- The first step to start trading or investing in stocks, mutual funds, exchange-traded funds (ETFs) or any other asset is to open an online trading account.
- Online trading accounts allow investors and traders to invest in financial assets such as shares, mutual funds, bonds, and ETFs and manage their investments.
- Choosing the right online broker with low fees and commissions is an important decision to make.
As inflation is rising unexpectedly and lower interest rates on saving accounts can’t keep up with the rising inflation, investing in shares or other assets is very crucial.
The first step to start trading or investing in stocks, mutual funds, exchange-traded funds (ETFs) or any other asset is to open an online trading account. So, choosing the right online broker with low fees and commissions is an important decision to make.
Online trading accounts allow investors and traders to invest in financial assets such as shares, mutual funds, bonds and ETFs and manage their portfolios. These accounts come with various features such as charting tools, real-time quotes, news feeds and premium research and these platforms may be specifically tailored to various markets such as stocks, futures, options, and currencies market.
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Other than fees and commissions charged by a trading app provider, there are some other considerations you should keep in mind before choosing a trading app. These are how user-friendly the app is, which assets you want to invest in, are you new to investing, trading and administration charges, minimum investment, is the app is regulated by the UK’s Financial Conduct Authority (FCA), the ability to use a stocks and shares ISA wrapper on the Platform and extra features, benefits and rewards.
Also Read: What are the best Cash ISA rates right now?
Let us now look at the five best trading apps in UK.
eToro is an easy-to-use trading app for both beginners and pro investors. It allows buying and selling of stocks, ETFs, bonds, and currencies without any account creation fees, commission and management fees. However, it charges other fees such as withdrawal and foreign exchange fees. The app has shares from some of the world’s largest stock exchanges, including NASDAQ, New York Stock Exchange, London Stock Exchange, and Euronext.
The app allows investors to follow expert traders and copy all the trades they make by pushing a button, with no trade limits, great charting tools and personalized news feed. However, with eToro trading app you can’t invest in an ISA. Among charges, a mandatory withdrawal fee is charged, fees is charged on all leveraged, short or CFD orders. They do not offer biometric ID login.
IG is the most prominent and user-friendly trading app with various features and functions and allows investment across shares, options, contract for differences (CFD), ISAs, pension and spread betting. The app allows management of different assets with seven order types. Investors may set up alerts to receive notifications bout important news and updates.
For beginners, it has ready-made portfolios, as well as individual shares for those that want to choose their own investments. Its price per trade fee in UK is £8, in US it is £10 and in EU 0.1% (minimum €10). Its Frequent trader rate in UK is £3 investment trusts fee is £8 and phone dealing fee is £40.
- Interactive Brokers
Interactive broker is an international broker that provides direct access to US financial assets at the lowest price. It was first made for professional traders but made their platform accessible to new investors too. The platform is well known for its research, fundamental information, charting options, news, analyst reports, order types and alert option. The platform is secure with two-factor authentication, but it has a complex interface, and it is not very welcoming for newcomers.
- Hargreaves Lansdown
Hargreaves Lansdown offers an extremely comprehensive selection of investment options and very high-quality research alongside an ISA, SIPP, and junior accounts. However, it is more expensive than some other providers, especially if you don’t trade often. It offers options to invest across 20 international exchanges in shares, bonds, funds and investment trusts. Its price per trade fees is £11.95, Frequent trader rate is £5.95, annual custody fee is 0.45%, bonds fee is £11.95, ETFs fee is £11.95, investment trust fee is £11.95, and phone dealing fee is £20-£50.
Also Read: How hike in interest rates will hit Britons
- Interactive Investor
Interactive Investor offers nine different accounts including pensions, ISAs and junior accounts. It also allows investment in shares, funds, bonds, ETFs, investment trust, venture capital trusts (VCTs) and gilts. However, it charges fees and struggles to remain competitive with commissions and fees mainly for fund investors and active share traders. The platform offers around 3,000 funds, its price per trade fee is £7.99, with one free trade per month.