With the rise of online brokerages and the fusion of technology and AI, stock trading has become more affordable than ever. Nowadays, multiple cheap trading platforms offer a range of features. From free stock and ETF trades to demo accounts that allow beginners to get a feel for the trading world without any financial commitment.
For the short and sweet version of our analysis, here is a table comparing the cheapest stock trading platforms in the UK.
| Broker | eToro | Interactive Brokers | Interactive Investor | Freetrade |
|---|---|---|---|---|
| Cheapest for | Free stock and ETF trading | Low commissions with no added spreads. | Low cost for large portfolios | Buy, sell, and hold stocks and ETFs commission-free |
| Minimum Deposit | $50 | £0 | £0 | £0 |
| Demo Account | Yes | Yes | Yes | No |
| Products offered | Stocks, ETFs, cryptocurrencies, and CFDs on stocks, currencies, commodities, and indices | Stocks, ETFs, Forex, Fund, Bond, Options, Futures, CFD, Warrants, Structured Products | Stocks, ETFs, funds and bonds | Stocks, ETFs, ETCs, Bonds, investment trusts |
| Regulators | FCA, CySEC, ASIC | FSA, FCA, MAS, FINMA, ACPR, AMF, DNB, FSMA, NBB, SFC, ASIC | FCA | FCA |
Our analysis delves deep into these platforms, examining their fee structures, user experience, and the range of products they offer. We’ve taken a close look at the pros and cons of each, ensuring you have all the information you need to make an informed decision. As you navigate the world of cheap stock trading, our insights aim to be a valuable compass guiding your journey.
The Cheapest Stock Trading Platforms in the UK
After conducting a thorough evaluation based on criteria such as user-friendly interfaces, comprehensive product offerings, regulatory compliance, competitive fees, and responsive customer service, we present our top picks for the cheapest stock trading platforms in the UK:
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eToro | Free stock and ETF trading
eToro is an excellent choice for traders in the UK looking for cost-effective trading options in stocks, CFDs, forex, and cryptocurrencies, all accessible through an exceptional mobile application. With eToro, traders can benefit from commission-free stock and ETF trading, seamless account opening, and access to a wide range of cryptocurrencies, making it one of the UK’s leading platforms.
Notably, eToro’s copy trading feature allows traders to replicate the strategies and portfolios of successful investors. Furthermore, eToro’s intuitive and user-friendly trading platforms make it highly suitable for those new to trading.
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Interactive Brokers | Low commissions with no added spreads
With Interactive Brokers (IB), you can enjoy the lowest costs in the industry, including low commissions, no spreads, ticket charges, platform fees, or account minimums. Additionally, Interactive Brokers offers margin rates up to 50% lower than the industry average.
And that’s not all – IB also offers you the opportunity to earn competitive interest on your instantly available cash balances, participate in their Stock Yield Enhancement Program to earn extra income, and benefit from low financing rates when borrowing against your account.
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Interactive Investor | Cheapest for large portfolios
For investors with larger portfolios starting from £50,000, Interactive Investor presents a distinct advantage with its highly competitive and appealing fees. Their low monthly subscription flat fee means you get to keep more of your wealth, even as the value of your portfolio increases.
The platform ensures that you benefit from its share trading fee, while also providing notable advantages. Under the Investor Plan, you can enjoy one free trade per month, and under the Super Investor Plan, you can have two free trades per month. Moreover, Interactive Investor allows you to hold up to nine foreign currencies in your account, effectively reducing foreign exchange fees and providing added flexibility.
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Freetrade | Stocks & Shares ISA
Freetrade offers commission-free stock and ETF trading, providing investors with several advantages. Firstly, by eliminating trading fees, more of your money can be allocated towards investing, allowing you to maximize your capital and potentially enhance your returns. Additionally, Freetrade’s user-friendly platform makes it accessible to investors of all levels of experience, ensuring ease of use and a clear interface.
Also, Freetrade emerges as a top contender in the stocks & shares ISA arena. With a minimal investment threshold of just £2 and a selection of over 6,000 investments, it’s tailored for both novices and seasoned investors. The flat monthly platform fee and transparent costs further cement its position as one of the most cost-effective ISAs in the market.
eToro
eToro: Fees
| Withdrawal fee | $5 |
| Conversion fee GBP to USD | 0.5% |
| Inactivity fee | $10 per month after 1-year inactivity. |
| Minimum Trade (Copytrading) | $1 |
| Leverage fee | Varies |
| Overnight fees | Varies |
| Deposit fee | 0.5% on non-USD deposits |
| Stocks and ETFs | Zero % commission |
| Non-CFD Crypto Assets | 1% |
| CopyPortfolios | No additional fees |
| CopyTrader | No additional fees |
| CFD on Crypto Assets | 1% + CFD-related charges |
| CFD on Stocks & ETFs | 0.15% |
| CFD on Indices | Starting from 0.75 points |
| CFD on Currencies | Starting from 1 pip |
| CFD on Commodities | Starting from 2 pips |
eToro: Pros and Cons
| ✔ Free stock and ETF trading. | ✖ Withdraw and inactivity fees. |
| ✔ Seamless account opening. | ✖ Only one currency account (USD). |
| ✔ Social trading. | ✖ Currency conversion fees are higher than average. |
| ✔ Demo account with free access to all the available platforms. |
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| ✔ Copy Trading: Copy the trades of successful traders. | |
| ✔ Extensive product selection: ETFs, Stocks, Cryptocurrencies, and CFDs on Stocks, ETFs, Commodities, Forex, Indices, and Cryptocurrencies |
Our Take on eToro
If you’re looking for the cheapest trading platform in the UK, eToro is an excellent choice. Opening an account with eToro is completely free of charge, and they don’t burden you with commissions, management fees, ticket fees, or administrative fees when purchasing stocks or ETFs. This means that when you trade with eToro, you can enjoy a seamless trading experience without worrying about additional costs cutting into your returns.
But that’s not all. eToro’s fee-free structure extends beyond stocks and ETFs. If you’re interested in social trading, where you can follow and replicate the strategies of successful traders (CopyTrading), or if you prefer investing in pre-constructed thematic portfolios (CopyPortfolios), you won’t have to deal with commissions, management fees, or administrative fees either. It’s worth mentioning that fees may apply to specific assets within these portfolios, so keep that in mind.
While eToro strives to provide a fee-free experience, it’s important to be aware that select trades and withdrawals may incur certain fees, as is common with online platforms. These 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 standard means for trading platforms to ensure their financial sustainability while delivering an exceptional trading experience to users.
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
Interactive Brokers: Fees
| Minimum Deposit | £0 |
| Telephone Dealing Fee | $30 |
| Share Trading: 0-9 Deals/ Month | Trade value x .0005 |
| Subscription Fee for Market Data | £1 – £10 per month |
| Share Trading: 10-19 Deals/ Month | Trade value x .0005 |
| Share Trading: 20+ Deals/ Month | Trade value x .0005 |
| Annual Custody Fee: £0 – £250,000 | 0% |
| Bonds – Corporate – Fee | 0.1% – 0.025% |
| Bonds – Government (Gilts) – Fee | 0.1% (£2 min) |
| ETFs – Fee | Trade value x .0005 |
| Investment Trusts – Fee | £4.95 |
Interactive Brokers: Pros and Cons
| ✔ Low commissions with no added spreads. | ✖ Complicated pricing structure. |
| ✔ Extensive product range – Wide variety of international investment options. | ✖ Beginners may face a steeper learning curve. |
| ✔ Excellent research and educational tools available. |
✖ Account opening process is complicated and lengthy. |
| ✔ Demo account with free access to all the available platforms. |
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| ✔ Excellent reputation (established in 1978). |
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| ✔ Customer Service is available 24/7. |
Our Take on Interactive Brokers
Interactive Brokers (IBKR) is a prominent player in the financial industry, well-known for its leading position as a cost-effective trading platform. With a strong reputation built on delivering exceptional value, IBKR is a preferred choice for investors who prioritize affordability without compromising on professional-grade trading capabilities. Despite the low consumer costs, you might be curious about their profitability strategy. A key factor contributing to their ability to maintain competitive pricing is their non-trading fees. These include the subscription fee for market data, which ranges from £1 to £10 per month, as well as exchange and regulatory fees.
Another reason behind their ability to keep fees at such attractive levels is the substantial revenue generated by their vast customer base through commission fees. Although these fees are modest, their sheer volume is significant. In fact, Interactive Brokers handles over 1 million trades each weekday.
Interactive Investor
Interactive Investor: Fees
| Investor Essentials | Investor | Super Investor | |
| Monthly fee | £4.99 for portfolios <£50k |
£11.99 | £19.99 |
| Minimum deposit | £0 | £0 | £0 |
| Free monthly trades | No free trades | 1 free trade | 2 UK / ETF / fund trades |
| UK share and ETF trades | £3.99 | £3.99 | £3.99 |
| Funds and investment trust trades | £3.99 | £3.99 | £3.99 |
| US share trades | £3.99 | £5.99 | £3.99 |
| Other international share trades | £9.99 | £9.99 | £5.99 |
| Dividend reinvestment | £0.99 | £0.99 | £0.99 |
| Regular investment | £0 | £0 | £0 |
| Share trading 0-9 deals/month | £3.99 (investor plan) | ||
| Share trading 10-19 deals/month | £3.99 (super investor plan) | ||
| Share trading 20+ deals/month | £3.99 (super investor plan) | ||
| Annual Custody Fee £0-£250k | £119.88 (investor plan) | ||
Interactive Investor: Pros and Cons
| ✔ Low fees – One of the most cost-effective trading platforms available. |
✖ Complicated pricing structure. |
| ✔ Extensive product range – Wide variety of international investment options. | ✖ Beginners may face a steeper learning curve. |
| ✔ Excellent research and educational tools available. |
✖ Account opening process is complicated and lengthy. |
| ✔ Demo account with free access to all the available platforms. |
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| ✔ Excellent reputation (established in 1978). |
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| ✔ Customer Service is available 24/7. |
Our Take on Interactive Investor
If you’re looking for a cost-effective trading platform in the UK, Interactive Investor, also known as ii.co.uk, has got you covered. They provide a comprehensive range of products for UK investors, including ISA, SIPP, Share Dealing, Fund Investing, CFDs, and even IPOs. With Interactive Investor, you have access to a diverse set of options to suit your investment needs.
Interactive Investor is primarily designed to meet the needs of investors with a moderate level of experience, while also offering valuable resources for beginners. The platform serves as an exceptional learning environment, empowering users to gain valuable insights into the world of investing and make informed decisions independently.
It is essential for beginners to recognize that the fee structure is specifically tailored to accommodate larger portfolios. Instead of charging fees based on the amount invested, Interactive Investor utilizes a flat fee model. As a result, those with substantial investment portfolios have the potential to benefit the most from this approach.
In essence, if your investment totals less than £50,000, which is a common scenario, you may find that Interactive Investor does not align with your specific requirements.
Freetrade
Freetrade: Fees
| Minimum Deposit | £0 |
| Withdrawal Fee | £0 |
| Investing Fees | £0 |
| Currency Conversion Fee | 0.45% |
| Inactivity Fee | £0 |
| General Investment Account | £0 |
| Freetrade Plus | £9.99/mo |
| FX (foreign exchange) fee – Basic Plan | 0.99% |
| ISA | £3/mo |
| SIPP | £9.99/mo |
| Self-invested Personal Pension | £9.99/mo |
| Sign-up Bonus | Free share (£3 – £200) |
Freetrade: Pros and Cons
| ✔ Commission-free stock & ETF trading | ✖ No Desktop Web Platform |
| ✔ Simple & Intuitive Mobile App | ✖ Limited Research & Analysis Tools |
| ✔ Fractional Share Trading | ✖ Limited Options for Deposits |
| ✔ 3% Interest on GBP Cash | ✖ Flat fees on Interactive Investor not ideal for small portfolios. |
| ✔ Free withdrawals and no inactivity fees. | ✖ No ready-made portfolios are available. |
| ✔ Flat platform fee for all portfolio sizes. | ✖ No alternative ISA choices |
| ✔ Account set-up is easy. | |
| ✔ Active investment community and regular feature updates. |
Our Take on Freetrade
Freetrade is a UK-based trading platform, that has quickly established itself as a household name, attracting over 1.1 million customers. Their success as a “challenger stockbroker” reflects their commitment to delivering innovative solutions in the dynamic financial landscape, making them a positive force in the industry.
Freetrade’s stocks & shares ISA offering is gaining attention in the UK market, and for good reasons. First and foremost, they charge no commission on trades, which is a significant advantage for active traders. The entry barrier is also impressively low, with a minimum investment requirement of just £2. Investors have a broad spectrum of choices with over 6,000 investments available. While they maintain a flat monthly platform fee, the overall cost structure positions Freetrade as one of the most affordable stocks and shares ISAs in the market.
Freetrade’s fee structure is truly remarkable. The ability to buy stocks and ETFs without any charges is a standout feature. It doesn’t get much better than that. Moreover, the absence of monthly fees or inactivity fees is highly beneficial, as it prevents gradual erosion of your portfolio over time.
Freetrade offers a delightful user experience with its user-friendly smartphone app and straightforward investing approach. On the downside, the graphs are more aesthetically pleasing than truly informative, while the app itself has certain limitations. While casual traders may appreciate Freetrade’s mobile-first approach, if you are a more experienced investor seeking a comprehensive investment broker, you might be inclined to explore alternative providers in the market.
Conclusion
In the ever-evolving landscape of stock trading, the UK has seen a surge in platforms offering affordable and user-friendly solutions for both novice and seasoned investors. Platforms like eToro, Interactive Brokers, Interactive Investor, and Freetrade have emerged as frontrunners, each with its unique selling points.
| Position | Broker | Best for |
| #1 | eToro | Free stock and ETF trading. |
| #2 | Interactive Brokers | Low commissions with no added spreads. |
| #3 | Interactive Investor | Cheapest for large portfolios. |
| #4 | Freetrade | Stocks & Shares ISA. |
However, as with all investments, it’s crucial to remember that stock trading comes with inherent risks. While these platforms offer a plethora of features and benefits, it’s essential to understand the nuances of each and determine which aligns best with your financial goals and risk tolerance.
In conclusion, while this article provides a comprehensive overview of some of the cheapest trading platforms in the UK, it’s imperative for potential investors to conduct their research. Dive deeper into each platform, assess the associated fees, understand the available tools and resources, and perhaps even test out their demo accounts. By doing your due diligence, you’ll be better equipped to make an informed decision and embark on your stock trading journey with confidence.
FAQs
Which trading platform is the cheapest in the UK?
The selection of the “cheapest” trading platform depends on your individual preferences and goals. However, there are several popular and trusted options in the UK. The platforms we recommend are those listed earlier.
How to choose a broker?
If you haven’t opened an account with a trusted broker yet, you can do so now by comparing our cheapest trading platforms and choosing the one that suits you best. It’s recommended to select a broker that offers a variety of financial instruments, as this will allow you to diversify your portfolio in the future if you decide to do so.
How much capital do I need to start trading?
You don’t need a large capital to get started in trading. Many trading platforms in the UK allow commission-free trading for stocks and ETFs and have no minimum deposit requirements. Freetrade and Interactive Brokers are examples of trading platforms in the UK that offer these advantages.
Is it better to fund with a regulated trading platform?
It is strongly advised that you select brokers regulated or authorized by prominent regulatory bodies such as the Financial Conduct Authority (FCA) in the UK. Regulation ensures that brokers separate clients’ funds from their own, providing an added layer of security.