UK residents who want to start trading should first of all choose a broker. Which broker or brokers should I choose to start trading? This is a question beginners ask themselves when they want to start trading. This is a related question and the answer depends on your goal.
That is why we are providing this guide for new traders, those who are looking for a specific broker for a specific type of investment, and for curious people who want to meet the best brokers on the market. In this article, you will find a ranking of the best brokers available in the UK.
Ranking of the best brokers 2021
In this part, we have carefully selected the best brokers available in the UK.
eToro is one of the best brokers in the UK today. eToro was founded in 2007 and is now the world’s leading provider of entry-level platforms. eToro is particularly known as the world leader in social trading, with tools that allow you to imitate the best investors without having to be an experienced trader.
Who is eToro?
- The eToro company was founded in Tel Aviv in 2007 under the leadership of Yoni Assia, Ronen Assia, and David Ring.
- In 2013, eToro launched a mobile app.
- In the same year, it launched Forex and Commodities via CFDs, allowing users to trade stocks.
- More than 110 promotions were added initially.
- Today, eToro has over 10 million users in 140 countries.
- The world’s largest dealer community.
- It is also a platform with over 2000 different financial products.
eToro and its Features
eToro Social Trading consists of two main features.
- Copy Trader allows you to copy the strategies of the best traders in the community.
- Copy Portfolios allows you to copy a specific group of assets.
eToro social trading allows professional traders known as “hot investors” to share their knowledge and location with the entire community, so anyone who wants to copy their trades can.
“Top Investors” are rewarded in the form of monthly fees based on the number of copiers. The leverage offered is up to 1:30.
Assets available on eToro
eToro allows you to invest in over 2000 different financial assets.
- Stocks: There are over 2000 stocks.
- Currencies: Choose from 50+ pairs
- Cryptocurrencies: Over 21 popular cryptocurrencies are available
- Commodities: 6 Commodities including gold, petroleum, silver, gas, and copper
- ETFs: 150+ ETF Trackers in Various Fields of Activity
- Stock indices: 13+ stock indices
With over 2.8 million users worldwide, Libertex is one of the world’s leading providers.
Who is Libertex?
- The company has been in business since 1997 and currently has more than 2.8 million customers in 110 countries.
- More than 30 prestigious awards.
The exchange platform is completely web-based and requires no downloads. It works simply and efficiently in any internet browser with a simple interface that makes trading as easy as possible. The speed of location execution time makes Libertex one of the easiest to use in the world.
Libertex offers a platform with a variety of features, including:
- Time units and metrics
- Choice of information display 16 languages
- Leverage offered is up to 1:30
Assets available on Libertex
Libertex offers its users the ability to trade more than 200 assets. Financial markets available on Libertex include:
- 100+ stocks
- 50+ currency pairs
- 50+ cryptocurrencies available
- 18 indexes available
- 5 or more metals
- 10 ETFs
- 5 oil and gas equipment and 6 agricultural assets
Capital.com is a broker regulated by the Financial Conduct Authority (FCA) in the UK, NBRB in Belarus, and CySEC in Cyprus. Its goal is to enable individuals and professionals to trade in a variety of financial markets.
Who is Capital.com?
- Capital.com was founded in 2016.
- Today, the award-winning platform with over 1 million customers operates in over 53 countries.
- The website allows you to trade CFDs and other derivatives.
- It is a better broker that complies with the regulations of the European Securities and Markets Authority (ESMA).
- The platform is regulated by the Financial Conduct Authority (FCA) and CySEC.
- Recently, Capital.com has partnered with Spain’s famous La Liga Valencia CF football team.
Capital.com and its features
- The transition from the website to the trading application is smooth and offers a high level of technical analysis without cluttering the screen with a lot of unnecessary data.
- Capital.com always has an artificial intelligence called QE to improve the user experience. This artificial intelligence technology analyzes your behavior to help you make more profitable decisions.
- In addition, the website has features and tools that are very useful for the daily life of a trader. For example, a unified economic calendar with all economic news publications. Then you can check the latest news or learn how to trade with Capital.com TV.
- The leverage offered is up to 1:30.
Assets available on Capital.com
This is a total of over 3000 assets available among the most popular ones.
- Currency pair
- Shares, etc.
FXCM or Forex Capital Markets is a UK-based broker offering Forex and CFD trading.
Who is FXCM?
- FXCM was founded in 1999 by Drew Niv.
- The company was acquired by Leucadia Investments in 2015.
- In the UK, FXCM is regulated by the Financial Conduct Authority (FCA), while its subsidiaries in Australia and South Africa are regulated by the respective national authorities.
- The FXCM broker has over 200,000 clients in the UK.
One of the main strengths of FXCM is its extensive training courses.
The website has a knowledge base and training center, which also has many resources on business strategies for beginners and experienced users. The website also has a library of live classrooms and video tutorials.
The website has two main platforms.
- FXCM Trading Post
- MT4 MetaTrader 4
Assets available in FXCM
- Currency pair
- Global stock index
- CFD stocks
XTB is a leading online trading broker based in Europe. The broker provides access to more than 2000 instruments on two platforms, its own internal platform x Station 5 and MetaTrader 4.
Who is XTB?
- XTB is Europe’s leading broker, founded in 2002 in Poland under the name X-Trade.
- In 2004, X-trade became the Warsaw-based XTB.
- In 2010, the XTB received AMF UK certification. This certification allowed the broker to settle in Paris and become an AMF approved broker.
- XTB is one of the best brokers today with over 275,000 clients.
XTB differs from other brokers in many ways.
- The performance of the internal xStation 5 platform is unique.
- The level of training and analysis material for all categories of sellers.
- Free mobile trade notification service. This gives you access to direct relationships with senior market analysts who send you the latest news and most important skill levels via WhatsApp.
- XTB also has other innovative features such as market psychology. It is an indicator of the attitude of most traders towards a particular asset. We may also refer to the XTB stock valuation tool, which is a feature of the XTB broker. The leverage offered is up to 1:30.
Assets available on XTB
XTB has a wide and diverse range of financial products. Among the assets available for use in CFDs on the platform, these are the assets you have.
- Shares: More than 1,500 shares of companies listed in the UK, UK, US, etc.
- Forex: 50+ major, exotic and minor currency pairs.
- Indices: More than 15 major world indices.
What is a broker?
In financial terms, online brokers or brokers have regulated professionals who buy and sell financial products on behalf of their clients.
- Buying and selling financial instruments come in a variety of forms, such as stocks, currencies, cryptocurrencies, bonds, options, and more.
- So the broker’s job is to execute the client’s commands.
- In return, brokers are rewarded in a variety of ways, either through brokerage or commissions.
Some online brokers are only executors and are limited to executing client orders. Others also provide investment advice and manage portfolios.
Different Types of Brokers
There are different types of online brokers depending on the type of product offered. In the next part, we will look at the different types of brokers.
- Stock broker
- Forex broker
- Option broker
- Future broker
- Full-service broker
- Online broker
A stock broker (or investment broker) is a professional broker that deals only with the sale and purchase of stocks. You cannot buy shares or stocks as an individual, but you do not need to choose a professional stock broker, so you need a stock broker. Stock brokers are primarily intermediaries between clients and the stock market.
A Forex Broker is a broker that is also known as a financial services organization that offers foreign currencies for exchange, buy, sell, or, trade.
Forex brokers organize in two ways-
- Spread basis: This is the difference between supply and demand for a currency pair. For example, if the price of a EUR/USD pair is 1.17010 buy and 1.17022 sells, the spread between them is 0.00012 or 1.2 pips. So we can say the spread is 1.2 pips here.
- There are additional fees such as transaction fees and currency exchange fees.
Options brokers specialize in options trading. An option is a financial derivatives contract that gives the option buyer the right to purchase an option by buying or selling the underlying instrument.
The main idea of an option is to buy the underlying asset at a fixed price if the contract is trading at a specific time. You can buy or sell options. It could be a phone call or a sale. Both products, traditional options or binary options, are financial derivatives. In other words, its value is determined by the value of other financial assets.
A future broker specializes in futures or futures trading. An agreement to buy sell, or hold stock at a certain price after a certain amount of time has passed.
These contracts have fixed expiration dates and prices known in advance. Futures are identified by their expiration month. For example, a December oil futures contract expires in December. Regardless of the current market price on the maturity date, the buyer must either buy the underlying asset at the specified price or the seller must sell the asset.
Full-service brokers offer a variety of services. This includes, for example, market research, investment advice on the stock market, and provision of services for the elderly. In addition, they offer a full range of financial investment products.
Unlike full-service brokers, online brokers have very low or no fees in some cases. Online brokers usually don’t give advice, so they’re cheaper.
Diverse brokerage specializations
Let’s take a closer look at the specializations of the best brokers and the role of each.
- Stock brokerage
- Loan brokerage
- Lease brokerage
- Forex brokerage
- Real Estate brokerage
A stock broker is a professional broker in the stock or commodities market who buys and sells assets on the most favorable terms for the benefit of their clients. Trading in the foreign exchange market is difficult for outsiders and requires a certain amount of permits and special permits to complete the trade. It makes sense to deal with professional participants of the exchange, for example, brokers.
A credit broker is an expert with the necessary information and professional contacts with a credit institution. We help individual clients choose the best loan option. They also help with necessary financing, conversions and returns, and more.
A leasing broker is similar to a credit broker but is an expert in the field of leasing equipment. The main clients of rental brokers include legal entities and business organizations.
A Forex Broker is a broker that provides access to trade Forex market. As the FX market is only open to a certain number of organizations, individual access is only possible through FX brokers.
Real Estate Brokerage
A real estate agent searches for buyers and sellers of real estate. Example B. Warehouses, offices, commercial and residential buildings. Real estate agents charge a percentage of their commission for real estate transactions.
What can I trade through a broker in the UK?
- Commodities, etc.
How much does it cost to negotiate with a broker in the UK?
You have to pay different fees when you trade with the broker. It can come in the form of direct costs such as spreads, commissions, and nightly costs, or in the form of indirect costs such as brokerage costs.
- Fee for stock
- On Cryptocurrency
- Brokerage fee
- On CFD
If you are an active CFD trader with a broker in the UK, if you hold a position overnight, you will pay spreads and new fees overnight. These fees vary greatly depending on the broker and the asset being traded. Here are some examples of CFD fees on eToro:
- CFDs on Stocks and ETFs: Spreads apply to long and short positions. eToro’s stock CFDs and ETFs have a spread of 0.09%.
- Currency CFD Fees: Currency spreads vary greatly from pair to pair. On eToro, spreads start at 1 pip for EUR/USD.
- Index CFD Fees: Index CFD fees on eToro are very useful. So you can see that the spread for CAC 40 is 100 pips, the S&P 500 is 75 pips, and the USDOLLAR index is 4 pips.
- Commodity CFD Fees: Except for spreads, eToro charges no fees. The gold margin is 45 pips and the silver and oil margins are 5 pips.
Trading with a broker: Advantages
- Demo account that beginners can use to learn how to trade
- Check on trading platforms of all levels, from beginners to traders
- A market is accessible from anywhere thanks to a multi-device platform.
- Minimal investment.
- Interesting profitability.
- Opportunities to take advantage of large leverage: In fact, almost any broker can utilize leverage to increase profits by trading money that is not needed.
Trading with a broker: Disadvantages
- The stock market is very volatile and can be very risky if you don’t know how to handle it.
- Risk of losing more than you deposit: In some cases and with some brokers, you may lose more than you deposit with the broker. For this reason, it is important to choose a broker well and choose a broker with a negative balance protection policy such as eToro.
Getting Started Trading with a Broker: 5 Tips Before You Start
The most important thing when starting to trade is the best broker. Here are 5 tips to help you before you start trading.
One of the most important things to do before trading with the best broker is to make sure that the broker is regulated. And the more regulated by many regulators, the better. It is very important to have a broker that fulfills all its promises. Therefore, regulated brokers have a legal obligation to protect your financial interests.
Test your trading platform before investing
Always check the capabilities of your platform. It should be easy to use and reliable if you don’t want to get lost or make mistakes.
Also, if you are a beginner, it should be easy to use and non-technical. Does it provide an ergonomic and easy-to-use user interface? Are there any tools to learn trading, such as social trading? There are too many factors to study before committing.
Study your transaction fees carefully
Whether you are a heavy trader or an average trader, it is still important to choose the best broker that offers low trading fees. If the broker charges high transaction fees, there is a risk of large losses. Choosing a broker with low trading fees is very important to your bottom line. All brokers mentioned in this guide offer low prices in this regard.
Check deposit and withdrawal options
Deposit and withdrawal options aren’t something you pay attention to often. However, a good broker should make it easy to deposit your funds and withdraw your winnings. So, you need to make sure that your online broker has a hassle-free deposit and withdrawal system.
Learn more about the broker’s customer support
Regardless of your business strategy, you may need help at some point. Corridors are not perfect, so choose the one you can get to as quickly as possible in case of a problem.
Although they share common characteristics, brokers are not the same, so it is important to set different comparison criteria when choosing a broker.
Choosing the right broker largely depends on your investment goals and the features you want to access. You can only decide after checking stock. We created this guide to guide you to the best broker by providing factors to consider when choosing a broker. If you are targeting Forex, Libertex is the broker of your choice, but if you value the risks and volatility associated with cryptocurrencies and are not at all intimidated, consider the online broker Capital.com as your companion.
If you are considering CFDs to maximize your profit potential, take a look at eToro. It has the advantage of being suitable for both beginners and advanced users. You can find everything there and it’s a well-regulated broker that doesn’t even charge commissions on stocks.
Frequently Asked Questions
How do I choose a broker in the UK?
It all depends on your level, goals, or budget. For beginners who want to get ahead on good terms, eToro is the ideal broker.
What is the best broker to operate in the UK?
It depends on your level and needs. If you are looking for a fairly technical platform with lots of metrics and customization possibilities, you should check out platforms like MT4 and MT5.
Which broker offers the lowest rates?
eToro is one of the brokers with the lowest fees as it does not charge fees for many assets such as stocks, and fees on other assets are also very beneficial.
Who can trade the most assets in the UK?
The eToro broker is one of the wealthiest brokers with over 3000 assets offered on the eToro trading platform.
How do check the authenticity of the broker?
There are many factors to consider, including regulations. Make sure your online broker is regulated by the top financial market authorities.