Platforms for Trading UK Stocks

Stocks are a popular investment vehicle here in the UK, providing access to some of the world’s most renowned companies and dynamic markets. Regardless of your experience level, choosing the right UK-friendly broker is crucial for your success as a stock trader. This article provides in-depth 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: ★ 4.1/5

82% of retail CFD accounts lose money

Top Rated

2eToro

Score: ★ 4.2/5

61% of retail investor accounts lose money

3ActivTrades

Score: ★ 4.5/5

75% of retail investor accounts lose money

4Pepperstone

Score: ★ 4.4/5

75.5% of retail investor accounts lose money

5Eightcap

Score: ★ 4.2/5

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

6IG

Score: ★ 3.9/5

69% 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 Stocks:

1. Plus500, an FCA-regulated firm, offers its customers access to a varied range of LSE-listed stocks through CFDs, including shares of major British companies like Barclays, Rolls-Royce, Tesco, and BP. Spreads are market-specific (3.44 for Barclays, 3.95 pt for Rolls-Royce, 2.82 for Tesco, and 1.98 pt for BP). Maximum retail leverage is capped at 1:5.
2. Customers of eToro, another FCA-approved broker, can gain exposure to the UK stock market by speculating on price movements through CFDs or directly investing in shares with zero commissions and no custody fees. Purchasing LSE-listed shares comes with a 0.5% stamp duty reserve tax as per regulatory requirements.
3. ActivTrades, an FCA-certified broker, enables trading in over 1,000 stock CFDs with zero stamp duty taxes, custody fees, or account management charges. The broker quotes prices for the shares of over 120 UK companies, including Unilever, Vodafone, Rolls-Royce, and AstraZeneca. Minimum contracts start from 0.01 lots but the maximum is market-specific.
4. Pepperstone, a brokerage compliant with FCA standards, offers spread betting and CFDs on more than a hundred UK shares across different industries and sectors, including energies, healthcare, real estate, communication services, and more. The broker charges a 0.10% commission per side for UK shares.
5. Eightcap, a broker licensed by the FCA, focuses on delivering competitive trading conditions for a wide range of UK stocks tradable through contracts for difference with maximum retail leverage of 1:5. A 0.10% commission is in place when trading share CFDs.
6. IG, an FCA-compliant brand, enables speculation and direct investing in over 11,000 stocks, including shares of hundreds of UK companies. UK customers can have their investments managed by skilled experts via IG Smart Portfolios. SIPP (Self-Invested Personal Pension), Share Dealing, and ISA (Individual Savings Account) accounts are also available.

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 stocks 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 on point.

How We Choose the Best Brokers for UK Stock Trading

Selecting the best brokers for trading UK stocks requires thoroughly evaluating multiple factors. Our multi-faceted methodology ensures that we recommend brokers that are not only reliable but also tailored to the unique needs of UK traders. Here are some of the key criteria we consider during our broker assessment process.

• FCA Compliance: We prioritise brokers licensed by the UK Financial Conduct Authority (FCA) as high regulatory compliance guarantees access to adequate investor protections, including eligibility for compensation of up to £85,000 per retail client under the local Financial Services Compensation Scheme (FSCS).
• Stock Trading Costs: We assess commissions, spreads, and other fees to identify brokers that offer competitive pricing without compromising their service quality. Low trading costs are crucial for maximising your returns and reducing your overall trading expenses in the long term.
• Range of Domestic Stocks: 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 sites 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 essential for any successful stock trader. A robust platform will enhance your stock trading experience by offering real-time data, charting tools, and seamless order execution.
• Payment Methods: Having access to flexible deposit and withdrawal options such as bank transfers, cards, and digital wallets like PayPal is equally important. Brokers that support multiple payment methods make it easier for UK traders to fund their accounts and access their balances quickly. Each broker recommended on this page offers sterling-denominated accounts.
• Customer Support: Responsive and knowledgeable customer service is crucial for resolving any ensuing issues quickly. Whether through live chat, email, or phone, reliable customer support helps minimise potential disruptions to your trading activity.
• Consumer Feedback: We consider consumer reviews and ratings on Trustpilot to gauge the overall client satisfaction level of each broker. This enables us to gain valuable insights into the trading experience each broker provides.

Stock Trading Regulations in the UK

Stock trading in the UK is regulated by the Financial Conduct Authority (FCA), which ensures market integrity and investor protection. The UK Market Abuse Regulation (MAR) and the Financial Services and Markets Act 2023 (FSMA) form the core regulatory framework in the country. 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 with several differences, including reporting directly to the FCA rather than ESMA (European Securities and Markets Authority). Also, the FCA maintains its own tick size regime for shares traded on UK venues, which determines the minimum price increments, for example, 0.1p for stocks under £1 and 0.5p for stocks valued at £1 to £5. These differ from EU rules, with the UK allowing tighter spreads for certain liquid FTSE stocks to improve market efficiency.

Short selling is permitted but tightly controlled. Brokers must report significant short positions (0.5%+ 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 post-Brexit.

LSE Stock Exchange Listing Requirements

Companies looking to go public on the London Stock Exchange (LSE) must meet strict eligibility criteria. Key requirements include having 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 still maintaining market liquidity. Should a company’s free float fall below this threshold, the FCA will require a compliance restoration plan.

As for brokers, the FCA requires them to adhere to strict requirements, including client money segregation under CASS rules and a £730,000 minimum capital requirement. Investors are safeguarded by the Financial Services Compensation Scheme (FSCS), which covers up to £85,000 per individual in the event of broker insolvency.

Where Are UK Stocks Traded?

The London Stock Exchange (LSE) is the dominant stock 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 vast marketplace serves both blue-chip companies and emerging firms looking to raise capital and enhance their market profile. In late 2024, local 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 continues to serve as the primary marketplace for institutional investors due to its deep liquidity and robust regulatory framework. Its electronic trading platform, Turquoise, now executes a significant portion 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 diverse opportunities across key sectors. Established FTSE 100 constituents like AstraZeneca, Shell, and HSBC typically combine stability with consistent performance. Here are five actively traded LSE-listed shares to keep an eye on in 2025. They combine scale, sector dominance, and financial transparency, which makes them cornerstone holdings for 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 top energy companies, maintaining robust operations across oil, gas, and renewable energies. The firm attracts investors seeking to earn passively 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 footprint and comprehensive financial services make it a core holding for many portfolios.
• Unilever (ULVR) stands as a global leader in consumer staples, housing iconic brands like 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 tech-oriented investors.

Costs Associated with Buying UK Stocks

Trading UK stocks involves various costs that can significantly impact your overall returns. Whether you are a high-frequency trader or a long-term investor, 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 stocks to help you choose a broker that aligns with 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 offer flat commissions per trade, while others charge a percentage of the trade value. It is important to compare different commission structures to minimise costs, especially if you trade frequently.
• Spreads are the difference between the bid and ask prices of stocks and can eat into your profits when wider, 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, not direct stock purchases.
• Overnight funding fees are in place when you trade stock CFDs and hold open positions beyond the trading day. These fees are based on interest rate differentials and can add up over time, which makes them an important consideration for CFD traders.
• Custody fees are charged for holding stocks in your account over the long term. These charges are typically calculated as a percentage of the stock’s value 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 customer accounts. If you rely on dividend income as part of your investment strategy, you should definitely check for these expenses as the rates vary across brokers.
• Inactivity fees are charged by some brokers when customer accounts remain dormant for extended periods, usually 6 to 12 months. These charges aim to encourage regular trading but can be a drawback for casual or long-term investors. Be sure to check the broker’s inactivity policy before opening an account.
• Market data fees: Access to real-time market data, such as stock 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 the analysis of your overall costs.

Brokers Offering UK Stock Savings Plans

Also known as “regular investment plans”, stock 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 are ideal for investors who want to mitigate market volatility through pound-cost averaging, the practice of buying more shares when prices dip and fewer when they rise.

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

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

Suppose you invest £150 monthly in AstraZeneca, the 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 total invested 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 accumulate meaningful holdings in quality UK companies while managing risk.

Advantages of Regular Investment Plans

Stock savings plans offer practical advantages for UK investors building portfolios over time. Their automated nature lets investors set up recurring stock 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 renders them accessible, allowing investors to increase their contributions as their confidence grows.A key benefit is their compatibility with tax-efficient wrappers like Stocks & Shares ISAs, which shield gains and dividends from capital gains and 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 under £1 per share and represent 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 stocks are significantly less stringent than those for FTSE 100 blue-chip companies trading in the LSE Main Market.

How Trading Penny Stocks Works

Here is a hypothetical example demonstrating how trading penny stock works in practice. Let’s assume you want to invest in Bradda Head Lithium (BHL), an AIM-listed mining stock trading at £0.05/share. The example illustrates both the high-reward potential 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 evident, but it is also important to remember that selling at your target price might not always be possible due to low liquidity. The table below compares penny stocks and standard stocks to help you understand their differences.

Other Ways to Gain Exposure to the UK Stock Market

Directly purchasing company shares is not the only avenue for participating in the UK stock market. Other financial instruments can also help you gain market exposure, each having unique characteristics, risk profile, and profit potential. Choose the alternatives that best align with your goals, risk tolerance, and market understanding.

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

FAQs