The Cheapest Way to Buy Shares: UK 2026 Platform Fees Compared (Free Trading)

Updated for 2026 🏅

Introduction

This is a question we get asked a lot, and it’s one area in which we’ve come on leaps and bounds. More competition among brokerages means that there has never been more pressure for providers to offer competitive pricing for share purchases in the UK. 

As a result, unsurprisingly buying shares has never been cheaper in the UK. In fact, commission-free platforms now dominate. So surely they’re the cheapest, right?

Well, not quite. “Free” paradoxically isn’t always cheapest as hidden fees matter. There are different things you can get charged for: stamp duty, FX charges, platform fees and more.

This guide shows you the actual costs across all major UK platforms. Choosing the wrong one could cost you £500 / year on a £10,000 portfolio. You’ll get platform comparisons, hidden cost breakdowns and real examples to find the cheapest option for your personal situation.

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Quick Answer: What's the Cheapest Platform

Just to give you an idea, here’s a super quick overview. What is the cheapest platform? Well, the short answer is that it depends. In general, the more you’re investing and the less trades you’re making, the cheaper platforms become. 

At the beginning of your journey while you’re not investing a huge amount of money, you’ll want to choose platforms with low monthly charges: on a percentage basis, these will make up far too much of your investment to be reasonable. 

If you’re an active trader, you’ll want to optimise for low transaction fees, as you will be making more transactions than most people. 

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• For beginner investors (£100-500/month): Freetrade. £0 trading fees, free ISA & SIPP, no monthly charges. Only cost: 0.5% stamp duty on UK shares.
• For active traders (10+ trades / month): Trading 212. Completely free trading, £0 platform fees, lowest FX rate (0.15%). Perfect for frequent trades.
• For larger portfolios (£50,000+): Interactive Investor. Flat £5.99-£14.99/month beats percentage fees. A £100k portfolio costs £72/year vs £350/year at Hargreaves Lansdown.
• For international shares (US/EU stocks): Trading 212. Just 0.15% FX fee vs 0.75%-1% elsewhere. Save £32.50 on a £5,000 US stock purchase vs Hargreaves Lansdown.

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Of course, this is simplified to give you a quick glance. If that’s enough, you can stop here - if not, we’ll continue on to detailed fee breakdowns and real cost examples.

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Understand Share Dealing Fees (The Full Picture)

What makes comparisons somewhat confusing is that you’re not always comparing apples to apples. Different platforms structure their fees differently and have different names for them, making it challenging to know what you’re paying for. 

Before we compare platforms in more detail, let’s break down the types of fees and look at what you’re actually being charged for. 

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Trading Commission (The Obvious One)

‍This is the fee charged each time you buy or sell shares. These have gradually been reducing with new entrants into the market, with most platforms like Freetrade & Trading 212 now offering £0 commission on UK shares
Traditional brokers do however, often still charge these: expect to pay £4-7 / trade with Interactive Investor, Hargreaves Lansdown and others. So what does that look like in practice? Well, if you invest £500 / month into two stocks, that’s 24 trades a year. At £6.95 per trade, you’re paying £167 / year in just trading fees. So be careful, they stack up!‍

Platform/Account Fees (The Sneaky One)

‍Some platforms have ongoing fees simply for holding your investments on their platform, regardless of size or activity. This can be charged either monthly, or as a percentage of your portfolio.
Interactive Investor is an example of the former, charging £5.99-£39.99 / month for an account. This is better for large portfolios, where the flat fee is swallowed up more easily. Percentage fee accounts include AJ Bell and Hargreaves Lansdown, and range from 0.25%-0.45%/year. These are better for small portfolios where the real £ impact is negligible. Be very wary of percentage fees - over time they can make a huge difference to your portfolio if left unchecked.

On a £50k portfolio, for example, you’d pay £71.88/year flat fee with Interactive Investor and £175/year (0.35%) with Hargreaves Lansdown. This is a £103 difference, which grows rapidly as your portfolio grows.

The breakeven point is around £20k: once your portfolio surpasses this, you’d be better off with a flat fee than a percentage fee. At £100k, the savings become dramatic: £120/year with Interactive Investor vs £350 with Hargreaves Lansdown.

‍FX (Foreign Exchange) Fees (The Hidden One)

‍When you buy non-UK shares (e.g. US or European stocks), you have to pay the currency conversion fee in order to make the purchase in whatever currency the stock is denoted in.
These generally range from about 0.15% (Trading 212) to 1% (Hargreaves Lansdown on your first £5k). This means that on say, £5,000 of Apple stock, you’d pay a £7.50 FX fee with Trading 212 or £50 with Hargreaves Lansdown! This is something people rarely check for so it’s important to remember it. In this example you would have paid an extra £42 for the exact same shares.

‍Stamp Duty (The Government One)‍

Stamp Duty is a tax that’s levied by the government on purchases of certain types of property, including shares. The government charge 0.5% on share purchases (not sales and also not on ETFs). This is inescapable and non-negotiable. A purchase of £1,000 on UK shares would cost you £5 in stamp duty. Every platform charges this equally and automatically, so there’s nothing you can really do about it.

ISA vs Non-ISA. Does it affect fees?

‍Everyone in the UK has a £20k per year ISA allowance, in which you are free to purchase stocks and shares. These are fully exempt from capital gains tax on sale and income tax on dividends, which is incredibly useful for building wealth. But what about the fees?
Well, most platforms charge the same fees whether you use an ISA or GIA (General Investment Account). There are one or two exceptions: Hargreaves Lansdown caps ISA fees at £150/year for shares (vs £200). Freetrade and some others retain their free structure into ISAs and SIPPs.
What you’ll find is that with the tax protection, any tax savings will dwarf fee differences.

So now you have some idea what exactly you’re paying for, we can move onto how the actual platforms stack up against each other.

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Platform by Platform Breakdown

1. FreeTrade: Best for Beginners

Key Fees (2026):

• Trading commission: £0
• Platform fee:
  
  • Basic: £0/month
  • Standard: £5.99/month
  • Plus: £9.99/month
• FX fee:
  
  • Basic: 0.99%
  • Standard: 0.59%
  • Plus: 0.39%
• ISA: FREE (as of Jan 2026 - this is a big change!)
• SIPP: FREE (as of Jan 2026 - this is also a change, previously required paid plan)
• Investment range: 6,500+ stocks & ETFs

Key Selling Point: This is the only platform in our list with completely free ISA + SIPP on the Basic plan. This makes it a great place to get started. It’s also one of the simpler and more intuitive platforms.

Major Drawback: There isn’t too much to complain about here, although if we’re being picky, it has higher FX fees than Trading 212 (0.99% vs 0.15%). This is relevant if you’re purchasing individual stocks abroad.

Sweet Spot: UK-focused investors, £100-£500/month, long-term buy & hold. Simple as that really!

2. TRADING 212 - Best for Active Traders

Key Fees (2026):

• Trading commission: £0
• Platform fee: £0
• FX fee: 0.15% (this is the lowest in the market!)
• ISA: FREE
• SIPP: Not offered
• Investment range: 12,000+ stocks & ETFs
• Deposit fees: First £2,000 free, then 0.7% on card deposits

Key Selling Point: Trading 212 is well known for having by far the lowest FX fees. The fact that it's completely free means it comes out easily the winner for frequent traders & buying US stocks. Take note advanced investors or those whose strategy is very active.

Major Drawback: The one drawback of Trading212 is that there is no SIPP option (pension investors must therefore look elsewhere). There is some fatigue too in having multiple platforms active so be wary of this.

Sweet Spot: Trading 212 is the best for active traders, US stock investors, or really anyone who makes 10+ trades/month.

3. HARGREAVES LANSDOWN - Best for Comprehensive Service

Key Fees (2026 - NEW PRICING from March 1):

• Trading commission:
  
  • £6.95/trade (down from £11.95!)
  • Reduces to £5.95 for 20+ trades/month
• Platform fee: 0.35%/year (down from 0.45%)
  
  • Capped at £150/year for shares in ISA
  • Capped at £150/year for shares in SIPP
• Fund trading: £1.95/trade (NEW - was free)
• FX fee: Tiered structure
  
  • 1% on first £5,000
  • 0.75% on next £5,000
  • 0.50% on next £10,000
  • 0.25% above £20,000
• ISA: No extra fee (included in 0.35%)
• SIPP: No extra fee (included in 0.35%)
• Investment range: 3,000+ funds, extensive UK/international shares

Key Selling Point: Hargreaves Lansdown has by far the best research (although note that you can use this without depositing funds into an account).

It also has the most hand-holding and a very trusted brand in the market. This is important for those who value peace of mind the highest, although this does come at a premium. It also has a huge range of investments, eclipsing the others on this front.

Major Drawback: We love it but it’s just very expensive vs zero-fee platforms (0.35% + £6.95 trades quickly adds up)

Sweet Spot: Hargreaves Lansdown is a good option for £10k-£50k portfolios, investors who value research & support and fund investors where the fees aren’t exorbitant. Once you surpass £50k the fees on a % basis become very hard to justify. If you’re planning on passing this in the near future, you’ll probably want to start somewhere else to avoid having to change providers down the line.

4. INTERACTIVE INVESTOR - Best for Large Portfolios (£50k+)

Key Fees (2026 - NEW PRICING from Feb 1):

• Core Plan (£5.99/month = £71.88/year):
  
  • Investment limit: Up to £100,000
  • UK/US trades: £3.99
  • International trades: £9.99
  • FX fee: 0.75%
• Plus Plan (£14.99/month = £179.88/year):
  
  • Investment limit: Unlimited
  • UK/US trades: £3.99
  • International trades: £7.99
  • Fund trades: £1.49
  • FX fee: 0.75% on first £50k, then 0.25%
  • 1 free trade/month
  • Free family accounts (up to 5)
• Premium Plan (£39.99/month = £479.88/year):
  
  • Investment limit: Unlimited
  • UK/US trades: £2.99
  • International trades: £5.99
  • Fund trades: FREE
  • FX fee: 0.25% flat
  • 2 free trades/month
  • Unlimited free family accounts
• ISA: Included in all plans
• SIPP: Included in all plans
• Investment range: 17,000+ investments across 17 global exchanges

Key Selling Point: Flat fees beat % fees on portfolios above ~£20k-£30k. This is an example of fees being particularly sensitive to portfolio size, so pay attention both to what your portfolio is worth now and what it might grow to.

Major Drawback: Interactive investor is not suitable for small portfolios (there is a £72/year minimum even on £5k portfolio). This means that for small portfolio values, the amount you’ll be paying on a % basis is just unreasonably high.

Sweet Spot: Where Interactive Investor comes into its own is in £50k-£500k portfolios, multiple account holders (family plans), or fund investors on Plus/Premium. To illustrate this point, let’s do a breakeven calculation against Hargreaves Lansdown on a £20k, £50k and £100k portfolio.

Breakeven Calculations:

• £20,000 portfolio: ii Core (£72/year) vs HL (£70/year) = roughly equal
• £50,000 portfolio: ii Core (£72/year) vs HL (£175/year) = Save £103/year‍
• £100,000 portfolio: ii Core (£72/year) vs HL (£350/year) = Save £278/year

5. The Best of the Rest

AJ Bell - Middle Ground Option

• Platform fee: 0.25%/year (cheaper than HL)
• Capped at: £3.50/month (ISA/GIA), £10/month (SIPP)
• Trading: £5/trade (or £3.50 for 10+ trades/month)
• FX fee: 0.75% → 0.25% tiered
• Best for: Those who want cheaper than HL but more support than zero-fee platforms

IG - For Advanced Traders

• Trading: £8/trade
• Platform fee: £0
• FX fee: ~0.5%
• Best for: CFD traders, advanced charting, experienced investors

Saxo - For Serious Traders

• Platform fee: Tiered (complex pricing)
• Trading: From £3/trade

Best for: Professional investors, international diversification, advanced tools

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Real-Cost Comparison: 5 Investor Scenarios

Now, let's take a look at what you'd actually pay across different platforms based on how you invest. These examples are assuming 12 months of investing.

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Scenario 1: The Beginner (£100/month)

Let's say the Beginner is investing into two stocks, with £50/mo each per stock. That's £1200 and 24 trades per year. The platform costs would be as follows:

• Freetrade: £6 (stamp duty only)
• Trading 212: £6 (stamp duty only)
• Hargreaves Lansdown: £173 (£6.95 x 24 trades + stamp duty)
• Interactive Investor: £78 (£72 annual fee + stamp duty)

So the clear winner is Freetrade / Trading 212

Scenario 2: The Active Trader (10 trades / month, mixed UK/US)

The investment here is much larger as the investor is buying and selling. Let's say they are doing £5,000 across 10 trades/month (5 UK, 5 US @ £500 each). This is 120 trades per year. Breakdown by platform as follows:

• Freetrade: £154 (stamp duty £12.50 + FX fees £141.75 @ 0.99%)
• Trading 212: £41 (stamp duty £12.50 + FX fees £28.50 @ 0.15%)
• Hargreaves Lansdown: £1,046 (£834 trading + £12.50 stamp + £200 FX)
• Interactive Investor: £631 (£180 annual fee + £479 trading + FX)

The winner this time by a clear margin is Trading 212 - you'd save £113/year vs Freetrade and £1,005/year vs HL.

Scenario 3: The Buy & Hold Investor (£20k lump sum, 5-year hold)

Here we're looking at a profile with a lot less transaction volume: the investor is making a £20,000 one-time investment and then no further investments for 5 years. The annual platform costs are as follows:

• Freetrade: £0
• Trading 212: £0
• Hargreaves Lansdown: £77 (0.35% x £20k + £6.95 initial trade / 5 years)
• Interactive Investor: £76 (£72 / year + £3.99 initial trade / 5 years)

Again the Freetrade / Trading 212 combination comes out well clear (£76 / year saving). Starting to see a pattern here!

Scenario 4: The US Stock Investor (£500/month into US stocks)

Something slightly different this time: let's look at say, an American in the UK, who is investing £6,000 / year into US stocks only. So 12 full trades / year. Annual fees as follows:

• Freetrade: £356 (FX fees @ 0.99%)
• Trading 212: £54 (FX fees @ 0.15%)
• Hargreaves Lansdown: £495 (£83 trading + £412 FX @ tiered rates)
• Interactive Investor: £157 (£72 annual + £48 trading + £37 FX @ 0.75%)

The winner, then, is Trading 212. By choosing them, you'd save £302 vs Freetrade and £441 vs Hargreaves per year.

Scenario 5: The Big Portfolio (£100k, quarterly rebalancing)

Finally, what about with a bigger portfolio? Say, £100,000 with 4 trades / year to rebalance back towards target allocation. For argument's sake, let's say these are all in the UK. Annual platform costs as follows:

• Freetrade: £0
• Trading 212: £0
• Hargreaves Lansdown: £378 (0.35% x £100k + £28 trading)
• Interactive Investor: £88 (£72 annual + £16 trading)

Although Interactive Investor is the cheaper of the paid platforms, Freetrade and Trading 212 are the outright winners.

Key Takeaway

So what have we learnt from all this? Well, the cheapest platform depends somewhat on your personal circumstances. Firstly, how you invest. Small amounts mean you should lean towards zero-fee platforms, and conversely large amounts mean flat-fee platforms.

Those who trade frequently absolutely must pick somewhere with low or no commission on trades. Finally what you buy: if you're investing lots into the US, for example, then FX fees matter hugely.

With all this in mind, it is really difficult to look beyond the newest competitors to the industry's incumbents: as we're sure you will have noticed, Trading 212 and then Freetrade seemed to come out on top in almost all scenarios. They are simply built and funded to be much more competitive than larger companies. While they're newer brands (Trading 212 launched 2004, Freetrade 2018), both are FCA-regulated and offer FSCS protection up to £85,000, the same as established platforms.

Bear in mind that when buying stocks, the trading platform will not be holding them and are merely custodians of the underlying assets, so even if something happened to them you'd still own your shares.

How to Actually Save Money (Practical Tips)

How to Actually Save Money When Buying Shares

We're making good progress now. Choosing the right platform is half the battle; now we can lay out some practical, actionable advice that could well save you hundreds or even thousands of pounds per year.

Max Out Your ISA Allowance First

Here in the UK we're fortunate to have ISA allowances available for our savings and investments. The tip here is to use your £20,000 ISA allowance before buying shares in a General Investment Account.

Why it matters. ISAs protect you from

• Capital Gains Tax (so you're exempt from paying the 20% on profits above the £3,000 annual allowance)
• Dividend Tax (so you're exempt from the Dividend Rate 8.75% (basic rate), 33.75% (additional rate) on dividends above £500)

Real impact: let's look at what this looks like in practice: on a £50,000 portfolio generating £2,000 dividends and £5,000 gains:

• General Account: ~£575/year in tax
• ISA: £0 in tax
• Lifetime savings: thousands

Bottom Line: every single platform with UK accounts offers ISAs, so use them! The tax savings dwarf any fee differences.

Consider ETFs over Individual Shares (sometimes)

The tip: Exchange Traded Funds (or ETFs) avoid stamp duty and give instant diversification. These are pools of diversified assets structured in a way that allows you to purchase them as a whole, rather than purchasing the underlying assets within.

Why does it matter?

• This means you escape the 0.5% stamp duty (0% vs 0.5% on UK shares)
• One trade gives you 100+ companies (so lower trading fees)
• Example: Vanguard FTSE 100 ETF vs buying 10 individual FTSE stocks

What is the real impact on a sample portfolio? Let's use the example above.

• 10 individual shares: 10 trades x £6.95 = £69.50 (Hargreaves Lansdown) + £50 stamp duty = £119.50
• 1 x FTSE 100 ETF: 1 trade x £6.95 = £6.95
• Savings: £112.55
• Caveat: be aware that ETFs have small ongoing charges (0.07-0.5%/year) but for the diversification they're often worth it

Avoid these Costly Mistakes

There are a few easy mistakes that you can avoid with minimal effort. Be aware. Firstly, overtrading: each trade costs money, even if you use zero commission platforms (FX fees, stamp duty, spreads). If you're trading 3x per week, you're likely hurting your returns.

Secondly, chasing performance. This one can sound a little counterintuitive, but switching platforms to save £20/month but paying £100 in exit fees and re-buying shares (stamp duty + spreads) = false economy.

Thirdly, as we've spoken about a little above: ignoring FX fees. If you're buying £10,000 of US stocks, that's £99 at Freetrade (0.99%) vs £15 at Trading 212 (0.15%). Check FX fees if you buy international shares.

Finally, one big mistake novices often make is not reading the fine print. Some platforms can charge for inactivity (rare but it exists!), paper statements, real time data and dividend reinvestment. Be wary and don't sign up for a new platform without knowing what you're getting into.

Regular Investing beats Lump Sum Investing (on fees!)

Note that from a fee perspective, it's often cheaper to invest monthly rather than in one lump sum.

Here's an example:

• Hargreaves Lansdown: Regular investing =£0 fee, one off trade £6.95
• Freetrade: same fee either way

So, the strategy. Well, if you have £12,000 to invest:

• Option A: invest £12,000 in one trade (1 x £6.95 fee)
• Option B: set up £1,000 a month direct debit (12 x £0 fees on HL)
• Savings: £6.95 (plus any potential market timing benefits)

The bonus here is that pound cost averaging, or spreading your investment purchases out over monthly transactions can reduce timing risk. However, don't let the tail wag the dog: there is lots of research suggesting doing a lump sum is better for performance in the long run, and you don't want to sacrifice performance on a meaningful sum for some trivial fees.

Sometimes free isn't worth it

It is often the case in life that you should be wary of anything offered to you for free, and this can be true in stock investing too. Zero-fee platforms are great, but they trade off features. You might miss:

• Research reports (HL has excellent stock analysis)
• Advanced charting (ii offers Tradingview style tools)
• Phone support (Trading 212 is chat-only)
• SIPPs (Trading 212 doesn't offer pensions)

The saying goes "if you're not paying for the product, you are the product" and this is also true here. Many of the free stock trading platforms have come under heavy scrutiny for using consumer trading information to provide signals for their own stock market activity, and you should be aware of this when using them.

The outcome is something like: if you're investing £5,000 / year, save every penny with free platforms. If you're managing £100,000 / year, spending £72 / year (ii Core) for better tools might be worth it. The bottom line is that Value = price + features, not just price alone.

Quick wins checklist

Here's the final 6-step checklist summary:

1. Check FX fees if buying international shares
2. Verify ISA and SIPP availability
3. Calculate YOUR annual cost (use the scenarios we mapped above)
4. Look for "free trade" promotions (new customers often get £100+ in free trades)
5. Check if they offer your preferred shares (some platforms have limited ranges)
6. Read withdrawal terms (how long does it take to get your money out?

Now you have a solid grounding in how to save money, let's walk through opening your first account.

Step by Step: Opening Your First Account

Let's dive in! Opening your first share dealing account is surprisingly quick - most platforms take 5-10 minutes to sign up. Here's exactly what to expect:

Step 1: Choose Your Platform

There is no one right answer for this but based on the scenarios below, pick the platform that matches YOUR situation:

• Beginner, UK focused: Freetrade
• Active trader, US stocks: Trading 212
• Want research / monthly support: Hargreaves Lansdown
• Larger portfolio (£50k+): Interactive Investor

Finally, don't overthink it! You can always transfer your account later on, although watch for stamp duty on rebuying as we mentioned above.

Step 2: Gather Your Documents

You'll need:

• Photo ID: Passport or Driving License
• Proof of Address: Bank statement, utility bill, council tax etc (dated within 3 months)
• National Insurance Number: For tax reporting (find this on your payslip or P60)

See if you can have these ready before starting, makes the process much easier. Note that it is an FCA requirement that all platforms must verify your identity by law as part of anti-money laundering rules.

Step 3: Sign Up (5-10 minutes)

This part of the process is pretty much the same across all platforms.

• Visit the website and / or download the app (all major platforms have iOS / Android apps)
• Enter your basic details: name, email address, DoB, address
• Choose your account type: ISA or GIA (General Investment Account)
  
  • Choose ISA first - you can only have one stocks and shares ISA per tax year
  • Choose a GIA later if needed
• Set your password (use a password manager!)

Account approval is usually instantaneous, but can sometimes take 24-48 hours for manual checks

Step 4: Verify Your Identity

Most platforms now use automated verification:

• Upload your documents (photo ID + proof of address)
• Take a selfie (some platforms use facial recognition)
• Alternatively: some offer video call verification if uploads fail

Timing:

• Freetrade / Trading 212: usually instant
• Hargreaves Lansdown / ii: can take 1-2 business days

Step 5: Fund Your Account

Of course, no setup is complete without putting some funds into your account. Lots to think about.

Deposit methods:

• Bank transfer (fastest): usually arrives same day, sometimes instantly
• Debit card: instant but Trading 212 charges 0.7% after the first £2,000
• Direct debit: for regular monthly investing

How much to start?

• Freetrade / Trading 212: no minimum
• Hargreaves Lansdown: no minimum
• Interactive Investor: no minimum, but £5.99 / mo fee applies regardless

One pro tip from us is to start off small (£100-500) while you are still learning the platform, and then increase when you feel comfortable. This way you can also change platform easily and without much hassle if you change your mind down the line.

Final thing - it's important to note that money sits in your account as cash until you actively buy shares. It doesn't automatically invest, and you might not earn any interest on it. So get it working for you!

Step 6: Make Your First Trade

Here we go, time to invest!

1. Search for the share: simply type the company name or ticker (eg Apple or AAPL)
2. Choose buy amount:
   
   1. Pound value: buy £100 worth (fractional shares are available on Freetrade / Trading 212)
   2. Number of shares: Buy 5 shares (traditional method)
3. Review the order
   
   1. Check the price
   2. See any fees (stamp duty, FX, trading commission)
   3. Confirm total cost
4. Click "Buy" and you're done! You now own shares

Note that there are a few different types of orders. Market orders are when you immediately buy at market price (this is the simplest, use this). Alternatively Limit orders buy only if price drops to X (this is for more advanced investors).

You might also have a limited execution time: for UK shares, you can only buy shares instantly during market hours (8am-4:30pm), and US shares instantly during market hours (2:30pm-9pm UK time).

Step 7: Set Up Regular Investing (Optional but Smart)

Now you're officially started buying shares, a smart way to continue this is to buy shares regularly and build up your holdings.

Why is this useful?

• Lower fees: many platforms waive trading fees on direct debits
• Discipline: you're auto-investing before you get the chance to spend it
• Pound cost averaging: buying the same £ amount each month means you spread risk over time

How can you set this up?

• Choose amount: (£50 / month is the minimum on most platforms)
• Pick a date: (1st or 15th of each month typically)
• Select shares / ETFs to auto-buy
• Set it and forget!

Note that this is not locked in - you can cancel anytime if you change your mind or your financial circumstances change.

Common First Time Worries Addressed

What if I lose all my money?

You can only lose what you invest. Your shares can drop to zero (which is very rare for established companies) but you won't owe money. No margin trading = no debt

What if the platform goes bust?

All UK platforms are FCA regulated. Your shares are held separately from the platform's assets. If they collapse, your shares will transfer to another provider. Cash is also FSCS protected up to £85,000

Can I sell anytime?

Yes, during market hours. Shares sell in seconds. Money is usually back in your bank account within 2-3 days (this is called T+2 settlement).

Do I need to do a tax return?

Not if you use an ISA. If you use a GIA and make over £3,000 in profit, yes (capital gains tax). Platforms provide tax reports.

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That's it! You're now set up and ready to invest. But before you dive in, let's run through some frequently asked questions.

Frequently Asked Questions

Q: Can I switch platforms without selling my shares?

A: This is called an in-specie transfer - some platforms allow it, some don't. If possible, it usually takes 4-6 weeks and may incur transfer fees.

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Q: What happens to my shares if I die?

A: The shares you own will form part of your estate, just like a property or any other belongings. If below the threshold they will be exempt from Inheritance Tax. If not, your beneficiaries will have to pay tax on them. Note that they become exempt from Capital Gains Tax at point of death and the value resets: you don't get double taxed.

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Q: Are my shares actually mine, or does the platform own them?

A: They're legally yours, but held in a "nominee account" structure. The platform holds shares on your behalf in a nominee company - your name will appear on the platform's internal records, not the company's shareholder registrar. The shares are ring-fenced (legally separate from the platform's assets). The bottom line is that your shares are just as safe as if you held physical certificates.

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Q: Can I buy shares from other countries? (US, EU, Asia)

A: Yes, but availability will vary from platform to platform. All major platforms will have US stocks (NYSE, NASDAQ). Most platforms will have major uuropean stocks (Germany, France, Netherlands). Limited platforms will have Asian stocks (look for Interactive Investor or Saxo for this). Note that US stocks often have fractional shares available, but are subject to automatic 15% dividend withholding tax, even within an ISA.

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Q: What's the difference between stocks, shares and equities?

A: Nothing, they're the same thing, just different terminology. Shares is a UK term, stocks is a US term, and equities is finance jargon. All three just mean partial ownership in a company.

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Q: How do dividends work? Do I get paid automatically?

A: The company declares a dividend, then the ex-dividend date passes (you must own shares before this date to receive the dividend). The company then pays the dividend and the money appears in your platform account as cash. You can either leave this as cash, manually re-invest it or auto re-invest it. Some platforms will do this for you automatically. Note that dividends are only tax-free within an ISA.

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Q: Can I lose more money than I invest?

A: No, not if you stick to cash accounts (which is what we've covered in this guide). Buying shares with your own money, the worst that can happen is that they drop to £0. You can only lose more than you invest by trading on margin (essentially borrowing to invest), CFDs (leveraged products) or Options trading (complex derivatives). Avoid all of these unless you are an expert.

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Q: Do I need to report my investments to HMRC?

A: Depends on the account type. ISAs no, General Investment Account yes IF you exceed allowances (£3,000 in capital gains, £500 in dividends or £100,000 in total income). Most major platforms will give you some help, either by generating tax certificates or with calculators.

Key Takeaways: Making Your Decision

We've covered a whole lot of ground here, so let's distill it down to what really matters.

The Platform Decision Matrix

The big takeaway here is to choose based on your situation and not fall for marketing hype. Here's an over simplified decision flow:

• Strating out with £100-500 / month in UK shares? Choose Freetrade or Trading 212. Zero fees means you keep more of your money
• Trading frequently or buyig US stocks? Choose Trading 212. That 0.15% FX fee saves hundreds compared to alternatives
• Want hand holding, research, and don't mind paying a premium for it? You need Hargreaves Lansdown. The 0.35% fee and £6.95 trades buy you peace of mind and excellent resources
• Portfolio above £50k and growing? Choose Interactive Investor. Flat £5.99 - £14.99 / mo beats percentage fees as you scale

The honest truth? For the vast majority of people starting out, the zero fee platforms are unbeatable on cost. You can always upgrade to a premium platform down the line when your portfolio justifies it. Don't overthink the decision, the most important thing is to start investing.

Remember the Hidden Costs

Remember, the cheapest platform isn't always obvious. Stamp duty hits everyone equally on UK shares, FX fees matter hugely if you buy international stocks and platform fees compound over time, which is an argument for flat fees always as you grow.

Your strategy here should be to maximise your ISA allowance first as tax savings dwarf fee differences, consider ETFs for diversification and don't overtrade as every trade costs something. Finally, check the total annual cost using the scenarios above.

Getting Started is the Hard Part

With all this information on hand, it's incredibly easy to get decision paralysis. You could spend weeks comparing platforms in search of the best deal on fees and miss out on potential returns. The truth is that the difference between perfect and good enough is maybe £50-100 year for most investors. The difference between starting today or in a year's time could be thousands.

Our advice is to pick a platform from this guide (they're all legitimate), start small while you learn and invest regularly without trying to time the market. Review your choice in 12 months time when you know your investing style.

Final Thought

Investing in shares has never been more accessible for UK investors. Zero-commission trading, free ISAs, and instant mobile access have removed almost every barrier that existed a decade ago.

The tools are there for you - are you ready to start using them?

Track Your Investments Across All Platforms with Strabo

Once you're up and running on your investing journey, you'll soon realise that tracking everything across platforms is tricky. The analytics tools even on the more advanced stock trading platforms are still limited.

Where this becomes even more tricky is if you have old pensions scattered around, invest in multiple assets or need some forecasting or retirement planning.

Strabo connects to all your investment accounts in one place, giving you a complete picture of your portfolio performance, fees, and asset allocation. You'll also see a news feed of new investment opportunities to go alongside what's available in your brokerage account, helping you to build a robust allocation for the long term.

You can get started with a free trial by clicking the button below.

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