What is share dealing and how does it work?
Share dealing is the process of buying and selling shares in publicly listed companies through a regulated platform. It is one of the most direct ways to invest in the stock market as a UK investor. This guide covers how share dealing accounts work, what you can trade, the costs involved and how to get started.
What is share dealing?
A share dealing account lets you buy and own shares in listed companies directly. When you purchase shares, you become a part-owner of that company. You benefit if the company's value rises over time and receive dividends if the company pays them. Unlike leveraged products such as spread bets and CFDs, share dealing involves no leverage: you pay the full value of the shares upfront.
Share dealing is primarily a long-term investment activity, though active traders also use it to take shorter-term positions on individual stocks. Understanding the mechanics of placing orders, choosing stocks and managing positions is an important first step before you commit real capital.
How does a share dealing account work?
When you open a share dealing account and deposit funds, you can search for any listed company and place a buy or sell order. The process works as follows:
1. Find the share you want to buy
Search by company name or ticker symbol. Review the current price, recent performance and any available research.
2. Choose an order type
A market order executes immediately at the best available price. A limit order only executes if the price reaches your specified level.
3. Confirm your trade
Click ‘Buy’. Your account is debited for the total value of the shares plus any applicable charges, including stamp duty on UK shares and FX conversion fees on international stocks. The shares appear in your portfolio once the trade is confirmed, typically within seconds. Settlement, the actual exchange of shares and funds, completes two business days later (T+2) for most UK-listed stocks.
4. Your account is debited
This is for the total value of the shares plus any applicable charges. The shares appear in your portfolio.
5. Monitor your position
You can track the performance of your holdings, set price alerts and view dividends received through your account dashboard.
6. Sell when ready
When you want to exit, place a sell order at the current market price or set a limit. Settlement typically takes two business days (T+2) for UK shares.
Key Takeaway
With share dealing you own the underlying shares outright. This means you have shareholder rights, receive dividends, and are exposed to the full rise or fall in the share price. There is no margin requirement and you cannot lose more than the amount you invest.
What can you trade with a share dealing account?
A share dealing account gives access to a wide range of listed securities:
| Asset type | Description | Example |
| UK shares | Shares in companies listed on the London Stock Exchange or AIM | Barclays, AstraZeneca, Rolls-Royce |
| US shares | Shares in NYSE and NASDAQ-listed companies | Apple, Nvidia, Amazon |
| International shares | Shares listed on European and other international exchanges | LVMH (Paris), ASML (Amsterdam) |
| ETFs | Exchange-traded funds providing exposure to indices, sectors or themes | iShares Core FTSE 100 UCITS ETF (ISF) |
| Investment trusts | Closed-ended listed funds holding diverse asset portfolios | Scottish Mortgage Investment Trust (SMT) |
We offer access to over 13,000 shares across global markets, including international shares and penny stocks on AIM. Penny stocks, typically defined as shares trading below £1 with a market cap below £100 million, are higher-risk but can be accessed through our share dealing platform.
Share dealing: key facts
£0
Our dealing commission on US shares. UK shares from £3 per trade online
T+2
Standard settlement period for UK shares: funds exchange two business days after the trade
0.5%
UK stamp duty reserve tax on electronic purchases of UK shares (not charged on ETFs or AIM shares in an ISA)
Costs of share dealing
| Cost | What it is | Our rate |
| Dealing commission | Charge for executing the trade | £0 on US shares; from £3 on UK shares |
| Stamp duty (SDRT) | 0.5% on electronic purchases of UK shares | Applied automatically; not on ETFs |
| FX conversion fee | Converting GBP to buy foreign currency shares | 0.7% on non-sterling shares |
| Custody/platform fee | Annual charge for holding investments | No platform fee on our share dealing account |
Share dealing vs spread betting and CFDs
Share dealing and leveraged products like spread bets and CFDs serve different purposes. Share dealing is for investors who want to own shares, build a portfolio and benefit from long-term growth and dividends. Spread bets and CFDs are for traders who want leveraged, short-term exposure to price movements without owning the underlying asset. Spread bets are free from CGT; share dealing gains above the annual allowance are taxable.
The tax treatment, settlement periods and shareholder rights differ significantly between the two approaches, and understanding those differences is important before choosing which to use.
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Share dealing FAQs
What is a share dealing account?
A share dealing account is a brokerage account that lets you buy and own shares in publicly listed companies. You pay the full value of the shares upfront and receive any dividends declared. There is no leverage involved. We offer a share dealing account with £0 commission on US shares and access to over 13,000 markets.
What is the difference between share dealing and spread betting?
Share dealing gives you direct ownership of shares. Spread betting is a leveraged product where you speculate on price movements without owning the underlying shares. Spread bets are free from CGT and stamp duty. Share dealing gains and income are subject to normal UK tax rules outside of an ISA.
Can I hold a share dealing account and an ISA?
Yes. A stocks and shares ISA and a share dealing account can be held simultaneously. Most investors use an ISA for their main portfolio up to the £20,000 annual limit, and a share dealing account for additional investments above that level.
What shares can I buy with a share dealing account?
You can buy UK and international shares, ETFs and investment trusts through a share dealing account. We offer access to over 13,000 listed securities across the UK, US and international markets.
Is share dealing right for beginners?
Share dealing is one of the most straightforward ways for beginners to start investing, particularly through a stocks and shares ISA for the tax benefits. Starting with diversified ETFs rather than individual stocks reduces risk while you build experience.
Important to know
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.
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Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.
Professional clients trading spread bets and CFDs can lose more than they deposit.
The value of shares, ETFs and other ETPs bought through a share dealing account, a stocks and shares ISA or a SIPP can fall as well as rise, which could mean getting back less than you originally put in. Past performance is no guarantee of future results. Some ETPs carry additional risks depending on how they’re structured, investors should ensure they familiarise themselves with the differences before investing.
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Share dealing and IG Smart Portfolio accounts provided by IG Trading and Investments Ltd, CFD accounts are provided by IG Markets Ltd, spread betting provided by IG Index Ltd, cryptoassets services are provided by IG Digital Assets Ltd.
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