One of the most common questions we’re ever asked by beginners looking to start investing in the stock market is the question of which trading account they should sign up for.
In this article, we give you our opinions on the best share dealing accounts the UK has to offer.
By this, they often mean, which account has the lowest commission fees. But we think there are a couple of additional considerations that should be made.
Low commission fees are great, but don’t be enticed by unusually low commission fees. After all, brokers need to make their money somehow.
To Begin With, Trade With Your High Street Bank, Unless It’s Barclays
To get you started, most high street banks now offer share dealing services to anybody who wants to sign up. And it’s a good place to start. Halifax Share Dealing Account is a great one and they’ve upgraded it significantly since I first started using it back in 2010.
Just beware – The account offered by Barclays is not designed for beginning investors. They require you to trade at least once a quarter and if you don’t, they’ll charge you for not using the account. So stay clear of that.
HSBC’s share dealing platform, at time of writing, has a horrendously poor user interface. I’d steer clear of it for that reason alone. I also think their transaction commission is above average at £12.50 per trade.
IG Is Our Favourite
We now exclusively use IG.com. It’s a state of the art trading account. This means there are a lot of bells and whistles. It is the Adobe Photoshop of trading platforms. But they do offer commission fees of £8 per trade, which is about 30% lower than the typical high street bank account.
However, BE WARNED, they do require frequent activity BUT there is a work around.
IG consider a dividend payment to be activity. So as long as you hold on your account any share that pays a dividend, you’ll never be charged for inactivity, because the dividend will be paid to you at least twice a year.