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Discount brokers offer the cheapest trading platforms in the UK. These service providers have many qualities that make them ideal for traders looking to enjoy lower costs, including reduced trading fees and commissions. As a Briton, you have easy access to many discount brokers. But that doesn’t mean you should commit to the first entity that crosses your path. You need to find an outstanding and secure FCA-regulated service provider. We vetted the cheapest trading platforms in the UK and identified 5 that deserve your money and attention.
Trading with discount brokers is the key to reducing costs and increasing potential returns. These entities have lower commissions, account fees, and other charges. Sadly, many discount brokers are available today, which can complicate finding the right company. Don’t worry, though; we are here to make things easier.
Our team vetted the cheapest trading platforms in the UK and selected 5 with all the right qualities. While analysing service providers and isolating the best, numerous factors, including licensing, fees, and online reputation, guided our decision-making process. Read through this guide and pick the best discount broker from the myriad service providers we’ve recommended here.
List of the Best Discount Brokers
- Interactive Brokers – Overall Best Discount Broker in the UK
- XTB – Best Discount Broker UK for Cost-Conscious Traders
- eToro – Best Discount Broker for Beginners in the UK
- Saxo – Best Discount Broker for Advanced UK Traders
- FxPro – Best Discount Broker for Forex Trader
In This Guide
UK Cheapest Brokers: Comparison Table
Britons looking for the cheapest brokers have many 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 we did.
When we rank a service provider in the UK, we mean it. Our team doesn’t rely on hearsay or take any company’s word at face value. We conduct diligent research and evaluation. Additionally, our experts vet each broker’s suitability based on numerous factors, including those outlined in our first comparison table below.
| Best Discount Broker | Licence & Regulation | Support Service | Software | Payment Method | Demo Account |
|---|---|---|---|---|---|
| Interactive Brokers | FCA, SEC, FINRA, ICS, CBH, ASIC, SFC, MAS | 24/5 | IBKR Desktop, IBKR Trader Workstation (TWS), IBKR Mobile, IBKR GlobalTrader | Check, wire transfer, direct bank transfer (ACH) | Yes |
| XTB | FCA, FSCA, ASIC, CySEC, FSA | 24/5 | xStation 5, xStation Mobile | Neteller, Credit/debit cards, Bank transfer, Skrill, PayPal | Yes |
| eToro | FCA, MAS, CySEC, FSCA, ASIC, SFSA ADGM, MFSA, FSAS, GFSC, SEC | 24/5 | eToro investing platform and app, Multi-asset platform, Social Trading, Copy Trader, Smart Portfolios | Credit/debit cards, Bank transfer, Klarna, PayPal, Skrill, Neteller | Yes |
| Saxo | FCA, FSA, MAS, FINMA, JFSA, SFC, ASIC, AFM, FSMA | 24/5 | SaxoTraderGo, SaxoTraderPRO | Bank/wire transfer, debit card | 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 |
Brokers Short Overview
If there’s anything that can reduce potential profits by significant margins, it’s excess fees. We don’t want you to face that issue. Remember, our primary objective is to help you find a discount broker with the best commissions and charges. Therefore, we examined the fees each service provider asks clients to pay and factored in affordability while selecting the best brokers in the UK.
We didn’t stop at fees. Our team of experts also considered the available financial products since they can impact your trading and investment strategy. Moreover, access to the right instruments lets you diversify your portfolio properly and enhance your overall trading experience.
Having said all that, we’ve highlighted the best discount brokers’ fees and assets in the tables below. Use them to identify the most suitable service provider.
Fees
| Best Discount Broker | Minimum Deposit Requirement | Commission/ Spreads | Deposits/ Withdrawals | Inactivity Fee |
|---|---|---|---|---|
| Interactive Brokers | £0 | From 0.08% | From £10 withdrawal fees | £0 |
| XTB | £0 | From 0% | Free | £10 monthly |
| eToro | £100 | From 0% | £5 withdrawal fee | £10 monthly |
| Saxo | £0 | From 0.03% | Free | £0 |
| FxPro | £100 | From £3.50 per lot | Free | £10 monthly |
Assets
| Best Discount Broker | Stocks | Forex | Crypto | Commodities | Indices | ETFs | Options |
|---|---|---|---|---|---|---|---|
| Interactive Brokers | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| XTB | Yes | Yes | Yes | Yes | Yes | Yes | No |
| eToro | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| Saxo | Yes | Yes | No | Yes | Yes | Yes | Yes |
| FxPro | Yes | Yes | Yes | Yes | Yes | Yes | No |
Our Expert’s Opinion about the Best Discount Brokers
The mini-reviews below will introduce you to almost everything you need to know about the best discount brokers UK. Note that we couldn’t discuss everything, so we’ve covered indispensable aspects we feel you need to know. We’ve primarily tailored our 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 authorised and regulated by the FCA. They are also licensed and supervised by reputable organisations, such as the FSCA and ASIC. 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 our assessment of countless service providers, Interactive Brokers is the overall best discount broker in the UK. Most of the brokers operating in this region require traders to deposit a certain amount of money, but not Interactive Brokers. This fantastic service provider has no minimum deposit requirement, meaning you can start trading with any amount of capital that works for you.
Furthermore, Interactive Brokers has some of the lowest spreads and commissions. 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, 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. We also highly recommend this service provider since the official platform has all the resources you need to take your career to the next level, from the IBKR Campus to an outstanding Traders’ Academy.
Interactive Brokers
✔No minimum deposit requirement
✔Zero inactivity fees for individual trading accounts
Pros & Cons
Fees
Trading Assets
Pros
- No minimum deposit requirement
- Zero inactivity fees
- Low commissions starting from £0
- Cost-free deposits
- Wide variety of trading and investment products
- Free, world-class educational resources
Cons
- Higher fees for wire withdrawals
- No third-party trading software
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, we recommend XTB. 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. For starters, XTB has a £0 minimum deposit requirement. This quality has made the company an attractive choice for low- and high-budget traders.
We also recommend XTB because this broker allows its customers to invest in commission-free stocks and ETFs. There’s a wide variety of investment products available here. For starters, there are over 3,000 stocks, including popular options like Lloyds Banking Group, Tesla, and Netflix. Additionally, the platform has over 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 5.2% on uninvested GBP funds.
XTB
✔5,700+ financial instruments
✔No minimum deposit requirement
Pros & Cons
Fees
Trading Assets
Pros
- 0% commission for stocks and ETFs
- No minimum deposit requirement
- Free deposits and withdrawals
- Over 5,800 financial instruments supported
- Low minimum order requirements
Cons
- £10 monthly inactivity fee
- Limited educational materials
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
As a beginner, you need to start out with low capital to limit losses. And that requires you to find the cheapest broker UK. The service provider should also have materials and resources you can use to learn the fundamentals and upgrade your trading skills. Considering that, we consider eToro to be the best discount broker for beginners in the UK.
eToro is ideally suited for beginners for many reasons, starting with educational resources. Let’s begin with the eToro academy. This top-class educational platform has everything you need to master trading and investing. Available materials and resources range from free courses with countless comprehensive lessons to podcasts and webinars.
Additionally, the eToro site has a beginner-friendly interface. Everything is well laid out 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 you put your money on the line, you can use a free eToro 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
- 5,000+ financial products are offered
Cons
- £5 fee follows every withdrawal request
- £10 monthly account inactivity fee
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
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 reaching. 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: SaxoTraderGo and SaxoTraderPro. SaxoTraderGo is an award-winning platform that allows seasoned traders to leverage powerful trading and investment 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 that comes 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, £1, 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
- Users have access to 24-hour expert support service
- Zero inactivity fees
Cons
- High custody fees for classic accounts
- Higher currency conversion fees than its peers
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
We encourage dedicated forex traders searching for the cheapest brokers to consider FxPro. We love this service provider’s competitive spreads and commissions. What’s more, traders who prefer fixed spreads can open a MetaTrader 4 account 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, we recommend FxPro to cost-conscious forex traders because this platform’s users can diversify with 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
- Popular FX pairs like GBP/CHF, GBP/CAD, and EUR/GBP are available
- Forex traders enjoy zero commissions and tight spreads
- Numerous outstanding platforms are available, including MT4, MT5, and cTrader
- No deposit or withdrawal fees
- VIP account holders get up to 30% discount on market spreads
Cons
- £10 monthly account inactivity fee
- Limited 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.
What are Discount Brokers?
As the name suggests, discount brokers are firms that offer trading services at lower costs compared to their counterparts, conventional full-service brokers. These entities primarily cater to DIY traders and investors who don’t need extensive investment guidance or advice. Most of the online service providers operating in the UK are discount brokers.
Like all other service providers, discount brokers must seek authorisation from the FCA before operating in the UK. Additionally, these entities are strictly for Britons aged 18 and above. Lastly, trading with a discounted broker doesn’t necessarily absolve you from paying taxes. To avoid legal issues, ensure you are an adult and read the UK’s taxation laws before trading with a discount broker.
How Do They Work?
Discount brokers are simply the cheapest service providers in the UK. They provide platforms where Brits can trade different instruments while enjoying special benefits like reduced commissions, tighter spreads, and lower account maintenance fees. Moreover, these entities allow traders and investors to make their own decisions without being influenced by personalised advice from brokers.
How to Choose the Cheapest 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 you should prioritise cheapness exclusively while selecting a fitting service provider, no matter how tempting that can be. You should exercise caution since some discount brokers expose you to numerous issues, including insufficient regulatory oversight and subpar customer service.
To ensure you find a solid and reliable platform, use the following factors to vet and identify the best discount brokers UK:
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. This authority has 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 to research and funding fees. Since you are looking for the cheapest service provider, avoid entities that expose you to excessive costs. The same applies to spreads and commissions. All of these elements can undermine your profitability.
Check the trading platforms that your chosen discount broker offers before signing up. If a proprietary solution catches your eye, test it with a demo account before committing. Additionally, if you are a fan of any specific third-party trading software, ensure your chosen service provider hosts it.
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.
For optimum support, 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. Also, before signing up, text the available support channels.
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 Sign up for an Account with a Cheap Broker
After using the factors outlined above to identify the best discount broker in the UK, the next thing to do is open your trading account. That will require you to share personal information and the proper documents. Here’s a brief step-by-step guide to opening an account with one of the cheapest brokers:
Step 1: Visit the broker’s official site
Step 2: Sign up
Step 3: Complete KYC verification
Step 4: Fund your account
Step 5: Start trading and investing
Go to your preferred broker’s official website and verify if the fees and commissions match your preferences. You also give other vital elements like the supported assets and trading platforms a once-over. Most importantly, don’t sign up before reading the company’s terms and conditions.
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. That aside, to open an account with an FCA-regulated broker, you’ll need to share personal info, from your name to contact details. After doing so, you must set a strong password that is guaranteed to protect your funds from malicious actors.
To enjoy all the services that your broker offers, you must complete verification. It’s simple. 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, pick a tradable or investment product and start your journey to earning juicy 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.
Conclusion
Maximising returns by trading and investing with a cheap platform is possible. But you must find an outstanding discount broker with a solid reputation and other positive attributes. Doing that should be easy now since we’ve introduced you to the best service providers in the UK. But don’t take our word for it. After identifying a potential candidate, do additional research. We couldn’t fit everything in our guide, so there’s a truckload of information for you to discover out there.
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