Intro and winners
Find below the strengths of the best discount brokers in the United Kingdom, updated for 2024:
- XTB is the best discount broker in the United Kingdom in 2024. - Commission-free stocks and ETFs (for trades up to €100k per month). Free and fast deposit and withdrawal. Easy and fast account opening. High interest paid on cash.
- Interactive Brokers - Low trading fees and high interest on cash balances. Wide range of products. Many great research tools.
- eToro - Free stock and ETF trading. Seamless account opening. Social trading.
- Saxo Bank - Great trading platform. Outstanding research. Broad product portfolio. Interest paid on uninvested cash.
- Freetrade - Free stock and ETF trading. Easy and fast account opening. Great mobile trading platform.
- TradeStation Global - Low stock and ETF fees. Wide range of products. Easy-to-use web trading platform.
- Webull - Free stock/ETF trading and high 5% interest on uninvested cash. Fast and easy account opening. Great trading platforms.
- tastytrade - Low trading fees. Great educational materials. Good research tools.
- Firstrade - Free stock, ETF, fund and options trading. Solid research tools. Quality educational tools.
- Alpaca Trading - Great API trading service. Free stock & ETF trading. Fantastic charting tools.
- Intro and winners
- Overview of the best discount brokers
- Fees at the top 10 discount brokers for UK citizens in 2024
- Available assets at the top 10 discount brokers for UK citizens in 2024
- XTB
- Interactive Brokers
- eToro
- Saxo Bank
- Freetrade
- TradeStation Global
- Webull
- tastytrade
- Firstrade
- Alpaca Trading
- Didn't find the best broker for you?
- How did we select the best discount brokers in 2024 for citizens in the United Kingdom?
- FAQ
Overview of the best discount brokers
While many brokers with low fees offer an excellent service, the ones in our toplist go the extra mile.
Broker | Fees class | Minimum deposit |
---|---|---|
XTB | Low | $0 |
Interactive Brokers | Low | $0 |
eToro | Low | $10 |
Saxo Bank | Average | $0 |
Freetrade | Low | $0 |
TradeStation Global | Low | $0 |
Webull | Low | $0 |
tastytrade | Low | $0 |
Firstrade | Low | $0 |
Alpaca Trading | Low | $0 |
Popularity of the best discount brokers in the United Kingdom
Interested in what others think? Here's how many people chose these brokers at BrokerChooser in the last 6 months.
Fees at the top 10 discount brokers for UK citizens in 2024
What makes a good discount broker? Well, did we mention low fees? This includes commissions, financing rates, and, let's not forget, non-trading fees like inactivity or withdrawal fees. The tables below give you a good summary.
Broker | US stock | UK stock |
---|---|---|
XTB | $0.0 | $0.0 |
Interactive Brokers | $1.0 | $3.8 |
eToro | $0.0 | $0.0 |
Saxo Bank | $1.6 | $3.8 |
Freetrade | $0.0 | $0.0 |
TradeStation Global | $1.5 | $2.0 |
Webull | $0.0 | - |
tastytrade | $0.0 | - |
Firstrade | $0.0 | - |
Alpaca Trading | $0.0 | - |
Broker | Account fee | Inactivity fee |
---|---|---|
XTB | ||
Interactive Brokers | ||
eToro | ||
Saxo Bank | ||
Freetrade | ||
TradeStation Global | ||
Webull | ||
tastytrade | ||
Firstrade | ||
Alpaca Trading |
Available assets at the top 10 discount brokers for UK citizens in 2024
Besides low trading fees and non-trading fees, a good discount brokerage firm should also offer access to a lot of markets and products, because providing low fees in more than one asset class is not an easy job. All brokers in our list offer real stocks, but we also looked into whether you can trade currencies, options or mutual funds.
Broker | Stocks | ETFs |
---|---|---|
XTB | ||
Interactive Brokers | ||
eToro | ||
Saxo Bank | ||
Freetrade | ||
TradeStation Global | ||
Webull | ||
tastytrade | ||
Firstrade | ||
Alpaca Trading |
And now, let's see the best discount brokers in detail one by one, starting with the winner, XTB.
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76-85% of retail CFD accounts lose money
XTB snapshot | |
---|---|
Recommended for | Forex and CFD traders looking for low fees and great deposit/withdrawal service |
Trading fee class | Low |
Fractional share dealing | Yes |
OTC share dealing | No |
Minimum deposit | $0 |
Inactivity fee | Yes |
Easiness of account opening | 5.0 stars |
Read review | For a detailed analysis of XTB services, check out our review for 2024 |
Interactive Brokers snapshot | |
---|---|
Recommended for | Traders looking for broad market access and a professional trading environment |
Trading fee class | Low |
Fractional share dealing | Yes |
OTC share dealing | Yes |
Minimum deposit | $0 |
Inactivity fee | No |
Easiness of account opening | 3.1 stars |
Read review | For a detailed analysis of Interactive Brokers services, check out our review for 2024 |
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Your capital is at risk. Other fees apply. For more information, visit eToro.
eToro snapshot | |
---|---|
Recommended for | Traders interested in social trading (i.e. copying other investors’ trades) and zero-commission stock trading |
Trading fee class | Low |
Fractional share dealing | Yes |
OTC share dealing | No |
Minimum deposit | $10 |
Inactivity fee | Yes |
Easiness of account opening | 5.0 stars |
Read review | For a detailed analysis of eToro services, check out our review for 2024 |
Saxo Bank snapshot | |
---|---|
Recommended for | Investors and traders looking for a great trading platform and solid research |
Trading fee class | Average |
Fractional share dealing | No |
OTC share dealing | Yes |
Minimum deposit | $0 |
Inactivity fee | No |
Easiness of account opening | 5.0 stars |
Read review | For a detailed analysis of Saxo Bank services, check out our review for 2024 |
Freetrade snapshot | |
---|---|
Recommended for | Long-term investors on the hunt for low fees and focusing on the UK and US markets |
Trading fee class | Low |
Fractional share dealing | Yes |
OTC share dealing | No |
Minimum deposit | $0 |
Inactivity fee | No |
Easiness of account opening | 5.0 stars |
Read review | For a detailed analysis of Freetrade services, check out our review for 2024 |
TradeStation Global snapshot | |
---|---|
Recommended for | Traders and investors looking for low fees and a wide selection of products |
Trading fee class | Low |
Fractional share dealing | Yes |
OTC share dealing | Yes |
Minimum deposit | $0 |
Inactivity fee | No |
Easiness of account opening | 3.8 stars |
Read review | For a detailed analysis of TradeStation Global services, check out our review for 2024 |
Webull snapshot | |
---|---|
Recommended for | Investors and traders looking for zero-commission trading and easy platforms |
Trading fee class | Low |
Fractional share dealing | Yes |
OTC share dealing | Yes |
Minimum deposit | $0 |
Inactivity fee | No |
Easiness of account opening | 5.0 stars |
Read review | For a detailed analysis of Webull services, check out our review for 2024 |
tastytrade snapshot | |
---|---|
Recommended for | Options and futures traders focusing on US markets |
Trading fee class | Low |
Fractional share dealing | Yes |
OTC share dealing | No |
Minimum deposit | $0 |
Inactivity fee | No |
Easiness of account opening | 5.0 stars |
Read review | For a detailed analysis of tastytrade services, check out our review for 2024 |
Firstrade snapshot | |
---|---|
Recommended for | Beginners and investors looking for zero-commission trading, focusing on the US market |
Trading fee class | Low |
Fractional share dealing | Yes |
OTC share dealing | Yes |
Minimum deposit | $0 |
Inactivity fee | No |
Easiness of account opening | 4.4 stars |
Read review | For a detailed analysis of Firstrade services, check out our review for 2024 |
Alpaca Trading snapshot | |
---|---|
Recommended for | Traders interested in algorithmic stock trading |
Trading fee class | Low |
Fractional share dealing | Yes |
OTC share dealing | No |
Minimum deposit | $0 |
Inactivity fee | No |
Easiness of account opening | 5.0 stars |
Read review | For a detailed analysis of Alpaca Trading services, check out our review for 2024 |
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How did we select the best discount brokers in 2024 for citizens in the United Kingdom?
A great broker with low fees is the backbone of many trading strategies.
- So we checked trading fees, with a special focus on stock and ETF fees,
- We scrutinized non-trading fees (e.g. inactivity fees and withdrawal fees),
- We took measure of their investment product selection,
- We opened an account and tested their services with our own money.
Save hours of research!
Our expert team has done all the work for you, and reviewed brokers based on BrokerChooser's unique methodology.
FAQ
The main authority in the UK overseeing financial markets is the Financial Conduct Authority (FCA). The FCA is a globally recognised authority and is widely considered a top-tier regulator. Brokers that operate under FCA surveillance are very trustable. If a UK resident opens an account at a broker that operates under the FCA, their account will be held under the FCA entity. The brokers we recommend for UK residents are mostly regulated by the FCA.
Brokers that accept UK clients must be either authorized or regulated by the FCA. This will protect you from ending up with a scam broker. You can check whether your broker is registered with the FCA by entering the registration number of the broker in question (you will find it at the bottom of the broker's website) on the FCA website.
UK residents are entitled to investor protection under a system operated by the Financial Services Compensation Scheme (FSCS). The current investor protection amount is £85,000 per person. This means that if your broker becomes insolvent, the FSCS will pay up to £85,000 to any customers of the firm who have lost money as a result. The FSCS also provides compensation for other types of investments, such as insurance policies.
BrokerChooser only recommends regulated brokers, so you can be sure that there is regulatory oversight checking these financial service providers. In 2019, the FCA introduced measures to protect retail investors, including negative balance protection. The measures mean that you cannot lose more funds than you have on your account.
How much tax do I pay on trading in the UK?
There are several types of tax you need to consider when trading or investing in the United Kingdom. Profits from trading are taxed as capital gains in the UK. Capital gains up to an annual limit of £6,000 (as of the 2023/24 tax year) are tax free. If the profit you make when you sell your shares or any other assets (i.e. forex, crypto, CFD) exceeds this threshold, you will need to pay capital gains tax.
The capital gains tax rate you have to pay will depend on which income tax bracket you belong to. The capital gains tax is 10% for those in the basic-rate income tax bracket and 20% for those in the higher-rate bracket.
If you are trading in shares or other securities, you may be liable to pay stamp duty on certain transactions. The rate of stamp duty on shares is currently set at 0.5%. You pay stamp duty at 1.5% if you transfer shares into some depositary receipt schemes or clearance services, when the shares are transferred to a service operated by a third party such as a bank.
Keep in mind that if you have an Individial Savings Account (ISA) or Self-invested personal pension (SIPP) account, the rules are different. You don’t need to pay income tax, tax on dividends or capital gains tax on the investments within your stocks and shares ISA. Also, your money grows free from dividend tax, capital gains tax and income tax in a SIPP account. Investments held outside of a tax wrapper such as a SIPP or ISA account are subject to dividend tax.
What is a discount broker?
A discount stock broker is a brokerage company that executes your buy and sell orders at a low trading fee. Discount brokers can afford to charge lower fees because, unlike full-service brokers, they usually don't provide extra services such as research, personal investment advice, tax planning or robo-advisory.
The difference between full-service brokers and discount brokers has blurred somewhat in recent years. Discount brokers started to offer extra services as well, like research; while full-service brokers started to lower their fees. The traditional brokerage and wealth management industry is under fee pressure from increasingly cost-effective online broker companies.
Many US brokers have slashed their fees to zero and now promote commission-free trading, following in the footsteps of brokers such as Robinhood. Drawbacks for some of these commission-free brokers include the limited number of assets you can trade (for example, mutual funds are less likely to be offered), so some investors and traders still prefer traditional discount brokers, where order execution also tends to be better compared with zero-commission brokers.
Are these brokers reliable?
These brokers are all considered reliable. They are regulated by at least one top-tier financial authority. We at BrokerChooser distinguish between mid-tier and top-tier regulators, based on various factors with the most important being the investor protection amount.
Still unsure? Check out our broker finder tool and find the best broker for you, or learn more about how to invest your money.