There are a number of factors that should be considered when looking at trading platforms, and these can fall into a few categories: transaction costs, ease of use, usability, and account manager support. And while all of these things tend to hold true across the board for all stock trading platforms, there are a few other differences to take into account depending upon which platform you choose. But before we get into that, let’s review some of the basics you should know about trading platforms in general.
In this article, we will share with you the most popular trading platforms, selected from those that have been tested by our experts. Whether you’re looking for a beginner’s stock trading platform or a free one, we’ve compiled a list of the top ones and explained their advantages and disadvantages. Let’s get to it.
Freetrade
Freetrade is a trading and investment app that lets you buy individual UK and US stocks, and invest in a range of funds with a variety of ETFs. (What’s an ETF?).
With a slick interface and pink colour scheme, it’s aimed at millennials who are used to well-designed apps like Monzo and Starling and want to dip their toes into the choppy waters of investment.
Freetrade features
Freetrade’s main features include:
- You can trade UK and US shares and exchange-traded funds (ETFs).
- During stock market hours, all orders are instant. Outside of stock market hours, orders are executed at 10am the following day for UK stock and 3pm the following day for US stock, with no commission fee.
- You can start with as little as £2.
- The referral program can get you a free share when you refer a friend.
Freetrade products
There are four products available with Freetrade:
- Freetrade general investment account (GIA)
- Freetrade stocks and shares ISA
- Freetrade Plus
- Self-invested personal pension (SIPP)
Freetrade general investment account
This is Freetrade’s basic account. It doesn’t have a monthly cost, and you can make free instant orders.
People usually choose to go with the general investment account after they have used up their ISA allowance for the year, as you may need to pay capital gains tax on any profits you make. Capital gains tax is payable on gains over the allowance of £12,300 in each tax year.
If you haven’t paid into an ISA in the current financial year (which runs from April to April) then the ISA is a more cost effective option.
Freetrade ISA
The Freetrade stocks and shares ISA is a personal account where you can invest up to a certain amount in each tax year without paying tax on your profits. The allowance for the 2021/2022 tax year is £20,000. This means you can invest £20,000 in the available stocks and ETFs and never pay any tax on the profits you make.
You can open an ISA with the Freetrade app. It costs £3 fee per month (£36 a year). With free trades, plus the FX costs on US trades, it’s a pretty cheap offering compared with Hargreaves Lansdown or other traditional brokers – all of which charge anywhere between £5 and £12 for a trade.
Again, it’s worth remembering Freetrade has a bit of a limited trading universe. It’s not ideal for those who want to hold a variety of things in an ISA (namely, funds and shares from different markets).
On cost though, it is tough to beat, especially if you’re looking to invest serious money over the long-term.
You can also transfer your existing ISA into your Freetrade account.
Compare stocks and shares ISAs
Fineco
FinecoBank is one of Europe’s largest banks but is pretty new to the UK. It has been around since 1999 and specialises in brokerage, aiming to allow you to trade contracts for difference (CFDs), futures, stocks, currencies, bonds, exchange-traded funds (ETFs), options and funds.
What accounts are available with Fineco?
There are two accounts available with Fineco:
- General investment account. This is the standard investment account. There aren’t any tax benefits to this account. Most people choose this account once they’ve used up their ISA allowance for the year.
- Stocks and shares ISA. A stocks and shares ISA lets you invest up to an annual allowance without paying any tax on your profits. The tax-free allowance for the 2021/2022 tax year is £20,000.
Fineco trading
Fineco handles more than 200,000 executed orders per day. It prides itself on its advanced trading platform and low prices.
Features include:
- Flat trading fee
- Advanced platform with live prices, personalised dashboards and push notifications
- Mobile trading platform
- Access world markets in the local currency without paying conversion fees
Shares CFDs
You can trade CFDs on shares. These let you go long or short without any commission.
Foreign exchange and indices CFDs and futures on commodities
You can trade CFDs on foreign currency and indices. You can also trade futures on commodities, such as cocoa, coffee and sugar.
Options
You can trade options contracts, which give you the option to buy at a certain price. You can trade the volatility index (VIX) and options on S&P, Dow Jones, NASDAQ and Russell, as well as US stocks.
Futures
You can trade futures contracts, which let you speculate on price movements and lock in a price for a future purchase. We have a whole guide on futures contracts if you want to find out how they work.
Fineco investing
Fineco also allows you to invest in funds, with a platform fee determined by the amount you invest.
Features include:
- Access funds from premium asset managers worldwide
- Access pre-packaged funds and choose funds that suit your needs
- Geographically diversified funds (as in, funds in lots of countries)
- Choose funds based on your risk level
Regular investment plan
Fineco has a regular investment plan that lets you invest £50 per month or more into funds. It works automatically and has a flat fee of £2.95 per month.
This plan lets you take advantage of pound cost averaging, which works with the theory that if you invest regularly then you don’t have to try to time the market.
This plan is suited to investors who don’t want to choose individual stocks and shares and want to invest regularly.
Fees and charges
The fees you are charged depends on what you invest and sometimes how much money you invest.
Hargreaves Lansdown
Hargreaves Lansdown is the UK’s biggest and most comprehensive wealth manager, so it’s not the cheapest. This “investment supermarket” is a popular choice for investors. It’s a bit on the pricey side but it makes up for it with its mobile app and easy trades. We’ve called Hargreaves Lansdown one of our best trading apps of 2021 and named it as “best for beginners”. It was also the winner in the Finder Share Dealing Customer Satisfaction Awards 2020, with a huge 83% of its customers recommending it to a friend. Find out how to set up a Hargreaves Lansdown account, about the HL ISA and some pros and cons of Hargreaves Lansdown.
Easy, low-cost account with the UK’s biggest investment platform Hargreaves Lansdown
Your capital is at risk.
- UK’s largest investment manager with huge range of investments
- Invest in funds, global shares, bonds, ETFs and more
- Detailed online resources and Bristol-based helpdesk available
- Open an account in minutes with your debit card and NI number
Go to site (Capital at risk)
All investing should be regarded as longer term. The value of your investments can go up and down, and you may get back less than you invest. Past performance is no guarantee of future results. If you’re not sure which investments are right for you, please seek out a financial adviser. Capital at risk.
What is Hargreaves Lansdown?
Hargreaves Lansdown is a leading “investment supermarket” for private investors. It is trusted with £96 billion worth of investment by 1.3 million clients.
The Fund & Share Account is a low cost, flexible investment account that allows you to deal, manage and hold a wide range of investments. It is aimed at those who are comfortable making their own investment decisions, without financial advice. There’s also a self-invested personal pension (SIPP), junior SIPP and several different ISAs available.
Read on to find out more about Hargreaves Lansdown and whether it might be the right investment solution for you.
How does Hargreaves Lansdown work?
To start investing with Hargreaves Lansdown, you’ll need to open an account.
The right account for you will depend on your goals. You might be saving for the future, for a pension pot or for your child.
Hargreaves Lansdown can help you narrow things down and find the right account, allowing you to compare accounts and tick things that apply to you.
To open an account with Hargreaves Lansdown, you’ll need the following:
- Your National Insurance number
- Your debit card details
- Your bank details to set up monthly payments
What products does Hargreaves Lansdown offer?
Hargreaves Lansdown offers seven products:
- Stocks and shares ISA
- Junior ISA
- Lifetime ISA
- Self-invested personal pension
- Junior SIPP
- Share dealing account
- Active savings
Interactive Investor
If you’re looking to open several trading accounts, such as an ISA for you and a JISA for each of your kids, then interactive investor might be a suitable platform for you as it has a flat-fee for everything (except it adds an extra £10 per month for its pension). Find out what we think of interactive investor, including details about its costs, what you can invest in and its pros and cons.Promoted
Try Interactive Investor’s award-winning investing and trading account
Capital at risk, investments may fall
- Over 40,000 UK and global stocks to choose from
- Reduce foreign exchange costs by managing money in 9 currencies
- One free trade per month
- Start investing today for a flat fee £9.99 a month
Go to site (Capital at risk)
What is interactive investor?
interactive investor (yes, that’s intentionally all lower case, sometimes referred to as just “ii”) is an online investment service offering a range of different investment products, all with flat fees. It has plenty of products available and the opportunity to invest in shares, funds, investment trusts, exchange-traded funds (ETFs), venture capital trusts (VCTs), bonds and gilts. interactive investor has been listed as one of our best share trading apps of 2021 for investing in funds.
How does interactive investor work?
For a flat fee starting at £9.99 per month, interactive investor takes care of your assets and gives you a set number of trades per month – this depends on which service plan you choose (we’ll get on to the service plans in a moment).
You don’t have to pay additional service fees if you want to have more than one account with interactive investor, so you can have a trading account, stocks and shares ISA and a junior ISA all for one flat fee. It’s a great option if you plan to use your full annual ISA allowance and trade further as well as, say, opening a junior ISA for several kids.
As with many rules, there’s an exception. On the self-invested personal pension (SIPP for short), you’ll pay an additional £10 per month.
What products does interactive investor offer?
interactive investor has 9 different accounts available. These include:
- Self-invested personal pensions (SIPPs)
- Individual savings accounts (ISAs)
- Trading accounts
- Junior ISAs
- Joint trading accounts
- Free research accounts
- Company accounts
- Pension trading
- Cash trading
Conclusion
You want to be a trader but don’t know where to start? You want to be more aggressive but don’t know where or how? You want to learn more about stock trading platforms and the best platforms out there. Then check out the above listed examples.