How to choose a UK broker: a practical guide for beginners

What is a broker and how does it work?

A broker acts as the link between you and the financial markets. It provides the platform and infrastructure needed to buy and sell assets such as shares, indices, currencies and commodities.

When you open an account, you’ll deposit funds and use the broker’s platform to place trades or investments. This is often referred to as a brokerage account. It’s where your positions are opened, managed and closed, and where profits and losses are recorded.

If you’re new to this, it’s worth starting with a broader guide on how to trade online before choosing a provider. 

How to choose a UK broker

When thinking about how to choose a UK broker, it helps to focus on several objective criteria, including:

Regulation and security

The first thing to check is whether the broker is regulated by the Financial Conduct Authority (FCA). Regulation helps ensure that firms meet certain standards around client money protection, transparency and fair treatment.

While regulation doesn’t remove risk, it does provide a level of oversight that is essential when dealing with financial markets.

Markets and products available

Different brokers offer access to different markets. Some focus primarily on shares and investing, while others provide access to derivatives such as CFDs and spread betting.

For example, you may want to trade:

• Shares (UK and international) 
• Indices like the FTSE 100
• Forex currency pairs 
• Commodities such as gold or oil
• ETFs for diversified exposure

Trading style and goals

Your trading style should influence the broker you choose.

If you’re planning long-term investing, a share dealing account may be more appropriate. We offer both ISAs and SIPPs, which can come with significant tax advantages. If you’re interested in short-term price movements, you might consider leveraged products such as CFDs or spread betting, though these carry significantly higher risk and aren’t recommended for beginners.

If you’re still learning, our guide on trading for beginners can help you define your approach before committing.

Types of trading accounts explained

Not all brokers offer the same types of accounts, and choosing the right one depends on how you want to access the market. 

Investment accounts

These allow you to buy and own assets outright, such as shares or ETFs. They are typically used for longer-term investing. Examples include ISAs and SIPPs.  

ISAs, or individual savings accounts, are tax-efficient savings accounts that allow you to earn interest or investment returns without paying income or capital gains tax (up to a certain threshold).

And SIPPs are self-invested personal pensions, a tax-efficient retirement plan that gives individuals more control over their pension investments compared to standard or workplace pensions. Organised by the individual, they allow users to select and manage investments directly.  

CFD trading accounts

A CFD trading account lets you speculate on price movements without owning the underlying asset. CFDs use leverage, which increases both potential profits and losses. They are complex instruments and come with a high risk of losing money due to leverage. 68% of retail investor accounts lose money when trading CFDs (and spread bets – see below). 

Spread betting accounts

Spread betting is another leveraged product that allows you to trade on price movements. In the UK, profits may be tax-free, but the risks are similar to CFDs. They are only available to UK and Irish residents. 

Each account type comes with different costs, risks and suitability depending on your experience level.

Costs and fees to understand

Fees can vary significantly between brokers, and they can have a direct impact on your overall returns.

Some of the most common costs include:

• Spreads (the difference between buy and sell price)
• Commission on trades (especially for shares or CFDs). We offer zero commission on many assets – see our costs & charges page for more information.
• Overnight funding for leveraged positions 
• Currency conversion fees for international trades 

Lower costs don’t always mean better value. It’s important to balance fees with execution quality, platform reliability and available tools.

Platforms, tools and usability

Your trading platform is where you’ll spend most of your time, so usability matters.

A good platform should allow you to:

• Analyse charts and market data 
• Place trades quickly and reliably 
• Manage risk using tools like stop-loss orders 
• Access news, research and educational content 
• Connect easily with customer service

With us, you can access live chat, communicate via WhatsApp, or find answers to all common market and product-related questions – including fees and trading hours.

Many brokers offer demo accounts, which can be a useful way to test the platform before committing real capital. You can try this with our demo account, where you can try out your potential strategy with virtual funds.

Risk management and why it matters

No matter which broker you choose, trading always involves risk. This is especially true when using leveraged products.

A broker should provide tools that help you manage this risk, such as stop-loss orders, alerts and position sizing controls. But ultimately, managing risk is your responsibility.

If you’re new, it’s worth understanding risk management in trading before placing live trades. 

Comparing UK brokers

Here’s a simple comparison of what to look for when evaluating brokers: 

No single broker will be “best” in every category, so it’s about prioritising what matters most to you.

A simple way to get started

If you’re ready to move forward, the process of opening an account is usually straightforward:

Step 1: Choose your broker

Compare features, costs and regulation.

Step 2: Open an account

Provide identification and complete the application process.

Step 3: Fund your account

Deposit funds using your preferred method.

Step 4: Practise first

Use a demo account before trading with real money.

Step 5: Start small

Begin with smaller positions and build experience gradually.

Frequently asked questions