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Whatever you're looking to invest in, these are our featured brokers in the UK, based on ease of use, reliability, available choice and fees.
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eToro has an established reputation. Set up an account in minutes & start trading with as little as $200 deposit.
Plus500 offers a powerful CFD trading platform that adheres to the highest standards.
Its low cost fee structure is a huge draw for customers who want to trade in a variety of asset classes.
This Irish based Forex broker offers no withdrawal fee with a relatively low minimum deposit. It is also possible to trade CFDs and Cryptocurrencies through their user friendly platform.
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First, however, before listing the best stockbrokers in UK out there and why, it is good to know exactly what trading in the stock market is and how to invest in stocks. In doing so, it can help you target what your own specific needs and requirements are from your stockbroker as a consequence to pick one that is most suitable for you.
A stock or share is a small fraction of a company. Stock trading is the practice of buying and selling shares or stocks on a stock exchange. In doing so, you hope to make money by following any range of investment strategies and building up a portfolio to help grow your initial pot of money.
Investors employ different types of investment strategies to try to ‘beat the market’ to make healthy returns on their initial outlay. In the majority of the below, gains can be magnified or losses can be aggravated by leverage.
A long investment strategy is one where an investor buys shares with the intention of holding them for a long time. They can do this over a broad range of stocks and shares, all on which they have done investment research. That investment research will have highlighted that the stocks are currently undervalued and there will be a belief that they will rise in price over the long term. This can also be known as value investing.
A short investment strategy is one where an investor seeks to make returns in the immediate investment horizon by exploiting near term fluctuations in the market. Often, investors will do so by implementing a technique called short selling, where they actually sell a stock they do not own and purchasing that stock at a later date to settle the deal with the party with whom they short sold. This can also be known as a type of momentum investment strategy.
Some stocks and shares can earn dividends which is another way that investors can grow their money. Dividends are a payment to shareholders by a company on a regular basis. They are not a guarantee however, nor is the amount always known before buying a share of a company initially. That being said, dividend paying companies have been seen, historically, to be more stable and often try to increase their dividends regularly. Investors can then reinvest those dividends to help compound their return.
As the name suggests, contrarian investing means to go against what the general consensus is. In doing so, it looks to make large gains from incorrect pricing in the market, but that pricing is often caused by a recession or other large market force. Contrarian investors can often make money when bubbles burst, like the dotcom bubble for example. That bubble saw some tech companies grow almost exponentially in value, with very little in terms of robust fundamentals behind them. The bubble burst, and the contrarian investors who sold at the top of the market will have stood to have made a lot of cash.
There are many elements to consider when choosing the stockbroker for you. Perhaps of utmost importance in this day and age is to double check their online capabilities and portal. Ensure that you can access your portfolio information with ease through your stockbroker’s software, but also that you can understand it fully.
Depending on your investment strategy and what exactly you want to trade, some stockbrokers may be more suitable than others. Research your prospective stockbrokers to see whether their software is capable of implementing your short investment strategy or your contrarian approach to investing.
Knowing where the markets are that you want to trade in can have a big impact on what stockbroker you end up choosing. Not all stockbrokers will be able to trade in every exchange in every country.
Some of the deposit minimums to set up an account with a stockbroker will be so high that you are immediately precluded from using their services. Ensure you know what your potential stockbroker stipulates therefore in terms of initial deposits and whether you can match that.
It sounds silly, but so many would-be stockbrokers out there fall down on the most basic, practical matters. It can be hugely discouraging to use a stockbroker, only to find that they have an onerous application process that takes a long time to go through. In a day and age where so much of our lives are increasingly digital, we often feel that setting up an account with a company should be instantaneous. However, some stockbroking firms take a number of days to verify accounts. If you want to start trading immediately, this is a huge drawback.
Choosing the right stockbroker for your needs is essential if you want to run a profitable and efficient portfolio. The fees that stockbrokers set vary in terms of structure and amount which can have a big impact on your bottom line, depending on how and what you trade. Additionally, the software that a stockbroker provides its users with is also a key tool to helping make the highest returns. When the software is well organized, intuitive and user friendly, customers are much more likely to be able to make the best trades for them.
Risk Disclosure: Trading in financial instruments involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Before deciding to trade in financial instruments you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed. Best10Stockbrokers would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Best10Stockbrokers and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Best10Stockbrokers and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website. Best10Stockbrokers may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.