Making sure to use a cheap trading platform is one of the best ways to keep more of your profit when trading and investing. Not all trading platforms offer a low-cost way to invest, and you will likely find that various fees apply, depending on the size and type of your trade.
Luckily, there are more places to invest than ever before, and the list of the cheapest UK trading platforms is continuously growing. Finding the cheapest trading platform in the UK can be confusing because of the complex fee structures, so we’re here to help.
In this article, we’ll showcase the cheapest UK trading platforms available so that you can find the best one for growing your portfolio.
Cheapest UK Trading Platforms for 2023
- Trading 212: Cheapest overall trading platform
- eToro: Cheapest social trading platform
- Freetrade: Cheapest for smaller portfolios
- InvestEngine: Cheapest for trading ETFs
- Interactive Brokers: Cheapest for higher investment amounts
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Comparison of Cheapest UK Trading Platforms
When comparing brokers for fees, many aspects should be taken into consideration.
Not only should we look into trading commissions but also other fees, such as the currency conversion fee (if you invest in instruments in other currencies), as well as non-trading fees (withdrawal fees, deposit fees, etc.).
Here is a comparison table that summarises the main costs to consider:
| Trading platform | Minimum deposit | Products | Trading Commission | Foreign exchange (FX) fee |
| Trading 212 | £0 | Stocks, ETFs, investment trusts, CFDs | Free | 0.15% |
| eToro | $50 | Stocks, ETFs, cryptocurrencies, CFDs | Free | 0.5% (0.25% for Platinum & Platinum+ members, 0% for Diamond members |
| Freetrade | £0 | Stocks, ETFs, investment trusts | Free | 0.99% Basic 0.59% Standard 0.39% Plus |
| InvestEngine | £100 | ETFs | Free | N/A (all ETFs are in GBP) |
| Interactive Brokers | £0 | Stocks, ETFs, options, futures, bonds, commodities, forex, mutual funds, CFDs | 0.05% for UK stocks/ETFs (£1 min) – various fees for other assets | 0.002% (min. £2) |
#1 Trading 212
Trading 212 at a glance
Trading 212 is an excellent trading platform, offering UK investors the cheapest overall package. It costs nothing to open an account, there are no commissions for buying or selling investments, and you can buy fractional shares for just £1.
The app is extremely well-designed and easy to use. You can use your Trading 212 account to invest in over 12,000 stocks, ETFs, investment trusts, and CFDs across the UK, US, and Europe. There is a small FX fee of 0.15%, but this is lower than most competitors.
New users also get one free share worth up to £100 with the promo code IITW.
If you’d like to know more about Trading 212’s cheap UK trading platform, you can read our in-depth Trading 212 review and visit Trading 212’s website.
Pros
- 0% commission
- Low 0.15% FX fee
- Over 12,000 investments
- Social features
- Fractional shares
- No minimum deposit
- Excellent investing app
- Ability to use ‘Pies’ and ‘Autoinvest’
- Interest paid on cash balances
- ISA
Cons
- Limited analysis and investment resources
- Limited range of asset types
#2 eToro
eToro at a glance
eToro started in 2007 and quickly made a name for itself as the world’s most popular social trading platform. Part of the reason that eToro isa fan favourite among investors is the fact that it’s also one of the cheapest trading platforms in the UK (and internationally).
Social features like CopyTrader and News Feed are useful additions, but cheap investing and trading a range of assets is what makes eToro one of the best platforms around. You can trade stocks, ETFs, forex, commodities, CFDs, and even cryptocurrencies.
Because everything on eToro is denominated in USD, you’ll need to pay a 0.5% FX fee when depositing and withdrawing, but not when making trades. It’s important to keep in mind with eToro there’s a $5 withdrawal fee and a $10/month inactivity fee after 12 months of no login activity.
If you’d like to learn more about eToro and why it’s such an excellent cheap trading platform, check out our in-depth eToro review and visit eToro’s website.
Pros
- 0% commission
- Over 3,000 assets
- Social features (CopyTrader & Social News Feed)
- Fractional shares
- Referral scheme
Cons
- $50 minimum deposit
- $5 withdrawal fee
- Cash interest only paid to eToro club members
- FX fee isn’t the lowest
- No ISA
#3 Freetrade
Freetrade at a glance
Freetrade is a relatively new investing app, and it quickly gained popularity with over 1 million users because it’s also one of the cheapest UK trading platforms available. The name gives it away, but there’s no commission when you buy or sell investments on the app.
Another great thing about Freetrade is that it’s free to open and hold a Basic account, giving you access to over 2,000 stocks. The downside is that if you want to access the app’s full capabilities, you’d need to subscribe to the Standard or Plus plans, which cost £5.99/month and £11.99/month, respectively. Although Freetrade offers no commissions for trading stocks, there is an FX fee to consider. This ranges between 0.39% – 0.99% depending on your plan, and it’s not the cheapest on the market.
Nevertheless, if you want one of the cheapest UK platforms for trading stocks and only want to invest small amounts, Freetrade is an excellent place to get started. The cheap trading app is dead simple to us. Take a look at our Freetrade review and check the Freetrade website if you want to know more.
Pros
- 0% commission
- Over 2,000 assets on Basic
- £0 minimum deposit and invest from just £2
- Fractional shares
- Referral scheme
Cons
- Paid plans to access all features
- Pay to access full 6,000 stock universe
- Cash interest only paid to Standard and Plus subscribers
- FX fees aren’t the cheapest
- Limited range of asset types
#4 InvestEngine
InvestEngine at a glance
InvestEngine is a relatively new cheap trading platform focusing entirely on exchange-traded funds (ETFs). If you’re not interested in ETFs or want to pick individual stocks, this cheap trading platform probably isn’t for you. But for those looking to buy or sell ETFs, InvestEngine offers one of the cheapest trading platforms in the UK.
InvestEngine has over 550 ETFs to choose from, and if you opt for its DIY account, there’s no platform fee. If you don’t want to trade and would rather have an expertly managed portfolio, you can use its robo-advisor service for a fixed 0.25% annual fee.
One of the best things about InvestEngine is that there’s no fee to deposit or withdraw funds, and you never need to pay an FX fee because all the ETFs can be bought with GBP. One thing to bear in mind is that ETFs come with ongoing costs. You’ll see this listed as the TER (Total Expense Ratio) percentage
InvestEngine has a great trading app with useful features like ESG screening and portfolio look-through. It also offers the option to autoinvest and one-click portfolio rebalancing. Check out our complete InvestEngine review and check InvestEngine’s website to find out more.
Pros
- No platform fee for DIY account
- Over 550 ETFs
- Zero cost to buy or sell ETFs
- Great app
- One-click portfolio rebalancing and autoinvest
- Invest from £1
- Referral scheme
Cons
- 0.25% fee for managed portfolio
- Only ETFs available
- Limited investing and analysis resources
- £100 minimum initial deposit
#5 Interactive Brokers
Interactive Brokers at a glance
Interactive Brokers is one of the most comprehensive trading platforms available in the UK and worldwide. If you want to access a huge range of global assets, Interactive Brokers is one of the cheapest trading platforms out there.
It’s probably more suited to those who want to take trading and investing more seriously, diving deep to use all the tools and research options on the platform. The downside to Interactive Brokers is that although it’s one of the cheapest trading platforms in the UK, the fee structure is also one of the most complex to grasp.
Interactive Brokers has no platform fee, and the FX fee of 0.002% is extremely low (although there is a £2 minimum, it’s better for larger international trades).
If you’re interested in finding out more about the costs and what Interactive Brokers can offer you as a trader, take a look at our detailed Interactive Brokers review and check IBKR’s website.
Pros
- No platform fee
- Massive choice of investments
- Over 150 global markets
- Market-leading trading tools
- Low commissions
- Interest paid on cash balances
- Lots of education and research info
Cons
- Complex fee structure
- User interface isn’t the best
The bottom line
To summarise, here’s the list of the ‘cheapest UK trading platforms’:
| #1 | Trading 212Cheapest overall trading platform |
| #2 | eToroCheapest social trading platform |
| #3 | FreetradeCheapest for smaller portfolios |
| #4 | InvestEngineCheapest for trading ETFs |
| #5 | Interactive BrokersCheapest for higher investment amounts |
Using a cheap trading platform is the best way to keep more of the profit from your investment portfolio. But it’s important to find the cheapest UK trading platform that suits your needs and investing strategy.
Understanding what type of investor you are will help you decide on the cheapest UK trading platform to use for buying, selling, and holding your investments. We hope this article has provided some insights into the options available in the UK. Let us know in the comments if there are any cheap UK trading platforms you like to use.
Franklin is a CFA Level III Candidate with 3 years of experience in Wealth Management as a Fund Research Analyst and the Host of the "Edge Over Hedge" YouTube Channel.
