The UK has access to some of the best stock markets in the world, and they offer great opportunities for investors who want to get their hands dirty.

Stock investing is a very lucrative investment strategy. If done correctly, it can provide long term returns that are much higher than other investments such as bonds. However, it takes time and effort to become successful at stock investing.

In today's post I will be going over what you need to look out for when deciding on stock trading and investing platform. I will also be going over my list of some of the best trading platforms available to all of us in the UK.

What Is A Trading Platform?

A trading platform allows investors to purchase and sell shares without having an intermediary. Traders use the platform to execute trades. They do not necessarily have to be registered with the exchange where the stock is listed.

Trading platforms differ in terms of the number of securities they offer. For instance, there are many exchanges that provide access to equities, bonds and derivatives. On the other hand, commodity markets are usually regulated by individual countries and therefore, there are fewer options here.

What Type Of Trading Accounts Are There?

There are three main types of trading platforms:

1. Web based – These are web-based applications that work on browsers like Chrome, Firefox and Internet Explorer.

2. Mobile apps – Apps are designed to run on smartphones and tablets.

3. Desktop apps – Apps are designed for computers running Windows, Mac OS X, Linux, Android, iOS etc.

The most common type of trading platform is a web-based application. This is because it works on every device and does not require downloading software. However, some people prefer desktop apps over web-based ones.

If your wanting a platform to purchase stocks long term then mobile app investing platforms such as Freetrade may be enough for you.

Can I Buy US Stocks In The UK?

Lots of UK trading platforms now offer access to US stock markets e.g. NYSE or NASDAQ. In fact, there are over 50 such platforms in the UK alone. They include some of the most popular names like Interactive Investor, Sharesave, ShareX and Fidelity Trader.

Some even let you trade US stocks without having to pay any fees. One of those companies is eToro. This social investing app allows you to invest in hundreds of different assets including cryptocurrencies and commodities. You can use it to buy or sell shares in companies listed on the NYSE, NASDAQ, etc. 

eToro charges no fees when you buy US securities. So, if you want to buy US stocks, you don’t have to worry about paying anything extra. Just follow their sign up process and you can begin investing in US equities.

Investing Could Be The Best Way To Beat Inflation

There are several different kinds of investments available. Some are riskier than others. If you want to invest in stocks, you might consider putting your money into stock mutual funds or ETFs. These funds pool together small amounts of money from investors and buy shares of companies essentially tracking the general performance of whatever they own.

Stock based ETFs tend to be safer than investing directly in individual stocks because the diversification lowers risk. This also may lower the potential reward. Many investors see returns of 7-10% annually on average. If your returns are higher then inflation then that's great... your money isn't just losing value over time.

You can also invest in premium bonds which are considered safe havens during times of economic uncertainty. Premium bonds are issued at a higher interest rate than regular bonds. That means they're more likely to return more money to you over time.

How To Choose An Investment Platform

Investment platforms come in all shapes and sizes. Some offer just one type of product, while others specialize in stocks, bonds, ETFs, commodities, cryptocurrencies, and even real estate. Others focus exclusively on alternative investments like hedge funds, venture capital, private equity, and crowdfunding.

There are dozens of different types of platforms out there, each offering slightly different features and benefits. But what makes one better than another? And how do you know which ones are worth your time? Read on to learn about some of the most popular options.

The important things to look out for are, the fees associated with the platforms, which assets you will have access to and how easy is the platform to use for yourself. These can all effect your decision on where you put your money.

What are the main types of investments?

Investing in an index fund is a good way to invest in a broad range of companies across different industries. This type of investment allows you to benefit from market movements while reducing risk.

A well-diversified portfolio includes stocks, bonds, and mutual funds. These three types of investments help reduce risk and increase returns.

How can I invest safely?

Investing safely involves taking time to think about what you want to achieve financially, and deciding whether it makes sense to put your savings into investments. You might like to save up for a holiday or buy yourself something nice, or you could use your money to pay off debts. Whatever your goal is, there are different ways to go about saving for it.

If you think this is some sort of "get rich quick scheme" then you'll be disappointed. You will be dissapointed. I lose money or gain money month to month, it can vary quite a lot. And in the short term I have no idea what my portfolio value will be.

But by carrying out long term analysis on my investments I can predict whether my assets will be higher 5-10 years from now versus today. Regardless if the market pricing is rational or not at that time.

How much should I invest?

This question depends on many factors. If your a beginner it's really important to invest with small amounts that you wouldn't mind losing. This way if stuff goes wrong and you do lose the money, you won't be disappointed. But if you start seeing your investments rise, you can see it as a bonus.

But when your ready to dive in completely, make sure the rest of your financial health is in order. If you have a lot of high interest debt or you are barely making enough money to sustain yourself, then your effort would be best spent working on those areas by possible trying to increase your income or focus on paying down your debt.

Having a spreadsheet or something similar to track your spending and help you create a budget will help you figure out how much money you would feel comfortable investing each time you get paid. But remember, investing is risky and the wrong choices can result in losing a lot of money.

Top Online Trading Platforms (UK 2022)

As you know, trading platforms are crucial tools for traders. They help us manage our assets effectively. However, there are many different types of trading platforms out there. Some are good while others aren't. So how do we choose the best one? Here are some tips to help you find the most suitable trading platform in the UK.

1. Look For A Good Reputation

The reputation of a trading platform matters a lot. If it's well known, it's likely to be reliable. You want to make sure that the platform you're considering isn't just popular because everyone else uses it too. Instead, look for a reputable brand. This way, you'll avoid having problems later on down the line.

2. Check Out Reviews And Ratings

Another important thing to consider is reviews and ratings. There are lots of online forums where people discuss what they think about certain products. Take advantage of those opportunities. Read what people say about a particular product. Do they like it? Are they complaining about something? Find out everything you can about the platform you're interested in.

3. Consider Your Needs

Trading platforms come in all shapes and sizes. But no matter what type of trader you are, you probably have specific needs. Before choosing a trading platform, ask yourself what features you need. Does it offer charting software? What kinds of charts does it support? Can you trade stocks, futures, forex, cryptocurrencies, etc.? Once you've answered these questions, you'll be able to narrow down your options.

IG Investments

IG Investments is an online brokerage offering spreads betting and CFDs trading. IG provides access to over 300 markets across 16 different asset classes such as Forex, Commodities, Indices, Shares, ETFs and Cryptocurrencies. IG offers a wide range products including Forex, Commodity, Indices, Shares and ETFs. 

Interactive Investor

The Interactive Investor offers an easy way to invest online without having to worry about transaction costs or commissions. With Interactive Investor you can trade stocks, bonds, commodities, futures and options in one place. You can even manage multiple portfolios at once.

There is a monthly subscription fee for trading accounts, including all services except for SIPPs. This includes access to over 10 million securities, including stocks, bonds, commodities and indices.

Hargreaves Lansdown

Hargreaves is a leading retail stockbroker providing financial advice and investment management solutions to individuals, institutions and businesses. Hargreaves has been operating since 1881 and currently employs more than 1,000 staff.

The company also operates through its subsidiaries: Hargreaves Lansdown Investment Management Limited; Hargreaves Lansard Advisory Services Limited; Hargreave Asset Management Limited

Capital.com

Capital.com provides investors with access to world markets via online trading platforms. Its range of products includes stock market indices, forexx, commodities, ETFs, currencies and cryptocurrencies. Spread bets and CFDs are leveraged products which involve significant risks and you could lose some or all of your investment.

Trading 212

Trading 212 is a broker based in Cyprus. It offers a variety of products including stocks, shares, CFD’s, indices, commodities, forex and crypto currency. Trading 212 is regulated by CySEC (Cyprus Securities and Exchange Commission).

Trading212 has grown in popularity due to their low fees and commission rates. 

Freetrade

Freetrade is an online brokerage offering commission free stock trading, making it one of the few companies in the world that offers such a thing. Traders do not pay commissions, however there is a small fee on transactions.

The Freetrade is available on the play store and app store so you can get setup really quickly. The UI however, is very simple and doesn't have much in terms of charting capabilities if you are wanting to carry out technical analysis.

How can I open a trading account?

Opening an account is easy and fast. You just need to go to the website or app of one of the trading platforms listed above. You will then go through their instructions on registering and creating account. Once you have created your account you will be able to begin purchasing and trading your favourite assets.

Do I need much money to open a trading account?

No, opening an account does not require any deposit. However, you may want to consider depositing funds into your account before you start trading. Deposits are usually done using credit cards, debit cards or bank transfers.

It is important to note that some of the platforms above differ in their fees. Some may require a monthly or yearly maintenance fee while some while only take a small percentage of transaction value.

Summary

Online brokers have become increasingly popular over the past few years. Many people prefer them because they're easy to use and offer competitive fees. However, you should carefully evaluate all aspects of your options before making a decision.

I am not a financial advisor and anything I say in my blog is not to be taken as financial advice. For any financial advice please contact a financial professional. My blog is based on my own opinions, research and understanding of the financial markets.

I hope you have found this blog post helpful. If you did enjoy the blog then consider leaving feedback below or sharing the post on social media. I regularly post content on the stock market, personal finance, and side hustles/entrepreneurship so if you would like to read more then consider subscribing to my blog through my website (www.portfolio-hub.co.uk) for free or follow me on Medium.com.

Thanks for reading

FAQ

What is a diversified portfolio?

A diversified portfolio contains a mix of stocks and bonds, from around the globe, in companies of various sizes and sectors. This is to ensure that if one sector, or country was to experience a sudden fall in value for any reason at all, the remainder of your portfolio would be robust enough to prevent you from experiencing a complete loss.

Source: investingreviews.co.uk

Do I pay UK tax on share dealing?

Yes, any gains you make from share dealing on a trading platform UK are subject to capital gains tax at your normal rate, unless you are share dealing from within a tax wrapper, such as a Stocks and Shares ISA.

Source: investingreviews.co.uk

Which app is best for trading?

eToro - Buy/sell cryptocurrencies; 0% commission on real stocks Freetrade - Best for beginners; low cost; commission-free trading FinecoBank - No platform fee; cheap share dealing + promo InvestEngine - Low cost; 500+ commission-free ETFs Interactive Investor - One free trade per month; lots of research and tips Hargreaves Lansdown - Lots of research, insights and tips Use our comparison table above to get a sense of what each platform charges for regular investing and ad hoc share trading.

Source: koody.co

What should a beginner know about starting to invest with little money?

When you're investing with a small amount, it's even more important to pay low fees and commissions. Otherwise, making the investment could be so expensive that you need a decent return just to cover your costs.

Source: fool.co.uk