It’s not always obvious what the best stock trading app UK investors can use is. There are numerous applications to pick from and every application has a variety of features, fees, investment alternatives and account types. Not all the applications that are best for one investor will be best for another.
A good stock trading app must be user friendly, transparent about fees, have the types of investments you’re interested in and have account options that better suit your needs. It is also a good idea to see if the company has legal authorization to offer monetary services within the UK.
What Is a Stock Trading App?
A stock trading application is designed to enable you to engage in stock trading on your mobile phone, tablet or computer. You can invest in UK shares, US shares, exchange-traded fund (ETF), investment trusts, funds and other assets, depending on the provider.
Investing is easier for typical investors with trading apps. Around 1.6 million people (3 per cent of all UK adults) were using a trading app, according to the Financial Conduct Authority’s (FCA) Financial Lives 2024 survey.
But it’s not a no-risk investment as easy access is. Share prices may fall as well as rise and you may not get back the money invested.
Popular and Best Stock Trading Apps in the UK
There are a number of popular platforms available to investors in the UK. Features and fees may vary, so be sure to find out the up-to-date details before applying for a deposit.
One of today’s examples of an investing platform would be trading 212. As of now it offers no trading commission or custody fee on its Invest, ISA and SIPP accounts, with foreign exchange fees charged at 0.15%. There may be other charges, such as UK stamp duty on some share transactions.
Another alternative is Freetrade. It provides General Investment Accounts and Stocks and Shares ISAs, as well as SIPPs. Its Basic option is free and also offers commission-free investing, whereas its paid strategy choices give access to more attributes as well as various foreign exchange fees.
Hargreaves Lansdown (HL) is a well-established investment platform in the UK with a mobile app. It offers a Stocks and Shares ISA, enabling investors to gain access to stocks, ETFs, funds, investment trusts, bonds, and more. It currently charges 0.35 per cent of shares and other investments each year, up to a maximum of £12.50 monthly, and has a monthly fee of £6.95 for those who make under 20 trades in the previous month when dealing online.
These examples illustrate that investors should not rely on a “zero commission” offer, but be aware of all costs and features in comparing.
What to Look for in the Best Stock Trading App UK
1. Trading Fees
Over time fees can significantly impact on your investment returns. Check out the commission, account fees, foreign exchange fees, withdrawal fees, and other expenses.
An app can claim to be commission-free trading, but generate income via other fees. Before investing always read the full fee schedule.
2. Stocks and Investments Available
Look for the investments that you desire in the app. Some platforms concentrate on individual shares and ETFs, while others have a much broader selection of investment trusts, bonds, funds and more.
If you wish to invest in US stocks, also note the foreign exchange charges – converting from pounds to another currency can also boost your overall investment price.
3. Stocks and Shares ISA
Many investors in the UK find a Stocks and Shares ISA important. There is a maximum annual investment limit in an ISA account, and the capital invested in an ISA may gain tax benefits in the UK, depending on the rules and eligibility.
See if the app provides an ISA and view the amount of charges and investments available.
4. Ease of Use
A decent application should be easy to use for locating investments, learning about your portfolio, ordering and checking your account. If you’re a new investor, clear information can be particularly helpful.
It is important to note, however, that a simple interface should not imply that you need to trade more often than you should. Investments should not be made based on the market’s ebb and flow, but on your goals and risk tolerance.
5. Regulation and Security
Always check the investment provider before using any investment app via FCA Firm Checker or Financial Services Register. According to the FCA, nearly all financial companies in the UK are either authorised or registered, and you should make sure that any firm is authorised to provide the services you are interested in.
It’s crucial, as scammers can copy a legitimate investment firm or create a look-alike site or application.
Which Trading App Should You Choose?
No single stock trading app performs the best for all the investors in the UK. The beginner might just want a simple-to-use application with low investment fees, whereas another investor may want a wider investment range, research tools, or more account selection.
When looking for an application, make sure to compare the fees, the investment options, the availability of ISAs, research tools, customer support and the regulation of every app. Take into account how often you are going to trade or invest.
Keep in mind that investing is a risky process. Losses due to dropping investment prices can’t be avoided even by a well-designed trading app.
Final Thoughts
Every trader in the UK has different requirements and so the finest stock trading application will be selected. There are a number of different fee, investment, account and features options at trading 212, Freetrade, Hargreaves Lansdown and other platforms.
Read the fine print, don’t just “hit the buy button” because of the advertising or the low headline fee. Look into the FCA register, get familiar with the fees involved and ensure the platform provides the investments and account type you require. Most importantly, know that investing is not the same as saving: your investment could increase in value or decrease in value.