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Kane Pepi
Updated: January 9, 2024
Fact Checked
Everything you read on our site is provided by expert writers who have many
years of experience in the financial markets and have written for other top
financial publications. Every piece of information here is fact-checked.
Disclosure
Please note that we are not authorised to provide any investment advice. The
information on this page should be construed for information purposes only. We
may earn commissions from the products mentioned on this site.
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HOW TO BUY SHARES UK 2024 – ONLINE GUIDE FOR BEGINNERS
Based in the UK and looking for information on how to buy shares for the first
time?
In this beginner’s guide, we’ll give you all the information you need on how to
buy shares in the UK in 2024. We’ll discuss how to select an authorised and
regulated stockbroker, the fees to expect, how to place your first share order,
and provide tips on choosing the right shares.
Before you can buy shares, you need to choose a reputable stock broker. We’ve
listed a number of FCA-regulated stock brokers below, with a full breakdown of
their fees and features. You can even enter the amount you plan to invest and
the number of trades to work out how much each broker will cost.
Invest
£
Number of Trades
1per year
More Filters
5 Providers that match your filters
Sort By
Rating
Rating
Price
5 Providers that match your filters
Payment methods
Credit Card
Paypal
Giropay
Neteller
Sepa Transfer
Skrill
Sofort
Features
Bonds
CFDs
Copy Portfolio
ETFs
Funds
Savings Plans
Stocks
Crypto
Support
Very Good
Good
Average
Bad
Rating
0 or better
Mobile App
0 or better
Fixed fees per trade
£0
Account Fees
£0
Clear Filter
Rating
Total Fees£ 0.00
Features
No deposit or withdrawal fees
Trade with leverage up to 30:1 and tight spreads of 0.9 pips
Low $100 minimum deposit
Fixed fees per trade
0 £
Account Fees
0 £ per Month
Mobile App
9/10
Total Fees£ 0.00
Visit Site
71% of retail investor accounts lose money when trading CFDs with this provider.
Features
Payment methods
Account Information
Account from
100
Inactivity Fees
16
Leverage
1:400
Margin trading
true
Min. Trade
1
Fees per trade
Bonds
0.03- 0.06%
Crypto
0.05 - 2%
ETFs
0.13%
0.0058%
Stocks
0.13 - 0.36%
Visit Site
71% of retail investor accounts lose money when trading CFDs with this provider.
Fees & Assets
Rating
Total Fees£ 0.00
Features
Up to 100 free trades
Thousands of shares across 26 global markets
Multi-currency accounts for global traders
Fixed fees per trade
0 £
Account Fees
0 £ per Month
Mobile App
9/10
Total Fees£ 0.00
Visit Site
Read Review
Your capital is at risk.
Features
Payment methods
Account Information
Account from
£0
Deposit Fees
£0
ETFs
500+
Leverage
1:30
Margin trading
true
Min. Trade
£0
Stocks
3,000+
Trade fees
Commission, spreads
Withdrawal Fees
£0
Fees per trade
Bonds
£6.95
CFDs
0.4 - 0.8 pips
ETFs
£3.95
Funds
0.25% annually
Stocks
£2.95 for UK shares
Visit Site
Read Review
Your capital is at risk.
Fees & Assets
Rating
Total Fees£ 0.00
Features
High quality platform and charting tools
Supports algorithmic trading
Competitive spreads from 0.1 pips
Fixed fees per trade
0 £
Account Fees
0 £ per Month
Mobile App
8/10
Total Fees£ 0.00
Visit Site
Read Review
There is no guarantee you will make money with this provider. Your capital is at
risk.
Features
Payment methods
Account Information
Account from
£100
Deposit Fees
£0
Leverage
1:30
Margin trading
true
Stocks
700+
Trade fees
Spreads
Withdrawal Fees
£0
Fees per trade
CFDs
0.01 - 350 pips
Crypto
0.09 - 85 pips
Stocks
0.01 - 4 pips
Visit Site
Read Review
There is no guarantee you will make money with this provider. Your capital is at
risk.
Fees & Assets
Rating
Total Fees£ 0.00
Features
Regulated by CySEC
Wide range of account types
Tight spreads
Fixed fees per trade
0 £
Account Fees
0 £ per Month
Mobile App
8/10
Total Fees£ 0.00
Visit Site
69.80 % of retail investor accounts lose money when trading CFDs with this
provider.
Features
Payment methods
Account Information
Account from
€500
Inactivity Fees
€10
Leverage
30:1
Margin trading
true
Min. Trade
0.01 lot
Fees per trade
CFDs
Variable spreads
Visit Site
69.80 % of retail investor accounts lose money when trading CFDs with this
provider.
Fees & Assets
Rating
Total Fees£ 0.00
Features
100% commission in Stocks and ETFs.
Over 3000 stock CFDs from 16 global exchanges.
xStation 5 and xStation mobile available.
Fixed fees per trade
0 £
Account Fees
0 £ per Month
Mobile App
10/10
Total Fees£ 0.00
Visit Site
Read Review
Your capital is at risk.
Features
Payment methods
Account Information
Account from
£10
Deposit Fees
0%
ETFs
+2,000
Inactivity Fees
£10 per month after 1 year of no activity
Leverage
Variable
Margin trading
true
Min. Trade
0.015% for US-listed stocks
N/A
Overnight CFD Position
N/A
Stocks
+3,000
Trade fees
N/A
Withdrawal Fees
N/A
Fees per trade
Bonds
N/A
CFDs
Variable
N/A
Crypto
N/A
DAX
N/A
ETFs
0%
Funds
N/A
N/A
N/A
N/A
Stocks
0%
Visit Site
Read Review
Your capital is at risk.
Fees & Assets
--------------------------------------------------------------------------------
HOW TO BUY SHARES UK – STEP BY STEP GUIDE 2024
STEP 1. OPEN AN INVESTMENT ACCOUNT
Open an account with a UK stock broker, enter your name, your email, and a
password for your account.
STEP 2. DEPOSIT FUNDS
Once your account is set up and you’ve completed KYC, you can make a deposit.
STEP 3. BUY SHARES
Once your account has been funded, you can then buy your very first share. In
our example, we are looking to buy shares in BP. So, we’ll enter ‘BP’ into the
search box at the top of the screen and then click on ‘TRADE’ to open a new
order. Then we’ll enter the amount we want to trade and click ‘OPEN POSITION’ to
place our first stock trade.
That’s it – you’ve now learned how to invest in stocks UK in just 3 simple
steps!
Buy Shares
Your capital is at risk. Other fees apply. For more information, visit
etoro.com/trading/fees.
LEARN THE BASICS OF BUYING SHARES IN THE UK
Due to the way UK share dealing works today, you can buy thousands of global
shares at the click of a button. All you need is a reliable online stock broker
account.
Best of all, as there are now hundreds of UK stockbrokers each competing for
your business, fees, and commissions have never been so competitive. In fact,
there are the even UK share dealing platforms that allow you to buy stocks
without paying any dealing charges.
However, as well as learning how to buy shares in the UK, it’s also very
important to learn the basics of how shares actually work, the investment
journey, and any tax rules vs tax benefits. By getting comfortable with the
fundamentals, you stand the best chance possible of avoiding costly mistakes.
Top share tip: once you’ve bought shares in a company, they are required to send
you a share certificate within two months.
WHAT ARE SHARES?
When a company decides to go ‘public’, this means that it will be listed on a
stock exchange. In turn, this allows everyday investors to purchase ‘shares ‘in
the firm. As the name suggests, you will own a ‘share’ of the company that you
invest in – proportionate to the number of stocks that you hold.
The value of the shares are determined by market forces. In other words, if
there are more buyers than sellers, the share price will increase. When it does,
the value of your investment will follow suit.
If there are more sellers than buyers, this has the opposite effect – meaning
that the value of your shares will go down. As a shareholder of a company, you
will be entitled to a range of perks.
SELLING SHARES
At the forefront of this is an entitlement to dividends and the ability to vote
at Annual General Meetings (AGMs). You can sell shares at any given time during
standard market hours. The amount you receive back in cash will be based on the
number of shares you hold against that of the current stock price of the
company. We recommend you bookmark our shares terminology page whilst you
purchase your first share.
BULLISH AND BEARISH MARKETS
In order to invest successfully, you will need to understand different market
conditions and what they mean. Knowing this can help to guide your trading
decisions and improve your strategy.
There are two main market conditions that you may experience when trading. These
are Bullish and Bearish conditions. Bullish is the term given to markets that
are predicted to experience an increase in prices overtime. Bullish markets
typically occur after a period of price decline. A commonly used definition of a
bullish market is when prices rise by 20% after two falls of 20% each time.
On the other hand, a Bearish market is a market that is experiencing price
decline. In a bearish market, stock prices fall by 20% or more over a period of
time. This is typically met with negative investor attitude and pessimism. The
prices of stocks fall as investor sell their shares.
During both bullish and bearish markets, prices will be volatile. If you choose
to trade during these conditions, it is important to conduct thorough analysis
and keep up to date with the latest news.
HOW MUCH DOES IT COST TO BUY SHARES UK?
The cost of buying shares in the UK varies depending on the platform that you
use and the size of your investment. Each platform offers a different fees
structure and it is worth researching this before deciding where to buy shares
from. Common fees that may be charged include account management fees, payment
and withdrawal fees, trading fees, spreads, commission and inactivity fees. If
you buy shares in the UK, you may also need to pay tax.
It is possible to buy shares in the UK for a low cost if you choose a platform
that offers minimal fees. However, fees aren’t fixed and may change with market
conditions. It is always best to familiarize yourself with a trading platform’s
fee structure before depositing any funds and making any trades.
DO I PAY TAX ON SHARES?
In the UK, capital gains are added to your income which means that you do have
to pay tax on shares. The amount of tax that you pay will depend on your total
earnings- in the UK you are placed into a tax bracket which determines how much
you will need to pay each year. You may also pay a 0.5% tax on each share trade
that you make. This is automatically taken when you sell shares online.
To pay tax on the shares that you own, you will need to include them as part of
your self-assessment tax return. This is an annual document that is used by HMRC
to determine that tax that you pay. If you do not declare earnings from shares
as part of the annual tax return, you could receive a fine from HMRC.
--------------------------------------------------------------------------------
HOW MUCH MONEY CAN YOU MAKE FROM INVESTING IN STOCKS & SHARES?
If you want to work out how much you stand to potentially make learning how to
invest in shares UK, try out our handy investment calculator. Remember,
historically shares tend to yield a 6%-7% annual return.
Starting Investment ($):
Additional Contribution ($):
Rate of Return (%):
Number of Years :
Saving...
This investment will be worth:
Investment Growth Over Time
HOW TO MAKE MONEY FROM BUYING SHARES & STOCKS IN THE UK:
This can be achieved in three ways – capital gains, dividends, and compound
growth.
1. CAPITAL GAINS
If the value of your shares is higher than the price you originally paid, this
is known as ‘capital gains’.
For example:
* Let’s suppose that you buy 1,000 shares in BP at 350p per stock
* This means that your total investment amounts to £3,500
* Five years later, BP shares are now priced at 450p per stock
* You are happy with your gains so you decide to sell the shares
* You made 100p per share (450p-350p), and at 1,000 shares, this amounts to a
profit of £1,000
This £1,000 profit is what is known as capital gains. In the UK, you will need
to declare your capital gains to HMRC. The specific tax rate will vary depending
on your personal circumstances.
2. DIVIDENDS
You will also have the opportunity to earn money from shares in the form of
dividends. In its most basic form, dividends allow large companies to share
their profits with stockholders.
If and when they do, you will be entitled to your share of the proceeds. The
specific dividend income that you get will vary depending on how well the
company is performing. Not all shares pay dividends, but if they do they are
typically distributed every 3 or 6 months.
Here’s how dividends stocks work:
* Let’s say that you hold 500 shares in HSBC
* The firm pays dividends every three months
* This time around, HSBC announces a dividend yield of 7%
* This amounts to £0.28 per share
* You hold 500 shares, so you will receive a total of £140 (£0.28 x 500 shares)
The best thing about dividends is that you will receive this in addition to your
capital gains. In an ideal world, you will be investing in stocks that increase
in value, while at the same time pay regular dividend payments!
While past performance is never a sure-fire indicator of future results, below
you will find the average annualized returns of the FTSE 100 over the past 25
years.
If you wanted to mirror these returns, you would need to invest in an ETF or
mutual fund that tracks the FTSE 100.
3. COMPOUND GROWTH
Rather than simply cash out capital gains or hold out for dividends income, many
investors look to reinvest an asset’s earnings to generate more earnings over
time. This is known as compounding. By holding a stock for a long time and
constantly reinvesting capital gains, you can achieve a compounding effect which
sees you earn gains on your gains.
Let’s take a look at an example of how compound growth works:
* You invest in £100 per month in an asset that has a 6% return
* If you did this for 10 years, you’ll have invested £13,200 and have £18,915
* If you did this for 20 years, you’ll have invested £25,200 and have £50,640
* If you did this for 40 years, you’ll have invested £49,200 and have £209,201
The reason your investment grows in this way is because you earn on the gains
you reinvest as well as your original investment. This means that each year you
earn more interest on both your initial investment and your compounding gains.
Compound growth requires patience as the initial gains are small, but over the
long run, it can be highly lucrative. Of course, investors have to take share
fluctuations, inflation, and fees into account, but if done right, compound
interest can be one way to grow wealth via shares.
--------------------------------------------------------------------------------
WHAT TO CONSIDER BEFORE YOU BUY SHARES IN A COMPANY
Although the stock markets have historically performed well – this isn’t the
case with all companies. On the contrary, many firms – both in the UK and
overseas, are now worth just a fraction of their prior all-time highs. This is
especially the case with the UK high street banking space – with the like of
HSBC and Natwest never truly recovering from the financial crisis of 2008.
With this in mind, below you will find some handy share tips that will allow you
to mitigate your risks when learning how to invest in stocks UK for the first
time.
💡 TIP 1: DIVERSIFY AS MUCH AS YOU CAN
In a nutshell, diversification is simply the opposite of putting all of your
eggs into one basket. That is to say, instead of investing in one or two
companies, a well-diversified portfolio would see you hold dozens, if not
hundreds of different stocks. Not only this, but you will be investing in firms
from several sectors – subsequently ensuring that you are not overexposed to a
single niche. For example, let’s suppose that you have £5,000 to invest into the
stock markets.
* An inexperienced investor might use the entire £5,000 to invest in a single
company
* A shrewd investor would likely buy shares in 100 different companies at £50
each. This would cover multiple sectors, too.
💡 TIP 2: START OFF WITH LOW STAKES
If you have never previously learned how to invest in shares UK, it might be
worth starting off with low stakes. On the one hand, most regulated UK
stockbrokers require you to meet a minimum investment amount that typically sits
within the £100-200 range. On the other hand, you are not required to inject the
entire balance into a single trade.
On the contrary, platforms like eToro permit a minimum stock investment of $50.
As such, by starting off with small amounts, you will be able to build your
confidence up without breaking the bank.
💡 TIP 3: LEARN HOW TO RESEARCH BEFORE YOU BUY STOCKS UK
Some examples of widely When you learn how to buy shares, it is also important
for you to learn how to research stocks. By this, we are not talking about
anything overly complicated like technical analysis or chart reading. On the
contrary, just make sure that you are kept abreast of any key market
developments that might impact the value of your investment.
* For example, let’s suppose that you have £3,000 invested in Royal Mail
* If Royal Mail announces that it is planning to cut hundreds of jobs, how do
you think this will impact the share price?
* Without a doubt, negative news such as this would likely result in a mass
sell-off from shareholders.
* In turn, the value of the shares will go down.
* With that said, if you sold the shares as soon as the news was announced, you
would stand the best chance possible of minimizing your losses and getting
back as much as possible.
As a side-tip, it might be worth signing up for news alerts with a third-party
platform. For example, the Yahoo! Finance website allows you to add your
invested companies into its portfolio, and then you can elect to receive
real-time news when a relevant story breaks. For more information on stock tips
and selling shares, check out our best shares to buy guide.
Some examples of widely-used stock analysis methods are listed below:
* Price-to-Earnings Ratio: The price-to-earnings (P/E) ratio looks at the
correlation between a company’s earnings with that of its stock price. This
allows investors to ascertain whether the shares are under or overvalued. You
simply need to divide the current share price into the company’s earnings per
share, and you will be left with a ratio. Although there are many other
variables to consider, the major US stock markets average a price-to-earnings
ratio of between 13-15.
* Debt-to-Equity Ratio: The debt-to-equity ratio looks at how much debt a
company has in correlation to its equity. In simple terms, this lets you know
whether or not the company has too much debt on its hands. The calculation
will leave you with a ratio of between 0 and 1 – and so the higher the
number, the more debt it has (in relation to the size of its equity). You do
need to assess the type of industry that the company is operating in when
utilizing the debt-to-equity ratio, as it is widely accepted that certain
sectors need to carry more debt than others (such as construction firms).
There are many other fundamental analysis methods used by seasoned investors.
You can read more on how to pick stocks and shares on a DIY basis here.
💡 TIP 4: CONSIDER A COPY TRADING PORTFOLIO
If you have little to no knowledge of how stocks and shares work, it might be
worth considering the merits of a copy trading portfolio. Beginner-friendly
platforms like eToro allow you to mirror the trades of experienced investors.
Not only does this include their current portfolio – but each and every
investment thereon. The best thing about it is that you get to review the
credentials of the trader before you invest in money. Copy trading essentially
allows you to invest in shares without doing any of the work, so it’s very
popular among new investors.
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HOW TO SELECT A UK STOCKBROKER TO INVEST IN SHARES 2024
You now know how to buy shares, but do you have a reliable stockbroker that
matches your investment preferences? The are many brokers out there and they all
differ in terms of tradable assets, fees, and features, so you need to spend
some time researching different platforms before signing up.
Some of the most important factors that you need to look out for are:
FINANCIAL CONDUCT AUTHORITY REGULATION
The first – and most important metric that you need to consider before joining a
UK stock broker is whether or not it is regulated by the Financial Conduct
Authority (FCA). This will ensure that you are able to buy, sell, and trade
shares in a safe and secure environment.
For example:
* All FCA brokers are required to go through a long and drawn-out application
process before they can legally accept UK traders.
* The platform will need to have its books audited by the FCA on a quarterly
basis.
* All client funds must be held in segregated bank accounts. This is a crucial
safeguard, as it means the broker cannot use your invested funds to cover its
own working capital.
* Segregated bank accounts also mean that was the broker to run into financial
problems, your money would be ringfenced.
All in all, never sign up with a UK share dealing platform if it doesn’t hold
that all-important FCA license.
UK PAYMENT METHODS TO BUY STOCKS UK
Once you have assessed the broker’s regulatory standing, you then need to
explore what payment methods it accepts. In the vast majority of cases, UK share
dealing platforms will accept a debit card and bank account transfer. The latter
is more suitable for larger deposits over £10,000. Depending on the broker, it
may take 1 to 3 business for bank wire funds to land in your account, but if you
conduct an instant bank transfer they can be credited in two hours.
Stock Broker Payment methods Minimum deposit eToro Bank Transfer, Skrill,
Neteller $50 Plus500 VISA, MasterCard, Bank Transfer, PayPal, Skrill $100 (£75)
AvaTrade VISA, MasterCard, Bank Transfer, Skrill, WebMoney, Neteller $100 (£75)
Fineco Bank Transfer No minimum deposit
WHAT SHARES CAN YOU BUY IN THE UK?
As we briefly noted earlier, there are tens of thousands of publicly listed
companies across dozens of stock exchanges. Crucially, the specific markets that
you will have access to will depend on the broker that you sign up with. For
example, between eToro, Plus500, and IG you will be able to buy, sell, and trade
over 10,000 different companies.
This includes firms listed on the:
* London Stock Exchange (UK)
* Alternative Investment Market (AIM – UK)
* NASDAQ (US)
* New York Stock Exchange (US)
* Tokyo Stock Exchange (Japan)
* Hong Kong Stock Exchange (Hong Kong)
* And many, many more!
It’s best to choose a stock broker that covers both UK and international
markets, as this will give you the best chance possible of diversifying your
risk. eToro, for instance, allows you to purchase shares from 17 different
markets.
HOW TO SELL SHARES ONLINE UK
If your investment has appreciated in value, you may want to sell before prices
drop. Luckily, it is easy to sell shares online in the UK with a reputable
broker.
To sell your shares, simply log into your online broker and navigate to your
portfolio. Here, you should be able to see a full list of stocks and shares that
you own. Select the share that you wish to sell and click ‘sell’ or ‘close’-
each broker will use a different wording but they mean the same thing. You can
either sell the entire share or choose to sell a fraction of the share that you
own. For example, you may wish to only sell 50% of your shares and hold the
remaining 50% incase the market continues to rise.
When you sell shares, the value of the share that you sold will appear in your
account cash balance. You can cash out by withdrawing funds to your connected
payment method or reinvest by buying different shares with the balance. It is
important to note that some brokers may charge fees for withdrawing funds from
your account. You will need to make sure that you can cover the fees involved
before withdrawing any funds.
--------------------------------------------------------------------------------
UK BROKER FEES COMPARISON
There a number of fees and charges to consider when you’re looking for a stock
broker, including dealing commissions, annual account fees, and withdrawal fees.
The good news is that some UK share dealing platforms allow you to buy stocks
without paying any dealing charges or annual fees. Instead, they make their
money from the ‘spread’, or a one-off conversion fee when you make your first
deposit (eToro, for instance, charges 0.5%).
To give you an idea of what you are likely going to pay after you’ve learned how
to invest in shares UK, check out our stock broker comparison table below.
UK Stock Broker Fees Charge Per Trade Annual Fee Conversion Fee eToro Free N/A
0.50% Alvexo Tight Spreads N/A N/A (GBP deposits accepted) Plus500 Free N/A Up
to 0.3% AvaTrade Free N/A N/A (GBP deposits accepted) Fineco From £2.95 per
trade N/A N/A
WHERE TO BUY UK SHARES – FCA REGULATED UK SHARE DEALING PLATFORMS 2024
Finding the time to research the ins and outs of an online stockbroker can be
challenging. Below you will find a selection of the best share dealing accounts
that meet a number of minimum requirements that can act as investment managers
for your shares. This includes that all-important Financial Conduct Authority
license, support for bank accounts, and the ability to buy and sell shares in
domestic and international companies.
1. ETORO
eToro is a popular retail investment platform that allows customers to buy over
800 different shares with 0% commission.
eToro also absorbs the cost of stamp duty to keep costs even lower. Safety and
security-wise, eToro is FCA regulated broker and very popular among millennials
who are beginner investors.
At eToro, you can invest in British blue-chip stocks such as Tesco, BT, and
Rolls Royce, as well as the best technology ETFs UK and trending tech shares
such as Amazon, Apple and Tesla. One of the main reasons that eToro makes our
list is that it allows you to buy and sell shares without paying any dealing
charges. The platform also offers a wide variety of the most popular
cryptocurrencies, you can buy bitcoin UK, Ethereum, Ripple and many more.
This is revolutionary in the UK investment scene and share trading, as the likes
of Hargreaves Lansdown will charge you in excess of £11.95 per trade. Instead,
it’s only the 0.5% conversion fee on your deposit that represents any type of
charge.
If you wish to trade stock CFDs – where the leverage of up to 1:5 is available
(your capital is at risk when trading with leverage) – then you will have to pay
a small fee known as the spread. You can learn more on the difference between
buying a physical stock and trading stock CFDs here. Remember that CFDs are
complex instruments and come with a high risk of losing money rapidly due to
leverage. 76% of retail Investor accounts lose money when trading CFDs with this
provider. You should consider whether you understand how CFDs work, and whether
you can afford to take the high risk of losing your money. Learn more
eToro has a fully-fledged license with the FCA. It’s also licensed in Australia
(ASIC) and Cyprus (CySEC) – so you have regulatory protection on three fronts.
Once your deposit has been processed by the broker, it will be converted to US
dollars at a small fee of 0.5%. This allows you to access international markets
without needing to keep worrying about exchange rates. If you wish to deposit
over $2,000, then eToro requires you to submit identification. The platform
supports large investments – up to $40,000 per card transaction and no limit
with bank wire transfers. These would qualify you for a VIP account manager and
a chance for a face-to-face meeting at their London headquarters.
eToro also offers copy trading functionality, which gives you the chance to copy
successful stock investors and build like-for-like portfolios. This feature
does, however, come with additional charges. For a more detailed overview, check
out our eToro review.
Note: eToro does not calculate any tax you may need to pay for you, for example,
capital gains tax, so you must calculate this yourself based on your country of
residence.
Deposit fee Free Withdrawal fee $5 Inactivity fee $10 per month after 12 months
of no login activity Account fee None Minimum deposit $50 Stocks markets Access
to 17 stock markets Tradable assets CFDs, Forex, Commodities, Cryptocurrencies,
real Stocks and ETFs, indices Available Trading Platforms Web-based trading
platform, mobile trading app
Visit eToro Now
Your capital is at risk. Other fees apply. For more information, visit
etoro.com/trading/fees.
--------------------------------------------------------------------------------
2. XTB
XTB, a well-known stock broker in the UK, is a preferred choice for traders due
to its extensive range of trading options. With over 2,100 shares and ETFs
available, traders can benefit from commission-free trading, making it an
affordable option. Notably, XTB stands out as one of the most cost-effective
choices for UK traders, with spreads starting as low as 0.015% for US-listed
stocks. What’s more, this broker does not require a minimum deposit and does not
charge any fees for deposits or withdrawals.
One of the key features of XTB is its tailor-made stock trading platform,
xStation 5, which can be accessed through web and mobile devices. The platform
offers a comprehensive set of research tools to enhance trading strategies. It
provides users with technical charts and a wide range of studies to analyze
market trends. Moreover, the platform includes a market news feed that not only
keeps traders informed but also provides actionable trade ideas, complete with
annotated price charts. Additionally, XTB’s platform offers a market sentiment
gauge, allowing users to easily gauge the opinions of fellow traders regarding
the direction of a stock’s price.
Traders can benefit from XTB’s stock and ETF screener, a valuable tool for
scanning the market and identifying stocks that are experiencing upward momentum
or potential declines. This feature enables users to create watchlists and
refine their search, facilitating the discovery of optimal trading
opportunities.
To ensure the safety and security of its clients, XTB is regulated by both the
UK Financial Conduct Authority (FCA) and the Cyprus Securities and Exchange
Commission (CySEC). Furthermore, the broker provides negative balance protection
for all traders, mitigating the risk of losses exceeding the trader’s account
balance. Should any assistance be required, XTB offers customer support through
multiple channels, including phone, email, and live chat, ensuring prompt
assistance is available to traders 24 hours a day, 5 days a week.
Visit XTB
Your capital is at risk.
3. AVATRADE
AvaTrade is one of the best investment platforms for users who wish to employ
leverage, making it super popular in the trading industry. With over 200,000
registered users, AvaTrade has operations in over 150 countries and is a firm
favourite with traders interested in various asset classes. What’s more,
AvaTrade is licensed and regulated by numerous reputable governing bodies –
including the Central Bank of Ireland.
In terms of fees, as AvaTrade is a CFD broker, all costs are built into the
spread. Spreads vary depending on market conditions but tend to be very tight
for liquid stocks such as Apple and Amazon. Notably, AvaTrade offers leverage of
up to 1:5 for stock CFDs – although this does go up drastically for traders
outside of the EU.
The minimum deposit at AvaTrade is £100, which is entirely free to make. Users
can fund their accounts via credit/debit card, bank transfer, and various
e-wallets – including Neteller, Skrill, and Klarna. Another great thing about
AvaTrade is that withdrawals are free to make via credit/debit card, with funds
taking around three days to reach your account. Finally, AvaTrade has a
fantastic WebTrader platform available on your browser and mobile, featuring a
user-friendly interface and various order types to utilise.
Visit AvaTrade Now
Your capital is at risk
4. TRADE NATION
Trade Nation is a multi-regulated broker with offices in South Africa, the
United Kingdom, and Australia. Among the four jurisdictions where they are
regulated are South Africa (FSCA), the United Kingdom (FCA), Australia (ASIC),
and the Bahamas (SCB). Their goal is to offer their clients the highest quality
products, leverage, and trading experiences globally.
The company was founded in 2020 but has been known as Core Spreads since 2014.
As a result of their fixed spreads and low costs, they became one of the most
popular brokers. There is a tendency for Trade Nation to carry this over.
In addition to their brand values, they place a lot of emphasis on the outlook
of their business. Its mission and focus are taking a client-driven approach and
bringing a fresh approach to trading.
Besides the app and trading platform, Trade Nation (T.N.) will offer MetaTrader
4 (MT4). With fixed spreads and guaranteed stops, their proprietary platform
offers a large list of tradable assets. You’ll find the platform extremely
user-friendly if you’re familiar with MetaTrader 4.
Visit Trade Nation Now
Your capital is at risk
5. ADMIRAL MARKETS
Among the many services Admiral Markets offers are online trading services,
forex trading, and contracts for difference (CFDs). Additionally, the stock
market offers many other investment opportunities.
A commitment to serving clients well drives the platform and company and
provides excellent trading software. You can enjoy the best and most transparent
financial experience with confidence and without reservations.
Furthermore, Admiral Markets offers an extremely specialized blog section. Its
website provides users with market news. Additionally, it provides useful
information and strategies on various trade-related topics.
The company offers books and brochures that provide information in addition to
training programs. These tools can help traders improve their skills and
knowledge to make informed and intelligent decisions.
With Admiral Markets, traders can trade forex and CFDs online. This is
accomplished using the NDD/ECN methodology.
Since NDD operates without a dealing desk, it means No Dealing Desk. In
contrast, an ECN is an electronic communication network.
Visit Admiral Markets Now
Your capital is at risk
6. PEPPERSTONE
Since two Tier 1 jurisdictions regulate Pepperstone, it is a safe and low-risk
option for trading forex and CFDs.
For algorithmic traders and copy traders, Pepperstone offers MetaTrader and
cTrader platforms. Additionally, Pepperstone offers several premium add-ons that
can be downloaded to enhance the functionality of the MetaTrader platform as
well.
Even though Pepperstone performs better than the average company in the
industry, it still lags behind eToro and XTB, some of the industry leaders.
Pepperstone offers a limited array of products and focuses on them closely.
Retail traders will find Pepperstone’s Razor accounts in line with industry
averages, but active traders will find them competitive.
Pepperstone will charge a commission on CFD positions in stocks and commodities
overnight, including weekends. The commission for the product you are trading is
2.5% plus regional interest rates.
As far as Forex is concerned, Pepperstone’s Razor account has a spread minimum
and average lower than its Standard account.
Visit Pepperstone Now
Your capital is at risk
7. PLUS500
An additional trading platform that has proven popular in recent years is
Plus500. Unlike eToro, this provider specializes exclusively in CFDs. The main
drawback of this is that you will not own the underlying stock. On the flip
side, you will be able to trade more than 2,000 stock CFDs without paying a
penny in commission.
Plus500 also allows you to apply leverage on your stock CFD trades the same way
they allow you to apply leverage on other instruments. At an upper limit of 1:5
for retail clients (and more on other asset classes), a £200 deposit would
permit a maximum trade size of £1,000. Using Plus500 to trade stock CFDs will
also give you the capacity to choose from a buy or sell order. This means that
you can speculate on the price going up and down. This is something that you
won’t be able to do with a traditional stockbroker.
In terms of the fundamentals, not only is its parent company listed on the
London Stock Exchange as a PLC, but Plus500UK Ltd is authorized & regulated by
the FCA (#509909). You can open an account in minutes at Plus500, and deposit
funds with a UK debit/credit card, bank account, or Paypal. You’ll need to meet
a minimum deposit of £100.
Visit Plus500 Now
Your capital is at risk
--------------------------------------------------------------------------------
STOCK BROKERS FEES COMPARED
UK Stock Broker Fees Min Deposit Margin eToro 0% Commission $50 20% Alvexo
Tight Spreads $250 30% XTB 0% Commission Zero 20% Plus500 0% Commission $100
(around £75) 20% AvaTrade 0% Commission $100 (around £75) 50% Fineco From £2.95
per trade No minimum deposit 20%
HOW TO BUY SHARES IN THE UK WITH ETORO – GUIDE
Based on customer reviews, eToro is a popular FCA regulated share dealing
platform that can be used to buy shares in the UK from $50. In this section of
our article, we will walk you through the steps involved with buying shares from
eToro in the UK.
STEP 1: CREATE AN ETORO ACCOUNT
As a regulated trading platform, eToro must comply with KYC requirements. As a
result, all new customers must create an account with their email address and
two valid forms of ID.
To speed up the process of creating an eToro trading account, make sure to have
two forms of ID to hand. Then, navigate to the official eToro website and click
‘start investing’. You will then be redirected to the registration form.
You will be asked to fill in some personal information including your name,
email address, residential address and mobile number. After filling in these
details, you will be asked to upload your two forms of ID.
One form of ID must verify your address. Accepted documents include utility
bills and bank statements. The second form of ID must verify your identity and
can be either a passport, driver’s license or birth certificate. Take clear
pictures and upload these to the platform. eToro will then verify your account.
This can take anywhere between 10 minutes and 48 hours.
STEP 2: PRACTICE WITH THE DEMO ACCOUNT
Before you start buying shares on eToro, you could practice trading with the
eToro demo account for free. A demo account is a risk-free way of practicing
your skills without using any real funds. eToro provides a demo account that can
be funded with up to £100k in virtual funds.
Traders can use the demo account to test different strategies and try out the
various features that are offered by eToro.
There is no limit to how long you can use the demo account for. It is a good
idea to use demo trading until you are 100% confident with the share dealing
platform.
It is possible to switch between demo and live trading on eToro. This means that
you can use the demo account at any point in your trading journey to improve
your abilities and practice new strategies.
STEP 3: FUND YOUR ACCOUNT
When you are comfortable with eToro, you can fund your trading account. The
minimum deposit to buy shares with eToro is $50 in the UK. eToro accepts a
variety of payment methods, including Skrill and Neteller.
Never invest more money than you can afford to lose. Buying shares is risky so
it is important only to deposit funds if you are in a financially comfortable
position. Unverified accounts are limited to a maximum deposit of $2,250.
However, it is possible to deposit more than this once the account is verified.
It may take a few minutes for the funds to appear in your eToro account.
STEP 4: SEARCH FOR SHARES
The next step is to search for shares that you would like to buy. You can do
this through the search bar tool or buy browsing through the explore page. eToro
organizes shares in different categories which makes it possible to find options
that meet your requirements.
At this stage, you could also experiment with social trading. Head to the
discover section of the app and scroll down to find the news feed and copy
trading sections. Here, it is possible to view what other traders are buying and
selling.
Before buying any shares, conduct thorough research using a mixture of trading
tools, financial news and sentiment analysis. Never invest blindly.
STEP 5: PLACE AN ORDER
After conducting research and analysis, you can start buying shares on eToro.
Navigate to the share that you would like to purchase and click ‘invest’. Then,
enter the amount of funds that you would like to buy the shares with. You can
also set the rate at which you would like to execute the order. After entering
the details, click ‘set order’.
The order will be executed when the price of the share hits the rate that you
set in the order. When the order is executed, the shares will appear in your
eToro portfolio.
WHAT IS THE SIMPLEST WAY TO BUY SHARES UK?
The simplest way to buy shares in the UK is to open an account with a regulated
broker that provides a quick and easy registration process. For example, it is
possible o create an account and start buying shares with eToro in minutes. It
is also wide to choose a broker that is compatible with a fast payment method
such as a debit card. Depositing funds through wire transfer can take a longer
time which can slow down the process of buying shares in the UK.
Brokers should make the entire process of buying shares straight forward. This
means offering an easy-to-use interface, clear platform navigation, good
research and analysis tools and a simple order system. Our top brokers meet each
of these requirements. We recommend taking a look through our full stock broker
reviews before deciding which platform to choose.
LATEST SHARES NEWS
Before rounding off this guide, let’s take a look at some of the biggest news
stories in the stock market for the week beginning September 25th, 2023:
* It was a disappointing week in the stock market, with all major indices
posting losses. The S&P 500 fell by 2.93%, while the FTSE 100 sank by 0.42%.
* The Federal Reserve opted to hold rates steady last week, which was widely
predicted by analysts. However, the Fed revised its economic growth
projections upwards, estimating a 2.1% rise in GDP this year.
* However, Fed Chair Jerome Powell did indicate that there will be one more
interest rate hike before the end of 2023. Moreover, fewer rate cuts are to
be expected in 2024 than investors had hoped for.
CONCLUSION
The process of buying shares in the UK has changed considerably over the past
decade. No longer do you need to speak with a traditional stock broker over the
phone to place your buy and sell orders. Instead, you simply need to choose a
regulated online share dealing platform, deposit some money with your card – and
then choose which stocks you want to buy.
FREQUENTLY ASKED QUESTIONS ABOUT BUYING SHARES
CAN YOU INVEST IN FOREIGN COMPANIES?
Yes, the vast bulk of UK stock brokers give you access to domestic and
international companies. At a minimum, this typically includes the NASDAQ and
New York Stock Exchange. Brokers like eToro go one step further by giving you
access to less liquid markets. This includes Canada, Hong Kong, France, and even
Saudi Arabia!
WHO REGULATES UK SHARE DEALING SITES?
The Financial Conduct Authority (FCA) is responsible for regulating stock
brokers that serve UK clients.
WHAT UK PAYMENT METHODS CAN I USE TO BUY SHARES ONLINE?
You usually have a choice of a debit/credit card or UK bank transfer. Some
brokers also support e-wallets.
WHAT FEES WILL I PAY WHEN I INVEST IN STOCKS?
Most UK stock brokers charge a flat fee on each trade that you place. This means
that you will pay the same fee when you buy shares, and then again when you
offload them. In rarer cases, brokers such as eToro allow you to buy shares
without paying any commissions.
HOW DO I BUY SHARES LISTED ON THE AIM?
You will need to find an online broker that has direct access to the AIM. If
they do, you will be able to buy and sell AIM shares at the click of a button.
HOW DO SHARES WORK?
Selling shares helps companies to raise capital. These companies might use those
funds for research and development, or for new projects. A company will list its
stock on an exchange, such as the NASDAQ or London Stock Exchange through an
Initial Public Offering (IPO). Investors who buy shares of stock become
shareholders and are sometimes entitled to voting rights and dividends.
WHAT IS A DIVIDEND PER SHARE?
DPS or dividend per share is the total declared dividends distributed to
shareholders for all outstanding shares. You can calculate the DPS by dividing
the total dividends by the total outstanding shares issued.
HOW TO BUY IPO SHARES?
Top-tier online brokers such as TD Ameritrade, Fidelity, and Charles Schwab give
traders access to some IPOs. Once you meet the criteria for participating in an
initial public offering, you’ll need to request shares in the IPO. When the IPO
‘prices’ you’ll be given a deadline to place your stock order. You’ll only find
out if you were able to buy shares in the IPO after your order has been
executed.
HOW TO BUY SHARES ONLINE WITHOUT A BROKER?
You can buy shares online without a broker through direct investments. This
means you’ll be buying shares of stock directly from the publicly-listed
company. Big names including Coca-Cola and Walt Disney allow investors to trade
stocks in their businesses without using a third-party intermediary.
Disclaimer: Investing in shares involves significant risk of loss and is not
suitable for all investors. You should carefully consider your investment
objectives, level of experience, and risk appetite before making a decision to
buy shares. Most importantly, do not invest money you cannot afford to lose.
KANE PEPI
KANE PEPI
Kane Pepi is a British researcher and writer that specializes in finance,
financial crime, and blockchain technology. Now based in Malta, Kane writes for
a number of platforms in the online domain. In particular, Kane is skilled at
explaining complex financial subjects in a user-friendly manner. Academically,
Kane holds a Bachelor’s Degree in Finance, a Master’s Degree in Financial Crime,
and he is currently engaged in a Doctorate Degree researching the money
laundering threats of the blockchain economy. Kane is also behind peer-reviewed
publications - which includes an in-depth study into the relationship between
money laundering and UK bookmakers. You will also find Kane’s material at
websites such as MoneyCheck, the Motley Fool, InsideBitcoins, Blockonomi,
Learnbonds, and the Malta Association of Compliance Officers.
View all posts by Kane Pepi
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72% of retail investor accounts lose money when trading CFDs with this provider.
4
7
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74.5% of retail investor accounts lose money when trading CFDs with this
provider.
5
8.5
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76.22% of retail investor accounts lose money when trading CFDs with this
provider.
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