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Choosing the right broker is a very important decision. It might seem that most brokers offer the same service, but choosing the right broker might dramatically increase your success as an investor. The commission that they charge will amount to a big difference over time. Execution time will make or break whether you are actually able to buy the stock you want at the prices you want. These are just a couple of the factors that will decide whether or not a broker is right for you.
In this article, we will teach you what you need to know to choose the right broker for you. We will assume that you already have a basic understanding of finance and of stock investing. We will also assume that you know terms such as “stop loss” and “Fill or kill. “. If you do not, then I recommend that you visit the Investing.co.uk to learn more about investing in the UK. Investing in.co.uk is one of the best investment sites in the UK.
What to judge first
Pick a broker by comparing three things: total cost for your likely activity, the exact account types you need (ISA, SIPP, junior ISA, general), and how easy the platform makes the things you actually do (fund transfers, FX conversion, dividend handling, corporate actions). Execution quality and customer support matter if you trade frequently; for most long-term investors the headline platform fee, dealing commission, and non-trading charges (FX, custody, inactivity) determine which provider makes sense. For many UK investors the tradeoff is between cheaper, app-focused brokers that appeal to small pots and full-service platforms that offer research and phone support for higher fees.
The mainstream options and what they are good for
Interactive Brokers
Interactive Brokers is often recommended where low per-trade fees and access to many markets matter; its pricing and execution tools suit active traders and investors who need low FX spreads and access to US, European and Asian markets from one account. If you trade internationally or want advanced order types, IB frequently ranks top in comparative reviews.
Hargreaves Lansdown
Hargreaves Lansdown remains one of the largest UK platforms. It is comparatively expensive for frequent share dealing but offers a polished interface, phone advice, lots of research and a full suite of account types. Many investors accept higher dealing charges in exchange for the platform’s ease of use and service. Hargreaves Lansdown’s published dealing fees and platform details are available on its site.
Interactive Investor
Interactive Investor uses a flat monthly fee model that becomes attractive as portfolio size grows: you pay a platform subscription and then lower dealing fees versus per-trade heavy alternatives. That makes it a common pick for investors with mid-sized holdings who want predictable platform charges. UK
Freetrade, Trading 212 and similar app brokers
Zero-commission or very low-commission app brokers have lowered the cost of buying UK and US shares for small investors. They work well for regular savers and those building small, simple portfolios, but app brokers sometimes limit order types, fractional access to certain markets, or have different fee structures for FX and special corporate events. MoneySavingExpert and other consumer guides keep updated lists of these app options.
Vanguard, AJ Bell, Fidelity
If your focus is low-cost funds or managed ISAs, providers such as Vanguard, AJ Bell and Fidelity combine competitive fund ranges with platform features for long-term investors. Vanguard’s platform is particularly cost-effective for ETF and index-fund investors, though minimum fees or recent changes to pricing are reasons to check the current terms before opening an account. Independent comparisons and awards (Which?, Boring Money, Money.co.uk) regularly evaluate these providers for different portfolio sizes and use cases.
Fees and charges to watch beyond the headline
Headline zero-commission claims can be misleading unless you check FX spreads, inactivity or custody fees, and charges on fractional or international trades. Platform custody fees (a percentage of assets under management or a flat monthly charge) can matter more than dealing commissions for buy-and-hold investors. Also check how dividends are handled: some brokers apply fees to process foreign dividends or to convert currencies. Most independent broker comparisons show that the cheapest platform for a £1,000 starter pot is not the cheapest once you pass £50,000 — the crossover depends on whether the provider is percentage-based or flat-fee.
Regulation, safety and settlement
All brokers, financial institutions, and banks in the UK are regulated by the Financial Conduct Authority (FCA). Make sure client money is kept separate and that your cash and investments fall under FSCS protection limits.
Regulations are not to guarantee safety. The fact that the broker is regulated does not guarantee that it’s not a scam. It does not even guarantee that the broker is actually following the rules set by the regulator. It just means that you have an avenue of recourse if something goes wrong. The regulator will fight for you and will help you preserve your rights. It will also close down the operations of brokers that they know break the rules.
Using a registered broker will also give you access to government protection schemes, such as portfolio security.
Which broker suits which investor profile
If you plan a small monthly saver and want the cheapest path to build a portfolio of UK and US ETFs, app brokers (Freetrade, Trading 212) are often the simplest, lowest-cost entry. If you want to trade frequently across multiple international markets or use margin and advanced order types, Interactive Brokers usually beats the competition on overall cost and functionality. If you prioritise telephone support, deep research and managed investment options, Hargreaves Lansdown or AJ Bell offer a broader service at higher cost. If you hold a larger, buy-and-hold portfolio a flat fee platform such as Interactive Investor can be financially sensible because the subscription caps the effective cost. These general rules have exceptions, so run the exact fee calculator for the portfolio size and trade frequency you expect.
Practical checklist before you open an account
Confirm the account types (Stocks & Shares ISA, SIPP, Junior ISA).
Run the provider’s fee calculator on a sample portfolio to estimate 1, 3 and 5 year costs.
Check FX charges and how dividends on foreign shares are treated.
Verify mobile and web order types, and whether limit/OCO orders are available.
Read reviews about customer service responsiveness and settlement times for withdrawals.
Where possible test the interface with a small deposit and a simple trade to confirm the execution experience.
Independent comparison sites and platform guides are helpful for this stage; for a curated list and ongoing broker reviews see investing.co.uk.
Common tradeoffs that matter in practice
Cheap execution does not always equal better outcomes if the platform lacks a good UI for tax reporting, corporate actions or inheritance-related functionality. Conversely, paying a little more for a platform that simplifies tax wrappers and provides clear statements can save time and mistakes. For active traders, execution latency and order types matter; for long-term investors, custody charges and fund ranges typically drive the long run cost. Do not choose a broker on one metric alone.
Final steps and next actions
Pick two or three brokers that fit your needs. Run the numbers on fees for the portfolio size you actually plan to hold—not just the teaser rates. Then open a test account with a small amount to see how their execution and reporting hold up in practice.
Keep checking back. Pricing shifts and new platforms can quickly change who gives you the best deal at your size.
For ongoing comparisons and a broker finder that is updated regularly, consult investing.co.uk. If you’d like, I can run a quick, personalised cost comparison for two or three specific brokers based on a sample portfolio size and trade frequency — tell me the portfolio value, approximate number of trades per month and whether you need ISA or SIPP wrappers and I’ll produce a side-by-side cost estimate.