Best Execution-Only Broker UK – Cheapest Brokers Revealed

What is the best execution-only broker? If you’re confident enough to make your own trades without any kind of advice or third-party support, then finding a top-rated execution-only broker should be your top priority. 

In this guide we’ll cover everything you need to know about execution-only stock brokers, to help you gain exposure to the markets with the lowest fees and commissions.  

Best Execution-Only Brokers UK List

1. Fineco – Top-Rated Execution-Only Broker with 100 Free Trades
2. Hargreaves Lansdown – One of the Top execution-only Brokers Offering a User-Friendly Trading Platform
3. IG – Best execution-only Broker to Trade Thousands of CFDs with Low Trading Fees 
4. Barclays – A Trusted execution-only Broker UK Listed on the LSE (London Stock Exchange) and NYSE 

Best Execution-Only Brokers UK Reviewed

But with so many trading platforms to choose from, how do you decide which one is best suited to your needs? We’ve narrowed it down to the two best stock brokers we believe have everything that beginners and experts are looking for. 

1. Fineco – Top-Rated execution-only Broker with 100 Free Trades

Established in 1999, Fineco Bank is an Italian bank with a strong track record and a wide product portfolio. In terms of regulations, it’s authorized by the Bank of Italy and is subject to partial regulations from the UK’s Financial Conduct Authority and the Prudential Regulation Authority. Fineco holds a banking licence, it’s listed on the Italian stock exchange, and is a constituent of the STOXX Europe 600 index. 

Fees and Commissions – Explained

Fineco Bank has competitive stock and ETF fees, as well as zero inactivity fees or withdrawal fees. Nevertheless, its fees for forex trading are above average and its overnight financing fees are also rather high. When it comes to stock trading, for UK-based traders the commission is fixed at £2.95 per trade for UK shares and $3.95 per trade for US shares. However, if you’re a new user you can get 100 free trades from the Fineco welcome bonus.

When it comes to non-trading fees Fineco Bank is hard to beat. There are no account, inactivity, deposit, or withdrawal fees. However, there are no withdrawal fees for the domestic bank and debit card transfers. Using an instant bank withdrawal will incur a charge of 0.20%, while international bank transfer withdrawals come with a £19.95 charge. 

What is the FINECO100 Promotion?

When you open a live trading account with Fineco in the United Kingdom before 30/09/2021 using the corresponding promotion code, you can receive a bonus of 100 commission-free trades in any stocks or bonds. The 100 free trades bonus will apply after two days of having opened a Fineco brokerage account. The commission-free trades cover the following stock markets: UK FTSE, US markets (NYSE, NASDAQ, AMEX), Equiduct, Xetra, Euronext, Borsa Italiana, and the following Bond Markets: Mot, Euromot, and Etlx. 

Payments

Fineco Bank provides a huge range of 21 account base currencies from AUD and CAD, to USD and GBP. While there are no deposit fees to worry about, the supported payment methods are rather limited in that you cannot use credit and debit cards or e-wallets to deposit funds into your account.  

Is Fineco Bank Safe?

Fineco Bank is fully regulated by the Commissione Nazionale per le Società e la Borsa (Consob) and the Bank of Italy. This execution-only broker UK is also subject to partial regulation by the FCA and Prudential Regulation Authority. Additionally, it is also listed on the Italian Stock Exchange (BIT: FBK) which helps to reinforce the company’s security as it must frequently disclose all its financial statements. In terms of client fund protections, traders based in the UK and Italy are covered by up to €100,000 for cash and €20,000 for securities by the Bank of Italy. 

Pros:

Cons:

65.11% of retail investor accounts lose money due to CFD trading with FinecoBank.

Execution-only Brokers Fees Comparison

In this section, we’ll examine the execution-only brokers comparison table below to see just how cheap these top-rated trading platforms are. 

What is an Execution-only Broker?

It does exactly what it says on the tin. Execution-only brokers provide access to an execution-only service, meaning that there is no personal investment advice. In other words, you take command of the stern and navigate your investment portfolio as you see fit without the intervention or recommendations of expert traders and portfolio managers. execution-only brokers can offer a cheaper option for investors to buy and sell tradable assets and gain exposure to financial markets. 

Traders that choose an execution-only broker typically take a more active role in online investments. Despite there not being any tailored investment advice, the best execution-only brokers usually offer market analysis, trading ideas, and research tools to help you make the best decisions and identify unique trading opportunities in real-time. 

Since execution-only brokers do not give financial advice, execution-only services are ideal for experienced investors who understand the risk to reward ratios of online trading. 

Execution-only Brokers vs Advisory Brokers

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An execution-only trading account is a better match for traders who:

• Have experience in making trades and investment decisions independently, and simply need a regulated broker to execute the orders quickly.
• Prefer to seek occasional investment advice and trading ideas regarding certain investments and assets, but ultimately have the final say on whether they buy or sell. 
• Opt for long-term investing strategies such as HODL (buy and hold) and DCA (Dollar Cost Averaging).
• Want to pay per transaction
• Prefer to have the flexibility to use leverage, trade options and CFDs, and more. 

On the other hand, advisory accounts are ideal for traders who:

• Are beginners or have little to no trading experience and require expert support and advice when making trades and investment decisions.
• Prefer to relinquish control to an expert investor 
• Have no awareness of risk tolerance
• Are looking for a prebuilt investment portfolio covering a range of securities, with automated fund rebalancing and regular transactions. 
• Prefer to buy and sell financial instruments in concert with a financial advisor, where the fees are fixed and not volume-based. 
• Want money managers and expert investors to monitor their investment portfolios providing recommendations and financial advice in the meantime. 

Execution-only Brokers vs Discretionary Brokers

The majority of wealth managers provide trading services under the following categories: execution-only, advisory, and discretionary. These terms simply represent the degree of involvement you have when managing your investments. If execution-only is the most hands-on approach to online investing, then discretionary services sit on the passive side of the decision-making scale. 

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Here’s how discretionary brokers work

Discretionary investment services are a popular choice for beginner traders with little to no trading experience, or for those who simply do not have enough time and are looking for a more hands-off passive approach to online trading. If you choose a discretionary broker you and your wealth manager will begin the process of defining your investment goals and risk tolerance. Together you will then hatch a plan and trading strategy that suits your experience, criteria, risk tolerance, and objectives. 

How much risk can you tolerate? What asset classes and markets do you want to gain exposure to? How often do you want to participate in the markets? What is your investment budget? These are just some of the questions that will be discussed. 

Your wealth manager will then lead all trading decisions and have full authority to execute trades on your behalf. This type of investment management service frees you from having to make important investment decisions on a daily basis, and makes long-term investments including retirement funds, ISAs, and trusts much easier to manage. For more details on how to invest for retirement, make sure you read our beginner’s guide.. 

So the main difference between execution-only brokers and discretionary brokers is the level of involvement in making investment decisions. 

Benefits of Execution-only Stock Broking Accounts

There has been a rapid increase in the number of DIY trading platforms over the last decade. execution-only brokers offer a low-cost investment option for experienced, technologically adept traders. With no advisory fees, faster trade executions, and lower trade fees, execution-only brokers have become widely popular with experienced traders looking to take a hands-on approach to online trading. 

Arguably the key benefit of execution-only trading accounts is that you have access to fundamental research, market news, trading ideas, and charts with technical indicators in real-time. These features make online trading a much more active experience, as you have to vigilantly monitor the markets to make the right investment decisions at the right time and the right place. 

Execution-only Brokers Fees

There are several fees you need to keep in mind when selecting an execution-only share dealing account: 

1. Deposit and Withdrawal fees – this is the fee that some brokers charge when you deposit and withdraw funds from your account. 
2. Platform or account fees – these are fees charged for using the trading platform and maintaining a brokerage account. 
3. Commission per side – some trading platforms charge a commission per side, which means you have to pay a commission every time you open a position and again when you close it. 

Some UK execution-only brokers provide a frequent trader rate, which lowers the amount you have to pay when buying and selling tradable assets. To become eligible for this discount your trading volume for the previous month needs to meet certain thresholds as is the case with Hargreaves Lansdown. 

Conclusion – Expert Verdict

Whether you’re a beginner trader who’s just testing the waters or an avid expert investor, execution-only brokers offer lower costs and much more flexibility than other investment services. But is there a platform that combines the best of both worlds?

Frequently Asked Questions about Execution-only Brokers