TopTradingPlatforms.co.uk is a website that offers useful information about online brokers and trading platforms with the aim of helping people to understand their options when trading online and make the best possible decision. We strive to provide the most objective and independent advices which are the conclusions of thorough review of the industry. Our experts have spend more than 500 hours collectively to review the best online brokers and only after that we have come up with a listing that reassume the best options for our readers. We have looked at their pros and cons and also their offering and tried our best to make this easily digestible for everyone.
When you are moving your first steps in the world of online trading, finding the cheapest online stock broker means a lot. It will help you to build a very solid base: not only you will be charged less when making trades but also it will function as a teacher, advisor and ultimately a partner that you might want to keep for long time.
What is an online stock broker?
An online stock broker is an online institution that is licensed to buy and sell stocks and other financial assets. Before the internet the only way for individuals to invest in stocks was to hire a stock broker that was authorised to place trades on their behalf. That model though was rather clunky and very expensive as every transaction had to be done physically via landline telephones. Now everything is done online and deals are made in seconds for a fraction of the charge that full-service brokers used to require.
How to find the Cheapest Online Stock Brokers?
To help you find the cheapest online stock brokers we have listed all the most reputable providers and review them carefully. Although they are all very transparent it is clear that there are significant differences and some brokers are cheaper than others. It is very important that the stock broker will match your trading style: for example you might not need some services and you might need others. In this case it will not make sense to select a broker that do charge you for services that you don’t need. Let’s make an example so that we are clearer in this concept: let’s take a complete beginner and a veteran trader. A complete beginner will benefit by paying a bit more for a broker that do provide very good training and tutorials. The same cannot be said for a veteran trader who might benefit more from more advances trading platforms. So in this case the cheapest online stock broker will be different as the needs are different: the beginner will benefit by picking a broker that do not charge for very advanced trading platform while the veteran will benefit by choosing a broker that do not charge for education.
So all this is to say that there isn’t a single broker that is the best for everyone: there are some criteria and fees but ultimately you need to find the broker that is ‘value for money’ for what are your needs and trading styles.
Please visit this compare stock brokers page to find a complete list of the best online stock brokers in the UK. In this page you will see that for every online stock brokers we have listed the pros and cons. In few minutes you will narrow the list down to the brokers that are most closely matching your requirements. After you get down to 3-4 online stock brokers our suggestion is to download a ‘free demo’ so that you can touch with your own hands their products. As said before it is very important that the offering will match your needs and only by doing some tests you will get a better idea. After this exercise you will probably go down to 1-2 final brokers.
At this point it is advisable to open two account and deposit some small amounts to check that you are happy with the ‘real thing’ and also with the support that you will receive. Only after being completely satisfied you can start trading more aggressively. Do not rush as in the first phase it is important to verify assumptions. When trading you might discover some extra charges that maybe you didn’t consider before. Also you might realise that the platform is not working well for you as you were thinking and so on. By going step by step you will still have the opportunity to switch provider without having an impact on your capital.
How much money do I need to get started?
In the past you had to have a very big capital in order to start trading. This is not the case anymore as most brokers only require a minimum deposit of around £50. This is great as it means everyone can trade and also reduce the initial risks. With leverage you can potentially still get huge profits but remember this means also that in this case you can risk more than what you have deposited.
What are the benefits of investing online?
Normally investing in the stock market offers a significant higher rate of return over the long term than any other investment options. With the arrival of digital the opportunity to invest are so many that everyone has the opportunity to try out his strategy: if you want to be more aggressive you can for example try trading on cryptocurrencies or forex and if you want to stay more safe you can pick a more long term stock strategy. Regardless of the targets investing online offers a huge amount of opportunities. With opportunities of course also come risks so make sure you follow the right steps to limit those as much as possible (ie. stop losses, etc.).
How long does it take to open an online stock broker account?
You can get up and running very quickly. If you have your documents ready in about 10 to 15 minutes you might be all ready to start your first trade.
Is online stock trading safe?
Investing always carries risks. The value of a financial asset could fall and you could lose all your investment. Having said that there are very good strategies to limit those risks. If you take a long term view and stick with your strategy you should avoid many trading risks.