With so many ETF broker options to choose from, ETF trading has become more accessible than ever before. Now, the question is: which platform stands out as the best ETF broker in the UK?
Finding the platform which suits you the most can be overwhelming due to the abundance of options available. Unclear fee structures and complex user interfaces further complicate the decision-making process. Investors often find themselves uncertain, seeking guidance to make an informed decision before making a choice.
That’s where we come in to help you out. Our ETF broker comparison showcases the top ETF trading platforms, offering user-friendly mobile apps for your convenience. Keep reading to find out which online broker will provide you with the perfect combination of beginner-friendly features and convenient tools for your ETF trading.
| Broker | eToro | Interactive Brokers | Interactive Investor | Freetrade |
| Best for | Commission-Free Stock & ETF Trading | Low Commissions With No Added Spreads | Low-Cost Large Portfolios | Stocks & Shares ISA |
| Trading fee (ETFs) | $0 | Trade value x .0005 90+ No Transaction Fee ETFs* *The NTF program offers 90+ ETFs that reimburse clients for commissions on shares held for at least 30 days. |
£4.99 * *for UK and US ETFs, £9.99 for other international ETFs |
£0 |
| Platform fee (ETFs) | $0 | £0 | £4.99/mo* *Investor Essentials Plan |
£0* *General Investment Account |
| ETFs Assets | +300 | 13,000 | +1,000 | +260 (Basic Plan) and 460 (Standard and Plus Plan) |
| Minimum deposit | $50 | £0 | £0 | £0 |
| License | FCA, CySEC, ASIC | FSA, FCA, MAS, FINMA, ACPR, AMF, DNB, FSMA, NBB, SFC, ASIC | FCA | FCA |
In this article, we will furnish you with comprehensive information regarding the pros and cons of the account offerings presented by the top ETF brokers. Our goal is to present you with all critical information in a clear and concise manner, offering a professional resource to aid your decision-making process.
Best ETF Broker in the UK
Based on our thorough evaluation of UK ETF trading platforms, considering factors like user interfaces, product variety, regulatory compliance, fees, and customer support, here are our top picks for the best ETF brokers:
eToro | Best For Commission-Free Stock & ETF Trading
76% of retail CFD accounts lose money.
eToro in a nutshell
eToro is our top recommendation if you’re seeking a low-cost provider that offers a diverse selection of ETFs and social and copy trading features. As a privately-owned company, eToro boasts a substantial customer base of over 30 million users. A notable highlight is their collaboration with Moneyfarm to provide an Individual Savings Account (ISA), adding to the positive features of the platform.
And that’s not all. eToro gives you access to a wide range of investment options across different asset classes, including equities, bonds, commodities, and property. Some of the providers they collaborate with include Invesco, Vanguard, iShares, Xtrackers, Global X, and WisdomTree.
One of the key advantages of using eToro is the low fee structure. They do not charge any trading or platform fees for ETFs. However, it’s important to note that accounts are held in US dollars, and UK clients are subject to a 0.5% currency conversion fee when depositing funds.
While eToro aims to offer a fee-free experience, certain trades, and withdrawals may incur fees, as is typical with online platforms. These fees include conversion fees, overnight fees, withdrawal fees, inactivity fees, and spreads. Spreads, which represent the difference between the buying and selling price of an asset, are a common way for trading platforms to ensure their financial sustainability while delivering an exceptional trading experience to users.
eToro goes beyond just trading services and provides you with an extensive and well-supported community forum. Moreover, as one of the best ETF brokers in the UK, they offer the option to engage in copy trading, allowing you to replicate the portfolios of other successful investors, which also includes ETFs.
In terms of research capabilities, eToro presents a comprehensive suite of tools and resources. You can conveniently engage in online trading, utilize their user-friendly app, or even conduct trades over the phone. You receive a high level of support as eToro provides an extensive range of assistance, including a secure messaging facility that is available throughout the workweek.
Trading CFDs carries a high level of risk and can result in rapid loss of funds due to leverage. With eToro, 76% of retail investors have experienced financial losses while trading CFDs. It is essential to thoroughly understand the workings of CFDs and carefully assess your financial ability to tolerate the potential high risk of losing your invested capital.
Interactive Brokers | Best For Low Commissions With No Added Spreads
Interactive Brokers in a nutshell
Interactive Brokers (IBKR) is definitely worth considering with its competitive ETF trading fees. For typical trade sizes, commissions on Western European stocks are as low as £3 per trade, providing you with a cost-effective trading experience.
In the case of larger trades exceeding £6000, the commission is a mere 0.05% of the trade value, allowing you to efficiently manage your larger investment transactions. When it comes to ETFs and US stocks, Interactive Brokers implements a commission structure ranging from USD 0.0005 to USD 0.0035 per share.
What makes Interactive Brokers stand out is their intelligent routing system, which is specifically designed to ensure optimal execution of your trades. This sophisticated system actively scans various exchanges and dark pools to find the most favorable prices on stocks, options, and combinations. By constantly evaluating market conditions, Interactive Brokers dynamically adjusts and reroutes your orders to secure the best possible outcomes for your trades.
When it comes to finding the best ETF broker in the UK, Interactive Brokers stands out as a powerful and multi-award-winning broker. This platform not only functions as a trading platform but also offers advanced portfolio management tools specifically designed to meet your specific investment needs.
Interactive Investor | Best for Low-Cost Large Portfolios
Interactive Investor in a nutshell
Interactive Investor is another top pick among the best ETF brokers in the UK, attracting a substantial user base of over 400,000 investors. Unlike traditional models that charge fees based on invested amounts, Interactive Investor adopts a flat fee approach, delivering substantial benefits to investors with larger portfolios.
When it comes to investment opportunities, Interactive Investor comes with an extensive selection of ETFs across a wide spectrum of asset classes, encompassing equities, bonds, commodities, and property.
One noteworthy advantage of Interactive Investor is its provision of interest on cash balances, offered on a tiered basis. Investors can enjoy competitive interest rates of 1.11% on balances up to £10,000 and 2.12% for amounts exceeding £10,000, ensuring the potential growth of idle funds.
Additionally, interactive investor stands out for its wide selection of ETFs, featuring five funds in the esteemed ‘Super 60’ list of chosen funds and seven ETFs in the distinguished ‘ACE 40’ list of ethical funds. As an investor you can leverage the platform’s comprehensive research offerings to make well-informed investment decisions.
Trading on Interactive Investor is seamlessly facilitated through its intuitive online platform, user-friendly mobile app and convenient phone services. The platform further reinforces its commitment to customer support with a dedicated five-day-a-week telephone service and a messaging facility, ensuring prompt assistance when needed.
Freetrade | Best For Stocks & Shares ISA
Freetrade in a nutshell
Freetrade is a prominent, UK-based key player in the industry with its impressive customer base of over one million investors. What sets the platform apart is its diverse range of account options, including ISA and SIPP, which make it stand out among competitors in meeting various investment needs.
When it comes to investment choices, Freetrade provides a solid selection of ETFs covering equities, bonds, and commodities. The Basic plan offers access to over 260 ETFs from reputable providers such as Invesco, Vanguard, and iShares. However, to unlock the full range of ETFs, including offerings from BlackRock, Xtrackers, and Global X, customers will need to upgrade to the Standard plan, which incurs a monthly fee of £5.99.
Freetrade stands out by not charging any trading fees or platform fees for ETFs held within the Basic plan. However, it’s important to note that cash balances held in the Basic plan do not earn any interest, whereas interest is paid on cash balances in the Standard and Plus plans.
While Freetrade may have a more limited research offering, it compensates by providing a well-supported community forum for investors. This fosters a collaborative environment where investors can exchange ideas and insights.
It’s worth noting that Freetrade’s trading capabilities are limited to their smartphone app, and support is available only through email. However, queries are promptly addressed, ensuring efficient customer service.
Freetrade delivers a delightful user experience through its user-friendly mobile app and streamlined investment approach. However, some users find that the visual appeal of the graphs outweighs their informational value, and the app itself has certain limitations. While casual traders may appreciate Freetrade’s mobile-centric approach, seasoned investors seeking a more comprehensive investment brokerage might explore alternative providers in the market.
In summary, Freetrade presents itself as one of the best ETF brokers with a good range of ETFs. Its fee structure, user-friendly interface, and a solid selection of investment options make it a viable choice for many investors.
Conclusion
In summary, our research has led us to uncover the best ETF brokers in the UK, specifically chosen to offer beginners a user-friendly experience and a reliable choice:
| Broker | Best for | |
| #1 | eToro | Commission-free stock and ETF trading |
| #2 | Interactive Brokers | Low commissions with no added spread |
| #3 | Interactive Investor | Low-Cost Large portfolios |
| #4 | Freetrade | Stocks & Shares ISA |
FAQs
What is the best ETF broker in the UK?
The choice of the “best” ETF broker depends on your individual preferences and goals. Fortunately, there are numerous popular and trusted ETF brokers in the UK. All platforms we recommended earlier are our top picks and worth considering.
What kinds of ETFs can I choose from?
Statista reports a wide range of ETF options available, with nearly 9,000 global ETFs to choose from. You can find equities ETFs that track indices like the S&P 500 or technology stocks. Bond/fixed-income ETFs offer representative bond samples, while commodities ETFs cover precious metals, industrial metals, oil, and agricultural products. You can also invest in currency ETFs that track the performance of single or multiple currencies.
Specialty ETFs encompass inverse and leveraged ETFs, offering unique investment opportunities. Additionally, there are sustainable ETFs available that align with ESG standards, allowing you to invest in companies with a focus on environmental, social, and governance factors. It’s important to note that not all ETFs are passively managed, as the number of actively managed ETFs has increased since 2019 due to regulatory changes.
What is the extent of risk associated with investing in an ETF?
It is important to note that risks are inherent, even when investing with one of the best ETF brokers in the UK. Investing in ETFs carries the possibility of experiencing a partial or complete decline in the value of the investment. However, broad-based ETFs like the S&P 500 generally involve lower risk compared to investing in individual companies. When it comes to the platform or provider, it’s important for investors to verify their authorization on the FCA register. This ensures access to the Financial Ombudsman Service and the Financial Services Compensation Scheme (FSCS) in case of any issues.
The Financial Ombudsman Service handles complaints against providers and can help resolve them if the firm fails to address the concern adequately. If the provider of an ETF becomes insolvent and owes money to investors, the Financial Services Compensation Scheme (FSCS) may consider claims for certain investment products. If the product is covered, the FSCS can potentially offer compensation of up to £85,000 per investor. Furthermore, it is recommended that you assess the protection provided by the general investment account you choose. Some accounts utilize a “trust” structure that aims to protect your investments in the event that the broker faces financial difficulties.
What is better? A desktop computer or a trading app?
If you’re a beginner looking to trade, utilizing a trading app can be a convenient choice for you. These apps enable you to monitor and execute trades anytime and anywhere using your mobile device. With access to real-time market data, news, and analysis, you can stay updated on the latest market trends and make informed trading decisions.
One of the advantages of trading apps is their lower minimum deposit requirements, which can make it more accessible for beginners like you to enter the trading world with smaller capital. This is especially beneficial when compared to desktop platforms.
Additionally, the best trading apps in the UK offer alerts and notifications to keep you informed about market movements and price changes. These features can help you seize trading opportunities and stay on top of your investments, ensuring you don’t miss out on potential gains.
Is ETF trading recommended for beginners?
ETFs are a great option for both beginners and experienced traders in the world of stock trading. These investment vehicles provide affordability, as they are relatively inexpensive, and can be accessed through various platforms, including robo-advisors and traditional stock trading platforms in the UK. Additionally, ETFs typically entail lower risk when compared to investing in individual stocks.