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Best stockbrokers in the UK

How and why to use stockbrokers?

Stockbrokers are the platform/person between you and the stock market. They buy and sell shares on your behalf. Experienced stockbrokers will aim to get the best possible spread (the difference between the value of your shares at the time of buying vs selling) on your transactions. It’s good to try to compare the best stock brokers out there before committing to any particular stockbroker. Learn how to choose stockbrokers and what to look at when comparing them below.

What are the main types of stockbrokers?

  • Execution only brokers – follow your instruction & don’t give you any advice
  • Advisory brokers – as the name suggest offer you advice 
  • discretionary brokers – buy & sell the shares for you, they usually have higher service fee as they help you comprehensively.

What are the best stock brokers and shares to buy in the UK in 2021? 

The best is a subjective term as it all depends on:

  • The frequency you want to trade
  • Your experience
  • Your investment pot size
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Once you know all the above you can easily compare the brokers and focus on the shares available in the UK. It’s all easy and can be done online in a few minutes – although investing and reading about the details of that should take you more than a few minutes!

You can follow sites as: https://tradingguide.co.uk/awards/stock-brokers/ and narrow down your search using the filters on their site:

Factors to compare when choosing the best stockbroker

How do I buy my first stock?

You either go for the best broker site for beginners → eToro and monitor the best traders to ‘copy’ their investments when you are confident it ‘may be safe’.

Or you analyse certain shares over some time and buy those particular shares on the platform which offers them and has decent fees on the handling of those shares.

If you want a truly analytical approach then compare what various brokerage online platforms have to offer. 

Check these broker platforms

  • Plus 500
  • IG
  • Interactive Brokers
  • Ameritrade
  • CMC Markets
  • eToro
  • Hargreaves Lansdown
  • Nutmeg
  • Coinbase
  • Fidelity International
  • Kraken
  • Interactive Investor
  • Trading 212

What is the best stockbroker for beginners?

With such a multitude of sites/apps to choose from it seems hard to choose a trading platform for beginners. Therefore it’s advised to compare all the best options to make the best decision for your individual circumstances.

If however comparing sites using online comparison tools and sites is not for you why not check out some of the investment platforms within some of the best budgeting apps?

I haven’t started buying shares but I’m seriously considering it. I will either go for some standalone site or use the ones available in my budgeting app called Emma as I have been using Emma for some quiet time now and really like it.

What stock should a beginner buy?

It’s another tough question. Reputable sites such as Nasdaq recommend these. I personally would go for established FMCG and insurance brands but that’s my opinion. Again if you don’t want to use any advisors you can ‘copy’ successful traders in eToro or use another app that may suggest you some shares portfolios based on your risk attitude. I believe an AI money assistant app called Plum offered such a service.

How much do stockbrokers charge in the UK?

It all depends on the site/app you choose but it definitely pays off to compare the fees as they can affect your return on investment. But ahead of joining you should also check what shares a given platform offers so you sign up for nothing.

DISCLAIMER:

Remember to be careful if you go for spread bets or CFDs. These are complex instruments and come with a high risk of losing money rapidly due to leverage. 

The majority of retail investor accounts lose money when spread betting and/or trading CFDs. Before you start you should invest some time in understanding how spread bets and CFDs work and whether you can afford to take the high risk of losing your money. It’s a similar risk to investing in cryptocurrency. 

With that, always invest only as much as you are prepared to lose!

About admin

I am not Martin Lewis but Martyna aka Money Saving Girl. When I first came to the UK I was on a super tight budget, so I know how hard it is not to have money or how to get creative to get 'more for less'. I share with you my money saving tips about anything which worked for me. Be it free samples, shopping tricks, iTunes, various discount apps, websites and reward programs. Occasionally I write about traveling or insurance.

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