Have you ever wondered which online UK stocks broker is for stock trading in the UK today? Then you need to read this work to learn about the different types of stock brokers operating in the UK today. You will also learn from this work the important factors to consider while choosing a stock broker. We have also provided in this work the list of the best stock brokers in the UK today to make it easy for beginners to decide on the best stock broker to trade.
Meaning of Stock Brokers
Stock brokers are intermediary financial service providers that make it possible for individuals to buy and sell different stocks in the UK today. They link the individual to the London Stock Exchange (LSE) where they can place their orders for the various stocks available for trading. Without these stock brokers, it will be difficult for the individual to trade stocks online.
Types of stock brokers in the UK
There are three major types of stock brokers found in the UK today. We have discussed them below:
- General Service Stock Brokers: This is the most popular stock broker in the UK today. This type of broker performs a wide range of services for their clients including: account management, financial advice, stock recommendations, and trading on behalf of the client. Nevertheless, the general service stock brokers charge some commissions for all the services they render to their clients
- Discount Stock Broker: This type of stock broker allows the clients to take decisions and trade themselves. They only provide the trading platform with lower charges for trading which attracts more clients to their platforms. Some discount stock brokers also provided additional educational contents and market analysis to assist traders in making their decisions.
- CFD Stock Brokers: The CFD stock brokers offer both stocks and other financial instruments for trading on their platforms. They provide very attractive leverage for trading and charge commissions for using their platforms.
Factors to consider while choosing a stockbroker in the UK
- Trading Charges: The amount charged as a commission by brokers for trading on their platforms is an important factor to consider while choosing a stock broker in the UK. Only brokers with low trading fees and commissions are recommended for trading.
- Number of stocks available for trading: The number of stocks available for trading on a given broker’s platform is an important factor considered while choosing a stock broker to trade with. Brokers with a large number of stocks for trading are usually the best for stock trading in the UK.
- Order executions: Very often, traders preferred brokers with low slippage and fast order executions.
- Regulatory Status: Generally, all stock brokers operating in the UK are expected to be registered with the official financial regulatory authority known as FCA. This body examines the activities of all the stock brokers in the UK to ensure that they meet the standards.
- Customers’ Support: Stock brokers are expected to create an efficient support channel for traders to report all issues they may find on their platforms.
- Research materials: Generally, brokers are expected to provide rich educational contents on their platforms to assist traders in making decisions.
- Leverage available for trading: Often brokers that provide enough leverage for trading are usually the most preferred for stock trading in the UK.
- Ease in deposits and withdrawals: Stock brokers are expected to provide many options for deposits and withdrawals.
List of Ten best stock brokers in the UK
- CMC Markets
- Saxo Bank
- Interactive Brokers