In order to trade successfully, it is very important to choose the right broker. in the UK, a large number of companies provide access to trading and you will have to choose the one for you among them. It is important to work only with reliable brokers providing all the required instruments for trading based on your trading strategy. TU analysts have selected the best etf brokers for fractional shares in the UK 2024. You can compare their features and trading conditions.
1
eToro - Best for fractional shares in the UK
The eToro broker was founded in 2007. The company promotes itself as a social trading platform working with traders from over 140 countries. The broker has several divisions operating under different jurisdictions and licensed by different regulators. For example, eToro (Europe) is licensed by the Cypriot regulator CySEC (109/10) and eToro (UK) is licensed by the British regulator FCA (583263). The broker also has a representative office in Australia and the USA.
👍 Advantages of trading with eToro for traders from the UK:
•High level of reliability ensured by the licenses of respected regulatory authorities and participation in the compensation funds.
•Wide selection of assets quoted at stock exchanges in the UK, U.S., Australia and Asia.
•An opportunity to combine active trading with social trading and passive investing.
•Zero-fee trading of a number of stocks.
•Access to ready-made diversified asset portfolios with various risk levels.
•Provision of leverage, educational materials on various markets and user-friendly trading platforms that can run on any device.
•Zero fees for portfolio management, depositing funds and account maintenance.
👎 Disadvantages of eToro for traders from the UK:
•High minimum deposit for users of a number of countries.
•No live chat on the website for quick connection to customer support.
2
Revolut - Best for fractional shares in the UK
Revolut is a British fintech company that has been providing investors with accounts for trading precious metals, cryptocurrencies, and stocks listed on U.S. exchanges since 2015. The broker offers its clients access to investing in stocks and ETFs on European stock exchanges. For organizations and private clients, the company offers a multi-currency account with the possibility of exchanging currencies at the current inter-bank exchange rate. Revolut is supervised by the Financial Services Authority (FSA).
👍 Advantages of trading with Revolut for traders from the UK:
•In addition to stock trades, customers can trade cryptocurrencies and precious metals.
•The broker offers commission-free trading plans.
•The minimum number of shares to buy is 0.00000001.
•There are no minimum deposit requirements.
•Social trading is available, which allows newcomers to the stock market to copy trades of successful traders.
•Communication with the support service via chat is available in the mobile application 24 hours a day.
•There is no fee for opening and maintaining a trading account.
👎 Disadvantages of Revolut for traders from the UK:
•Stock trading is currently only available to UK residents.
•Operations in precious metals and cryptocurrencies are not regulated by supervisory authorities.
•The company does not offer fiduciary management of its investment portfolio.
3
Robinhood - Best for fractional shares in the UK
Robinhood is an investment company that has provided services on the stock market for over ten years. Its owners engaged in software development for hedge funds ab initio and then teamed up to create a company that makes investing available to all. The broker is licensed to provide its services and is a member of the Financial Industry Regulatory Authority (FINRA, CRD#: 165998/SEC#: 8-69188) in the United States. There is no information about the broker receiving awards for their activities.
👍 Advantages of trading with Robinhood for traders from the UK:
•trading stock market instruments without paying commissions;
•the ability to trade from mobile devices;
•hassle-free registration procedure.
👎 Disadvantages of Robinhood for traders from the UK:
•the broker does not offer Forex instruments for trading;
•there are no offers for receiving passive income;
•training materials on the website are limited;
•the company works with clients exclusively from the US;
•lack of online support.
4
Barclays - Best for fractional shares in the UK
Barclays is a British multinational bank founded in 1690. Since 1986 Barclays has been providing investment services. The broker is regulated by the Financial Conduct Authority (155595) and is a member of the FSCS Compensation Fund. The holding's banking services are used by more than 48 million clients from 50 countries, but investing through Barclays is available only to UK tax residents. The broker offers over 3,500 financial instruments, including stocks, investment funds, ETFs, and corporate and government bonds.
👍 Advantages of trading with Barclays for traders from the UK:
•Control of financial activities by the Financial Conduct Authority (FCA) regulator.
•Availability of ground-breaking and user-friendly platforms (web and mobile) that allow you to manage accounts and make transactions.
•No requirements for the size of the minimum deposit on investment accounts.
•Access to research instruments and professional analytics.
•A simple pricing structure, transparent and modest fees.
👎 Disadvantages of Barclays for traders from the UK:
•Limited choice of assets: only UK tax payers are eligible. There are no international securities or derivative financial instruments such as derivatives, futures, options, depositary receipts, etc.
•The company does not provide margin accounts and does not support leveraged trading. Clients can only trade with their hard-earned funds.
•Investment accounts can only be opened by UK residents over the age of 18. Broker services are not available to US residents, even if they reside in the UK.
5
AJ Bell - Best for fractional shares in the UK
AJ Bell is a stockbroker that facilitates traders to efficiently achieve their investment goals. The company is regulated by the UK Financial Conduct Authority (FCA 155593) and cooperates with the FSCS Compensation Fund. Stocks, mutual and investment funds, as well as bonds, securities, IPOs, and ETFs are the main trading instruments of AJ Bell.
👍 Advantages of trading with AJ Bell for traders from the UK:
•Accounts for adult and minor clients.
•You can trade on your own or contact the company's employees via secure fax, phone and messages.
•The broker offers Islamic savings accounts that take into account the specifics of Sharia law.
•The company provides investment offers to help clients achieve their financial goals.
•You can trade through a web terminal or a mobile application.
•In the event of the company's bankruptcy, AJ Bell’s clients will get financial payments from its compensation fund.
•If necessary, you can apply to open a joint account.
👎 Disadvantages of AJ Bell for traders from the UK:
•There is no option to verify trading terms on a demo account.
•It is not possible to trade stocks outside of business hours on the UK market.
Commissions & Fees
Brokerage fees are the amount of money that you pay for using the services that a brokerage offers in order to perform trading and manage investments. The brokerage fee structure and regulations vary from broker to broker, and there are two primary fee types which are:
Trading Fees: This type of fee is only charged when you perform a trade. It can be a conversion fee, margin rate, financing rate, spread, or commission.
Non-Trading Fees: This type of fee isn't directly related to your trading activity, and it can include inactivity fee, withdrawal fee, deposit fee, etcetera.
eToro Commissions and Fees
Registration on the eToro platform is free. The broker does not charge a fee for opening and closing long positions on stocks quoted at the US stock exchanges. The stocks of other markets are available as derivatives, with eToro charging a trading fee on them in the form of the spread. Also, the fees are applied to short positions and leveraged orders. The company accepts and allows withdrawals of only US dollars. If a client deposits or withdraws another currency, it is converted into USD at a fee of 0-50 pips. Members of eToro club get a 50-100% fee reduction on conversion. If a client shows no activity for a period of 12 month, the broker charges the inactivity fee of $10. There is no deposit fee. eToro charges $5 on each withdrawal.
| Account type | Spread (minimum value) | Withdrawal commision |
|---|---|---|
|
Standard |
$5 |
Yes |
|
Pro |
from $1.1 |
$5 eToro’s fee + the fees of payment systems |
Revolut Commissions and Fees
During our analysis of trading conditions, it was found that Revolut limits the number of trades without commissions. Depending on the account type, 1-5 transactions per month are free. There is a monthly subscription fee of £2.99-£12.99 on different accounts, which can be reduced by 20% if you pay in advance for a year. The broker charges a fee of 1 USD for additional orders. Since stocks listed on American exchanges are offered for investment, the fees are calculated in USD and then the funds are converted to the account currency at the current exchange rate. For transactions in cryptocurrency, the commission is 1.5-2%, and for transactions in precious metals, it’s 0.5-1.5% of the transaction volume. The amount of interest depends on the selected trading account. No additional hidden commissions were revealed.
| Account type | Spread (minimum value) | Withdrawal commision |
|---|---|---|
|
Standard |
From £2.99 |
No |
|
Plus |
From £2.99 |
No |
|
Premium |
From £2.99 |
No |
|
Metals |
From £2.99 |
No |
Robinhood Commissions and Fees
Analysts of the Traders Union have reviewed the trading conditions of Robinhood Markets for implicit and explicit commissions and fees. Hidden commissions were not revealed. The broker does not charge a trading fee for the replenishment of the deposit or the withdrawal of funds. No commission is charged for order execution. Please note: there is no commission for assets from the US market only. A trading fee is charged to traders for trading European stocks.
| Account type | Spread (minimum value) | Withdrawal commision |
|---|---|---|
|
Robinhood Instant |
From $1.5 |
No |
|
Robinhood Gold |
From $1.5 |
No |
|
Robinhood Cash |
From $1.5 |
No |
Barclays Commissions and Fees
For each purchase or sale of an asset, the client pays a fixed fee: for online transactions with funds, it’s £3; for other assets, it’s £6; and for a phone transaction, it’s £25. If the client makes more than 4 trades per year, the fee is reduced to £1 per trade. Barclays charges a monthly subscription fee on investment accounts: for funds, it’s 0.2%; and for other instruments, it’s 0.1% (but not less than £4 and not more than £125 per month). At the end of each trading day, the value of the investments placed by the client is calculated, and then once a month (on the day the account was opened) a fee is charged. On SIPP accounts, in addition to monthly subscription fees and transaction fees, there is an administration fee of £31.25 + VAT every quarter. In addition, some ETFs and investment trusts include fees charged by fund managers to cover the costs of buying and selling the underlying investment. However, most funds do not have a down payment and the broker does not charge a withdrawal fee.
| Account type | Spread (minimum value) | Withdrawal commision |
|---|---|---|
|
Investment Account |
From £3 |
No |
|
ISA |
From £3 |
No |
|
SIPP |
From £3 |
No |
AJ Bell Commissions and Fees
Specialists at the Traders Union have verified the trading terms of AJ Bell, as well as verified the broker for any hidden or explicit commissions. The broker charges a commission for making transactions. There is a commission of £1.50 for the purchase and sale of equity assets (including mutual funds, OEIC), and the commission is £9.95 per transaction for trading in stocks, ETFs, bonds, securities, and investment funds. The commission is £4.95 for shares and other assets for which the trader has placed orders over 10 times in the previous month. There are no fees for account maintenance, withdrawals, inactivity, or the use of mobile applications.
| Account type | Spread (minimum value) | Withdrawal commision |
|---|---|---|
|
SIPP (self-invested personal pension) |
from £1.50 |
No |
|
Stocks and Shares ISA |
from £1.50 |
No |
|
Lifetime ISA |
from £1.50 |
No |
|
Dealing account |
from £1.50 |
No |
Summary
Many brokers are available for traders from the UK, but not all of them offer good conditions. In this review, TU experts chose the Best etf brokers for fractional shares in the UK 2024. These are the most trusted companies that offer the best conditions for traders. You will also be able to review the general assessment of each broker.
Overall score of the best ETF Brokers For Fractional Shares in the UK
| eToro | Revolut | Robinhood | Barclays | AJ Bell | |
|---|---|---|---|---|---|
|
Overall score |
7.75 |
7.69 |
6.91 |
5.23 |
5.11 |
|
Execution of orders |
9.1 |
9.2 |
7.9 |
6.19 |
5.99 |
|
Investment instruments |
9.7 |
9.8 |
8.5 |
6.61 |
6.41 |
|
Withdrawal speed |
9.5 |
9.6 |
8.3 |
6.25 |
6.05 |
|
Customer Support work |
9.3 |
9.4 |
8.1 |
6.55 |
6.35 |
|
Variety of instruments |
9 |
9.1 |
7.8 |
6.03 |
5.83 |
|
Trading platform |
9.8 |
9.9 |
8.6 |
6.77 |
6.57 |
|
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FAQ
Can you earn passive income in the financial markets?
Yes, the best brokers in the UK offer passive income options. These could include copy trading, PAMM accounts, managed portfolios, etc.
How much money do I need in order to start working in the financial markets?
The initial capital depends on the assets you plan to trade. However, in the majority of cases, $300-500 is a good amount for a start.
What are the risks of trading in the financial markets?
Any trading in the financial markets carries risks of losing your money due to asset volatility. Therefore, it is important to develop the rules of risk management in your strategy and strictly follow them.
What factors are important when you are choosing a broker?
When you are choosing a broker, it is important to make sure it is a reliable company, consider its fees, the list of trading instruments, deposit and withdrawal methods and other factors. It is important to study a broker in detail, before opening an account with it.
Best ETF Brokers For Fractional Shares by Countries
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Team that worked on the article
Mikhail Vnuchkov joined Traders Union as an author in 2020. He began his professional career as a journalist-observer at a small online financial publication, where he covered global economic events and discussed their impact on the segment of financial investment, including investor income. With five years of experience in finance, Mikhail joined Traders Union team, where he is in charge of forming the pool of latest news for traders, who trade stocks, cryptocurrencies, Forex instruments and fixed income.
Olga Shendetskaya has been a part of the Traders Union team as an author, editor and proofreader since 2017. Since 2020, Shendetskaya has been the assistant chief editor of the website of Traders Union, an international association of traders. She has over 10 years of experience of working with economic and financial texts. In the period of 2017-2020, Olga has worked as a journalist and editor of laftNews news agency, economic and financial news sections. At the moment, Olga is a part of the team of top industry experts involved in creation of educational articles in finance and investment, overseeing their writing and publication on the Traders Union website.