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Online discount brokers have made it easier than ever to trade and invest. Before these service providers debuted, hefty charges, including spreads and commissions, bogged down traders and investors in the UK.
As the name suggests, discount brokers have the lowest costs imaginable. Their focus is primarily on ensuring that UK traders can access crucial trading and investing infrastructure without being deterred by high fees. Most of these providers offer superb perks, including tight spreads starting from 0 pips, free transactions, and super-low minimum deposit requirements.
I tested the cheapest discount brokers in the UK; I’ve reviewed 5 that blew me away below.
List of the Best Discount Brokers
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1
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Risk WarningFor UK: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 63.3% of retail investor accounts lose money when trading CFDs with IBKR. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
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2
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Risk Warning75% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
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3
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{etoroCFDrisk}% of retail investor accounts lose money when trading CFDs with this provider.
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4
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Risk Warning66% of retail investor accounts lose money when trading CFDs with this provider.
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5
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Risk Warning74% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
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In This Guide
Compare Brokers Table
UK traders seeking the most affordable brokers have numerous options. That is because most service providers in the UK are now using lower commissions and fees to attract more customers. Sadly, some of these entities masquerade as legitimate service providers, but they have hidden motives. You have to choose carefully, just like I did.
When I rank a service provider in the UK as the best, I mean it. I don’t rely on hearsay or take any company’s word at face value. I conduct diligent research and evaluation. Additionally, my colleagues and I vet each broker’s suitability based on numerous factors, with the ones I’ve outlined in the comparison table below at the forefront.
| Discount Broker | Licence & Regulation | Support Service | Software | Payment Method | Demo Account | Money Insurance |
|---|---|---|---|---|---|---|
| Interactive Brokers | FCA, BaFin, DFSA, FSCA, MAS, JFSA, ASIC, CFTC, CySEC | 24/7 | Online Platform, Trading apps, MT4, ProRealTime, L2 Dealer, US options and futures | Check, wire transfer, direct bank transfer (ACH) | Yes | Yes |
| XTB | MiFID, FSCA, ASIC, CySEC, FSA, FCA | 24/5 | xStation 5, xStation Mobile | Neteller, Credit/debit cards, Bank transfer, Skrill, PayPal | Yes | Yes |
| eToro | FCA, ASIC, MAS, CySEC, MFSA, SEC | 24/5 | CopyTrader, Multi-Asset Trading Platform, Investing Platform, eToro Mobile App | Credit/debit cards, Bank transfer, Neteller, Skrill, PayPal, online banking | Yes | Yes |
| Saxo | FCA, ASIC, DFSA, MAS, JFSA, SFC, FINMA | 24/5 | SAXO Investors, SaxoTraderGO, SaxoTraderPRO | Bank wire transfer, credit/debit cards | Yes | Yes |
| FxPro | FCA, FMA, CySEC, FSCA, SCB | 24/5 | FxPro Mobile App, MT4, MT5, cTrader, FxPro WebTrader | Credit/debit cards, Bank wire transfers, Neteller, Skrill, PayPal | Yes | Yes |
Fees & Commissions
If there’s anything that can reduce potential profits by significant margins, it’s excess fees. I don’t want this to be a big hurdle for you. Remember, my primary objective is to help you find a discount broker with the most favourable commissions and fees. I examined and compared all service providers’ fees and factored in affordability while selecting the best brokers in the UK.
| Discount Broker | Minimum Deposit Requirement | Commission/ Spreads | Deposits/ Withdrawals | Inactivity Fee |
|---|---|---|---|---|
| Interactive Brokers | £0 | From £0 per share | Free | £0 |
| XTB | £0 | From 0% commission | Free | £10 monthly |
| eToro | £50 | 0.02 points | Free | £10 monthly |
| Saxo | £0 | From £0 commission | Free | £0 |
| FxPro | £100 | From 0 pips | Free | £15 one-time fee + £5 per month |
Platforms Reviews
The mini-reviews below will introduce you to almost everything you need to know about the best discount brokers in the UK. Note that I couldn’t discuss everything in one piece, so I’ve covered the most indispensable aspects. I’ve primarily tailored my reviews to give you a rough idea of what to expect. You must research and evaluate any broker you choose before committing.
That said, the brokers outlined here are the best in the UK because, first and foremost, they are regulated by the Financial Conduct Authority (FCA). Other reputable organisations, such as the FSCA and ASIC, also recognise them. Additionally, these service providers have reasonable commissions, spreads, and charges. Let’s take a closer look at what these entities have to offer.
1. Interactive Brokers – Overall Best Discount Broker in the UK
Based on my assessment and findings, Interactive Brokers (FCA Reference number: 178750) is the overall best discount broker in the UK. Most brokers operating in this region require traders to deposit a certain amount of money, but Interactive Brokers does not. This fantastic service provider has no minimum deposit requirement, allowing you to start trading with any amount of capital that suits you.
Furthermore, Interactive Brokers has some of the lowest spreads and commissions I have encountered. You can start investing in stocks today and enjoy tight, tiered commissions ranging from £0.0005 to 0.0035 per share. You can also explore the available ETFs, which come with low commissions starting from £0. Other products that have low spreads and commissions include options, metals, bonds, and mutual funds.
Not to forget, I found out that Interactive Brokers has zero inactivity fees. If circumstances force you to take a break from online trading, you can do so without worrying about accumulating inactivity or account maintenance fees. I also highly recommend this service provider since the official platform has all the resources you need to take your career to the next level, including an outstanding Traders’ Academy.
Interactive Brokers
✔No minimum deposit requirement
✔Zero inactivity fees for individual trading accounts
Pros & Cons
Fees
Trading Assets
Pros
- Low commissions starting from £0
- No minimum deposit requirement
- Zero inactivity fees
- Wide variety of trading and investment products
- Free, world-class educational resources
Cons
- o third-party trading software hosted
- £7 fee for bank transfer withdrawals
Numerous factors, including the £0 Interactive Brokers minimum deposit UK requirement, made our exploration easier and more enjoyable. This trading platform allows users to trade and invest with whatever they can afford, making it ideal even for traders and investors working with a restricted budget.
We were also wowed by the friendly Interactive Brokers fees UK policies. For starters, this company offers free deposits to people who use supported payment methods, including bank transfers. Only people who use physical currency deposits are subjected to a 1% special handling fee. Moreover, this service provider has zero inactivity fees and commissions as low as £0.0005 for stocks and ETFs.
2. XTB – Best Discount Broker UK for Cost-Conscious Traders
If you are a cost-conscious trader searching for one of the UK’s cheapest trading platforms, I recommend XTB (FCA Reference number: 522157). This broker started operating in 2002 and now serves over 1 million clients. Several factors have contributed to the company’s impressive rise in popularity, starting with affordability. XTB has a minimum deposit requirement of £0. This quality has made the company attractive for low- and high-budget traders.
I also recommend XTB because it allows its customers to invest in commission-free stocks and ETFs. A wide variety of investment products is available here, starting with over 3,200 stocks, including popular options like Lloyds Banking Group, Tesla, and Netflix. Additionally, the platform has over 1,300 global ETFs, including popular products like Xtrackers DAX USICTS ETF, Amundi Euro Stoxx 50 UCITS ETF, and Vanguard FTSE All-World.
In addition, XTB supports free deposits and withdrawals. The broker’s clients receive negative balance protection, and their funds are kept safe in segregated accounts. Moreover, this platform allows Britons to earn juicy interests of up to 4.5% on uninvested GBP cash balances.
XTB
✔5,700+ financial instruments
✔No minimum deposit requirement
Pros & Cons
Fees
Trading Assets
Pros
- No minimum deposit requirement
- Offers zero commission stocks and ETFs
- Free deposits and withdrawals
- Tens of thousands of securities are available
- Low minimum order requirements
Cons
- Withdrawals below £50 are not free
- Educational materials could be more extensive
XTB is a cost-effective trading platform. We used a live account to assess its fees and commissions. The first applaudable aspect we noticed is setting up an account with this broker is quick and easy. Furthermore, there’s no set XTB minimum deposit requirement, and the platform supports free transactions. When it comes to withdrawals, transactions above £50 are free.
That aside, we noticed various mandates on the XTB UK trading platform during our exploration. For starters, this entity has a £10 minimum order requirement for shares from companies like the Associated British Food PLC. Additionally, it requires users to cover a 0.5% conversion fee while trading with anything besides the base currency.
Not to forget, XTB charges different spreads for different instruments and requires traders who hold open positions to cover swap costs.
3. eToro – Best Discount Broker for Beginners in the UK
Supposing you’re a beginner, I urge you to start with low capital to limit losses. And that requires you to find the cheapest broker in the UK. The provider should also have materials and resources you can use to learn the fundamentals and upgrade your trading skills. Considering that, I consider eToro to be the best UK discount broker for beginners.
eToro is ideally suited for beginners for many reasons, starting with educational resources. Let’s begin with the eToro Academy. I explored this top-class educational platform and discovered everything you need to master trading and investing, from free courses with countless comprehensive lessons to podcasts and webinars.
Additionally, the eToro site has a beginner-friendly interface that I grew fond of within a short while. Everything is well-organised and easy to find. You can browse different aspects without any hassles, from the available tradable and investment products to market hours and events. Before putting your money on the line, you can use a demo account to test this service provider and assess your trading skills.
eToro
✔5000+ financial instruments
✔Cost-free deposits
Pros & Cons
Fees
Trading Assets
Pros
- Top-notch learning materials and resources
- Beginner-friendly website interface
- Wonderful support services
- 0% commission for stocks and ETF trades
- 7,000+ financial products are offered
- Supports crypto investing
Cons
- £10 monthly inactivity fee
- Higher trading spreads than its peers
If there’s anything that can eat away at your profit margins, it’s unnecessary costs. Thankfully, eToro fees UK are reasonable and pocket-friendly. We acquired a new account without paying a single cent, which was quite a relief. We also noticed that you can enjoy free deposits by using USD. That said, eToro supports many other currencies, including GBP, EUR, and RMB.
You will incur conversion fees if you use any currency other than USD. And if you use any currency that eToro doesn’t support, you must pay conversion fees to your payment provider. The exact conversion fees you may incur at any moment will depend on various factors, including your preferred currency and payment method.
Please note that eToro subjects each withdrawal request to a £5 fee. The platform uses this money to pay expenses arising from international money transfers. Most importantly, you can’t withdraw less than £30 from the eToro trading platform.
While depositing money into our account, we noticed that eToro has strict minimum deposit requirements. Britons using this platform have to deposit at least £100 the first time. Afterwards, you can fund your account with as little as £10, depending on your preferred payment method.
Commission-wise, eToro is very friendly to people who trade ETFs or invest in real stocks since the broker charges 0% for these assets. On the other hand, if you buy or sell crypto on this platform, expect to pay a 1% fee. CFD trading also attracts variable spreads depending on the involved instruments. For instance, the spreads for currencies and commodities start from 1 pip and 2 pips, respectively.
Not to forget, eToro charges a £10 monthly inactivity fee that kicks in after 12 months of dormancy.
4. Saxo – Best Discount Broker for Advanced UK Traders
From my perspective, Saxo is the best discount broker for seasoned traders in the UK. Why? First, this exceptional broker allows its customers to invest, hedge, and trade over 71,000 financial instruments, a record-setting number that no service provider is even close to hitting. The products offered here belong to different asset categories, from forex and stocks to CFDs, bonds, and futures.
Additionally, Saxo has 2 exceptional trading platforms that I tested and loved: SaxoTraderGo and SaxoTraderPro. SaxoTraderGo is an award-winning platform that allows seasoned traders to leverage powerful features, including optimised trade tickets, robust fundamental analysis tools, and carefully curated research content. On the other hand, SaxoTraderGo is a professional-grade trading software with high-performance tools and features like the depth trader module, algo orders, and powerful charting packages.
When it comes to pocket-friendliness, Saxo has zero minimum deposit requirements and supports free transactions. Moreover, the platform’s users enjoy low spreads starting from 0.4 pips while trading popular currency pairs. The spreads and commissions for CFDs, stocks, and commodities start from 0.85 pips and £1 per lot, respectively. Not to mention that dormant Saxo accounts incur no fees.
Saxo
✔No minimum deposit requirement
✔Low commissions for all asset classes
Pros & Cons
Fees
Trading Assets
Pros
- Offers over 71,000 financial instruments
- No minimum deposit requirement
- Tight spreads and commissions
- Powerful trading tools are available
- Zero inactivity fees
Cons
- Higher spreads and commissions for Classic users
- You need at least 1.5 million total trading volume to qualify for VIP perks
Saxo is one of the brokers in the UK with transparent fee structures. While analysing its trading and no-trading charges, we noted that the broker has no hidden charges. This makes it easier for users to plan and budget for their activities without worrying about extra charges once fully invested.
Additionally, we find Saxo affordable since it charges low commissions, starting at $1 on US stocks, ETFs, and futures. For traders interested in options and government bonds, Saxo charges low fees, starting at $0.75 and $0.05%, respectively.
When it comes to Saxo’s minimum deposit requirement, the broker has none. This means that any trader, whether new or budget-conscious, can create a trading account with the broker and start exploring the financial space. However, expect to incur a currency conversion fee, especially when you trade using a different currency from your account’s base denomination. The good news is this fee doesn’t apply to marginal collateral and can never exceed +/- 0.25%.
Financing charges for positions left overnight are also applicable at Saxo. For investors, expect to incur annual custody fees if your account holds stock, bond, or ETF/ETC positions. The exact fee will vary depending on your account. Our analysis showed that you will pay up to 0.15% for the classic account, 0.12% for the platinum account, and 0.09% for VIP accounts.
Lastly, Saxo charges fees for additional services besides those mentioned above. For instance, it imposes a $50 fee for online report requests. Plus, transactions are free, and there is no inactivity fee should your account stay idle for some time.
5. FxPro – Best Discount Broker for Forex Trader
I encourage dedicated forex traders searching for the cheapest trading platforms to consider FxPro. I couldn’t get enough of this service provider’s tight spreads, which start from 0 pips. I also discovered that traders who prefer fixed spreads can open a MetaTrader 4 account with FxPro and escape the detriments of floating spreads while trading popular instruments like GBP/JPY, EUR/GBP, and GBP/USD.
FxPro is also an excellent forex trading broker that supports free deposits and withdrawals. After funding their accounts, this company’s customers get access to a wide variety of powerful trading platforms, including MT4, MT5, and cTrader.
Finally, I recommend FxPro to cost-conscious forex traders because this platform’s users can diversify with CFDs on thousands of stocks, digital currencies, precious metals, and other assets. FxPro customers can also apply for the BnkPro Mastercard, which makes it easier for users to invest, transfer funds, and more.
FxPro
✔User-friendly platform
✔Low minimum deposit requirement for UK clients
Pros & Cons
Fees
Trading Assets
Pros
- Low spreads on major currency pairs, from 0.0 pips
- Hosts cTrader, MT4, and MT5
- Free deposits and withdrawals
- VIP account holders get up to 30% discount on market spreads
- Top-tier, responsive support team
Cons
- £15 one-time + £5 monthly inactivity fees
- A thin variety of educational materials
From our broker analysis and comparisons, we find FxPro to be one of the most affordable brokers for Ul clients. For starters, this broker has a free account opening procedure that takes minutes to complete. Moreover, it has a £1000 minimum deposit requirement, though you can deposit as little as £100. And when it comes to transaction costs, FxPro doesn’t impose any. We believe this makes it suitable for newbies who are sceptical about spending a lot of money and low-budget traders.
When it comes to trading charges, FxPro imposes low fees compared to other brokerage firms. For instance, forex trading attracts low fees, starting from 0.0 pips on major currency pairs. However, expect to incur additional costs for positions left overnight. There is also an inactivity fee of £10 monthly should your account remain dormant for over six months.
How to Choose the Best Discount Broker
Trading with the cheapest brokers in the UK comes with its fair share of tasks, with reduced costs and enhanced returns at the top of the list. But I discourage prioritising cheapness exclusively while selecting a fitting service provider, no matter how tempting that can be. You should exercise caution, as some discount brokers expose you to numerous issues, including inadequate regulatory oversight and subpar customer service.
To ensure you find a solid and reliable discount trading platform, use the following factors to vet every available service provider:
Regulatory Status
Fees and Commissions
Trading Platforms
Product Range
Customer Support
Online Reputation
Ensure that every discount broker you plan to trade with is authorised and regulated by the FCA and other tier-1 regulators. These authorities have set mandates that ensure your data and funds are well-protected and safe from misappropriation. Avoid unregulated platforms because they may expose you to scams and other issues.
Brokers often have different fees, from annual and inactivity charges to research and funding fees. Since you are looking for the cheapest service provider, avoid entities that expose you to excessive costs and hidden charges. The same applies to spreads and commissions. All of these elements can undermine your profitability. Compare different companies’ charges before signing up.
Evaluate the trading platforms your chosen discount broker offers and their features before signing up. If a proprietary solution catches your eye, test it with a demo account before committing with real funds. And if you are a fan of any specific third-party trading software, I strongly recommend ensuring your chosen service provider hosts it before making your financial decision.
Over the years, I’ve realised that trading with a broker that offers a wide range of products is crucial for seamless portfolio diversification. Most importantly, ensure your chosen service provider supports your favourite financial instruments. Avoid platforms with limited products since they reduce your odds of finding and leveraging profitable opportunities.
I always test every broker’s support speed and quality beforehand, and I urge you to do the same. To ensure you enjoy optimum support in the future, go with a broker whose technicians are available from Monday to Friday, at the very least. If you can find a service provider with 24/7 support, all the better for you. Contact representatives via text, email, or call and assess their helpfulness.
A remarkable online reputation is a hallmark of a trustworthy and credible broker. Before signing up with any service provider, visit the App Store, Google Play, and Trustpilot and read past customer reviews. Pay close attention to testimonials and complaints that describe personal experiences, platform reliability, and support quality. Avoid companies with more complaints than positive reviews.
How to Start with a Discount Broker
After using the factors outlined above to identify the best discount broker, the next thing to do is to open your trading account. That, in a nutshell, will require you to share personal information and the proper documents. Here’s a brief step-by-step guide:
Step 1: Visit your Broker’s Webpage
Step 2: Open a New Account
Step 3: Complete KYC Verification
Step 4: Fund your Account
Step 5: Start Trading and Investing
Before going any further, go to your preferred broker’s official website and verify if the fees and commissions match your preferences. I also urge you to give other vital elements like the supported assets and trading platforms a once-over. Finally, don’t sign up before reading the company’s terms and conditions.
Depending on your preference, you can either sign up on the online platform or register using the app provided by your broker. If you prefer the latter, download the app from official stores. That aside, to open an account with an FCA-regulated broker, you will need to share personal information, from your name to contact details. After doing so, you must set a strong password guaranteed to protect your funds from malicious actors.
To enjoy all of the services offered by your broker, you must complete verification. It’s nothing you should sweat about. Just share photos or copies of the required documents. You can use your driver’s license to prove your identity and support your location with a recent bank statement. The key here is to adhere to your service provider’s mandates.
Wait for your application to be approved, and then go through the list of supported funding methods. Pick the best option and use it to deposit money into your trading account. If your chosen broker has no minimum deposit requirement, fund your account with whatever you please. Otherwise, abide by the stipulated mandates.
After funding your account, select the financial instruments you’re looking for and begin your journey to earning substantial returns. But remember that success in trading requires sufficient knowledge and skills. If you are a novice, seek education before dipping your toes in the trading pool. Moreover, while trading, employ the best risk management tools and strategies.
Read our in-depth guide on Top Gold Trading Brokers in the UK.
How We Test
Testing is a crucial part of our entire selection process. We put every single service provider through rigorous testing. Only the most outstanding made the cut. By outstanding, I mean brokers that ranked the highest in several key areas, including licensing, security, ease of account setup, fees, customer support, and user testimonials.
We awarded every service provider we tested a certain number of stars out of 5, based on our experience. After going through countless exhaustive tests and comparisons, our gurus picked the top 5 providers, which I’ve introduced you to in this guide.
FAQs
How do discount brokers make money?
Discount brokers typically earn revenue through trading commissions, spreads, interest on uninvested cash, and small fees on premium features or services like real-time data or advanced tools.
Do discount brokers offer investment advice?
Most discount brokers don’t provide personalised investment advice. Their platforms are designed for self-directed investors, though some may offer educational content or robo-advisory services.
What is the difference between a discount broker and a full-service broker?
Discount brokers focus on low-cost trade execution and self-managed investing. In contrast, full-service brokers provide tailored advice, portfolio management, and financial planning — often at a higher cost.
Final Thoughts
Discount brokers offer you the opportunity to lower expenses and maximise potential returns. But trading with them won’t drop guaranteed profits on your lap; 80% of UK retail traders lose money, even while using discount brokers.
You still have to play your part to reduce your odds of losing and increase the chances of becoming a successful trader. For starters, establish a clear strategy that will guide your decisions before trading with any of the cheapest platforms. It’ll save you from pitfalls like emotional decision-making, chasing losses, and overtrading. Stick to your strategy if it works and tweak it whenever necessary.
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I've used a couple of these platforms, and I appreciate how Interactive Brokers offers low commissions with no minimum deposit. Overall, it's about finding the right balance between fees, features, and ease of use.
I’ve tried XTB and eToro, and honestly, both saved me a lot on fees compared to my old broker.