On the 11th of April 2024, DEGIRO reactivated its onboarding of new clients in the United Kingdom.
Some months ago, DEGIRO paused the onboarding of new UK clients without further explanation of the reasons for this action. However, this situation has recently changed as you, as a UK resident, can open an account:
If you are interest in exploring other alternatives available in the UK, please read the next section!
DEGIRO alternatives in the UK
To help you find a DEGIRO alternative in the UK, we focused on low cost brokers available in the UK with a similar product offering. Given that, here are our suggestions:
eToro
With over 30 million customers worldwide, it is a technology-first platform with no trading fees for stocks and ETFs (other fees apply). Ideal for learning the ropes of active trading and for people looking for social trading.
Disclaimer: eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.
Interactive Brokers
Founded in 1978, IBKR is one of the world’s most trustworthy brokers. It offers an enormous range of financial products (stocks, ETFs, Options,…), and low currency conversion fees (FX fees).
💡 Interactive Brokers also launched IBKR GlobalTrader, a modern mobile trading app to trade Stocks, Options and ETFs, ideal for novice investors.
Webull UK
Webull is one of the biggest US discount brokers. Recently, it launched in the UK. Users can invest in US stocks and fractional shares with very low commissions, and new users benefit from a signup bonus.
InvestEngine
InvestEngine is a UK-based robo-advisor and investment platform focused on ETFs. It is a great solution for buy-and-hold investors looking to only invest in ETFs for the long term.
All these alternatives to DEGIRO are regulated (or registered) by top-tier regulators such as the UK’s Financial Conduct Authority (FCA), Germany’s Federal Financial Supervisory Authority (BaFin) and Cyprus’ Securities and Exchange Commission (CySEC).
1# eToro at a glance
51% of retail CFD accounts lose money.
Founded in 2006, eToro is a well-known worldwide fintech startup and the leader in the social trading field (follow other people’s trades), with over 30 million users worldwide and that offers commission-free stock and ETFs trading in the UK (not all ETFs are commission-free). You can also invest in other products such as CFDs, commodities, Forex, and cryptocurrencies through their platform, which is intuitive and simple to use, making it a good choice for beginners or someone looking for a DIY (“do it yourself”) platform.
Opening an account and depositing is easy, and you can even try it out with a Demo Account (virtual money). On the downside, spreads can be high for some products. The only currency accepted is the USD, which means that you’ll be charged currency conversion fees upon deposit and withdrawal if you deposit in another currency.
Want to know more about eToro? Check our in-depth eToro review.
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.
Zero commission means that no broker fee will be charged when opening or closing the position and does not apply to short or leveraged positions. Other fees apply including FX fees on non-USD deposits and withdrawals. Your capital is at risk. For more information, click here.
2# Interactive Brokers at a glance
Founded in 1978 and publicly listed in NASDAQ (ticker: IBKR), Interactive Brokers is a global online broker which surpassed major financial crises, showing resilience and a rigorous risk management process.
Interactive Brokers offers an advanced investment platform that includes a wide range of products (stocks, options, mutual funds, ETFs, futures, bonds, and currencies) from 150 markets, solid trade execution (IB SmartRouting), and a set of technical and fundamental tools to help you in your investment decisions.
Beginners and intermediate investors have educational tools to explore, but the learning curve will be steep. That´s why we mainly endorse it to more advanced traders. Besides, the customer service gives crystal clear answers to your doubts, so there is no need to go back and forth.
On the downside, Interactive Brokers’ fee structure is quite complex, the registration process is lengthy but fully online, and the broker doesn’t offer commission-free trading. However, when considering FX fees, narrower spreads, and the stock loan program, Interactive Brokers’ clients still get significant savings compared to most brokers.
Interactive Brokers also launched IBKR GlobalTrader, a modern mobile trading app to trade Stocks, Options and ETFs, ideal for beginner investors. Some of the features of IBKR GlobalTrader include automatic currency conversions, fractional shares, demo account, and more.
Want to know more about Interactive Brokers? Check our Interactive Brokers Review.
3# Webull UK at a glance
Investing involves risk of loss.
Founded in 2017 in the US and launched in the UK in July 2023, Webull joins the British brokerage industry with low commissions. At the moment, it only offers access to US stocks (over 10,000). New users get a signup promotion.
As a UK user, you also have access to a demo account where you can buy and sell as you would with real money. You can only deposit in pound sterling (GBP), which means that when investing in US stocks (traded in US dollars), you will be charged a currency conversion fee of 0.35%. Besides, each trade has a cost of 0.025%. Basically, you would pay roughly 0.375% per transaction (minimal regulatory fees also apply).
The offering of fractional shares is also crucial since most US stocks trade at high market values per share. Still, the limited range of asset types (no ETFs, bonds, options,…) and only offering a general investment account (no tax-efficient accounts like Stocks and Shares ISA) may affect users also looking for broader solutions.
Finally, Webull UK is authorised and regulated by the Financial Conduct Authority (FCA). As such, it is also under the Financial Services Compensation Scheme (FSCS) protection, which protects your money (assets + cash) up to £85,000.
4# InvestEngine at a glance
When investing your capital is at risk.
InvestEngine is a UK-based broker and robo-advisor launched in 2020. It provides users with access to low-cost, diversified portfolios of exchange-traded funds (ETFs) designed to meet their investment goals and risk tolerance. InvestEngine offers both managed portfolios and a do-it-yourself (DIY) option for investors who prefer to build and manage their own portfolios.
Pros:
- Low-cost investing: InvestEngine provides a low-cost solution for investing, with competitive fees for both managed portfolios and the DIY option.
- Diversification: The platform offers a range of ETFs, enabling investors to create a diversified portfolio tailored to their risk tolerance and investment objectives.
- Auto-rebalancing: For managed portfolios, InvestEngine periodically rebalances the portfolio to maintain the desired level of risk and diversification.
- User-friendly interface: The platform is easy to navigate and provides helpful tools, such as risk assessment questionnaires and educational resources.
Cons:
- Limited investment options: Compared to some other platforms, InvestEngine offers a smaller selection of ETFs. Investors looking for a wider range of investment options might find this limiting.
- No individual stocks or bonds: InvestEngine focuses exclusively on ETFs, which might not be suitable for investors who wish to invest in individual stocks, bonds, or other types of instruments.
All in all, it is a great solution for buy-and-hold investors looking to only invest in ETFs for the long term.
Want to know more about InvestEngine? Check our InvestEngine review.
Which platform should you choose?
Whether you decide to invest in stocks through DEGIRO, eToro, Interactive Brokers, Webull, InvestEngine or any other trading platform, you should take the time to compare the platforms before you decide which trading platform you would like to use.
Be sure to compare education resources, pricing information and the products offered before pressing the trigger and opening an account. This process will help ensure that you do not need to maintain multiple accounts to access all the tools you need.
The best online broker in your specific case will depend on your profile, preference, and objectives. Explore the websites above and decide for yourself!
A reminder that the above should not be construed as investment advice and should be considered information only. Investors should do their own research and due diligence about the services and opportunities best suited for their risk, returns, and impact strategy.
