UK Online brokers: How Do They Work and What Are the Options?
Are you someone that is looking to improve your investment portfolio? Experts believe that buying the stock of UK companies like Royal Dutch Shell and Unilever is a promising way to grow your investments. If you have already made up your mind that you will be earmarking your funds for stock market trading, you will need to look for UK online brokers.
Choosing an online broker is as important as choosing the right stocks to invest in. The reason behind this is that every platform is different from the other. Some of the online brokers charge fees differently, some offer specialised services, yet others offer umbrella services in investment. In case you are wondering how UK online brokers work, we’ve got your back.
The Best UK Online Brokers
Every year, many investment gurus and advisors consider important variables that need to be assessed to determine which online trading platform is the best in the UK. The experts do not just follow their intuition but test trade on each platform for a minimum of 20 hours before rating them on the most crucial parameters. The most user-friendly, non-expensive and the most helpful are then deservedly chosen for the top honours.
What You Should Look For in an Online Broker in the UK
- Go for UK online brokers that have great research tools and tutorials on them. This will help you analyse your potential investments and also help you logically arrive at a decision.
- Choose an online banker that has a dedicated mobile or tablet PC application for share dealing. This will help you to stay in touch with your investments even if you are backpacking.
- If you are starting out, it is better to go with an online trading platform that has the lowest commission fees. Even if you make mistakes, it is easier for you to take them in your stride as a learning curve.
- The platform should grant you access to international markets and offers stocks, funds, investment trusts, warrants, options and forex amongst a host of other instruments and services.
Don’t Forget to Do Your Homework First
It is important that before you pick any of the UK online brokers, you must do your research on the internet and offline. Some of the variables that you must be looking for in a good trading platform are:
- Low commission or fees for stocks and other investments
- An efficient and fast platform that gives you access to copy trade
- Tools such as charts, diagrams, technical data graphs, and trade prediction indicators.
A word of caution
Make sure that you steer away from suspicious platforms that promise you a great trading experience but, in reality, are subpar and also have hidden fees and fine prints.
Here is how to buy stocks online in the UK
Step 1: Do your research to zero in on the UK broker you would like to open an account with.
Step 2: Fund the account and begin searching for the stocks that you want to buy.
Step 3: You may make use of the trading tools and market research and prediction tables on your trading platform.
Step 4: Choose the stock you want to invest in, fill out the order ticket and add the number of shares you would like to place your trade.
Step 5: That is it! As soon as your order gets confirmed, you would be the proud owner of your chosen number of stocks.
List of the Online Brokers Our Experts Recommend
IG will be taking the lead this year for those who are considering making their investments for the first time but don’t have much time to research their options. It is one of the best UK online brokers because its trading platform is just brilliant. It charges very reasonably, and the stock analysis tool on it is one of the best ever created. In addition, the platform is extremely user-friendly, meaning that investors don’t need to have prior knowledge of computers.
It allows its users to trade at 19 global stock exchanges and over ten thousand shares. It is one of the least expensive brokers currently offering SIPP (Self-Invested Personal Pension). SIPP is tax-efficient and greatly helps post-retirement. IG charges £8 if you have up to two trades in a month. If you trade any more than two, then the rate becomes £3 only!
Salient features of IG include:
- Seasoned investors know what they are looking at with amazing tools such as interactive brokers, pictorial graphs, and a big range of investments to choose from.
- Newbie traders benefit from low commissions and the best research tools so that they can learn the ropes of trading without burning their fingers.
With Sexo Markets you can invest in more than twenty thousand investment options across a whopping 35 global exchanges, and all of that remotely! Saxo’s trading platform called SaxoTraderGO is another one of the popular choices. The only downside that discourages more people is that it charges substantially more than any online broker today.
For seasoned investors, we present FinecoBank online broker. The price is low and has great deals for those who hate paying through their noses. It charges a bare minimum of three pounds for shares in the UK. However, there are no learning materials on its portals. There is nos graph to refer to, no analysis tools.
Other Platforms Worth Considering
Apart from the platforms mentioned above, there are other online brokers worth mentioning. These are:
- Hargreaves Lansdown
- eToro and
Online trading platforms come with great tools and investment opportunities. The best part about online brokers in the UK is that they are world-class and interactive. Traders who are low on investment experience can get a lot of information and insights from UK online brokers because of the research tools available on their platforms. The pricing is also not an issue because there are mostly low and fixed commission rates. Traders can choose anyone depending on their trade volume or frequency of trading.
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