Best ETF Trading Platform in the UK (Updated 2024)

A List of the Top ETF and CFD Trading Platforms in the UK for October 2024

1. Pepperstone
2. eToro – The best user-friendly ETF broker in the UK
3. IG – Best for comprehensive trading package
4. Plus500 – The best broker for CFD trading
5. Saxo – The best ETF broker UK
6. Freetrade – The best cheap ETF broker UK

The popularity of buying and selling Exchange Traded Funds (ETFs) in the UK has risen in recent years. Trading ETFs offers a cost-effective way to diversify your trading portfolio across a variety of assets.

To improve the chance of attracting returns, it is important to invest in a good ETF platform in the UK.

Are you searching for the best ETF trading platform in the UK? In this article, we outline five of the best ETF platforms in the UK.

Whether you’re searching for a cheap ETF broker in the UK or the best UK broker for ETFs overall, we can help you find the best option for your trading strategy, portfolio and circumstances.

Description of the Best ETF Trading Platforms in the UK for October 2024

If you want to start trading ETFs, the first step is to open an account with an ETF trading platform. The best broker for ETFs in the UK is one that will meet your needs and trading style.

For example, if you want to set up a diverse portfolio, you might choose an ETF broker that also offers other asset classes. Read on to learn more about six of the best ETF trading platforms in the UK.

Comparison Chart of the Top ETF Trading Platform in the UK for October2024:

Note: The information in this table is subject to change and may not be complete. It is important to research and compare brokers thoroughly before opening an account.

Pepperstone provides a range of options for trading Exchange-Traded Funds (ETFs) through Contracts for Difference (CFDs). This allows traders to speculate on the price movements of ETFs without owning the actual funds.

Pepperstone offers access to a broad range of ETFs from different sectors and regions, enabling traders to diversify their portfolios. These include ETFs that track indices, commodities, sectors, and bonds. This variety allows traders to engage in various market strategies and hedge against risks associated with specific sectors or regions.

Pepperstone supports trading ETFs on several advanced platforms, including MetaTrader 4 (MT4), MetaTrader 5 (MT5), and cTrader. These platforms offer robust charting tools, multiple time frames, and a wide range of technical indicators. Traders can use these tools to conduct in-depth market analysis and execute trades efficiently.

Additionally, the integration with TradingView offers enhanced charting capabilities and social trading features.

Pepperstone provides competitive spreads and low commissions on ETF CFDs. The trading costs are incorporated within the spread, ensuring transparency and cost-effectiveness.

For example, the Razor account offers lower spreads with a small commission per trade, making it attractive for active traders looking to minimize their transaction costs.

Pepperstone allows leverage on ETF CFDs, enabling traders to control larger positions with a smaller amount of capital. The leverage available varies depending on regulatory requirements and the trader’s classification (retail or professional), with retail traders typically having access to lower leverage compared to professional traders.

Effective risk management is crucial when trading ETFs. Pepperstone provides various risk management tools, including stop-loss and take-profit orders, to help traders protect their investments and manage risk. Additionally, the platform offers negative balance protection, ensuring that traders do not lose more money than they have deposited.

Web trading platform and mobile app

eToro was founded in 2007, and it was originally known as RetailFX. This trading platform is authorised and regulated in the UK by the FCA, and it is also covered by the FSCS.

eToro offers commission-free stock and ETF trading. There is no account fee, but there is an inactivity fee of $10 per month after one year of inactivity.

You only need to log in to your account to avoid having to pay this. There are no fees for making a deposit, but you will pay a fee of $5 on any withdrawals that you make.

There are 264 ETFs currently available on eToro, including technology ETFs and exposure to futures contracts.

Live chat customer support is available 24 hours per day from Monday to Friday. You can also use your registered email address to open a support ticket.

51% of retail investor accounts lose money when trading CFDs with eToro. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

IG invented spread betting in 1974 and today is the world’s leading online trading provider with more traders trusting them with their money than anyone else

IG is authorised and regulated by the FCA and provides traders access to over 18,000 markets. IG offers more 24-hour indices than any other provider, and extended hours on over 70 key US stocks 

For those who prefer to own the underlying asset, IG offers access to over 13,000 global shares and ETFs, or a wealth portfolio managed by one of their experts. 

Benefits:

• Advanced platform and charting – L2 dealer, ProRealTime and MT4
• Demo account
• Extended trading hours
• Extensive range of products
• Daily expert analysis & educational resources
• Round-the-clock customer service
• Negative balance protection for retail clients

Based on revenue (published financial statements, October 2022). 24/7 excludes the hours from 10 pm Friday to 8 am Saturday (UK time), and 20 minutes just before the weekday market opens on Sunday night. 

Plus500 is a CFD provider and offers only CFDs.

Plus500 was founded in 2008, and is considered to be a high-trust broker because not only is it regulated by top-tier bodies like the FCA in the UK and ASIC in Australia, but it is also listed on the London Stock Exchange.

Plus500 offers CFDs, 71 forex pairs and stocks. You can trade using its proprietary platform, which is available as a desktop download, a web trader and a useful, well-designed and streamlined mobile app.

Deposits and withdrawals are fast and free, and you can use a bank transfer, eWallets, and credit or debit cards to fund your account.

The minimum deposit is quite high, however, at £100.

The trading fees are about average, so there is not too much cost involved with making trades or maintaining an account at Plus500.

Plus500 does not offer access to platforms like MetaTrader, but it does have a proprietary platform called Web Trader that is simple and easy to use with a range of charting options and trading tools.

However, for those who like a lot of research in their trading apps, Web Trader and Plus500 as a whole does not provide that much detailed information.

For beginner traders, Plus500 does have a demo account where you can practice trading without risking your own capital, and the Trading Academy has a reasonable amount of educational material in the form of videos, eBooks and articles.

There is also a Traders Guide which has some further learning resources.

Web-based platform and mobile app. The SaxoTraderGO app can be used on any smartphone, tablet, PC or Mac. Advanced traders can use SaxoTraderPRO on Windows or Mac.

Saxo is highly regarded as one of the best ETF trading platforms in the UK, offering a wide range of features and benefits that cater to both novice and experienced investors.

Saxo provides access to over 7,000 ETFs from various sectors including technology, healthcare, and environmental sectors. This broad selection allows traders to diversify their portfolios and invest in a range of industries and global markets.

Saxo offers competitive pricing for ETF trading, with rates starting as low as USD 1 and GBP 3. This pricing structure makes it accessible for all types of investors, whether they are looking to invest small amounts or larger capitals.

Saxo supports extended hours trading, which is a significant advantage for those who prefer to trade on their own schedule, including outside of standard market hours. This feature is particularly useful for traders who have daytime commitments or prefer to trade based on developments in other time zones.

Saxo’s platforms, SaxoTraderGO and SaxoTraderPRO, provide advanced tools and features that are ideal for ETF trading. These include comprehensive charting tools, risk management options, and real-time data feeds. The platforms also offer an intuitive user interface, making it easy for beginners to navigate while still providing powerful tools for more experienced traders.

Saxo offers a wealth of educational materials that help investors at all levels enhance their understanding of ETF markets. These resources include webinars, video tutorials, and articles that cover ETF investment strategies and market analysis.

As a globally regulated entity, Saxo offers a secure trading environment, adhering to strict regulatory standards. This provides an added layer of security and peace of mind for investors trading ETFs through its platform.

Mobile app. Web platform (beta version) is only available to traders with a Freetrade Plus subscription

Freetrade is a cheap ETF broker in the UK, which was founded in 2016. The iOS app was launched in 2018 and the Android app followed in 2019. It is regulated in the UK by the FCA and part of the FSCS.

Freetrade’s ‘Basic’ subscription allows you to buy and sell shares on a commission-free basis. There is no monthly subscription fee and you will have access to over 1,000 stocks and ETFs. When using Freetrade, there is no minimum deposit and no withdrawal fees to pay.

Customer support is limited – Basic customers can only contact customer support via email. If you sign up as a Standard or Plus customer, you will have access to the in-app chat support function.

What Are ETFs?

ETFs are an easy and affordable way to collect a range of stocks or bonds, all wrapped up in one straightforward investment product.

In the UK, investors use both traditional brokers and CFD brokers to trade ETFs. If you decide to use an ETF broker in the UK, you will not actually own the ETFs – you will be trading on the price.

ETFs can be traded in the same way as any other share on the London Stock Exchange. When you buy an ETF, your money is invested in all of the companies within the ETF index.

Different types of ETFs are available. You might choose to invest in ETF collections according to a particular geographic location, market segment or theme.

You can decide how many shares you want to purchase. The price of ETFs goes up and down throughout the trading day, and you can buy them whenever the stock market is open.

The cost of investing in ETFs is generally between 0.1% and 0.2% annually.

ETFs are available on all of the major UK trading platforms, but you need to watch out for additional fees (sometimes called ‘transaction costs’) if you are buying several ETFs.

The rise in popularity of ETFs can be attributed to how easy it is to trade them. Popular ETFs include funds on the Standard & Poor’s (S&P) 500 index and the FTSE All-Share index. Whether you are a beginner trader or an experienced trader, ETFs offer a straightforward way to invest in the global stock markets.

The best thing about trading ETFs is that you don’t need to have the knowledge required to choose the most favourable stocks. You can also use them to invest in popular trends, for example, cyber security or fintech.

How to Choose the Best ETF Platform in the UK

If you want to find the best ETF platform in the UK, it is important to consider the following:

• Policies – These should be easy to access and presented clearly on the website.
• Platform – If you want to be able to trade on the go, it is important to find a platform that offers both a web-based platform and a mobile trading app.
• Regulations – Check whether your preferred trading platform is regulated by the FCA and protected by the FSCS.
• Security – Choose an ETF platform with two-step authentication, Secure Sockets Layer (SSL) encryption, a secure server and automatic inactivity log-outs. Always set a strong password and ensure your computer or device is protected by antivirus and anti-spyware firewalls.
• Fee structure – Before signing up for an ETF trading platform, spend time reading through the information it provides on fees. This will help you to avoid any expensive surprises in the future. For example, if your chosen platform charges an inactivity fee, you will need to remember to log in to your account regularly to avoid having to pay this.
• Customer service – Find out whether the trading platform offers 24/7 customer support or whether this is more limited. Some platforms only offer email support, while others only offer telephone-based support. Consider your own preferences for contacting customer services as well as the availability of support.
• Choice of investments – There are thousands of different ETFs available, so it is important to find a trading platform with access to the ETFs you want to invest in. For example, you might only want to invest in certain themes like cyber security, artificial intelligence or sustainability.

With so many different ETFs on the market, choosing an investment can seem overwhelming. You may wish to consider investing in ETFs to complement your existing portfolio. If you need help with choosing ETFs, many ETF trading platforms offer high-quality educational material.

Read on to learn more about the steps you should follow when investing in ETFs.

Frequently Asked Questions

Final Thoughts

Trading ETFs offers a number of benefits to UK-based investors. Whether you are a novice or experienced investor, buying ETFs allows you to add multiple assets to your portfolio through a single investment.

They are also a good choice if you want to start investing money in the financial markets.

With so many different ETF trading platforms to choose from, it might seem difficult to decide on the best platform for ETFs in the UK. By using this guide, you can narrow down the options and find the best UK broker for ETFs for you.