Platforms for Trading UK Stocks

Shares are a popular investment vehicle in the UK, providing access to some of the world’s best-known companies and dynamic markets. Whatever your level of experience, choosing the right broker for UK share trading is crucial to your success. This article provides detailed information about the best brokers for trading UK shares, focusing on regulatory compliance, costs and the most common ways to gain exposure to the domestic stock market.

1Plus500

Score: ★ 4.2/5

81% of retail CFD accounts lose money

Top Rated

2eToro

Score: ★ 4.2/5

52% of retail investor accounts lose money

3ActivTrades

Score: ★ 3.9/5

72% of retail investor accounts lose money

4Pepperstone

Score: ★ 4.4/5

74.1% of retail investor accounts lose money

5Eightcap

Score: ★ 4/5

59.57% of retail investor accounts lose money when trading CFDs with this provider.

6IG

Score: ★ 3.9/5

70% of retail client accounts lose money when trading CFDs with this investment provider.

Below you can find more information about the best trading platforms for UK shares:

1. Plus500, an FCA-regulated firm, offers its clients access to a varied range of LSE-listed shares through CFDs, including shares in major UK companies such as Barclays, Rolls-Royce, Tesco and BP. Spreads vary by market (3.44 for Barclays, 3.95 points for Rolls-Royce, 2.82 for Tesco and 1.98 points for BP). Retail leverage is capped at 1:5.
2. Clients of eToro, another FCA-regulated broker, can gain exposure to the UK stock market by speculating on price movements through CFDs or investing directly in shares with no commission or custody fees. Purchasing LSE-listed shares incurs stamp duty reserve tax of 0.5% in line with regulatory requirements.
3. ActivTrades, an FCA-regulated broker, offers trading in over 1,000 share CFDs with no stamp duty, custody fees or account management charges. The broker quotes prices for shares in more than 120 UK companies, including Unilever, Vodafone, Rolls-Royce and AstraZeneca. Minimum contract sizes start at 0.01 lots, while the maximum varies by market.
4. Pepperstone, a broker that complies with FCA standards, offers spread betting and CFDs on more than a hundred UK shares across a range of industries and sectors, including energy, healthcare, real estate and communication services. The broker charges a 0.10% commission per side for UK shares.
5. Eightcap, an FCA-authorised broker, focuses on providing competitive trading conditions for a wide range of UK shares available as contracts for difference, with maximum retail leverage of 1:5. A 0.10% commission applies when trading share CFDs.
6. IG, an FCA-compliant broker, enables clients to speculate on or invest directly in over 11,000 shares, including those of hundreds of UK companies. UK clients can have their investments managed professionally through IG Smart Portfolios. Clients can also open a self-invested personal pension (SIPP), a Share Dealing account or an individual savings account (ISA).

By the end of this article, you will have a clear understanding of what to look for in a broker and how to navigate the UK stock market more effectively. Browse our shortlist of the best brokers for trading UK shares to find the best fit for your investment needs. We have tested all brokers on this page using live accounts to ensure our recommendations are accurate.

How We Choose the Best Brokers for UK Share Trading

Selecting the best brokers for trading UK shares requires a thorough evaluation of several factors. Our multi-faceted methodology ensures that we recommend brokers that are both reliable and suited to the needs of UK traders. Here are some of the key criteria we consider when assessing brokers.

• FCA Compliance: We prioritise brokers authorised by the Financial Conduct Authority (FCA), as regulatory compliance helps ensure appropriate investor protections, including eligibility for compensation of up to £85,000 per retail client under the Financial Services Compensation Scheme (FSCS).
• Share Trading Costs: We assess commissions, spreads and other fees to identify brokers that offer competitive pricing without compromising service quality. Low trading costs are crucial for maximising your returns and reducing your overall trading expenses in the long term.
• Range of UK Shares: A good broker should provide access to a wide selection of UK-listed shares, including FTSE 100 blue-chip constituents and Alternative Investment Market (AIM) growth companies. This diversity allows investors to build balanced portfolios across different levels of market capitalisation, from stable dividend payers to emerging innovators. The highest-quality trading platforms offer full London Stock Exchange coverage with UK-specific research tools.
• Trading Platforms: Intuitive, feature-rich platforms with advanced tools for market analysis and order execution are important for successful share trading. A robust platform enhances your share trading experience by offering real-time data, charting tools and smooth order execution.
• Payment Methods: Access to flexible deposit and withdrawal options such as bank transfers, cards and digital wallets such as PayPal is equally important. Brokers that support multiple payment methods make it easier for UK traders to fund their accounts and access their funds quickly. Each broker recommended on this page offers sterling-denominated accounts.
• Customer Support: Responsive and knowledgeable customer service is crucial for resolving any issues quickly. Whether through live chat, email or phone, reliable customer support helps minimise potential disruptions to your trading.
• Consumer Feedback: We consider consumer reviews and ratings on Trustpilot to gauge overall client satisfaction with each broker. This gives us valuable insights into the trading experience each broker provides.

Share Trading Regulations in the UK

Share trading in the UK is regulated by the Financial Conduct Authority (FCA), which oversees market integrity and investor protection. The UK Market Abuse Regulation (MAR) and the Financial Services and Markets Act 2023 (FSMA) form the country’s core regulatory framework. MAR, in particular, aims to prevent insider trading and other forms of market manipulation. While the UK initially retained MiFID rules after Brexit, it has since diverged with its own regulatory framework under the FCA Handbook.

The core principles of transparency and best execution remain, but there are several differences, including reporting directly to the FCA rather than the European Securities and Markets Authority (ESMA). The FCA also maintains its own tick-size regime for shares traded on UK venues, which determines minimum price increments, for example 0.1p for shares priced below £1 and 0.5p for shares valued between £1 and £5. These differ from EU rules, with the UK allowing tighter spreads for certain liquid FTSE shares to improve market efficiency.

Short selling is permitted but tightly controlled. Brokers must report significant short positions (0.5% or more of issued share capital) to the FCA. Temporary bans may apply during extreme volatility, as seen during the 2020 pandemic. Insider trading is illegal under UK MAR, with penalties including fines and imprisonment. Public companies must publish an FCA-approved prospectus before listing, detailing their financial information, risks and business models. This aligns with the UK Prospectus Regulation, which replaced the EU version after Brexit.

LSE Listing Requirements

Companies looking to go public on the London Stock Exchange (LSE) must meet strict eligibility criteria. Key requirements include a minimum market capitalisation of £700,000 for the AIM market or £30 million for the Main Market. To provide greater flexibility for growing businesses, the free-float requirement has been reduced from 25% to 10%, allowing companies to raise capital with less dilution while maintaining market liquidity. If a company’s free float falls below this threshold, the FCA will require a plan to restore compliance.

The FCA also imposes strict requirements on brokers, including client money segregation under CASS rules and a £730,000 minimum capital requirement. Eligible investors are protected by the Financial Services Compensation Scheme (FSCS), which covers up to £85,000 per individual in the event of broker insolvency.

Where Are UK Shares Traded?

The London Stock Exchange (LSE) is the dominant share trading venue in the UK and hosts one of the world’s most liquid equity markets, with listings worth over £3.7 trillion in mid-2024. This large marketplace serves both blue-chip companies and emerging firms looking to raise capital and enhance their market profile. In late 2024, UK investors executed an average of 568,000 daily trades across the LSE platforms, demonstrating the exchange’s central role in global finance.

While its relative market share has decreased with the rise of electronic platforms, the LSE remains the primary marketplace for institutional investors due to its deep liquidity and robust regulatory framework. Its electronic trading platform, Turquoise, now executes a significant proportion of UK equity trades, offering efficient order matching and competitive pricing. Many professional traders prefer Turquoise for its speed and reliability when dealing with large volumes.

Biggest UK Stocks to Trade

The London Stock Exchange hosts some of the world’s most prominent companies, providing investors with a range of opportunities across key sectors. Established FTSE 100 constituents such as AstraZeneca, Shell and HSBC typically combine stability with consistent performance. Here are five actively traded LSE-listed shares to watch in 2025. They combine scale, sector dominance and financial transparency, making them core holdings in many portfolios.

• AstraZeneca (AZN) leads the global pharmaceutical sector and develops innovative treatments across oncology and biopharmaceuticals. The company’s strong pipeline and international presence are particularly appealing to growth-focused investors.
• Shell (SHEL) ranks among the world’s leading energy companies, maintaining substantial operations across oil, gas and renewable energy. The firm attracts investors seeking passive income through reliable dividends as well as those focused on the evolving renewable energy sector.
• HSBC (HSBA) is one of the largest banking institutions in the UK, expanding its reach across Asia and Europe. The group’s global presence and comprehensive financial services make it a core holding in many portfolios.
• Unilever (ULVR) is a global leader in consumer staples, with well-known brands such as Dove, Ben & Jerry’s and Hellmann’s. Its recession-resistant business model and reliable dividend yield make the London-based manufacturer of packaged goods a favourite among defensive investors seeking stable returns.
• RELX (REL) has emerged as a leader in information analytics and professional publishing. Its transition to digital solutions continues to drive growth, making it a popular option among technology-focused investors.

Costs Associated with Buying UK Shares

Trading UK shares involves various costs that can significantly affect your overall returns. For high-frequency traders and long-term investors alike, understanding a broker’s pricing structure is crucial for making informed decisions and optimising your strategy. In this section, we break down the most common costs associated with buying and holding UK shares to help you choose a broker that suits your personal financial goals.

• Commissions are charged by brokers for executing trades and can vary significantly depending on where you trade and the type of account you have. Some brokers charge a flat commission per trade, while others charge a percentage of the trade value. Compare different commission structures to minimise costs, especially if you trade frequently.
• Spreads are the difference between the bid and offer prices of shares. Wider spreads can reduce your profits, especially if you are a high-frequency trader. Brokers with tighter spreads generally offer better value, as they reduce the cost of entering and exiting positions. Spreads are typically associated with CFD trading rather than direct share purchases.
• Overnight financing charges apply when you trade share CFDs and hold positions beyond the trading day. These charges are based on interest-rate differentials and can add up over time, making them an important consideration for CFD traders.
• Custody fees are charged for holding shares in your account over the long term. These charges are typically calculated as a percentage of the value of your shares and can vary depending on the broker. If you are a buy-and-hold investor, look for brokers with low or no custody fees.
• Dividend fees are deducted by some brokers before crediting dividends to client accounts. If you rely on dividend income as part of your investment strategy, check for these charges, as rates vary between brokers.
• Inactivity fees are charged by some brokers when client accounts remain dormant for extended periods, usually 6 to 12 months. These charges aim to encourage regular trading but can be a drawback for occasional traders or long-term investors. Check the broker’s inactivity policy before opening an account.
• Market data fees: Access to real-time market data, such as share prices and trading volumes, may incur additional costs. While some brokers include this in their service, others charge a separate fee. If you rely on real-time data for your trading decisions, factor this into your assessment of overall costs.

Brokers Offering Regular Investment Plans for UK Shares

Also known as “regular investment plans”, share savings plans provide a simple way to build long-term wealth by investing regularly in UK-listed shares. They allow you to invest fixed amounts at set intervals, often with lower fees than standard share trading. These plans may suit investors who want to reduce the impact of market volatility through pound-cost averaging, the practice of buying more shares when prices fall and fewer when they rise.

Many major brokers in the UK offer this option, allowing investments in FTSE 100 shares such as AstraZeneca, Unilever or HSBC. Purchasing fractional shares is often an option. Clients can choose the investment amount, frequency (monthly or quarterly) and selection of shares. Some brokers waive their fees for savings plan transactions, making them cost-effective for both new and experienced investors.

Example of Investing in AstraZeneca (AZN) via a Savings Plan

Suppose you invest £150 monthly in AstraZeneca, a leading UK pharmaceutical company.

• Month 1: AZN trades at £100 per share and you buy 1.5 shares
• Month 2: The price falls to £90 per share and you buy 1.67 shares
• Month 3: The price rises to £110 per share and you buy 1.36 shares

After three months, you have 4.53 shares in your portfolio at an average cost of £99.34 per share (£450 invested in total divided by 4.53 shares). This shows how pound-cost averaging reduces the impact of short-term price swings. This disciplined approach may help you gradually build meaningful holdings in quality UK companies while managing risk.

Advantages of Regular Investment Plans

Regular investment plans offer practical advantages for UK investors building portfolios over time. Their automated nature allows investors to set up recurring share purchases once and then benefit from consistent market participation without ongoing effort. Many plans accommodate modest starting amounts, often as little as £25 per month. This makes them accessible, allowing investors to increase their contributions as their confidence grows. A key benefit is their compatibility with tax-efficient wrappers such as stocks & shares ISAs, which shield gains from capital gains tax and dividends from income tax.

This combination of automation, affordability and tax efficiency makes these plans particularly valuable for investors targeting FTSE 100 or FTSE 250 companies through a disciplined, long-term approach.

Brokers Offering UK Penny Stocks

Penny stocks are typically priced below £1 per share and are shares in small-cap companies often listed on the London Stock Exchange’s AIM market or traded over-the-counter (OTC).

While their low price and high volatility can lead to rapid gains, they also carry significant risks due to low trading volumes and limited public information. The listing requirements for these shares are significantly less stringent than those for FTSE 100 blue-chip companies trading on the LSE Main Market.

How Trading Penny Stocks Works

Here is a hypothetical example showing how trading a penny stock works in practice. Let’s assume you want to invest in Bradda Head Lithium (BHL), an AIM-listed mining company whose shares trade at £0.05 each. The example illustrates both the potential for high returns and liquidity risks of penny stock trading, as you may struggle to sell large positions quickly.

• You invest £100 to buy 2,000 shares in BHL.
• If the price rises to £0.08, your holding grows to £160 (+60%).
• If it falls to £0.02, your investment drops to £40 (-60%).

The potential for quick returns is clear, but selling at your target price may not always be possible due to low liquidity. The table below compares penny stocks and blue-chip shares to help you understand their differences.

Other Ways to Gain Exposure to the UK Stock Market

Buying company shares directly is not the only way to participate in the UK stock market. Other financial instruments can also help you gain market exposure, each with its own characteristics, risk profile and profit potential. Choose the alternatives that best suit your goals, risk tolerance and understanding of the market.

• Share CFDs: CFDs allow speculation on price movements without owning the underlying shares. You agree with your broker to exchange the difference in price. CFDs give you access to leverage, which can also magnify your potential losses.
• Equity ETFs: ETFs track a specific index or basket of UK shares, providing more diversified exposure.
• Share Options: Options give you the right, but not the obligation, to buy (call) or sell (put) a share at a set price by a certain date. They are complex instruments whose value is affected by time decay.
• Share Futures: Futures contracts oblige you to buy or sell shares at a predetermined price on a specified date. Traded on exchanges, they are commonly used for hedging or speculation.
• Share Forwards: These are similar to futures but are negotiated directly between parties (over-the-counter), making them less liquid.

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