers in Europe.
Degiro Fees
DEGIRO is known for its competitive fee structure, making it a popular choice among investors.
For trading US and Canadian stocks, DEGIRO charges a €1 commission plus a €1 handling fee, making it €2 per trade. For European stocks, the fee is €3.90 per trade plus a €1 handling fee, totaling €4.90. If you’re trading in markets like Australia, Hong Kong, Japan, or Singapore, expect a fee of €5.00 per trade plus the €1 handling fee.
DEGIRO also offers a selection of ETFs that can be traded commission-free once per month, with only a €1 handling fee. Additional trades on the same ETF within the same month are also commission-free, provided the trade value is at least €1,000 and of the same type (buy or sell) as the initial trade.
One notable aspect is the absence of inactivity and withdrawal fees, which is a significant advantage over many competitors. There are no deposit fees either, but it’s worth noting that DEGIRO does charge for currency conversion at a rate of 0.25% above the spot rate. If you need to perform a manual currency conversion, the fee is €10 plus the 0.25% conversion rate.
DEGIRO has a unique “Exchange Connectivity Fee,” charging up to €2.50 per calendar year for each exchange you use outside your home market. There’s an additional connectivity fee of €5 per month for US options markets.
For margin trading, DEGIRO’s rates are competitive, with a 6.9% annual rate on USD, GBP, and EUR balances. This is comparable to other brokers like Interactive Brokers, which offers slightly lower rates for higher tiers.
Understanding these fees can help you make more informed decisions and potentially save on trading costs. DEGIRO’s fee structure is designed to be transparent and competitive, particularly appealing to cost-conscious traders.
Degiro Safety
The firm operates under the regulatory framework of flatexDEGIRO Bank AG. This German-regulated entity falls under the watchful eye of BaFin (Federal Financial Supervisory Authority), ensuring compliance with stringent financial standards. In the UK, DEGIRO is authorised and regulated by the Financial Conduct Authority (FCA), while in the Netherlands, it is overseen by the Dutch Central Bank (DNB). Additionally, flatexDEGIRO Bank AG is indirectly supervised by the European Central Bank (ECB).
When you open an account with DEGIRO, your investments are safeguarded. The German Investor Compensation Scheme protects up to €20,000 in securities, and up to €100,000 in uninvested cash in DEGIRO Cash Accounts. These funds are held in segregated accounts, ensuring that your assets remain secure even if DEGIRO faces financial difficulties.
DEGIRO’s integration with flatex in 2019 strengthened its market position, combining DEGIRO’s innovative platform with flatex’s solid banking foundation. This merger created the largest execution-only broker in Europe, enhancing both the security and reliability of DEGIRO’s services.
Degiro Investment Offerings
DEGIRO offers a diverse selection of investment options. You can trade in stocks, funds, bonds, gilts, ETFs, options, and futures. Their platform connects you to 30 international exchanges across Europe, North America, Asia, and Oceania. You get either direct-to-market access or smart order routing (SOR) through Morgan Stanley, which ensures efficient execution.
One thing to note is that DEGIRO currently provides only a general trading account. This means UK clients won’t find options for an ISA or a personal pension scheme (SIPP) on DEGIRO.
Degiro TrustPilot Reviews
The UK contingent DEGIRO has a TrustScore of 4.1 out of 5 from more than 650 reviews. It is praised for its efficient, low-cost service and reliable platform, making it a favourite among long-term investors. Users appreciate the ease of use, responsive customer service, and clear fee structure. However, some have faced issues with customer support, especially regarding fund transfers and account management. Despite these challenges, the platform’s functionality, night mode, and access to global markets are highly valued. DEGIRO is particularly recommended for its low fees and effective trading experience, though improvements in customer support would enhance user satisfaction further.
How to Open a Trading Account
Opening a brokerage account in any of the above trading platforms is quite easy.
- Decide Whether to Trade or Invest: Determine your financial goals and whether you prefer trading (short-term) or investing (long-term).
- Understand the Charges and Risks: Familiarise yourself with the costs of trading or investing, including spreads, commissions, and potential losses, especially with leveraged trading.
- Fill in an Application Form: Provide your personal details and complete the required forms. Most brokers will ask about your trading experience to ensure you understand the risks.
- Get Verified: Verification typically involves submitting proof of identity and address. This process is essential for compliance with financial regulations.
- Fund Your Account: Once verified, you can fund your account using methods like debit cards, PayPal, or bank transfers.
For those new to investing and especially those new to trading, consider starting with a share dealing account for its simplicity and direct ownership of assets. Tools and resources provided by the broker, such as educational tutorials and market research, can be very helpful. Using a demo account, if available, can also be a great way to practice trading without financial risk.
How We Picked The Best Trading Platforms: Our Methodology
There are many trading platforms out there, and we are constantly trying to review as many of them as possible in our roundups. So far, we have published guides, each time with a different focus. You will find articles written by our team about the best robo advisors, best automatic investment apps or the best platforms for micro investors. For each one of these guides, we have used a different set of tools to take our pick.
UX & Design: What might look complex to one trader may be just what another user prefers. Although choosing the ideal user interface on a trading platform often comes down to personal preference, nobody wants to deal with clunky layouts when analysing charts and setting up positions. We always look for a mix of convenience and advanced features in a trading platform’s interface so you have the tools you need without unnecessary confusion.
Investment offers: While asset diversity may be less of a dealbreaker for some traders, we still like to see a trading platform give users plenty of options to put their money to use. Traders may be OK with a limited list of offerings if they have a category they specialise in, but sites with a wider array of choices give traders more flexibility to create a portfolio full of uncorrelated assets and experiment with different categories.
Security and Insurance Protections: Safety is also paramount when choosing the best UK day trading platforms. Beyond looking into a platform’s history, we review how they store your assets and any cybersecurity measures — including encryption protocols and two-factor authentication (2FA) — they provide. We also make sure these platforms offer traders compensation, such as the Financial Services Compensation Scheme (FSCS), to protect your funds in a scenario like fraud, insolvency, or a hack.
Trading fees: Although you can’t avoid fees, you can keep them manageable by finding a platform with attractive rates for your assets. We take the time to comb through fees such as commissions, spreads, and any hidden charges, so you won’t be surprised when you start making your first trades. Platforms with transparent and competitive fee structures rank higher in our book, especially if they offer commission-free options and benefits to frequent traders.
Education material: I also paid attention to the tools and resources offered. Advanced charting tools, real-time data, research reports, and educational materials are vital for making informed trading decisions. Platforms like Avatrade and Saxo Bank are praised for their research and educational tools, which help both novice and experienced traders alike.
Customer support: It can sometimes be challenging to find premier customer care for trading platforms, but you need to know there’s a way to contact a representative if you have any issues. Ideally, a trading platform offers 24/7 service and near-immediate response times for UK traders, but at the bare minimum, we need to see live chat or ticketed support. We also won’t take brokers seriously if they don’t at least have an FAQ portal and education hub.
Regulatory Standards: If a trading platform isn’t OK with the FCA, then we say, “No way!” Seriously, we put national regulations at the top of our checklist to ensure everything meets the UK’s standards for retail traders. Ideally, we also like to see a trading platform has credentials in dozens of other countries to further confirm its legitimacy.
Extra Features: A trading platform’s unique features are far from an afterthought. Although they aren’t as significant as other considerations, these features often make or break the decision to choose one platform over another. Whether it’s automated trading options, portfolio management tools, or social trading features, we always factor these bonuses into our analysis so you can find the most attractive opportunity.
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