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 stock 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
Freetrade - Best for fractional shares in the UK
Freetrade is an independent private start-up company headquartered in London and registered in 2016. In October 2018, it launched a trading app for iOS devices, and in April 2019, a terminal version for Android. Freetrade supports the Freemium pricing strategy and therefore offers its clients free-of-charge trading in US and UK securities. It is a member of the London Stock Exchange, regulated by the FCA (783189), and trades more than £1 billion every quarter. It currently serves over 700,000 UK investors. According to the British Bank Awards in 2019, Freetrade became the best platform for trading stocks, and it was the best platform for online trading in 2020 soon after that.
👍 Advantages of trading with Freetrade for traders from the UK:
•No trading fees for trades in stocks and ETFs listed on the US and UK exchanges.
•Vast array of investment assets such as stocks, ETFs, and investment funds; and you can conduct transactions with REIT, SPAC, and IPO securities.
•The minimum deposit available even for a beginner is £2.
•Convenient and multifunctional application for trading and managing investment accounts.
•FCA regulation and protection of funds from FSCS.
•Unlimited stock and ETF trades are available on all account types for basic and instant orders.
•On-site availability of free-of-charge training and detailed decoding of trading conditions.
👎 Disadvantages of Freetrade for traders from the UK:
•Currently, you must be a resident of the UK to be able to invest through the broker's application. US citizens and dual US citizens cannot become Freetrade customers.
•The company does not offer trading in futures, options, and CFDs, nor does it offer margin accounts.
•Day trading is not available.
5
Comdirect - Best for fractional shares in the UK
Comdirect is an investment bank and broker founded in 1994 that is owned and operated by the largest German bank Commerzbank AG. Comdirect is listed on the Frankfurt Stock Exchange and regulated by BaFin, the German Federal Financial Supervisory Authority. It offers clients accounts for Forex trading and investing in securities of the German, European and international markets. Comdirect has received numerous awards for its banking products and brokerage services. In 2021 they won the annual Euro am Sonntag and Broker-Wahl voting for the title of the best online broker.
👍 Advantages of trading with Comdirect for traders from the UK:
•No minimum deposit requirements.
•A wide range of investment assets for diversified portfolios.
•Huge number of tools for advanced market analysis.
•Ability to make transactions through a mobile application and third-party terminals.
•Free withdrawal of funds from investment accounts.
•Availability of an affiliate program and various bonus offers.
👎 Disadvantages of Comdirect for traders from the UK:
•High trading commissions on all asset classes.
•The broker does not have a website in English. Personal account, terminals, and communication with company representatives are conducted in German only.
•Complex and lengthy process for opening an account for traders who are located outside of Germany and Austria.
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 |
Freetrade Commissions and Fees
The experts at Traders Union have thoroughly studied Freetrade's trading conditions to identify explicit and implicit commission charges. There are no fees for trades in stocks and ETFs. There is also no dealing fee. Freetrade charges a service fee for ISA, SIPP, and Plus accounts. The monthly flat fee for using ISA is 3 GBP, for Plus and SIPP, it's 9.9 GBP (but 7 GBP for SIPP + Plus). Clients pay a stamp duty of 0.5% on the purchase (but not the sale) value of the security for transactions in UK shares. ETFs, AIM-listed or US-listed stocks, and other assets outside the UK are not subject to stamp duty. Deposit and withdrawal of funds by bank transfer are carried out without charging a fee.
| Account type | Spread (minimum value) | Withdrawal commision |
|---|---|---|
|
General Investment Account |
From 0.5% |
No |
|
ISA |
From 0.5% |
No |
|
SIPP |
From 0.5% |
No |
|
Plus |
From 0.5% |
No |
Comdirect Commissions and Fees
Comdirect’s commission for trading stocks and ETFs consists of two parts: a percentage of the volume and a fixed fee per trade. The size of the trading commission varies depending on the instrument and the exchange.
-
For the purchase and sale of German stocks and ETFs, the broker withholds 0.25% of the transaction amount plus €4.9 per order (minimum €9.9; maximum €59.9).
-
Exchange commissions are 0.0025% of the turnover (minimum €2.5) or 0.005% (but not less than €5).
-
For transactions with international stocks, the investor pays 0.25% of the volume, plus €7.9 per transaction (minimum €12.9; maximum €62.9) plus any third-party costs.
-
Commission for orders in terms of OTC trading is 0.25% plus €4.9 (minimum €9.9, maximum €59.9).
-
Each futures index or ETF and index option contract costs €4.5, and a stock futures contract costs €2.5. The minimum commission for futures and options is €19.
Comdirect does not charge any fees for account opening, deposits, or withdrawals. The inactivity fee is €0 during the first three years. After that, it is €1.95 per month, if the client has not completed 2 transactions per quarter or does not have a savings or current account with Commerzbank AG.
| Account type | Spread (minimum value) | Withdrawal commision |
|---|---|---|
|
Comdirect Depot |
from 9.9€ |
no |
|
Währungsanlagenkonto (Currency Asset Account) |
from 12.9€ |
no |
|
LiveTrading |
from 9.9€ |
no |
|
CFD-Konto |
from 0€ |
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 stock 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 Stock Brokers For Fractional Shares in the UK
| eToro | Revolut | Robinhood | Freetrade | Comdirect | |
|---|---|---|---|---|---|
|
Overall score |
7.75 |
7.69 |
6.91 |
5.41 |
5.05 |
|
Execution of orders |
9.1 |
9.2 |
7.9 |
6.49 |
5.89 |
|
Investment instruments |
9.7 |
9.8 |
8.5 |
6.91 |
6.31 |
|
Withdrawal speed |
9.5 |
9.6 |
8.3 |
6.55 |
5.95 |
|
Customer Support work |
9.3 |
9.4 |
8.1 |
6.85 |
6.25 |
|
Variety of instruments |
9 |
9.1 |
7.8 |
6.33 |
5.73 |
|
Trading platform |
9.8 |
9.9 |
8.6 |
7.07 |
6.47 |
|
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FAQ
What learning instruments can a broker offer?
Brokers offer various educational options. These include full-fledged educational courses, or video tutorials, articles, and books. Companies also often hold seminars and webinars.
What is a demo account and why is it important?
On a demo account, you trade by using virtual funds. It is important to choose a broker offering a demo account both for beginners, who are only learning, and for experienced traders, who can use this account type to test new strategies or EAs risk-free.
Does the choice of a beginner differ from the choice of an experienced trader?
Yes. A novice trader should primarily consider the availability of educational tools and a demo account, as well as basic assets. A more experienced trader is interested in wider opportunities on advanced account types, a wider choice of instruments for technical analysis, and a greater number of trading instruments.
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.
Best Stock 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.