Best Stock Brokers in London
Best stock broker in London - eToro
Best stock brokers in London
eToro - Overall best and low-cost stock broker for beginners and professionals
DEGIRO - best for investors seeking an inexpensive European brokerage
Revolut - best fractional share broker
CapTrader - best for experienced investors and beginners
Interactive Brokers - best for intermediate and professional traders
Deciding to start stock investing in London is among the best financial steps individuals can take to create another income stream. You need the best stock brokers in London to make this vision a profitable reality. However, you have three choices: a full-service broker, a discount broker, or an online stock trading platform.
A full-service broker will manage your investments, offer additional tools to facilitate easy stock trading and provide you with financial advice. Discount brokers do not interfere with your decision-making process; they simply carry out your instructions. Then, an online broker provides traders with real-time financial information on company stocks and trading platforms.
Investors prefer using online stock trading platforms because they are cheaper than full-service brokers and safer, especially now that almost all brokers have a mobile app or online portal. Finding the top stock brokers in London is essential if you want to invest in stocks because they offer flexible accounts with low account minimums. To help potential London investors, TU experts will outline the top stock trading platforms in this article.
Best brokers for Stock trading in London compared
1 eToro
eToro has positioned itself as a groundbreaking trading platform, fundamentally revolutionizing how individuals approach investments with its unique social trading experience. This innovative feature allows users to observe, learn from, and even replicate the strategies of seasoned investors across an array of assets like stocks. By doing so, eToro bridges the knowledge gap, offering novices a chance to leverage the expertise of more seasoned market participants.
Diving into specifics, eToro offers a collection of 2,090 stocks, making it a considerable hub for stock trading. What amplifies its attractiveness is the absence of fees or commissions on stock trades. There are no withdrawal charges; a minimum withdrawal limit of $30 exists. Additionally, traders should be cautious of a $10 monthly inactivity fee if their account remains inactive for over a year and a $75 transfer fee when transferring their accounts elsewhere.
The discovery page, search bar, and home screen are streamlined to aid traders in locating their desired stocks effortlessly. The ‘Trading’ tab further simplifies the process, letting users view, buy, and sell stocks with a minimum account balance of just $10.
Stocks are safeguarded by the Securities Investor Protection Corporation (SIPC), ensuring the protection of up to $500,000 for its members.
Extra features
Advanced search capabilities with a dedicated discovery page and search bar.
👍 Pros
• Low account minimum for stocks ($10).
• Commission-free stock trading.
• Extensive stock range.
• SIPC protection for stocks and ETFs.
👎 Cons
• Stock options only.
2 DEGIRO
DEGIRO is synonymous with efficient, straightforward stock trading. Favored for its low fees on numerous US and European exchanges, DEGIRO stands out with its offerings and seamless account opening process, which requires no minimum deposit. While there are no inactivity or withdrawal fees, trading US options comes at a €5 monthly fee. The platform offers affordable stock trading on over 50 exchanges spanning 30 nations. With its roots in the robust regulatory framework of BaFin, DEGIRO is a trusted platform for traders across Europe.
DEGIRO, having expanded across 18 European countries, offers retail investors a highly competitive commission structure. FlatexDEGIRO AG, holds a distinguished spot on the SDAX, ranking among the top 160 listed companies in Germany. DEGIRO sets itself apart by granting access to global exchanges in regions like Australia, Japan, and Hong Kong.
Connection fees are capped at 0.25% of a client's total portfolio value annually for most exchanges, not exceeding €2.50. However, exceptions include the Irish Stock Exchange with €0.00 fee and a €5.00 monthly fee for US options. Only if a transaction is made or a position held during the year are these charges applied. Notably, the commission for US stocks stands at €1 plus €2 for handling, while the Irish stock commission is set at €2 with a €1 handling fee.
Extra features
Comprehensive educational tools.
Affordable stock trading on more than 50 exchanges spanning 30 nations.
👍 Pros
• Competitively low fees.
• Top-tier regulatory oversight.
• User-friendly web and mobile interfaces.
👎 Cons
• Research tools are limited.
3 Revolut
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).
👍 Pros
• 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.
👎 Cons
• 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.
4 CapTrader
CapTrader is a Forex broker, which was founded in Germany in 1997. The company is headquartered in Dusseldorf. CapTrader is an Introducing broker to Interactive Brokers. The platform uses Interactive Brokers software, which is why the brokers have identical user accounts, trading platforms and products. CapTrader provides access to 7 categories of assets and trading instruments: Forex, commodities, stocks, ETFs, futures, options and CFDs. The company is regulated by the Federal Financial Supervisory Authority (BaFin). In addition it is an introducing broker and the European licenses from the regulators of Ireland and the UK held by Interactive Brokers apply to it as well.
👍 Pros
• Partnership with a well-known broker – International Brokers.
• Access to 145 global stock markets.
• 70,000+ trading instruments.
• 3 types of trading platforms.
• Access to analytical service Trading Workstation.
👎 Cons
• High minimum deposit – $2,000 or an equivalent.
• Limited education options.
• Technical support is available 24/5.
5 Interactive Brokers
Interactive Brokers (IBKR) has firmly established its dominance as one of the most versatile and comprehensive investment platforms available to modern traders. At its core, the platform provides a holistic trading experience by offering access to various financial instruments, ranging from stocks and options to Forex, cryptocurrencies, and more.
The recent addition of European stocks exemplifies IBKR's relentless drive for expansion and inclusivity. With over 17,500 U.S. stocks available for trading, a focus on penny stocks through the OTCBB, and an impressive international footprint covering 150 exchanges in 33 countries, the platform's breadth is commendable. Moreover, the introduction of fractional share trading on major U.S. stock exchanges and select European stocks underscores IBKR's endeavor to democratize stock trading.
However, where IBKR truly excels is in its proprietary SmartRouting system, designed specifically for professional traders. This system automatically discerns and relays the best available stock prices, ensuring optimal execution. A transparent fee structure, characterized by a $5 cost for trading 1,000 shares (waived off for IBKR Lite clients) and similar charges for OTCBB stocks, adds to the platform's allure. Despite its myriad advantages, including leading the fractional share trading sphere, the platform's complexity may deter beginner traders.
Extra features
Dividend reinvestment settings for the entire account.
Advanced TWS Market Scanners for global market insights.
👍 Pros
• Extensive range of US stocks available for short and long trades.
• Access to 90+ global stock exchanges.
• Fractional share trading for key US stocks.
• European stock availability.
👎 Cons
• Might be overwhelming for beginners.
Benefits of Trading Stocks
If the rise in inflation prevents you from saving a portion of your income, investing becomes crucial. Investments assist you in coping with inflation-related price increases, helping you achieve your financial goals in the future. The most dependable investment choice for assisting you in reaching your financial goals is the stock market.
Since stock market fluctuations level off over longer periods, stock investing is a big business investment decision, and investing with the best online stock brokers in London comes with great benefits. Below are some of the benefits of trading stocks in London with top stock brokers.
By investing in the stocks of various companies, you can boost your savings and ensure capital growth.
Investing in stocks will maximize your returns and protect your money from taxes and inflation. Long-term stock investments can provide investors with better tax treatment, which can help reduce or even eliminate the negative effects of taxes.
Some businesses may give their shareholders special distributions or dividends, which can boost their return and give them a reliable source of investment income.
Purchasing stock gives a shareholder control over a company's management.
Investing in various financial company shares on the stock market ensures portfolio diversification. Diversification of investment portfolios helps lower the risks involved in stock investing.
Considering the use of trading facilities that allow investors to place their orders through a computer from the comfort of their homes or offices, investing with the best online stock trading platform is convenient.
It is critical to understand that there are dangers associated with stock market investing. The stock market has drawbacks, such as high risk, volatility, expensive trading commissions, businesses going bankrupt, etc. However, the risks associated with stock investing can be significantly reduced by following the fundamentals of the stock market, such as planning trades, using stop-loss and take-profit triggers, conducting research, and exercising patience.
How to choose a stock broker in London?
Selecting a London stockbroker who understands your investment goals is advised, especially for novice investors. But how do you find such a stock trading platform in London? Below are steps on how to choose online stockbrokers in London.
Specify your financial goals, preferred level of assistance, and trading instruments (stocks, options, ETFs, etc.).
Compare different stock brokers. Find out if the UK's Financial Conduct Authority (FCA) oversees these brokerages.
Verify the stockbroker's commission rates, fees, and any other extra costs. While other brokers charge per trade or by share, some offer commission-free trades.
If you are a novice, see if the broker provides materials and educational resources that can assist you in improving as an investor. And check if the broker offers a demo account. You will need a demo to practice and test the platform tools and your trading strategies.
Examine the broker's account selection to see if it includes the kind you require, such as individual, joint, retirement (IRA), or custodial accounts.
Check out the trading platforms and analysis tools that the broker offers. Real-time market data, charting, and research report tools can be extremely important.
Analyze the quality of the customer service and support offered and the security measures in place to safeguard your private and financial information.
Ascertain the broker's options for making deposits and withdrawals.
Note: Read the terms and conditions of each stock broker, including any restrictions or requirements, carefully before deciding on one of them.
What are the best stock brokers for beginners in London?
The best stockbrokers for beginners are those with low minimum deposits, demo accounts, and passive income options like copy trading. Below are some of the best stock brokers in London for beginners.
DEGIRO
Using DEGIRO to buy, sell, and trade stocks will be a pleasant experience for novice stock brokers. This broker is among the most reputable, regulated, and affordable options for trading stocks. This London stock broker makes it simple to open an account, and there is no requirement to deposit first.
Investing is accessible to all investors at DEGIRO thanks to our no-minimum account opening requirement and competitive fees. For those looking for free commission trading for ETFs and low-cost trading options, this online broker stands out as a top option (external fees may apply).
This broker's selection of investment products makes it a wise choice for building a long-term portfolio of securities. The Degiro platform is suggested for beginners because it is relatively simple to use and navigate.
Interactive Brokers
Interactive brokers may be the best option if you are looking for risk-free, simple, and hassle-free stock trading on the largest international markets. Because of its low minimum deposit requirement, this broker is recommended for those looking for a broker with excellent services and reasonable fees.
A rich demo account with an unmatched selection of all asset types is available for new traders to begin learning how to trade stocks. Again, this broker provides a variety of trading platforms that are highly functional and have cutting-edge research. It provides users with direct market access from a single platform and is the best execution electronic broker available.
Revolut
Revolut is a London-based online stock broker that provides clients with social trading tools, no minimum deposit requirements, and commission-free trading plans. This broker processes and distributes dividends to your account automatically.
Revolut is excellent for beginner investors who are content to invest in a respectable selection of stocks at a lower cost than with most investing platforms. The app makes it simple and quick to open an investment account, and fractional shares can be purchased for as little as £1.
How much money do you need to start stock trading in London?
There is no minimum investment requirement because each stockbroker has a minimum investment that is the same for all brokers. It is possible to invest with as little as £100 because the majority of stock brokers offer accounts with near-zero minimums. You can invest as little as £1 to as much as £50 at stockbrokers that offer fractional share features. Revolut accepts deposits as low as £1, while eToro, one of the top UK trading platforms for fractional shares, requires a minimum deposit of £10.
Keep in mind that trading involves numerous costs and commissions, such as those for order execution, buying, and clearing. Fees may significantly affect your returns if your investment is small.
Tips for Successful Stock Trading in London
Analyzing company stocks before purchasing them is one of the many recommendations for effective stock trading in London. You must thoroughly investigate the stocks you want to buy and follow news, financial data, and market trends about this particular stock.
Take the time to educate yourself about the stock market, trading strategies, and financial instruments. Below is a list of additional suggestions for successful stock trading in London.
Prepare a thorough trading plan that details your objectives, risk tolerance, and strategies.
Select only licensed stockbrokers.
Prepare to diversify your portfolio.
To reduce potential losses, use stop-loss orders, and never take a risk with money you cannot afford to lose.
Maintain your trading strategy and refrain from acting based on emotions. If you are unfamiliar with trading, speak with a financial advisor or broker that specializes in trading on the London Stock Exchange.
FAQs
What is the best stock broker in the UK?
EToro, Revolut, and CapTrader make up the list of the best stockbrokers in the UK.
How do I choose a stockbroker in the UK?
Start by ensuring that the broker is regulated by the FCA or other top EU financial regulators. Check which trading platforms the broker supports, compare costs and fees, take into account additional tools and education, and read the broker's terms of operation in the UK.
Which stock broker has the lowest fees in the UK?
EToro is the stockbroker with the lowest fees in the UK.
Where is the best place to buy stocks in the UK?
An online stock platform is the best place to buy stocks, and eToro tops the list of the best stock brokers in the UK.
Team that worked on the article
Peter Emmanuel Chijioke is a professional personal finance, Forex, crypto, blockchain, NFT, and Web3 writer and a contributor to the Traders Union website. As a computer science graduate with a robust background in programming, machine learning, and blockchain technology, he possesses a comprehensive understanding of software, technologies, cryptocurrency, and Forex trading.
Having skills in blockchain technology and over 7 years of experience in crafting technical articles on trading, software, and personal finance, he brings a unique blend of theoretical knowledge and practical expertise to the table. His skill set encompasses a diverse range of personal finance technologies and industries, making him a valuable asset to any team or project focused on innovative solutions, personal finance, and investing technologies.
Dr. BJ Johnson is a PhD in English Language and an editor with over 15 years of experience. He earned his degree in English Language in the U.S and the UK. In 2020, Dr. Johnson joined the Traders Union team. Since then, he has created over 100 exclusive articles and edited over 300 articles of other authors.
Mirjan Hipolito is a journalist and news editor at Traders Union. She is an expert crypto writer with five years of experience in the financial markets. Her specialties are daily market news, price predictions, and Initial Coin Offerings (ICO).