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Penny stock trading is growing rapidly in the UK, yet finding the right broker can be tricky. Not all platforms offer access to these low-cost shares, and the differences in fees, tools, and account features can be significant.
To make the process easier, I’ve spent countless hours researching and testing various UK trading platforms. Below, I’ve compiled my recommendations for the best penny stock brokers, along with practical tips to help beginners navigate the market safely and confidently.
List of the Best Penny Stock Brokers
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1
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Risk Warning66% of retail investor accounts lose money when trading CFDs with this provider.
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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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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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4
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Risk Warning65% of retail investors lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and 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
Comparing brokers can be time-consuming, and choosing the wrong one could result in higher fees, subpar performance, or inadequate support. To make things easier, I’ve compiled a comparison table that highlights the key features distinguishing these UK penny stock brokers. Use it as a quick reference to help identify which broker best fits your trading needs.
| Penny Stock Broker | Licence & Regulation | Support Service | Software | Payment Method | Demo Account | Money Insurance |
|---|---|---|---|---|---|---|
| Saxo | FSA, FCA, MAS, SEBI | 24/5 | SaxoTraderGO, SaxoTraderPRO | Bank Wire Transfer, Debit cards | Yes | Yes (up to £85,000) |
| XTB | FCA, KNF, CNMV | 24/5 | xStation 5, xStation Mobile | Credit/debit cards, Bank Transfers, Skrill | Yes | Yes (up to £85,000) |
| IBKR | FCA, FSA, CFTC | 24/5 | IBKR Mobile, APIs, Trader Workstation | Bank or wire transfers | Yes | Yes (up to £85,000) |
| Spreadex | FCA, SEBI | 24/5 | iPhone App, IPAD App, ANDROID App, TradingView | Bank Wire Transfers, Credit cards | No | Yes (up to £85,000) |
Fees & Commissions
When choosing a penny stock broker in the UK, the fee structure can make or break your results. Some brokers advertise commission-free trading, but you still need to look closely at transaction fees, per-share commission, or even a flat fee per transaction. Hidden charges and overnight financing fees are common in this space, so reading the fine print is essential.
Non-trading fees also matter. Deposit and withdrawal fees, inactivity fees, interest rates on uninvested funds, and the minimum deposit requirement all shape the real cost of using a platform. A comprehensive review of both trading and non-trading fees helps you avoid surprises and select a broker that suits your budget and trading style.
Below is a clear breakdown of the fees you can expect from my recommended brokers:
| Best Penny Stock Broker | Fees | Minimum Deposit Requirement | Transaction | Inactivity |
|---|---|---|---|---|
| Saxo | From £0.01 commission | £0 | Free | None |
| XTB | From 0.1 pips | £0 | Free | £10 monthly |
| IBKR | From £0.01 commission on US stocks | £0 | Free | None |
| Spreadex | From 0.6 pips | £0 | Free | None |
Brokers Reviews
Penny stock trading in the UK is attracting more interest than ever. While it can seem daunting for beginners, the market offers opportunities for those who approach it with a clear strategy and the right broker.
Below are my hands-on mini-reviews of the top penny stock brokers. These insights are based on personal testing and research. My goal is to help you understand each broker’s services and determine which platform best aligns with your trading style and goals.
1. Saxo – Overall Best
Saxo is often recognised as one of the most versatile FCA-regulated brokers in the UK, and after testing it myself, I can see why. The account setup is quick, and the platform feels professional yet approachable, with a strong emphasis on security and reliable execution.
Where Saxo really shines is in its market coverage. For penny stock investors, the platform includes both AIM stocks and companies listed on the London Stock Exchange (LSE). It offers over 23,000 global stocks, ETFs, mutual funds, and bonds across multiple global exchanges, alongside forex pairs, commodities, indices, and cryptocurrencies. This extensive market coverage allows UK traders to diversify efficiently across asset classes.
Costs are another area where Saxo stands out. Trading fees start at just £0.01 per share, and for standard accounts, there’s no minimum deposit requirement.
Non-trading costs, such as inactivity fees, remain low and transparent, with no hidden extras that catch you by surprise. I also appreciated the mobile experience with SaxoTraderGO, available on iOS and Android. This mirrors the functionality of the desktop platform, making it easy to monitor trades on the go.
Saxo
✔No minimum deposit requirement
✔Low commissions for all asset classes
Pros & Cons
Fees
Trading Assets
Pros
- Plenty of research and learning resources
- Numerous penny stocks to explore
- A user-friendly and customisable trading platform
- Low penny stock trading commission
Cons
- Does not support the MetaTrader platforms
- Saxo VIP account has a high minimum deposit requirement of £1,000,000
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.
2. XTB – Top Option For CFD Trading
XTB is a strong choice for UK traders who want access to penny stocks and CFDs under a trusted FCA-regulated broker. Its account setup is quick, and the platform itself is well optimised across both web and mobile, ensuring smooth trade execution and reliable performance.
When it comes to market coverage and available assets, XTB goes well beyond penny stocks. Clients can trade shares listed on more than 16 global exchanges, alongside AIM stocks, ETFs, commodities, indices, forex pairs, spread bets, and cryptocurrencies. This broad access makes it easy to diversify across multiple markets within a single account. It eliminates the need for separate platforms.
In terms of costs, XTB is competitive. Penny stock trades are commission-free, there’s no minimum deposit, and transaction charges remain low. Deposits and withdrawals are free from hidden fees, and uninvested funds can even earn competitive interest, adding extra value.
The broker’s xStation 5 web platform and xStation Mobile app are intuitive and customisable. I find them suitable for both beginners and advanced traders.
XTB
✔5,700+ financial instruments
✔No minimum deposit requirement
Pros & Cons
Fees
Trading Assets
Pros
- No minimum deposit requirement
- Adequate penny stocks to explore and diversify your portfolio with
- Quality research and learning tools
- Commission-free penny stock trading
Cons
- Doesn’t feature third-party trading platforms
- Only CFD assets are available
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. Interactive Brokers – Best For UK Professional Traders
Interactive Brokers (IBKR) stands out as one of the best penny stock brokers in the UK for advanced and professional traders. Account opening is straightforward, and users can choose between IBKR Desktop, Trader Workstation (TWS), and IBKR Mobile. Each platform is well optimised, making it easy to trade and monitor positions across multiple devices.
In terms of market access, IBKR is unmatched. The broker lists more than 10,000 instruments, including penny stocks, shares from 90+ global exchanges, ETFs, mutual funds, commodities, bonds, indices, forex pairs, spread bets, and even cryptocurrencies. This broad coverage allows traders to diversify globally without juggling multiple accounts.
On pricing, Interactive Brokers is cost-efficient. Per-share commissions start from 0% on US-listed stocks, with no inactivity or non-trading fees to worry about. The broker also provides virtually funded Free Trial accounts, giving traders a safe way to explore its features and test trade execution.
While IBKR does not integrate with third-party platforms like MT4 or MT5, its proprietary platforms are among the most advanced in the industry. They provide professional-grade tools for strategy testing, market research, and real-time trading.
Interactive Brokers
✔No minimum deposit requirement
✔Zero inactivity fees for individual trading accounts
Pros & Cons
Fees
Trading Assets
Pros
- No account minimum requirement
- Less than £1 per share on penny stock trading
- Excellent research resources
- Hosts a virtually funded Free Trial account for testing its performance and gauging your skill level
Cons
- A challenging desktop platform to navigate
- No third-party platforms like the MT4/5
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.
4. Spreadex – One of the Cheapest Options
If you’re after a budget-friendly way to trade penny stocks in the UK, Spreadex stands out as one of the best platforms I’ve tested. What makes it especially appealing is the lack of a minimum deposit requirement. You can start with any amount, and transactions are free. I traded several penny stocks, including AIM and those listed on the LSE. The fees were some of the lowest I’ve found.
Additionally, Spreadex gives you access to CFDs on indices, forex pairs, commodities, ETFs, and spread bets. This makes it a useful all-in-one platform if you want to explore beyond small-cap shares. The range isn’t as global as what some bigger brokers offer, but for UK-based traders, it’s more than enough to cover most strategies.
I also found the broker user-friendly, with clear charts and simple navigation. Customer support deserves a mention, too. When I tested it, I reached out via live chat and phone, and both times the team were quick to respond with helpful, detailed answers. The only letdown is the absence of a demo account, which would have been handy for practising before committing real money.
Spreadex
✔10,000+ financial instruments
✔Zero account inactivity fees
Pros & Cons
Fees
Trading Assets
Pros
- No minimum deposit requirement
- A comprehensive selection of penny stocks for diverse investment opportunities
- Competitive pricing, thus enhancing affordability for traders
- Exceptional support services, providing guidance and insights for penny stock trading
Cons
- No demo account
- Limited market analysis resources compared to its peers
We analyzed Spreadex’s fees and commissions since these elements can impact a trader’s profitability. The first impressive aspect that caught our attention is this broker’s £0 minimum deposit requirement. You can deposit any amount into your Spreadex account and start trading almost instantly. Furthermore, the broker charges zero account maintenance and inactivity fees.
What’s more, Spreadex has tight spreads and commissions. While trading with this broker, you can enjoy low spreads starting from 0.9 pips for GBP/USD, 0.001 pips for USD/INR, and 0.6 pips for EUR/USD. However, note that this broker charges overnight financing fees for positions held overnight.
Find out more about the Innovations in Trading in our other guide.
About Penny Stocks
Penny stocks are shares of small companies that typically trade for less than £1 per share in the UK, or in some cases, less than £5 per share, depending on the exchange. They are usually classified as low-cap shares, meaning the businesses behind them have a relatively small market capitalisation compared to established firms on the FTSE 100.
In practice, these stocks may be listed on major exchanges like the London Stock Exchange’s AIM market, or they can be traded through over-the-counter markets. What makes them appealing to many retail investors is their affordability, since buying a meaningful number of shares often requires only a modest outlay.
However, penny stocks come with unique characteristics. Prices can experience significant price swings within short periods, offering both opportunity and risk. Many investors use tools like Level 2 market data to track order flows or rely on real-time news alerts to react quickly to market updates.
For others, the attraction lies in the diverse investment opportunities these shares offer. They range from early-stage growth companies to niche sectors that may not be accessible through blue-chip stocks.
How to Choose a Penny Stock Broker
Trading penny stocks in the UK is much more than choosing cheap shares. There is research, a strategy, and, most importantly, the right broker.
I know how painstaking it can be to find a broker that suits your trading style and budget. So, if you are wondering where to start, below are the key elements I keep in mind when selecting a penny stock broker.
Licences/Regulations
Platform
Charges
Available Assets
Customer Service
Demo Account
User Testimonials
The first thing I check is whether the broker is licensed and regulated, which would be non-negotiable for me. All the brokers I have recommended above are FCA-regulated, meaning they comply with stringent financial standards and thus offer greater protection for your funds. Trading with an unregulated broker may leave you vulnerable to scams.
Penny stocks are volatile, so you need the best online trading platform in the UK that is able to keep up with price moves. I always choose brokers that place importance on real-time trade execution. That way, I don’t encounter price slippage when I need to make a quick decision.
The platform should also have an intuitive interface, customisation options, and be available on both desktop and mobile so that I can trade at any time and from any place. Additional elements like research tools and learning resources will go a long way in helping find good trades.
Penny stocks are cheap, but trading these is not always free. Before agreeing to trade with any broker, I always conduct a thorough analysis of its fee structure. Some brokers provide commission-free trading, while others charge fees for transactions, inactivity, or even deposits and withdrawals. Hidden costs can eat into your profits, so always check the fine print.
The best trading platform in the UK will not just give access to a few shares. It gives access to thousands from various companies. I also prefer brokers that allow me to diversify into forex, ETFs, commodities, etc. This way, I will be able to navigate different markets without needing to open multiple accounts.
What I’ve learnt over the years is that good customer service can make a significant difference, especially in navigating trading issues. Some offer 24/7 support, while others are only accessible during business hours.
No matter when they are available, I always check brokers that offer various contact methods, including live chat, email, and phone support. A quick test message to support may provide great insight.
I never trade live before I run through my test with the broker. It is a risk-free way to try the platform, scrutinise its trading conditions, and ultimately decide whether it suits me. Any competent broker will offer a demo account, but it is especially important for one with slightly heavier charges and a higher minimum deposit requirement.
Even after ticking all the boxes above, I still go on to do some digging about customer reviews. The experiences of other traders will tell you about things not found in a broker’s promotional material.
Generally, I look around on Trustpilot, Google Play, and the App Store to find out what people say about everything, from platform quality and customer service to withdrawal processes and fees.
Risks and Safety of Penny Stock Trading
Penny stocks can be enticing due to their low prices and high potential returns, but trading them carries significant risks. Their prices are often volatile, moving sharply in short periods, and liquidity can be low, making it harder to buy or sell shares at your desired price.
Key Risks to Consider
- Volatility and Price Swings: Penny stocks can fluctuate dramatically, increasing the chance of both profits and losses.
- Illiquidity: Smaller companies often have fewer shares traded, which may delay execution of trades.
- Fraud and Scams: Unregulated brokers or penny stock schemes may try to exploit traders. Always stick with FCA-regulated brokers.
- Leverage and CFDs: Using leverage amplifies both gains and losses, so risk management is crucial.
Safety Measures
- Risk Management Controls: Set stop-loss and take-profit levels to limit potential losses and lock in profits.
- Spread Bets and CFDs: Understand the mechanics of leveraged instruments before trading them.
- Secure Platforms: Choose brokers with strong online security, including SSL encryption and two-factor authentication.
- Financial Transparency: Only trade with brokers that provide clear information on fees, charges, and account statements.
How to Start with a Penny Stock Broker
Now that you’ve got a solid list of penny stock brokers in the UK, the next question is—how do you actually get started? I remember how overwhelming it felt when I opened my first account, but trust me, it’s a straightforward process once you know what to do. Here’s a step-by-step guide to help you set up your account and start trading penny stocks.
Step 1: Visit your broker’s official website
Step 2: Create a penny stock trading account
Step 3: Participate in account verification
Step 4: Make a deposit
Step 5: Trade penny stock
Once you’ve picked a broker, head over to its official website. If you’re going with one of my recommended brokers, you can click the links above to get there quickly. Before diving in, I always take a moment to review the broker’s terms and conditions—boring but necessary. Also, if it has a mobile trading app, I install it right away so I can keep an eye on my trades even when I’m on the go.
Next, you’ll need to create an account by entering personal details like your name, email, phone number, and sometimes even your source of income. At this stage, I always make sure to set a strong password because online security is a big deal when it comes to trading.
Before you can start trading, your broker will ask you to verify your identity. This is standard for all FCA-regulated brokers, and while it might seem like a hassle, it’s actually a good thing. It keeps the platform secure and protects traders from fraud.
Typically, I upload a government-issued ID, such as a passport or driver’s license. This is along with a recent utility bill or bank statement to confirm my identity and address. Most brokers process this within a few hours, but some might take up to a day.
Once your account is verified, you will get an email notification letting you know that you can deposit funds. Before sending money, always check the broker’s minimum deposit requirements and any transaction fees. Plus, choose a payment method that’s convenient for you—whether that’s a bank transfer, credit/debit card, or e-wallet. Some deposits are instant, while others, such as bank transfers, may take a bit longer.
With funds in your account, it’s time to start trading! I usually begin by researching the listed penny stocks to find the best opportunities. Depending on your strategy, you can trade penny stocks as CFDs or indices, or even buy the shares outright and hold them.
It is crucial to set risk management controls like stop-loss and take-profit levels to protect your trades from major losses if the market moves against you.
How We Test and Review Penny Stock Brokers in the UK
Our reviews of UK penny stock brokers are built on a clear and transparent process. Every broker on our shortlist undergoes a rigorous review process that combines real account testing, regulatory checks, and performance analysis.
Our Testing Methodology
We believe that the most reliable way to review a penny stock broker is to use it as an ordinary UK investor would. Therefore, we conduct these procedures:
- Account Creation Process – We open a live account, complete verification steps, and fund it using standard UK payment options to check how smooth and secure the process is.
- Broker Licensing & Regulatory Compliance – We confirm whether the broker is FCA-regulated and holds the proper licensing to operate legally in the UK. Security and fund protection are top priorities, so this stage ensures clients’ money is safe under Financial Conduct Authority (FCA) rules.
- Testing Phase with Real Trades – After setup, we place both demo and live trades in penny stocks and related markets. This helps us measure trade execution speed, spreads, and overall reliability.
- Platform Optimisation & Usability – We test the broker’s platform on desktop, mobile, and web versions. Our focus is on navigation, charting tools, and whether the platform is optimised for researching AIM stocks and penny shares.
- Customer Support Checks – We reach out via live chat, phone, and email to test responsiveness and helpfulness when dealing with common questions.
Key Evaluation Criteria
We score every UK penny stock broker against strict standards to keep results fair:
| Criteria | What We Look At |
|---|---|
| Regulation & Security | FCA oversight, encryption, and fund protection |
| User Experience | Ease of navigation, layout, and speed |
| Instruments Available | Availability of AIM stocks, LSE-listed shares, CFDs, ETFs, and other global markets |
| Trade Execution | Order speed, reliability, and slippage on penny stock trades |
| Costs & Fees | Spreads, commissions, hidden charges |
| Deposits & Withdrawals | Speed, reliability, payment options |
| Tools & Features | Charting, analysis, trading extras such as copy trading, automated trading, etc |
| Customer Support | Availability, speed, and quality of responses |
| Education & Research | Guides on penny stocks, risk management, and platform tutorials |
| Transparency | Clarity around broker terms, pricing, and risk disclosures |
Alongside our own testing, we analyse real trader feedback from the App Store, Google Play, and Trustpilot. This helps us spot consistent patterns, whether users praise order execution speed, platform quality, and customer service, or raise concerns about withdrawals, fees, and stability.
We also consider review trends over time. We pay attention to how brokers respond to issues and whether updates improve user experience.
Our reviews are completely independent. While we may earn a commission from affiliate links, these do not influence our rankings or the brokers that make our shortlist. A penny stock broker only features in our guide if it performs well in real-world testing and is supported by credible user sentiment across multiple platforms.
Continuous Updates
The UK’s penny stock market is evolving rapidly, with new brokers entering the scene and regulations constantly changing. To maintain a reliable shortlist of brokers, we retest platforms at least once a year, ensuring our methodology reflects real-world conditions.
By combining hands-on testing with regulatory checks and user feedback, we highlight only the most trustworthy and FCA-regulated brokers for trading penny stocks in the UK.
FAQs
Can I trade US penny stocks from the UK? Which brokers offer this?
Yes. UK investors can access US penny stocks through select brokers that offer access to OTC markets or smaller US exchanges. Popular platforms like Interactive Brokers and XTB provide this access, but availability varies. Therefore, always check each broker’s market list and eligibility.
What tools are helpful for trading penny stocks?
Trading penny stocks effectively often requires screeners for low-cap shares, real-time news alerts, technical charting tools, and access to Level 2 market data. Many traders also use watchlists, price alerts, and sentiment trackers to monitor rapid price movements.
Are penny stocks particularly risky to trade?
Yes. Penny stocks tend to be volatile, illiquid, and sometimes linked to companies with limited financial transparency. This can lead to rapid price swings and difficulty selling at your desired price. Always treat them as high-risk investments and employ appropriate risk management strategies.
Which brokers are best for beginners?
For UK beginners, eToro, IG, or Trading 212 can be good starting points due to their user-friendly interfaces and strong educational support. However, not all of them offer access to US penny stocks. So, always check market availability before opening an account.
Can I use ISAs or spread betting to trade?
No. Penny stocks aren’t typically available within ISAs, as these accounts usually restrict access to main market shares and ETFs. Spread betting platforms rarely offer penny stocks due to liquidity concerns, but you can explore other speculative instruments like forex or commodities.
Are penny stocks hard to sell?
Yes. Due to low trading volumes, it’s not always easy to exit a position quickly or at a favourable price. Wider bid-ask spreads and limited market depth often make selling more challenging than with larger, more liquid stocks.
What else can I trade instead of penny stocks?
If you’re looking for growth potential with lower risk, consider small-cap ETFs, emerging market funds, or early-stage IPOs. Alternatively, CFDs or spread bets on major stocks and indices offer speculative opportunities with higher liquidity and tighter spreads.
Final Thoughts
Penny stock trading allows traders to venture into the stock market without spending a lot of money. With the right broker, you can explore the UK share market with as little as £1. Simply conduct thorough market research to select an option that aligns with your requirements.
As mentioned earlier, the stock market is volatile, and while you may earn profits from penny stock trading, losses are inevitable. Therefore, consider keeping a trading journal that entails all your trading strategies. This will help you easily identify your mistakes and avoid repeating them. Additionally, start exploring the stock market with a broker’s demo account and diversify your risks across multiple shares.
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Great article! I’ve traded with brokers like XTB and Interactive Brokers, and both offer great low fees and a wide range of assets.
Sounds promising, but how many of these brokers actually let you withdraw smoothly without delays or hidden hoops?
I’ve been using IG for years, but the fees are starting to stack up. Saxo and IBKR both look interesting, especially with those low commissions.