You probably have surplus cash building up in your corporate bank account and don’t want inflation eating away at this. One option it to invest some profits from your company somewhere through a corporate share dealing account.
Finding the right corporate share dealing account can be a challenge. With so many options available in the market, it’s important to do your research and find the one that best suits your needs. Actually, we’ve been through the same process and decided to open a corporate trading account at Interactive Brokers.
In this article, we’ll take a closer look at some of the best corporate share dealing accounts available in the market, helping you to make an informed decision about where to invest your hard-earned profits.
What is a Corporate Share Dealing Account?
A corporate (or business) share dealing account is a type of investment account that allows UK-limited companies to invest their surplus cash in a diverse range of financial instruments. This type of account allows companies to invest their profits and potentially generate additional income through investment returns.
This can help you diversify your earnings through investments in shares, ETFs, or even bonds (like investing in high-interest US Treasury Bonds).
Please note that investing in a company account does not reduce the corporation tax bill from trading activities. The company must still pay corporation tax each tax year, regardless of any investments made.
Can I invest money through my limited company in the stock market?
Yes, you can invest money from your limited company in the stock market through a limited company share dealing account. However, it’s important to note that any gains made through your investments will be subject to corporation tax.
Taking money out of your company account to your personal account can be costly due since the dividend tax can go as high as 39.35% of the distributed dividends. Despite this, investments held within an ISA or other tax-efficient individual wrappers can grow tax-free, making it an attractive option for individuals.
On the other hand, if you invest through your limited company, you don’t need to take dividends out, which makes a big difference. In order to trade financial instruments with your limited company, you’ll need an LEI number, which is a distinct code of 20 letters and numbers. This code serves as a unique identifier for your business and is publically available.
The LEI number includes details about your company’s ownership, enabling financial transactions like purchasing investments to be fully transparent. Moreover, this code is internationally recognised and provides a global solution for business identification.
Best Share Dealing Accounts for Limited Companies
Interactive Brokers (Best overall)
Founded in 1978, IBKR is one of the world’s most trustworthy brokers. It supports business accounts with no minimum amounts and offers a wide range of products and markets.
Disclaimer: eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.
Corporate Share Dealing Accounts Compared
|Supports GBP Balances?
|Stocks, ETFs, Options, Futures, Forex, Commodities, Bonds and Funds
|Stocks, ETFs, Options, Futures, Forex, Commodities, Bonds, and Funds
|ETFs, Stocks and CFDs on Commodities, Forex, and Cryptocurrencies
|No, your GBP will be converted to USD (currency conversion fees apply)
|Stocks, ETFs, Funds (only UK), and Bonds (only UK)
1# Interactive Brokers (Best overall)
Interactive Brokers Corporate Accounts at a glance
Founded in 1978 and publicly listed in NASDAQ (ticker: IBKR), Interactive Brokers is a global online broker which surpassed significant financial crises, showing resilience and a rigorous risk management process.
Interactive Brokers offers an advanced investment platform that allows you to invest globally in stocks, options, futures, currencies, bonds, and funds from a single integrated account. Its advanced trading and account management tools let you control and delegate user permission for a business brokerage account.
With Interactive Brokers, businesses around the world can open a company account. Some institutions that can open an Interactive Account include Small Businesses, Hedge Funds, Prop Traders, Family Offices, and more. It gives you solid trade execution through IB SmartRouting, and a set of technical and fundamental tools to help you make investment decisions.
Interactive Brokers’ fee structure is also quite complex, the registration process is lengthy but fully online, and the broker doesn’t offer commission-free trading outside the US. However, when considering FX fees, narrower spreads, and the stock loan program, Interactive Brokers’ clients still get significant savings compared to most brokers.
Want to know more about Interactive Brokers? Read more details directly on Interactive Brokers’ landing page.
2# Saxo Bank
Saxo Bank Business Accounts at a glance
Launched in 1992, Saxo Bank is one of the most solid financial entities in the brokerage industry, with a proven track record of success. It lets you trade over 70,000 financial instruments through their trading platforms: SaxoTraderPRO (for PC) and SaxoTraderGO (on mobile).
The Saxo Bank corporate account tiers are the following:
- Classic: A minimum £100,000 deposit is required, giving you access to tight spreads and customer and technical support 24/5.
- Platinum: A minimum £200,000 deposit is required. In addition to Classic features, it also lowers trading prices by up to 30% and prioritizes local-language customer support.
- VIP: A minimum £1,000,000 deposit is required. Here you will find the best prices, access to trading experts, and exclusive event invitations.
The pricing structure will vary according to your account tier. For instance, a US stock order will be 0.08% (min. $1) of the trade value in Classic. However, within the VIP tier, the same trade would be 0.03% (min. $1) of the trade value.
Saxo Bank states that it usually takes one week to approve a business investment account, assuming they are provided with clear copies of the following documents:
- Memorandum and Article of Association
- Certificate of Incorporation
- Proof of the company’s business address if different from its registered address (e.g. a company bank statement or utility bill less than three months old and issued in the company’s name)
- Latest financial statement
- Group structure diagram (for entities within complex group structures only)
In addition, every beneficial owner with a 25% or greater company holding and each company director should send other documents, namely:
- Proof of residency – a utility bill less than three months old that displays the date, applicant’s name and address that matches the one on the application
If you want to know more details about Saxo Bank’s corporate account, check their landing page for corporate investment accounts.
76% of retail CFD accounts lose money.
eToro Business Accounts at a glance
Founded in 2007, eToro is a commission-free trading platform with a worldwide presence (+140 countries) and 30 million registered users. It is a multi-asset brokerage company offering stocks, ETFs, and thousands of CFD products on stocks, indices, currencies, and commodities.
Opening a business investment account through eToro is possible. However, depending on your location, the products and markets available to trade might vary. In some cases, corporate account holders can have access to better spreads and fees and increased leverage.
Your first step to opening an eToro corporate account is to contact customer support because there is no place on their website where you can start the process on your own. Since we have already reached them, you may get one step ahead by providing the documentation without waiting for their reply.
To open an eToro business investment account, you should open a ticket and provide eToro with the following information:
- What is the purpose of opening a corporate account with eToro?
- What type of legal entity is your company?
- Where is your company incorporated?
- Please provide a detailed description of your company’s business activity.
- Please provide a copy of your company Memorandum and Articles of Association or the local equivalent.
- The minimum initial deposit for a corporate account is 10,000 USD. Please confirm this will be acceptable”.
Want to know more? Read eToro’s FAQs for opening a corporate account.
4# Interactive Investor
Interactive Investor Business Accounts at a glance
Interactive Investor is a UK-based broker that offers corporate trading accounts to its customers. These accounts are designed for UK limited companies and offer access to a diverse range of investment products, including UK and international equities, funds, ETFs, and investment trusts.
One of the downsides of Interactive Investor’s corporate trading accounts is the £30 fixed monthly fee, which is charged to cover operational costs associated with maintaining services for Company Accounts and Trust Accounts.
It is worth noting, however, that Interactive Investor may lack some important asset classes from US markets. Interactive Investor’s range of financial products is not as extensive as that of some competitors, such as Interactive Brokers.
In conclusion, choosing the best share dealing account for your limited company can be a crucial decision for the success of your investments. While there are several factors to consider, such as fees, range of investment products, and user interface, some excellent options are available in the market. It is essential to do your research and compare different options before making a decision.
We hope this article helped answer a few of your concerns and feel free to reach out in the comments below if you have any doubts or feedback!
Does Hargreaves Lansdown offer corporate share dealing accounts in the UK?
No, currently, Hargreaves Lansdown does not offer business share dealing accounts.
Does Vanguard offer a share dealing account for limited businesses in the UK?
No, Vanguard does not offer corporate accounts in the UK.
Does Trading 212 offer corporate accounts in the UK?
No, Trading 212 does not offer corporate accounts.
Does DEGIRO offer corporate accounts in the UK?
No, DEGIRO does not offer corporate accounts.
Does Freetrade offer corporate accounts?
No, Freetrade does not offer corporate accounts.