Best Online Brokers in the UK - Top 10 Comparison

Brokers have become increasingly popular over the past 30 years, making it easier for clients to buy and sell financial instruments (stocks, bonds, currencies, commodities, cryptocurrencies, etc.). Compared to traditional banks, brokers have access to a much wider range of products with significantly lower commission levels due to the volume they trade.

However, there are over 78 regulated financial intermediaries in the UK, making it difficult to know which one to turn to for managing your buy or sell orders.

That's why our team of experts has analyzed all of them to offer you an independent and comprehensive comparison.

Broker definition: what is a stockbroker or brokerage?

A stockbroker, also known as a broker, is a financial intermediary who facilitates the buying and selling of financial securities, such as stocks, bonds, currencies, commodities, cryptocurrencies and other financial instruments, on behalf of their clients. The primary role of a broker is to enable investors to access the financial markets by executing their buy or sell orders.

Here is a table comparing an online broker with a traditional bank for investing:

What are the different types of brokers?

There are several different types of brokers, each with its own set of services and benefits.

What are the best online brokers?

Best brokers depending on the type of assets to trade

Best forex broker

Choosing the best Forex broker depends on various factors. Here are some key considerations to help you make an informed decision:

• Spreads and trading fees : check the spreads (the difference between the buy and sell price) offered by the broker on Forex for the most important currency pairs like EUR/USD, USD/JPY or GBP/USD.
• Overnight fees : if you want to keep your positions open for more than one day, these fees that are charged overnight are also to be taken into account.
• Leverage : compare the maximum leverage available for currency pairs. Higher leverage can maximize potential profits, but it also increases risk.
• Order execution speed : fast execution is essential for Forex trading, where prices can change in a fraction of a second.
• Trading platform : check the quality of the trading platform (such as MetaTrader 4 or 5), its user interface, and the technical analysis tools offered.

Best CFD Brokers in the UK

If you're looking to trade CFDs, here are the key things to compare when choosing from the best brokers in the UK:

• Transaction fees : review the spreads, commissions, and overnight fees (swap) for CFDs.
• Leverage: CFDs allow trading with leverage. Compare the leverage levels offered for different assets (stocks, indices, commodities).
• Asset offering : a good CFD broker should offer a wide range of underlying assets, including stocks, indices, commodities, and currencies.
• Negative balance protection : make sure the broker offers negative balance protection, so you can't lose more than you've invested.
• Risk management tools : check the availability of stop loss orders, take profit orders, and other risk management tools to protect your investments.
• Trading interface and tools : evaluate the quality of the trading platform, charts, technical indicators, and automated trading capabilities.

Watch out!

CFDs are financial instruments that allow you to speculate on the price movement of an underlying asset without owning it. They are based on an agreement between the buyer and the seller, where the transaction is based on the difference in value between the asset at the opening and closing of the position. As a result, you could potentially make significant gains, but you are also exposed to significant losses. Best brokers can offer trading tools and resources, but it's important to research and choose a reputable online broker in the UK.

Best ETF Brokers in the UK

When choosing the best brokers for ETFs in the UK, there are several key features to consider:

• Variety of ETFs offered : a good broker should offer a wide selection of ETFs, covering different sectors, indices, and geographic areas.
• Management fees : compare the management fees of ETFs as well as transaction fees. Some brokers offer ETFs with no commission fees.
• Access to international markets : check if the broker gives access to ETFs listed on different international stock exchanges.
• Dividend reinvestment options : some brokers offer dividend reinvestment plans for ETFs, which can be beneficial for long-term investors.

Best Stock Brokers in the UK

If you're looking to invest in stocks, here are the key criteria to consider when choosing among the best UK brokers:

• Brokerage Fees : compare the brokerage fees for buying and selling stocks. Some brokers offer commission-free trading, while others charge fixed or variable fees.
• Access to International Exchanges : if you want to invest in foreign stocks, check if the broker provides access to multiple international stock markets.
• Analysis Tools : evaluate the availability of fundamental and technical analysis tools, such as stock screeners, analyst reports, and advanced charts.

Best Online Brokers Based on Your Trading Level

Brokers for Beginners

If you are new to trading, here are the essential features to look for in a broker for beginners:

• Copy trading functionality: some platforms allow beginners to automatically copy the trades of experienced traders, which can be a great way to learn by observing.
• Demo account: a demo account is crucial for beginners, as it allows them to practice trading with virtual money without risking real funds. Online brokers with a demo account are listed in our comparison tool.
• Educational resources: a good broker for beginners should offer a wide range of educational resources, such as tutorials, webinars, articles, and videos. These resources are essential for developing an understanding of the financial markets.
• Intuitive user interface: the trading platform should be easy to navigate, with a clear interface and trading tools that are simple to use.
• Responsive customer support: accessible and responsive customer support is important to help beginners quickly resolve any problems or questions they may encounter.

Best Brokers for Experienced Traders in the UK

Experienced traders often have specific needs when choosing an online broker. Here are some key factors to consider when comparing best brokers for experienced traders in the UK:

• Access to diversified markets : a broker for experienced traders should offer access to a wide range of markets, including stocks, currencies, commodities, indices, and cryptocurrencies, to allow for maximum diversification.
• Advanced analysis tools : experienced traders need platforms that offer advanced technical and fundamental analysis tools, such as indicators, customizable charts, and stock screeners.
• Fast order execution : ultra-fast order execution is crucial for experienced traders looking to enter and exit positions at precise moments, especially in volatile markets.
• Platform customization : seasoned traders seek platforms that can be customized to their needs, with the ability to add specific indicators, trading algorithms, or automated strategies.
• Access to sophisticated trading tools : features such as algorithmic trading, APIs for integrating third-party software, and margin trading options are important for experienced traders.
• Risk management and advanced order types : a good broker for experienced traders must offer a complete range of order types (stop loss, take profit, trailing stop) and risk management tools to maximize profits while minimizing losses.
• Competitive transaction fees : experienced traders, who often make numerous trades, need brokers with low transaction fees to maximize their returns.

Best Online Brokers for Trading Platforms

Brokers with MetaTrader MT4 or MT5

If you prefer to use MetaTrader, here are the key features to look for in a broker offering MT4 or MT5:

• Compatibility with MT4/MT5: Make sure the broker offers complete integration with MetaTrader 4 or 5, allowing access to all platform functionalities.
• Variety of assets offered: look for a broker that offers a wide range of assets to trade via MT4 or MT5, including currencies, commodities, indices, and CFDs on stocks.
• Advanced trading tools: MetaTrader is renowned for its advanced technical analysis tools, such as customizable indicators, trading robots (Expert Advisors), and interactive charts. Check that the broker allows the use of these tools without restrictions.
• Fast order execution: to get the most out of MT4/MT5, choose a broker that offers fast and reliable order execution, essential for short-term trading strategies.
• Customization of scripts and algorithms: experienced traders appreciate the ability to create and use customized scripts and algorithms on MetaTrader. Check that the broker supports this functionality.

Best Brokers with TradingView

For traders who prefer to use TradingView, here are the most important criteria to consider when choosing an online broker:

• Integration with TradingView : make sure the broker is fully integrated with TradingView, allowing you to execute trades directly from TradingView charts.
• Advanced charting tools : TradingView is renowned for its superior charting and technical analysis tools. Choose a broker that allows you to take full advantage of these tools to develop complex strategies.
• Access to real-time market data : a good broker with TradingView should provide accurate real-time data feeds for a wide range of assets, ensuring your trading decisions are based on the latest information.
• Compatibility with automated trading strategies : check that the broker allows the execution of trading algorithms and automated strategies developed on TradingView.
• Multi-asset support : a broker compatible with TradingView should offer a wide range of assets to trade, including stocks, indices, cryptocurrencies, commodities, and currencies.
• Transparent trading fees : since TradingView often attracts active traders, choose a broker that offers competitive trading fees, in order to maximize your profits while using this powerful platform.

Best Broker for Your Trading Strategy

Best Brokers for Scalping

Scalping is a short-term trading strategy that involves making multiple small trades over a short period to profit from micro-price movements.

If you are scalping, here are the essential characteristics to look for in a broker:

• Ultra-fast order execution: scalping relies on quick trades, often within seconds or minutes. Choose a broker that offers near-instantaneous order execution to maximize profit opportunities.
• Tight spreads: scalpers make many small trades, so tight spreads are crucial to minimize costs and maximize gains.
• No scalping restrictions: some brokers limit or prohibit scalping. Make sure the broker you choose explicitly allows this strategy.
• Powerful trading platform: a responsive platform with advanced features, such as real-time charts and stop-loss orders, is essential for scalpers.
• Low transaction fees: as scalping involves numerous trades per day, choose a broker with low transaction fees to avoid reducing your profits.
• Suitable leverage: high leverage can be beneficial for scalping, but it is important to understand the associated risks.

Brokers for Swing Trading

Swing trading is a medium-term investment strategy that aims to profit from price fluctuations over several days or weeks, taking positions to capture trend movements.

If you are a swing trader, here are the important points to consider:

• Order Flexibility: Swing trading involves holding positions open for several days or weeks. Look for a broker that offers limit orders, stop-loss orders, and take-profit orders to effectively manage your positions.
• Technical Analysis Platform: A platform offering advanced technical analysis tools, such as trend indicators, oscillators, and candlestick patterns, is crucial for identifying swing trading opportunities.
• Competitive Spreads and Commissions: Even though swing trading involves fewer transactions than scalping or day trading, costs should remain low to maximize long-term profits.
• Access to Diverse Markets: Swing trading can be applied to different assets (stocks, currencies, commodities). Choose a broker that offers a wide range of assets to diversify your positions.
• Multi-Asset Support: The ability to trade different assets on a single platform is advantageous for swing traders seeking to capture price movements across various markets.

Brokers for Day Trading

Day trading is a short-term trading strategy involving buying and selling financial assets within the same day, aiming to profit from intraday price fluctuations.

When choosing a broker for day trading, consider these key features:

• Fast order execution: day trading relies on quick market movements, so instant order execution is crucial to capture small price fluctuations.
• Tight spreads and low commissions: as day trading involves many transactions throughout the day, look for a broker with tight spreads and low commissions to minimize transaction costs.
• Advanced trading platform: a platform with real-time technical analysis tools, interactive charts, and the ability to execute multiple order types is essential for day trading.
• Access to real-time data feeds: for day trading, accurate and real-time market data is essential to make quick and informed decisions.
• Suitable leverage: day trading can benefit from moderate leverage, but it is important to choose a leverage level that matches your risk tolerance.
• Risk management tools: tools like stop-loss and trailing stop orders are essential to protect your positions against significant losses during day trading.

What else should you look for when choosing an online broker?

Broker regulation

Regulation is a crucial aspect to consider when choosing a online broker. A regulated broker is subject to strict standards imposed by financial authorities, ensuring the security of client funds, transparency of operations, and compliance with applicable laws. Regulation also ensures that the broker has mechanisms in place to resolve disputes and protects investors from fraudulent practices.

Key Regulatory Bodies Around the World:

• Financial Conduct Authority (FCA) - UK
• Securities and Exchange Commission (SEC) - United States
• Australian Securities and Investments Commission (ASIC) - Australia
• Cyprus Securities and Exchange Commission (CySEC) - Cyprus
• BaFin (Federal Financial Supervisory Authority) - Germany

Investing with a broker regulated by one of these bodies ensures you have better protection and peace of mind.

Assets available for trading with the broker

The choice of assets available is also crucial, as it determines the diversification opportunities and trading strategies you can implement. Here is a table of the main types of assets that brokers can offer:

Choose a broker that offers the assets you want to trade, and check the variety of options available to adapt your strategy.

Types of Accounts

Online brokers offer different types of accounts to suit the diverse needs of traders, whether they are beginners or professionals.

• Standard trading account: a standard account designed for individual investors, offering access to financial markets with basic tools.
• Professional trading account: designed for experienced or institutional traders, this account offers improved trading conditions such as reduced spreads, higher leverage limits and personalized services.
• Demo account: allows traders to practice with virtual money, test strategies without risk and familiarize themselves with the trading platform.
• Islamic account: designed for traders who wish to comply with Islamic finance principles, this account does not apply interest charges on open positions (swap).

Platform Features

The features offered by a trading platform can significantly impact your trading experience. Here are some of the features to consider when choosing an online brokers platform, especially if you are looking for uk brokers:

• Copy Trading: allows traders to automatically copy the strategies and trades of other experienced traders.
• Market analysis: access to technical, fundamental analyses, and market forecasts to inform your trading decisions.
• Automated Trading: the ability to program trading algorithms that automatically execute orders based on predefined conditions.
• Risk management tools: functionalities such as stop-loss orders, take-profit orders, and trailing stops to better manage your positions and limit losses.

Broker Fees, Spreads and Commissions

The costs associated with trading can have a significant impact on your profits, so it's essential to understand the different types of fees.

• Transaction Commissions : fixed fees or percentage charged on every buy or sell order. For example, you buy shares of a company for £1,000. The broker applies a commission of 0.5% per transaction. You will therefore pay £5 (0.5% of £1,000) in commission for this purchase.
• Spreads : difference between the buy price and the sell price of an asset, constituting an implicit cost for the trader. Spreads can be fixed or variable. For example, on the Forex market, you decide to trade the EUR/USD pair. The buy price is 1.1200 and the sell price is 1.1198. The spread is therefore 0.0002 (or 2 pips). If you buy this pair, you will start with a loss of 2 pips, which is the broker's margin.
• Financing Charges (Swap) : interest charged on positions held open beyond one day (overnight), mainly on Forex and CFDs. For example, you hold an open position on a currency pair overnight. If the swap charges for this pair are 0.01% per day, and your position is £10,000, you will pay £1 (£10,000 x 0.01%) for each day you keep the position open.
• Inactivity Fees : some brokers charge fees if the account is not used for a certain period. For example, your trading account has had no activity (neither transaction nor login) for six months. The broker charges an inactivity fee of £10 per month. After six months of inactivity, you will be charged £60 (£10 x 6 months).
• Deposit/Withdrawal Fees : fees may apply for depositing or withdrawing funds from the trading account. For example, you deposit £1,000 into your trading account via bank transfer, and the broker charges a 1% deposit fee. You will therefore have to pay £10 (1% of £1,000) at the time of deposit. If you withdraw £500 later, and the withdrawal is charged at 2%, you will pay £10 (2% of £500) in withdrawal fees.

How to start trading with an online broker?

If you're new to trading and want to get started with online trading, here is a step-by-step guide using a typical example of online brokers available on the market.

1. Create a trading account

The first step to start trading is to create a trading account. The process is often designed to be simple and fast, perfect for beginners.

• Quick Registration : Go to the website of your broker and click on the create account button or link. Fill out a simple form with your basic personal information.
• Easy KYC : Most brokers have a simplified KYC (Know Your Customer) verification process. You simply need to upload a copy of your ID (passport or identity card) and a recent proof of address. The verification process is fast, usually completed within a few hours. Keep copies of your KYC documents up to date, such as your proof of address, to make future verifications easier. This could avoid delays in withdrawal processing.

2. Funding Your Account

Once your account is opened and verified, you'll need to deposit funds to start trading. You can do this by using a variety of payment methods, such as bank transfer, credit card, or debit card. The best brokers offer a wide range of deposit methods to make it easy for you to get started.

• Variety of deposit methods: brokers often offer multiple options for funding your account, including credit card, bank transfer, and electronic wallets like PayPal and Skrill. If you use electronic wallets like PayPal or Skrill to deposit funds, be sure to check the transaction fees. Some services may charge additional fees that could impact your earnings.
• Instant deposit: Deposits made by credit card or electronic wallet are usually instant, allowing you to start trading immediately. If your bank account is in pounds sterling but your trading account is in dollars, be aware of currency conversion fees. Consider using a multi-currency account or checking if your bank offers competitive exchange rates to avoid additional fees when depositing and withdrawing.

3. Place a trading order

Once you have funded your account, you are ready to place your first trading order.

• Choose an asset : on your broker's trading platform, you can choose from a wide range of assets, such as currencies, stocks, indices, commodities, or cryptocurrencies.
• Place an order : you can choose to place a buy or sell order. For example, if you think the price of a stock will go up, you place a buy order. If you anticipate a decline, you can sell.
• Order parameters : you can also set a stop-loss to limit your losses or a take-profit to automatically take your profits at a certain price level.

4. Withdrawals

When you have made a profit or want to withdraw some of your funds, you can easily do so: you can choose from the best brokers in the UK to find the right online broker for your needs.

• Simple process : withdrawals from most brokers are simple and straightforward. Simply log in to your account, select the withdrawal option and choose your preferred method.
• Fast processing : withdrawals via e-wallets are often processed within 24 hours, while bank transfers may take a little longer (usually 2 to 5 business days). If you plan to withdraw your winnings, avoid initiating the process at the weekend or before a public holiday. Bank transfers can be delayed, so plan your withdrawals at the start of the week to minimise delays.

Example of trading with an online broker

Let's take a concrete example to illustrate the trading process:

Suppose you want to trade the EUR/USD currency pair.

You analyze the price charts and decide that the euro will strengthen against the US dollar.

You place a buy order for 1 lot on EUR/USD at a price of 1.1200. You set a stop-loss at 1.1150 (to limit your loss to 50 pips) and a take-profit at 1.1250 (to take a profit of 50 pips).

Result : If the market moves as expected, the price reaches 1.1250, and your take-profit order is executed, making you a profit of 50 pips. If the market reverses, your stop-loss is triggered at 1.1150, limiting your loss.

How do online brokers make money?

An online broker makes money primarily in a few ways, depending on the services it offers. Here are the main sources of revenue for an online broker:

• Commissions on buy and sell orders : Some brokers charge a fixed commission or a percentage on each transaction made by their clients. This commission may vary depending on the type of asset (stocks, bonds, ETFs, etc.) and the volume of the transaction.
• Spreads or bid/ask price difference : Brokers, particularly those specializing in Forex or CFDs, are remunerated by applying a spread, which is the difference between the buying price and the selling price of an asset. The broker makes a profit by selling an asset at a slightly higher price than the price at which it bought it on behalf of the client.
• Account maintenance fees : Some brokers charge management fees for account maintenance, especially if the account is not active for a certain period (inactivity fees).
• Deposit or withdrawal fees : Fees may be charged when depositing or withdrawing funds from the trading account.
• Interest on leveraged positions : When a client uses leverage to increase their investment capacity, the broker charges interest on the borrowed funds. These fees, called "financing fees", are usually applied daily for positions held open.
• Access to advanced platforms : Some brokers offer premium services or paid subscriptions to access advanced trading tools, real-time market data, or technical analysis.
• Advice and portfolio management : Fees may also be charged for personalized advice or portfolio management services.

Nishadh Mohammed

Nishadh Mohammed is a seasoned news editor and financial writer, working with HelloSafe since May 2023. Nishadh has developed expertise in financial markets, insurance, and investment products, with a deep understanding of the Canadian financial landscape. He has honed his SEO skills and content marketing strategies while writing for Canadian publishing houses. Armed with a master's in Business Analytics and extensive journalistic experience, Nishadh uniquely combines data proficiency and thorough research to deliver comprehensive and accessible information.