Best ETF Trading Platform in the UK (Updated 2024)
Updated April 30, 2024
All products and services featured are independently selected by WikiJob. When you register or purchase through links on this page, we may earn a commission.
76% of retail investor accounts lose money when trading CFDs with eToro. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take two mins to learn more.
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.- A List of the Top ETF and CFD Trading Platforms in the UK for May 2024
- Description of the Best ETF Trading Platforms in the UK for May 2024
- Comparison Chart of the Top ETF Trading Platform in the UK for May2024:
- What Are ETFs?
- How to Choose the Best ETF Platform in the UK
- How to Pick the Right ETFs
- Frequently Asked Questions
- Final Thoughts
A List of the Top ETF and CFD Trading Platforms in the UK for May 2024
- eToro – The best user-friendly ETF broker in the UK
- IG – Best for comprehensive trading package
- Plus500 – The best broker for CFD trading
- Saxo – The best ETF broker UK
- Freetrade – The best cheap ETF broker UK
The popularity of buying and selling Exchange Traded Funds (ETFs) in the UK has risen in recent years. Trading ETFs offers a cost-effective way to diversify your trading portfolio across a variety of assets.
To improve the chance of attracting returns, it is important to invest in a good ETF platform in the UK.
Are you searching for the best ETF trading platform in the UK? In this article, we outline five of the best ETF platforms in the UK.
Whether you’re searching for a cheap ETF broker in the UK or the best UK broker for ETFs overall, we can help you find the best option for your trading strategy, portfolio and circumstances.
Description of the Best ETF Trading Platforms in the UK for May 2024
If you want to start trading ETFs, the first step is to open an account with an ETF trading platform. The best broker for ETFs in the UK is one that will meet your needs and trading style.
For example, if you want to set up a diverse portfolio, you might choose an ETF broker that also offers other asset classes. Read on to learn more about six of the best ETF trading platforms in the UK.
Comparison Chart of the Top ETF Trading Platform in the UK for May2024:
Broker
| Regulation FCA, CySEC, ASIC | Minimum Deposit $200 | Instruments Stocks, ETFs, Cryptocurrencies, Forex, Commodities, Indices | ||
Broker
| Regulation FCA, ASIC | Minimum Deposit $250 | Instruments Stocks, ETFs, Cryptocurrencies, Forex, Commodities, Indices | ||
Broker
| Regulation FCA, ASIC, MAS | Minimum Deposit Varies | Instruments CFDs | ||
Broker Saxo | Regulation FCA, MAS | Minimum Deposit None | Instruments Stocks, ETFs, Forex, Options, Futures, Bonds, Commodities, Indices | ||
Broker Freetrade | Regulation FCA | Minimum Deposit £0 | Instruments Stocks, ETFs |
Note: The information in this table is subject to change and may not be complete. It is important to research and compare brokers thoroughly before opening an account.
1. eToro
Pros
- Commission-free trading for stocks and ETFs
- Simple user interface
- Wide choice of ETFs
Cons
- No telephone-based customer support
- Customer support not available at weekends
- Charges a fee for inactivity
Web trading platform and mobile app
eToro was founded in 2007, and it was originally known as RetailFX. This trading platform is authorised and regulated in the UK by the FCA, and it is also covered by the FSCS.
eToro offers commission-free stock and ETF trading. There is no account fee, but there is an inactivity fee of $10 per month after one year of inactivity.
You only need to log in to your account to avoid having to pay this. There are no fees for making a deposit, but you will pay a fee of $5 on any withdrawals that you make.
There are 264 ETFs currently available on eToro, including technology ETFs and exposure to futures contracts.
Live chat customer support is available 24 hours per day from Monday to Friday. You can also use your registered email address to open a support ticket.
76% of retail investor accounts lose money when trading CFDs with eToro. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take two mins to learn more.
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.2. IG
Pros
- Highly regulated
- MetaTrader 4 (MT4)
- Over 10,000 instruments
- Available in the UK and US
- 24/7 customer support
Cons
- High fees
- No deposit compensation scheme for US accounts
- No copy trading
- Inactivity fees
IG invented spread betting in 1974 and today is the world’s leading online trading provider with more traders trusting them with their money than anyone else
IG is authorised and regulated by the FCA and provides traders access to over 18,000 markets. IG offers more 24-hour indices than any other provider, and extended hours on over 70 key US stocks
For those who prefer to own the underlying asset, IG offers access to over 13,000 global shares and ETFs, or a wealth portfolio managed by one of their experts.
Benefits:
- Advanced platform and charting – L2 dealer, ProRealTime and MT4
- Demo account
- Extended trading hours
- Extensive range of products
- Daily expert analysis & educational resources
- Round-the-clock customer service
- Negative balance protection for retail clients
Based on revenue (published financial statements, October 2022). 24/7 excludes the hours from 10 pm Friday to 8 am Saturday (UK time), and 20 minutes just before the weekday market opens on Sunday night.
3. Plus500
Pros
- No buy/sell commissions and tight spreads
- Leverage of up to 1:30
- FREE unlimited Demo
- 2,800+ trading instruments
- Real-time quotes and advanced analytical tools
- Fast and reliable order execution
Cons
- No API integrations
- No social copy trading
Plus500 is a CFD provider and offers only CFDs.
Plus500 was founded in 2008, and is considered to be a high-trust broker because not only is it regulated by top-tier bodies like the FCA in the UK and ASIC in Australia, but it is also listed on the London Stock Exchange.
Plus500 offers CFDs, 71 forex pairs and stocks. You can trade using its proprietary platform, which is available as a desktop download, a web trader and a useful, well-designed and streamlined mobile app.
Deposits and withdrawals are fast and free, and you can use a bank transfer, eWallets, and credit or debit cards to fund your account.
The minimum deposit is quite high, however, at £100.
The trading fees are about average, so there is not too much cost involved with making trades or maintaining an account at Plus500.
Plus500 does not offer access to platforms like MetaTrader, but it does have a proprietary platform called Web Trader that is simple and easy to use with a range of charting options and trading tools.
However, for those who like a lot of research in their trading apps, Web Trader and Plus500 as a whole does not provide that much detailed information.
For beginner traders, Plus500 does have a demo account where you can practice trading without risking your own capital, and the Trading Academy has a reasonable amount of educational material in the form of videos, eBooks and articles.
There is also a Traders Guide which has some further learning resources.
4. Saxo
Web-based platform and mobile app. The SaxoTraderGO app can be used on any smartphone, tablet, PC or Mac. Advanced traders can use SaxoTraderPRO on Windows or Mac.
Pros
- Hundreds of ETFs to choose from
- Telephone-based customer support available from Monday to Friday
- User-friendly trading platform
- No withdrawal fees when using the Online Cash Withdrawal Module
- Lower fees for Platinum and VIP members
Cons
- High minimum deposits – unlikely to be suitable for novice ETF traders
- No live-chat customer support function
Saxo is highly regarded as one of the best ETF trading platforms in the UK, offering a wide range of features and benefits that cater to both novice and experienced investors.
Saxo provides access to over 7,000 ETFs from various sectors including technology, healthcare, and environmental sectors. This broad selection allows traders to diversify their portfolios and invest in a range of industries and global markets.
Saxo offers competitive pricing for ETF trading, with rates starting as low as USD 1 and GBP 3. This pricing structure makes it accessible for all types of investors, whether they are looking to invest small amounts or larger capitals.
Saxo supports extended hours trading, which is a significant advantage for those who prefer to trade on their own schedule, including outside of standard market hours. This feature is particularly useful for traders who have daytime commitments or prefer to trade based on developments in other time zones.
Saxo’s platforms, SaxoTraderGO and SaxoTraderPRO, provide advanced tools and features that are ideal for ETF trading. These include comprehensive charting tools, risk management options, and real-time data feeds. The platforms also offer an intuitive user interface, making it easy for beginners to navigate while still providing powerful tools for more experienced traders.
Saxo offers a wealth of educational materials that help investors at all levels enhance their understanding of ETF markets. These resources include webinars, video tutorials, and articles that cover ETF investment strategies and market analysis.
As a globally regulated entity, Saxo offers a secure trading environment, adhering to strict regulatory standards. This provides an added layer of security and peace of mind for investors trading ETFs through its platform.
5. Freetrade
Mobile app. Web platform (beta version) is only available to traders with a Freetrade Plus subscription
Pros
- Commission-free trading for stocks and ETFs
- Access to more than 1,000 stocks and ETFs
- No inactivity or withdrawal fees
Cons
- Only available on mobile app unless you sign up for a Freetrade Plus subscription
- High currency conversion fees
- Limited email customer support; no telephone-based support available
Freetrade is a cheap ETF broker in the UK, which was founded in 2016. The iOS app was launched in 2018 and the Android app followed in 2019. It is regulated in the UK by the FCA and part of the FSCS.
Freetrade’s ‘Basic’ subscription allows you to buy and sell shares on a commission-free basis. There is no monthly subscription fee and you will have access to over 1,000 stocks and ETFs. When using Freetrade, there is no minimum deposit and no withdrawal fees to pay.
Customer support is limited – Basic customers can only contact customer support via email. If you sign up as a Standard or Plus customer, you will have access to the in-app chat support function.
What Are ETFs?
ETFs are an easy and affordable way to collect a range of stocks or bonds, all wrapped up in one straightforward investment product.
In the UK, investors use both traditional brokers and CFD brokers to trade ETFs. If you decide to use an ETF broker in the UK, you will not actually own the ETFs – you will be trading on the price.
ETFs can be traded in the same way as any other share on the London Stock Exchange. When you buy an ETF, your money is invested in all of the companies within the ETF index.
Different types of ETFs are available. You might choose to invest in ETF collections according to a particular geographic location, market segment or theme.
You can decide how many shares you want to purchase. The price of ETFs goes up and down throughout the trading day, and you can buy them whenever the stock market is open.
The cost of investing in ETFs is generally between 0.1% and 0.2% annually.
ETFs are available on all of the major UK trading platforms, but you need to watch out for additional fees (sometimes called ‘transaction costs’) if you are buying several ETFs.
The rise in popularity of ETFs can be attributed to how easy it is to trade them. Popular ETFs include funds on the Standard & Poor’s (S&P) 500 index and the FTSE All-Share index. Whether you are a beginner trader or an experienced trader, ETFs offer a straightforward way to invest in the global stock markets.
The best thing about trading ETFs is that you don’t need to have the knowledge required to choose the most favourable stocks. You can also use them to invest in popular trends, for example, cyber security or fintech.
How to Choose the Best ETF Platform in the UK
If you want to find the best ETF platform in the UK, it is important to consider the following:
- Policies – These should be easy to access and presented clearly on the website.
- Platform – If you want to be able to trade on the go, it is important to find a platform that offers both a web-based platform and a mobile trading app.
- Regulations – Check whether your preferred trading platform is regulated by the FCA and protected by the FSCS.
- Security – Choose an ETF platform with two-step authentication, Secure Sockets Layer (SSL) encryption, a secure server and automatic inactivity log-outs. Always set a strong password and ensure your computer or device is protected by antivirus and anti-spyware firewalls.
- Fee structure – Before signing up for an ETF trading platform, spend time reading through the information it provides on fees. This will help you to avoid any expensive surprises in the future. For example, if your chosen platform charges an inactivity fee, you will need to remember to log in to your account regularly to avoid having to pay this.
- Customer service – Find out whether the trading platform offers 24/7 customer support or whether this is more limited. Some platforms only offer email support, while others only offer telephone-based support. Consider your own preferences for contacting customer services as well as the availability of support.
- Choice of investments – There are thousands of different ETFs available, so it is important to find a trading platform with access to the ETFs you want to invest in. For example, you might only want to invest in certain themes like cyber security, artificial intelligence or sustainability.
How to Pick the Right ETFs
With so many different ETFs on the market, choosing an investment can seem overwhelming. You may wish to consider investing in ETFs to complement your existing portfolio. If you need help with choosing ETFs, many ETF trading platforms offer high-quality educational material.
Read on to learn more about the steps you should follow when investing in ETFs.
Step 1. Check the Performance of the ETF
This is about more than just how much money has been gained or lost as its underlying index fluctuates – you also need to consider how the ETF is performing against the index performance.
Step 2. Learn About the ETF Index
You should consider whether the ETF provides access to regional, country-specific or global assets, as well as exposure to specific industry sectors, for example, retail, sustainable energy or fintech.
You should also find out whether it provides access to certain asset classes such as commodities, equities or real estate.
Step 3. Look at the Structure
There are two different types of ETF – physical ETFs and synthetic ETFs. When investing in a physical ETF, you invest directly in the underlying assets of the index, which allows for accurate tracking of the index.
With a synthetic ETF, you do not invest in the assets directly.
Instead, the ETF tracks the index through contracts where the price/value is reflected by the underlying asset.
Step 4. Understand When to Trade
Many investors use ETFs because they trade on exchange. Just like stocks, they can be traded at any point during the trading hours of the exchange the ETF is listed on.
That means they are more liquid than mutual funds, which only trade once at the end of the trading day.
The liquidity and flexibility of ETFs make them an attractive choice as it means investors can make adjustments if exposure to a fund needs to be raised or lowered.
Step 5. Understand the Fees
When trading ETFs, there are two different types of fee to consider: transaction fees and the expense ratio. Transaction fees are incurred when an ETF is bought or sold. The expense ratio of a fund is calculated on a yearly basis.
There are several different ETF trading platforms in the UK to choose from. The best ETF trading platform will depend on your existing portfolio, trading style and personal preferences. Some of the best ETF trading platforms in the UK include eToro.
If you want to start trading ETFs online in the UK, the first step is to sign up for an account with an ETF trading platform. If you are new to ETF trading, look for a platform with good educational resources.
Most ETF trading platforms in the UK are regulated by the Financial Conduct Authority (FCA). When choosing a platform, it is sensible to choose one that is regulated by the FCA and protected by the Financial Services Compensation Scheme (FSCS).
Many brokers offer commission-free trading for stocks and ETFs. Before choosing an ETF trading platform, it is important to research and compare the options. This is the best way to find one to suit your needs.
You must be at least 18 years old to open a trading account and trade ETFs in the UK.
You can make money trading ETFs by selling them at a higher price than you bought them for. If you choose ETFs that track dividend stocks, you may also be entitled to receive dividends. Your potential returns will depend on the amount of capital you have available. It is important to remember that there are risks attached to all types of trading and investment.
The minimum deposit to start trading ETFs in the UK varies between trading platforms. Take a look at a few different options before choosing one. There is no minimum deposit for some trading platforms.
Many trading platforms offer a demo account to practise trading ETFs, including eToro. With a demo account, you can practise different investment strategies without risk.
When choosing an ETF broker, it is important to consider whether the broker is regulated, what level of customer support it offers, what fees it charges and the type of investments it offers.
Trading ETFs is perfect for novice and beginner traders. They are relatively easy to understand and offer a straightforward way to start building up an investment portfolio.
Several brokers offer a sign-up bonus to new traders, including E*TRADE, Robinhood and Charles Schwab. It is important to check that the broker will meet your needs before registering to receive a sign-on bonus.
You can only trade ETFs in the UK with a broker. It is not possible to trade ETFs in the UK without one.
Final Thoughts
Trading ETFs offers a number of benefits to UK-based investors. Whether you are a novice or experienced investor, buying ETFs allows you to add multiple assets to your portfolio through a single investment.
They are also a good choice if you want to start investing money in the financial markets.
With so many different ETF trading platforms to choose from, it might seem difficult to decide on the best platform for ETFs in the UK. By using this guide, you can narrow down the options and find the best UK broker for ETFs for you.
76% of retail investor accounts lose money when trading CFDs with eToro. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take two mins to learn more.
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.
