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 2022. 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.
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.
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.
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.
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.
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’.
- 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.
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, you have to take share fluctuations, inflation, and fees into account, but if done right, compound interest can be one of the best ways to grow your wealth via shares.
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 $10. 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.
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:
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.
- 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/credit 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||VISA, MasterCard, Bank Transfer, PayPal, Skrill, Neteller||£50|
|Capital.com||VISA, MasterCard, Bank Transfer, Trustly, Apple Pay||£20|
|Libertex||VISA, MasterCard, Bank Transfer, PayPal, iDeal, Sofort, Neteller||€100 (£85)|
|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|
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.
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|
|Capital.com||Free||N/A||N/A (GBP deposits accepted)|
|Alvexo||Tight Spreads||N/A||N/A (GBP deposits accepted)|
|Libertex||Variable Commission (based on volume)||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|
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 UK debit cards/credit cards and bank accounts, and the ability to buy and sell shares in domestic and international companies.
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 – 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.
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.
In terms of getting started, the platform allows you to deposit funds with a UK debit/credit card, bank account, or e-wallet – albeit, you will need to meet a $10 minimum. 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.
|Inactivity fee||$10 per month after 12 months of no login activity|
|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|
68% of retail investors lose money trading CFDs at this site.
Alvexo is a fully regulated trading platform that lets you buy and sell CFDs on 450+ tradable assets including forex, stocks, commodities, and indices.
When picking a trading platform to buy and sell stocks and other financial securities you need to review several key metrics. What fees will I be expected to pay? How many account types are there? If I buy and hold stocks, will there be any overnight fees and inactivity fees to deal with? All these are important questions that beginner traders need to consider.
Firstly, it’s important to note here that Alvexo is a CFD broker. As such you will be speculating on the price movements of the underlying assets and will therefore not take ownership of any securities. With that said, if you open an Alvexo Classic account you can expect to trade CFDs with average spreads starting from 2.9 pips and leverage up to 30:1. Furthermore, Alvexo doesn’t charge a commission when you trade CFDs. There are overnight fees to pay if you keep CFD positions open after the markets close. These swap fees are based on rates given by the broker’s liquidity provider and therefore differ depending on the type of asset you choose.
As for non-trading fees, there is a minimum deposit of €250 and for some payment methods, there are some transaction fees. As we’ve already mentioned, the swap fees are charged on all open trades that are left overnight for each business day the position remains open. Also, if your account remains inactive for three consecutive months you will be charged a monthly maintenance fee of 10 units of the account currency.
Alvexo provides access to four different accounts. The most basic is the Classic account and this has a minimum account size of 500 EUR with spreads starting at 2.9 pips. For a Prime account, the minimum account size is 50,000 EUR and spreads start from 1.8 pips. You’ll also find that the range of CFD instruments also varies depending on the account type.
Avid forex traders will be pleased to learn that Alvexo supports MetaTrader 4. If you’re just starting out in the world of CFD trading then the Alvexo WebTrader and Mobile app are great alternatives. You’ll also find heaps of educational resources under the Alvexo Plus tab on the main website.
Finally, as it’s headquartered in Limassol Cyprus, Alvexo is heavily regulated by the Cyprus Securities and Exchange Commission (CySEC). In terms of customer service, you can contact support via email or telephone with multilingual representatives on hand to deal with your questions or issues. For a more detailed analysis, read our in-depth Alvexo review.
|Inactivity fee||€10 per month after 3 months|
|Stock Markets||Hundreds of shares from the US and Europe|
|Tradable assets||Stock CFDs, Forex, Indices, Commodities, Cryptocurrencies|
|Available Trading Platforms||Mobile Apps, Web Platform, MetaTrader 4|
71.81 % of retail investor accounts lose money when trading CFDs with this provider.
Capital.com is a CFD broker that offers trading on more than 3,000 shares from the US, UK, and Europe. That huge selection of shares can be traded with leverage up to 5:1, and Capital.com makes it easy to go long or short on any company.
Trading with Capital.com is 100% commission-free and the platform charges some of the lowest spreads we’ve seen in the UK. There’s no deposit fee, no withdrawal fee, and no inactivity fee, so you won’t be hit with surprise charges in your account.
Capital.com also has a huge variety of assets to trade beyond just stock CFDs. You can trade over 140 currency pairs, 84 cryptocurrencies, and dozens of commodities, ETFs, and stock indices.
A big part of what sets Capital.com apart is its custom trading platform, which is available for the web and mobile devices. You have access to dozens of technical indicators and highly user-friendly charts. Capital.com also supports integration with TradingView, which gives you the power to create custom indicators to analyse price movements. Even better, Capital.com’s platform leverages AI to track patterns in your trades and suggest ways that you can improve your win rate.
For new traders, this broker offers a wealth of educational resources. You’ll find dozens of videos and tutorials that walk you through the essentials of CFD trading and explain popular trading strategies. The platform even has a dedicated mobile app for education, which comes with quizzes so you can test your trading knowledge.
Capital.com is regulated by the FCA and CySEC (the Cyprus Securities and Exchange Commission). The brokerage offers 24/7 customer support by phone, email, and live chat, so it’s easy to resolve any issues you may run into with your account. It only takes a £20 deposit to open an account with Capital.com and you can deposit funds by credit card, debit card, or bank transfer.
|Stock Markets||Over 3,000 shares from the US, UK, and Europe|
|Tradable assets||Stock CFDs, over 140 currency pairs, 84 cryptocurrencies, and dozens of commodities, ETFs, and stock indices.|
|Available Trading Platforms||Mobile Apps, Web Platform, MetaTrader 4, TradingView|
83.45% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
Skilling is a Scandinavian-based CFD broker that was established in 2016. It offers CFD and forex trading with competitive spreads that start from just 0.1 pips. In terms of regulations, it is fully authorised by CySEC and also provides negative balance protection for UK investors.
What tradable assets can I buy and sell with a Skilling trading account? Skilling provides access to over 800 CFD instruments including forex, share CFDs, indices CFDs, and commodities CFDs. Skilling caters to traders of all experience levels. As such it supports MetaTrader 4 for advanced forex traders, as well as Skilling Trader and Skilling cTrader platforms.
With the exception of the Premium forex account, Skilling does not charge commissions when trading. Instead, the CFD broker boasts market-leading spreads that start from just 0.1 pips. For a standard account the minimum deposit is just 100 EUR and if you have a higher risk tolerance you’ll have access to leverage of 30:1.
When it comes to non-trading fees there is an inactivity fee of £10 after 12 months of leaving your account dormant. For beginners, there are tons of educational resources available at the click of a button. Furthermore, customer service can be reached Monday to Friday between 04:00 and 22:00 CET via telephone, Live chat, or email. The company has offices located in Cyprus, Spain, and Malta.
66% of retail investor accounts lose money when trading CFDs with this provider.
Another trading platform to consider is Libertex. Libertex has been around since 1997 and has grown to have over 2.2 million registered users from a variety of countries. Boasting regulation from CySEC, Libertex has a stellar reputation as one of the safest platforms for stock traders. This is bolstered by a vast selection of tradeable assets, ranging from equities to cryptocurrency.
Libertex charges two different fees when you place a trade. Firstly, a transaction fee is taken when you open a position, which varies depending on the specific asset and the size of the trade. In addition, as Libertex is a CFD broker, traders will also pay the spread, which is the difference between the buy and sell prices on an asset. The great thing about Libertex is that this spread is exceptionally tight, averaging between 0.1% to 0.2% on stock CFDs.
The minimum deposit at Libertex is €100 (£85), which users can make via credit/debit card, bank transfer, or e-wallet (such as Skrill). In terms of trading platforms, users can trade on Libertex’s web-based platform or the mobile app – with full functionality for MT4 and MT5 also offered. Finally, Libertex offers up to 1:30 leverage for retail clients on the platform’s tradeable CFDs, ensuring there’s scope to boost potential gains from trading.
75.3% of retail investor accounts lose money when trading CFDs with this provider.
6. Fineco Bank
If you are a UK investor actively looking for a regulated stock broker to buy domestic and international shares, with a user-friendly environment, Fineco Bank is your place. This financial bank institution, born in Italia, offers a wide range of shares and assets to trade for a flat fee of just £2.95 per trade.
Furthermore, Forex and CFDs traders can also find a place in Fineco Bank, as the firm has a portfolio of +50 currency pairs and CFDs, with spreads as low as 0.4 pips. If you’re a futures trader, this UK stock broker offers you the possibility to trade on CME Micro Futures with commissions as low as $0.70. Overall, in terms of pricing, UK share investors can expect a £0.00 monthly fee, no custody fees, no minimum deposit, no inactivity charges, no market connectivity costs.
The platform is also regulated by the UK Financial Conduct Authority (FCA), which is a well-known financial watchdog in the industry due to its stricter policies and guidelines to grant licenses.
|Commission||Starting from £0 commission on FTSE100, US and EU Shares CFDs, market spread only and no additional markups.|
|Stocks markets||Access to 13 stock markets|
|Tradable assets||CFDs, Forex, Commodities, Stocks and ETFs, indices, mutual funds, bonds, options, futures,|
|Available Trading Platforms||Web-based trading platform, mobile trading app, desktop trading platform|
Your capital is at risk
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.
Your capital is at risk
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.
Stock Brokers Fees Compared
|UK Stock Broker||Fees||Min Deposit||Margin|
|Libertex||£2.95||€100 (around £85)||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%|
- Historically, shares yield annual returns of 5-8%. That’s better than a bank.
- High liquidity – you won’t be waiting days to buy a company share
- Increase the value of your investment when the shares go up in value
- Earn passive income in the form of dividends
- Mitigate your risks by creating a diversified portfolio of shares
- All the share dealing platforms listed on this site are FCA regulated
- Some online stock brokers allow you to buy shares commission-free
- Easily deposit funds with a UK debit/credit card, e-wallet, or bank account
- A £1,000 investment in Amazon back in 1997 would now be worth £2.5 million!
- You could lose money
- You will need to select your own investments
- No guarantee that your shares will increase in value
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 UK debit/credit card – and then choose which stocks you want to buy.
68% of retail investors lose money trading CFDs at this site.
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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.