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How to choose the best online trading broker UK

written by Bella Palmer

Online stock trading is the process of buying and selling company shares over the internet, and you can buy and sell shares through the best online trading broker UK. It's sometimes also called share dealing. A 'share' is basically a unit of ownership in a particular company. To begin with online trading, you'll need to open a stock trading or share dealing account online. Then you can add money to it and buy shares online and sell them at a later date as a way of making money.

Prices of shares go up and down which depends on the company one is investing in and the market conditions. Therefore, one may earn profits if the price of shares at the time of selling is greater than the prices at which they are bought, however you can sustain substantial losses if the opposite happens.

Trading is done through a stock trading account with a financial intermediary such as an online broker. A stock trading account can be used to carry out trading and includes opening, closing, and managing market positions.

How can an online stock broker help?

Online stock brokers act as middlemen between the trader and the stock market.

There are three types of stock brokers:

  1. Advisory brokers: These are brokers who suggest the shares you should buy.
  2. Execution only brokers: These brokers only make the trades you instruct them to.
  3. Discretionary brokers: These brokers act on your behalf buying and selling shares at their own discretion in an effort to maximise your profit.

How to find the best online trading broker UK?

Stock brokers offer varying features and fee structures. So when looking for the best broker, traders should consider all these factors:

  1. Fees: All online brokers charge a fee for each transaction you make - whether you want to buy shares online or sell them. If you're doing a larger trade, the fee might be calculated as a percentage of the transaction. Some providers also charge an ongoing annual or monthly fee on top of this. Top brokers usually have more advanced features, which will cost you more.
  2. Ease of use: Online stock trading can be complex. Often you'll need to respond quickly to market changes. So you may look for a share dealer that lets you make fast, accurate, hassle-free trades.
  3. Access to data and research: The best online broker for your needs will give real-time market updates. Others give dynamic or delayed market updates. And sometimes, a share dealer will give you research and broker analysis on individual stocks. This information can be helpful in researching ideas or potential buys.
  4. Trade options: Look at what options are available for you to buy shares or sell them. Can you buy or sell shares at a set price? Are stop loss orders an option? This may reduce the risk.
  5. Margin loans: Some people borrow money to help build their investment portfolio. If you want to do this, check to see if your share dealer or online broker offers margin loans.
  6. Security: How secure is the stock broker? A reliable broker ensures that the funds are safe. You want to make sure that, when choosing a broker, you’re picking the service that’s right for your exact needs and requirements. So when it comes to making your decision on the right broker for you, it is important to know the specific features.

It’s about more than merely choosing a high-end interface, it also needs to have features that will suit your individual trading style. Doing some online research, from checking out unbiased reviews to learning more about broker through their websites or even demonstrations can offer you greater insight into what a particular broker can do for you.

What is a stop-loss order?

A stop-loss order is an order placed with a broker to buy or sell once the stock reaches a certain price. The purpose of a stop-loss order is to limit losses. For example, if the stop loss order is set to 5% below the price you bought the shares, the broker will sell the shares if the price of the stock falls by 5%.

Choosing the best stock trading app

There are a few online trading apps you might want to try before you commit. Each has different features and designs.

It's hard to say which is the best online broker. But when you're choosing you may consider factors such as share selection, design and extra features.

An online stock trading app should offer you a wide variety of stocks to trade. If it has a limited share selection, and the shares you want to buy aren't on the app, you could miss out on important opportunities.

The design of an online trading app should make it easy to use. It's important that you can find all the features and tools you need quickly.

Some stock trading apps offer extra features, like demo accounts and stop loss functions.

When you're trying to choose an online stock broker, you should look at what they offer in these areas.

What to consider before investing?

Before buy shares online you may consider a few things:

Only invest what you can afford to lose in online trading. Remember, there's no guarantee you'll get your money back.

When you're stock trading, you may start with small investments. This'll give you time to get used to the process of buying and selling shares. This is especially important if you're new to online trading. Before you start trading online, research each company you want to buy and sell shares from. Visit their website and search for economic news stories about them


The opinions expressed by our writers are their own and do not represent the views of UK Investment Guides. The information provided on UK Investment Guides is intended for informational purposes only. UK Investment Guides is not liable for any financial losses incurred. Conduct your own research by contacting financial experts before making any investment decisions.

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