A trading account sometimes goes by other names like a “share dealing” or “brokerage” account, but it all means the same thing. It’s an investment platform that lets you buy and sell company shares (stocks) from your phone, computer or tablet.
Opening a trading account isn’t as daunting as you might think. We’ll detail the steps involved when joining a platform, and give you tips to help you find the right provider. And you can see the scores we’ve given all the major UK platforms, in our comparison table.
While “broker” and “share trading platform” technically have slightly different definitions, they’re pretty much used interchangeably. The share trading platforms we’ve reviewed on our site are all online brokers. So you can buy, sell, and hold shares – all right at your fingertips.
The term “investment platform” is a broad term for all platforms that let you invest, so they would also refer to robo-advisors, which are platforms that let you invest in ready-made portfolios.
All investing should be regarded as longer term. The value of your investments can go up and down, and you may get back less than you invest. Past performance is no guarantee of future results. If you’re not sure which investments are right for you, please seek out a financial adviser. Capital at risk.
There are some key things that you ought to know about share trading.
The exact process for opening a share trading account varies depending on the trading platform you select. However, you’ll generally need to complete the following steps when signing up:
Trading shares online offers a secure and simple way to manage your investments. You can place trades at a time and place convenient to you, and keep tabs on your portfolio with ease.
It’s important to understand the difference between trading and investing. Buying shares online to hold as an investment is something we encourage. Trading complex instruments like derivatives using leverage (borrowed money) is something we don’t advocate because, unlike regular investing, you could end up losing more than you invest.
It’s important to make sure you’re aware of the risks before you start trading. As a beginner, you’d generally want to steer clear of short-term trading until you’ve got more experience as an investor.
You’ll need to carefully consider what you need before deciding on the right online trading platform, think about:
A stocks and shares ISA is a tax wrapper for investments. This means it’s a tax-efficient account that shields your investments from UK dividend or capital gains tax. You can invest up to your full £20,000 ISA allowance each tax year. This allowance could change in future so it’s worth making the most of.
It’s a generous allowance, and it’s unlikely that a casual investor is going to exceed it. Our research found that the average adult stocks and shares ISA has £9,331 in it.
If your investments aren’t in an ISA, you’d have to pay capital gains tax on your profits over a yearly allowance of £3,000. Or, pay dividend tax on any income over £500. Of course, you might not even make profits that high each year, but this will become more important as your portfolio grows over the years.
To find out about all the top options, check out our guide covering the best stocks and shares ISAs available to UK investors.
"The best brokerage account for you to use is going to depend partly on your investing strategy, how regularly you want to invest, and how much you plan to invest. Some easy golden rules to follow however, are to use a stocks and shares ISA if possible and try to keep your fees as low as you can.
We’ve tried and tested loads of the top platforms across the UK and done plenty of the legwork for you. So if you want, you can head over to our best trading apps and platforms to see which options we think might suit different types of investors and hopefully there will be a trading account there that suits you down to the ground."
Opening a share trading account can be straightforward, and it’s the first step to investing in stocks and shares to make your savings work a little harder. It’s worth taking the time to read up on the basics, such as how to buy shares and how to invest in dividend stocks, or take a look at our investing for beginners hub.
If you’re not quite sure that you want to be in control of choosing specific investments just yet, a lot of people start with a robo-advisor. These invest on your behalf with a ready-made portfolio that’s managed for you. It’s a nice way of getting your feet wet if you’re not quite ready to open a share trading account and pick your own stocks.
To make comparing even easier we came up with the Finder Score. Costs, features, ease and range of investments across 30+ platforms are all weighted and scaled to produce a score out of 10. The higher the score the better the platform – simple.
Read the full methodologyAll investing should be regarded as longer term. The value of your investments can go up and down, and you may get back less than you invest. Past performance is no guarantee of future results. If you’re not sure which investments are right for you, please seek out a financial adviser. Capital at risk.
Here’s how to get started with investing as a 20- or 30-something, and why it’s often a really good idea.
Find out how stock exchanges work and how they protect investors as well as help companies raise finance.
Demo trading accounts give investors the chance to test out different trading strategies in a risk-free environment. Here’s how they work.
Find out the top 10 most popular stock market myths and whether or not there’s any truth to them.
Find out how you can sell your shares in the UK.
Read our quick guide that offers handy tips to help you choose your first investment.
Find out what makes a stock price rise or fall, and when should you invest if a stock price keeps changing.
Are you looking to buy shares in a UK company? This beginner’s guide tells you what you need to do to buy shares easily.
Thinking of investing? Check out our investment fee guide to find out what fees you will pay and how much they will cost you.
I am looking to buy shares in Carnival Cruise Line to get benefits while cruising. What is the cheapest and simplest way to buy shares?
Hi Roger. We have a page about Carnival shares, with information about the latest developments, the share price, platforms selling the stock, and fees. Your capital is at risk when buying any shares, of course.
If I want to invest with a broker that is not from my bank, can I do it from my bank account or I would have to transfer my money? How could he get access to my account?
Hi Lucas,
Thanks for getting in touch with Finder. I hope all is well with you. :)
Yes, it is possible that you use your own bank account to invest with a broker that is not from your existing bank. However, this would depend on the broker that you choose. For this reason, it would be a good idea to directly as your broker and check your available options.
I hope this helps. Should you have further questions, please don’t hesitate to reach us out again.
Have a wonderful day!
Cheers,
Joshua