What is share dealing and how does it work?

9 Jul 26

4 min read

Share dealing lets you buy and own shares, funds and investment trusts directly. Here's how it works, what it costs, and how to decide if it's right for you.

Tax treatment depends on your individual circumstances and jurisdiction, and may be subject to change. This article is for informational purposes only and does not constitute financial advice. Making decisions based on future planned tax changes can be complex, as these changes do not always occur in the end.

Share dealing is the act of buying and selling shares, exchange traded funds (ETFs) and investment trusts, usually over the medium to long term. When you buy a share, you become a part-owner of that company, and aim to profit either from the share price rising or from dividend payments.

A share dealing account gives you access to thousands of company shares in the UK and internationally. According to Finder (2026), 41% of UK adults — around 22.6 million people — have owned stocks and shares, making it the UK's most common form of investing.

With IG, you can deal shares directly through a share dealing account, or take a position on share prices using leveraged products such as spread betting and CFD trading, without owning the underlying asset.

41%

of UK adults have owned stocks and shares (Finder, 2026)

£0

commission on all global shares with IG (IG, 2026)

0.5%

UK stamp duty reserve tax when you buy UK shares (HMRC, 2026)

What is share dealing?

Share dealing is buying and selling shares, ETFs and investment trusts on a stock exchange, with the aim of growing your money over the medium to long term. Unlike trading with leveraged products, when you deal shares you own the underlying asset outright.

Share dealing accounts give you exposure to individual companies, ETFs that track a basket of assets, and investment trusts run by professional managers. You can hold these in a general investment account, a Stocks and Shares ISA, or a SIPP.

How does share dealing work?

You'll need to open a share dealing account, fund it, then choose the shares, ETFs or trusts you want to buy. When you buy shares, you make money in two ways: if the share price rises and you sell at a profit, or through dividend payments if the company pays them.

There are three main ways to deal shares:

Online share dealing — the most common route, using a broker like IG to access shares listed on an exchange
A managed account — where a manager builds and runs a portfolio for you, based on your risk profile
Buying directly from a company — through direct stock purchase plans or dividend reinvestment plans (DRIPs)

Quick fact
A record 2.75 million UK adults were active online investors as of July 2025, using platforms to trade listed investments or hold unlisted funds (Investment Trends, 2025).

What does share dealing cost?

Costs vary by provider and market. With IG, you'll pay £0 commission on all global shares, plus a 0.49%** foreign exchange fee when dealing in a currency different to your account currency.

Market	Online commission	Phone dealing
UK shares	£0*	£40
US shares	£0*	£50
European shares	£0*	£50

^{* Other fees may apply, including a 0.7% FX conversion fee and government taxes such as UK stamp duty reserve tax (0.5% when buying UK shares).}

Ready to start share dealing?

Open an account with us

Share dealing account Stocks & shares ISA

What are the benefits and risks of share dealing?

Share dealing gives you direct ownership of an asset and full control over what you buy and sell, but it also carries the risk that comes with any investment.

Benefits	Risks
You own the asset outright	You can lose money if the share price falls
Potential for dividend income	You need to fund the full position upfront
Access to shares, ETFs and trusts	Common shareholders are paid after other claims are settled
Voting rights on company matters	Profits above your allowances may be subject to tax

^{Capital at risk. The value of investments can go down as well as up, and you may get back less than you invest. Past performance is not a guarantee of future results.}

Share dealing summed up

Share dealing means buying and selling shares, ETFs and investment trusts, and owning them outright
You can deal online, through a managed account, or directly through a company
With IG, you'll pay £0 commission on global shares, plus a 0.7% FX fee where relevant
Tax, including stamp duty and capital gains tax, may apply depending on the asset and account type
A Stocks and Shares ISA can be used to shelter share dealing gains and dividends from tax

Getting started with us

Step 1	Step 2	Step 3
Open a share dealing account online	Fund your account by card or bank transfer	Choose your shares, ETFs or trusts and place your first deal

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

What is share dealing?

How does share dealing work?

There are three main ways to deal shares:

Online share dealing — the most common route, using a broker like IG to access shares listed on an exchange

A managed account — where a manager builds and runs a portfolio for you, based on your risk profile

Buying directly from a company — through direct stock purchase plans or dividend reinvestment plans (DRIPs)

Quick fact

A record 2.75 million UK adults were active online investors as of July 2025, using platforms to trade listed investments or hold unlisted funds (Investment Trends, 2025).

What does share dealing cost?

Costs vary by provider and market. With IG, you'll pay £0 commission on all global shares, plus a 0.49%** foreign exchange fee when dealing in a currency different to your account currency.

Market	Online commission	Phone dealing
UK shares	£0*	£40
US shares	£0*	£50
European shares	£0*	£50

^{* Other fees may apply, including a 0.7% FX conversion fee and government taxes such as UK stamp duty reserve tax (0.5% when buying UK shares).}

What are the benefits and risks of share dealing?

Share dealing gives you direct ownership of an asset and full control over what you buy and sell, but it also carries the risk that comes with any investment.

Benefits	Risks
You own the asset outright	You can lose money if the share price falls
Potential for dividend income	You need to fund the full position upfront
Access to shares, ETFs and trusts	Common shareholders are paid after other claims are settled
Voting rights on company matters	Profits above your allowances may be subject to tax

^{Capital at risk. The value of investments can go down as well as up, and you may get back less than you invest. Past performance is not a guarantee of future results.}

Share dealing summed up

Share dealing means buying and selling shares, ETFs and investment trusts, and owning them outright

You can deal online, through a managed account, or directly through a company

With IG, you'll pay £0 commission on global shares, plus a 0.7% FX fee where relevant

Tax, including stamp duty and capital gains tax, may apply depending on the asset and account type

A Stocks and Shares ISA can be used to shelter share dealing gains and dividends from tax