Best Share Dealing Accounts UK 2023

Looking for your perfect share dealing account?

I’ve tested, scored, and ranked the best share dealing accounts in the UK.

Whether you’re seeking security, user-friendliness, or low fees, I’ve got you covered.

So, in a nutshell, what are the best share dealing accounts in the UK? The best share dealing accounts in the UK include eToro, interactive investor, and Hargreaves Lansdown. eToro is highly regarded for its zero-commission stock trading and unique social trading features that allow investors to copy trades from successful traders. Interactive investor offers a comprehensive suite of investment options and operates on a flat-fee pricing model, making it cost-effective for larger portfolios. Hargreaves Lansdown provides an extensive range of investment choices along with excellent research tools and customer service.

Top Share Dealing Accounts UK Ranked

Here is a quick list of the best share dealing accounts to use in the UK based on my hands-on analysis:

1. eToro – Overall best share dealing account UK for beginners
2. interactive investor – Best share dealing account for a large selection of investment options
3. Hargreaves Lansdown – Best UK share dealing account for access to personal financial advisors
4. Freetrade – Cheapest share dealing account UK
5. AJ Bell – Best share dealing account for ease of use
6. InvestEngine – Best share dealing account for ETFs

Best Share Dealing Account UK Reviews

Research shows in 2023 around 2 in 5 Brits (42%) invest and trade, up from 36% in 2021¹.

Choosing the best share dealing account is crucial for newcomers in the market.

Having worked in the retail investment sector in London over the last four years, I had the opportunity to experience the rise first-hand.

Additionally, in my role working for one of the UK’s leading financial companies, “a trustworthy and respected provider of news, education and market analysis for the everyday investor”, I was able to work with and test some of the biggest UK share dealing accounts on the market.

Using my experience in this field, I’ve compiled a list of the best share dealing accounts in the UK based on factors such as usability, safety, fees, trading platforms available, research tools, educational materials, and additional features.

All the share dealing accounts I’ve reviewed below are regulated by the UK’s financial watchdog, the Financial Conduct Authority (FCA).

1. eToro – Overall best share dealing account UK for beginners

The overall winner on my list of the best share dealing accounts and what I recommend to beginners is eToro.

eToro stands out by offering commission-free trading on stocks, making it an appealing option for cost-conscious traders.

Its social trading community provides a valuable platform for beginners to interact and learn from experienced traders.

With a user-friendly interface optimised for web and mobile devices, eToro simplifies the trading process, granting seamless access to the stock exchange. The platform offers a diverse range of assets, including stocks, forex, CFDs, ETFs, and cryptocurrencies.

With over 40 pre-constructed Smart Portfolios, eToro streamlines the trading experience, enabling beginners to embark on their investment journey effortlessly.

The platform features a ‘Demo Account’ and ‘General Investment Account,’ both completely free to use, allowing users to explore and familiarise themselves without any fees.

While eToro provides numerous benefits, it’s important to consider factors like the absence of tax wrappers such as ISAs or SIPPs and potential high fees for forex trading.

Users should also be mindful of conversion, inactivity, and withdrawal fees.

Overall, eToro remains an excellent choice for those seeking a cost-effective and user-friendly share dealing account with a thriving social trading community.

Finally, it’s worth noting that as of 2023, eToro announced that they reached 30 million registered users worldwide.

On top of this, they have an ‘Excellent’ rating on Trustpilot (which is quite rare for a trading app), with over 18,000 reviews.

• Fees: Commission-free trading, $5 withdrawal fee, $10 inactivity fee, currency conversion fees
• Minimum balance: £10
• Instruments: Stocks, Index CFDs, ETF CFDs, Investment Trusts, Forex, Crypto and Commodities.

Pros:

• Commission-free trading for stocks and ETFs.
• Smooth and straightforward account setup process.
• Access to social trading features.

Cons:

• $5 charge for withdrawals.
• Limited to a single account currency option.
• Room for improvement in customer support services.

Read my eToro review.

2. interactive investor – Best share dealing account for a large selection of investment options

Interactive investor sets itself apart by offering an unparalleled assortment of global investment opportunities.

With a wide range of shares, funds, ETFs, and investment trusts from well-established exchanges worldwide, investors have the freedom to explore various options and strategies.

The platform caters to the needs of share traders, providing diverse stock trading platforms to accommodate individual preferences and trading styles.

Its pricing structure is cost-effective and particularly advantageous for traders with large portfolios.

Investor Connection addresses concerns about Capital Gains Tax with the availability of Individual Savings Accounts (ISAs) and Self-Invested Personal Pension (SIPP) accounts.

This feature is beneficial for self-directed investors who prefer making their own investment decisions.

The trading platform offers a seamless interface accessible across the web, mobile, and tablets, with real-time market updates and user-friendly search features.

While the charting tools are straightforward and lack advanced features, they compensate with their versatility.

It’s important to consider the monthly account fee of £4.99, along with additional fees for phone usage and bonds. However, the frequent trader fee is zero, and there’s a single free trade every month.

The available accounts include SIPP, stocks and shares ISA, junior cash ISA, and a company account.

Investment options encompass venture capital trusts, ETFs, bonds, stocks, shares, commodities, forex trading, CFDs, and spread betting.

Interactive investor provides a comprehensive and flexible share dealing account for investors seeking diverse global investment opportunities.

• Fees: £5.99 per trade, annual custody fee starting at £4.99, £40 bonds fee
• Minimum balance: £0
• Instruments: ‍Stocks, Bonds, Funds, ETFs, and Investment Trusts.

Pros:

• Offers a wide variety of funds.
• Multiple account options.
• One free trade per month.
• Free regular investing.
• Low minimum deposit requirement of £1.
• Provides free live demo account.

Cons:

• Can be expensive for small investment pots.
• Lacks a standalone desktop platform.
• No price alerts feature.

Read my interactive investor review.

3. Hargreaves Lansdown – Best UK share dealing account for access to personal financial advisors

Hargreaves Lansdown offers a wide range of investment opportunities, including funds, curated portfolios, and expert recommendations, allowing users to diversify their financial portfolios seamlessly.

What sets this platform apart is its access to dedicated human financial advisors, demonstrating a strong commitment to helping customers achieve their financial goals.

This personalised assistance is particularly valuable for novice investors, as it enables them to establish well-structured plans within a user-friendly environment, supported by exceptional customer service.

The platform features a simple interface, making it an excellent choice for novice traders. Searching and setting alerts for the stock market is straightforward.

However, it’s important to note that Hargreaves Lansdown is a pricier trading platform, which may not be ideal for experienced traders who engage in frequent trading.

There is no platform fee, but the cost per trade is relatively high at £11.95, with the same charge for bonds and investment trusts. Frequent traders incur a fee of £5.95, and there are additional phone fees ranging from £20 to £50. A yearly custody cost of 0.45% is also applied.

Hargreaves Lansdown provides a comprehensive share dealing account in the UK, combining a wide range of investment options with personalised assistance from dedicated financial advisors.

While it may be more costly, the platform offers a user-friendly experience and exceptional customer service for investors looking to diversify their portfolios effectively.

Account Types:

• SIPP (Self-Invested Personal Pension)
• Junior SIPP (Self-Invested Personal Pension for minors)
• Junior stocks & shares ISA (Individual Savings Account)
• Junior investment
• Stocks & shares ISA
• Lifetime ISA
• Fund and share
• Active savings

Pros:

• User-friendly trading platforms.
• High-quality educational resources.
• Excellent customer service.

Cons:

• High fees for stocks and ETFs.
• Account opening offline for clients outside the UK.
• Offers only GBP as the base currency

Read my Hargreaves Lansdown review.

4. Freetrade – Cheapest share dealing account UK

Freetrade offers a commission-free share dealing account, allowing investors to trade US, UK, and European stocks without incurring any additional fees.

When you open and fund your account with at least £50, you even receive a free share worth between £10-£100, adding value from the start.

The platform also provides a Standard Subscription Plan, which includes access to a full list of stocks and Freetrade ISA investment options. Notably, you can buy fractional shares in US stocks for just £2, making it an appealing choice for investors starting with smaller amounts.

Freetrade goes beyond basic trading by offering a range of features to inspire investment decisions. This includes performance analysis, returns breakdown, and curated stock insights to enhance your investment strategy.

With its user-friendly app interface, Freetrade caters to novice investors, ensuring a seamless and enjoyable experience.

Commission-free trading allows investors to maximise their returns without worrying about additional costs.

What sets Freetrade apart is its commitment to investment education. The platform provides a wealth of educational resources, including articles, videos, and community forums, empowering users with the knowledge needed to make informed investment decisions. This supportive environment fosters learning and growth.

In terms of performance, Freetrade offers a diverse range of investment options, including stocks and ETFs. The platform’s intuitive search and analysis tools enable effective research and evaluation of investment opportunities.

Real-time market data and comprehensive charts keep investors informed, supporting data-driven decision-making.

Overall, Freetrade is an excellent choice for UK investors seeking a user-friendly and accessible share dealing app.

Its intuitive interface, commission-free trading, educational resources, and regulatory compliance make it a reliable platform for both beginners and experienced traders.

Freetrade’s commitment to user experience and its mission to democratise investing in the UK make it highly recommended.

• Fees: Commission-free trading on all stocks, shares and ETFs
• Minimum balance: £0
• Instruments: ‍Stocks, ETFs, and Investment Trusts.

Pros:

• Commission-free trading for stocks and ETFs.
• Swift and user-friendly account registration process.
• Excellent mobile trading platform.

Cons:

• Limited product variety in the portfolio.
• Scarcity of research tools.
• Sole reliance on debit cards for deposits

Read my Freetrade review.

5. AJ Bell – Best share dealing account for ease of use

AJ Bell has transformed the trading platform landscape with its exceptional dedication to user experience. The platform features a clean and well-organised interface, ensuring effortless navigation for investors.

One of AJ Bell’s standout qualities is its responsive customer service team, always ready to assist users with their inquiries and needs.

For frequent traders who make 10 or more trades per month, AJ Bell offers significant cost savings. The utilisation of AJ Bell’s tax-efficient wrappers further enhances the potential for savings.

With an impressive range of account types, AJ Bell caters to the diverse needs of investors and has received numerous accolades for its offerings.

AJ Bell excels in serving investors who prefer a hands-off approach to portfolio management and are not interested in frequent trading.

The platform provides excellent accessibility on both mobile and web platforms, allowing users to seamlessly switch between the two. User-friendly search functions and secure two-step logins further enhance the platform’s appeal.

While AJ Bell’s pricing structure is favorable for individuals with modest portfolios and limited investment experience, frequent traders may find the share dealing fee discouraging.

The platform charges a 0.25% fee for bonds, yearly custody, EFTs, and platform usage. Each trade incurs a £9.95 fee, with an additional phone fee of £29.95 and a frequent trader cost of £4.95.

However, it’s important to note that AJ Bell lacks price alerts, and the available order types may be considered too simple by some investors.

Despite these considerations, AJ Bell remains an excellent choice for investors seeking a user-focused share dealing account.

Its commitment to user experience, range of account options, and accolades earned make it a reliable platform for investors looking for a hands-off approach to portfolio management.

Account Types:

• Junior SIPP
• Junior dealing
• SIPP
• Dealing

Investments:

• EFTs
• Stocks & shares
• Funds

Pros:

• Competitive non-trading fees, keeping costs low.
• No withdrawal fees for added cost savings.
• Attractive pricing for mutual fund investments.

Cons:

• Incurs a custody fee, which may impact overall expenses.
• Stock trading fees are on par with industry averages.

Read my AJ Bell review.

6. InvestEngine – Best share dealing account for ETFs

InvestEngine, primarily an ETF (Exchange Traded Funds) trading platform, offers a blend of value and versatility that makes it stand out in the crowded UK market.

Despite its specialised focus on ETFs, it provides an exceptional platform with a host of beneficial tools tailored to the needs of its clients, proving itself to be more of an asset than a limitation.

A key advantage of InvestEngine lies in its extremely competitive pricing structure. There are no hidden costs; for those opting for self-directed investing, the platform doesn’t charge any account fees, just the associated trading expenses.

If you’re opting for their managed portfolios, it charges a remarkably low 0.25% annual fee.

Both beginners and savvy investors can find their stride with InvestEngine; with options for both managed and self-directed portfolios, there’s a fit for everyone.

For beginners or those preferring a hands-off approach, InvestEngine’s managed portfolios come in handy.

The firm’s team of experts handles daily investment decisions, creating a portfolio tailored to your risk tolerance and preferences.

Advanced investors can take advantage of the platform’s range of over 500 ETFs, taking the reins of their investments.

Fractional investing, another feature of InvestEngine, enables you to own portions of an ETF with as little as £1, thereby facilitating the creation of a diversified portfolio even with limited funds.

This makes it an excellent choice for limited companies looking to explore the market while maintaining diversity.

Notably, InvestEngine boasts an impressive customer support system.

As a specialist in ETFs, they have the expertise to assist their customers effectively, making the trading process smoother and more manageable.

While the platform’s limitation to trading only ETFs might seem like a drawback for some, it comes with the advantage of offering one of the broadest ETF ranges in the market, with more than 500 options.

This ensures that clients don’t feel restricted, despite the platform’s specialised nature.

In summary, InvestEngine, with its high-quality platform, exceptional customer service, wide range of ETFs, and low-cost structure, proves to be an excellent choice for both individuals and limited companies in the UK.

The only caveat is the ETF-only trading restriction, which might not appeal to investors looking for a wider variety of asset classes.

InvestEngine offers products such as a Stocks and Shares ISA, Personal Account, and Business Account, making it a comprehensive solution for a variety of investing needs.

Given its advantages and unique features, it stands as one of the most cost-effective and best trading platforms in the UK.

Pros:

• Fee-free investing with 0% fees.
• Extensive selection of ETFs.
• User-friendly interface.
• Highly cost-effective managed option with a 0.25% fee.
• Excellent customer support.
• Low minimum investment requirement (£100).
• Ability to invest within a business account.

Cons:

• Limited investment options to only ETFs.
• No provision for personal pensions.
• Limited additional features or offerings.

Read my InvestEngine review.

How to Choose the Best Share Dealing Account UK

Choosing the best share dealing account in the UK involves considering several factors.

Here are some tips to help you make an informed decision:

Fees: Compare the fees associated with each share dealing account, including trading commissions, account maintenance fees, inactivity fees, and any other charges. Look for accounts that offer competitive rates and cost-effective pricing structures.

Range of Investments: Assess the variety of investments available through the account. Consider whether you can trade stocks, exchange-traded funds (ETFs), investment trusts, bonds, and other securities that align with your investment goals.

Platform Features: Evaluate the functionality and user experience of the trading platform. Look for features such as ease of use, real-time market data, customisable watchlists, research tools, charting capabilities, and mobile accessibility.

Customer Service and Support: Consider the level of customer service provided by the account provider. Look for responsive customer support, including phone, email, or live chat options, to address any queries or issues you may encounter.

Account Types: Determine whether the share dealing account offers different types of accounts, such as Individual Savings Accounts (ISAs), Self-Invested Personal Pensions (SIPPs), or general investment accounts. Assess whether these account types align with your tax planning and investment objectives.

Reputation and Security: Research the reputation and credibility of the account provider. Check customer reviews, ratings, and any regulatory certifications or memberships that ensure the security of your investments and personal information.

Educational Resources: Consider whether the account provides educational resources, such as investment guides, tutorials, webinars, or market analysis, to help you enhance your investment knowledge and make informed decisions.

Additional Services: Evaluate any additional services or benefits offered by the account provider, such as dividend reinvestment plans, access to initial public offerings (IPOs), research reports, or financial planning tools.

By carefully considering these factors, you can choose a share dealing account that aligns with your investment preferences, goals, and trading style in the UK.

What Is Share Dealing?

Share dealing refers to the buying and selling of shares in publicly traded companies on the stock market².

It is a process where individuals or investors purchase shares of a company’s stock to make a profit through capital appreciation or dividends.

Share dealing can be done through various platforms, such as online brokerage accounts or traditional stockbrokers.

It provides individuals with an opportunity to participate in the ownership and potential growth of publicly traded companies.

Share dealing can involve analysing stock market trends, researching companies, and making informed investment decisions based on factors such as financial performance, industry outlook, and market conditions.

Here’s a good video that helps explain further what share dealing is:

Share Dealing vs Share Trading

“Share dealing” and “share trading” are terms often used interchangeably in the financial world, however, they can sometimes signify different investing strategies.

• Share Dealing: This usually refers to a buy-and-hold strategy. Share dealers often invest in stocks with the intent to hold them for a long term, such as several years or even decades. Their goal is typically to benefit from a combination of capital appreciation (the stock price increasing over time) and dividends (regular payments made from the company’s profits). This approach aligns more closely with fundamental investing, where investors buy shares based on their belief in the company’s long-term prospects, financial health, and stability. Share dealing can be less stressful and time-consuming as it doesn’t require constant monitoring of market movements.
• Share Trading: This term often refers to a more short-term and active strategy. Share traders typically buy and sell stocks more frequently, trying to profit from short-term price fluctuations. The time frame can vary widely, from holding stocks for a few seconds or minutes in day trading to holding for weeks or months in swing trading. This approach aligns more closely with technical analysis, where traders make decisions based on price patterns and market trends. Share trading can potentially yield higher returns, but it also carries more risk and requires more time and attention.

It’s important to note that both strategies have their pros and cons, and they require different skill sets and risk tolerance levels.

The best approach depends on your personal financial goals, investing knowledge, time commitment, and risk tolerance.

What Is a Share Dealing Account?

A share dealing account is a type of investment account that allows you to buy and sell shares in publicly traded companies.

These accounts are typically offered by financial institutions, online brokers, or trading platforms.

Opening a share dealing account gives you access to the stock market, where you can invest in equities (i.e., stocks or shares) of companies.

When you purchase shares, you essentially buy a piece of ownership in that company. If the company performs well, the value of its shares often goes up, and you could make a profit if you sell your shares at a higher price than what you paid for them.

Some companies also pay dividends to shareholders, providing an additional income stream.

In addition to shares, many share dealing accounts also allow you to invest in other types of assets, such as bonds, ETFs, and mutual funds.

The specific features and costs of share dealing accounts can vary depending on the provider. For example, some accounts might offer access to research tools and educational resources, while others might focus more on low trading fees.

Share Dealing Fees

Share dealing fees refer to the costs associated with buying and selling shares through a brokerage account.

These fees can differ greatly between online stock brokers and can significantly impact your overall investment returns.

Here are some of the common types of fees you may encounter:

• Trading Fees: These are fees that you pay every time you buy or sell a share. They may be a fixed amount per trade or a percentage of the total trade value. Some brokers offer lower trading fees for frequent traders or those with a larger portfolio.
• Platform Fees: Also known as account fees or maintenance fees, these are usually charged monthly or annually for using the broker’s trading platform. They cover the cost of maintaining your account and providing access to trading platforms and other services.
• Inactivity Fees: Some brokers charge a fee if your account remains inactive (i.e., you don’t make any trades) for a certain period. This can be avoided by making at least one trade within the specified timeframe.
• Foreign Exchange Fees: If you’re trading shares in a foreign currency, you may need to pay a foreign exchange fee. This is often a percentage of the total trade value and is charged on top of the currency conversion.
• Other Fees: These might include charges for additional services such as telephone trades, receiving paper statements, transferring out funds or shares, or accessing premium research.

Before opening a share dealing account, it’s essential to read the broker’s fee schedule and understand all the costs involved.

While low fees can save you money, it’s also important to consider the quality of the platform, the range of available investments, customer service, and other features that are important to you.

How to Get Started Share Dealing?

To get started with share dealing, follow these steps:

1. Research and Educate Yourself: Start by educating yourself about the basics of share dealing and the stock market. Learn about different investment strategies, market trends, and the companies you’re interested in investing in. Familiarise yourself with financial news sources and resources that can provide valuable insights.
2. Set Clear Investment Goals: Determine your investment goals, whether it’s long-term wealth accumulation, generating income, or funding specific financial objectives. Establishing clear goals will help guide your investment decisions.
3. Choose a Share Dealing Account: Select a reputable share dealing account or brokerage platform that aligns with your needs and preferences. Consider factors such as fees, range of investments, platform features, customer support, and account types offered.
4. Open an Account: Follow the account opening process provided by your chosen share dealing provider. This typically involves providing personal information, verifying your identity, and completing any required documentation.
5. Fund Your Account: Deposit funds into your share dealing account to have capital available for investing. Ensure you understand the funding options available, such as bank transfers or debit card payments.
6. Conduct Research and Analysis: Before making any investment decisions, perform thorough research and analysis on the companies or assets you’re considering. Evaluate financial statements, market trends, industry outlooks, and any other relevant information that can impact investment performance.
7. Develop an Investment Strategy: Create a well-defined investment strategy based on your goals, risk tolerance, and time horizon. Determine your asset allocation, diversification approach, and criteria for buying and selling shares.
8. Place Your First Trade: Once you’re ready to make your first investment, use the trading platform provided by your share dealing account to execute your trade. Enter the stock symbol, choose the desired quantity, and set any additional parameters, such as limit or stop orders, if applicable.
9. Monitor and Review Your Investments: Regularly monitor the performance of your investments and stay updated on relevant market news. Evaluate the progress towards your investment goals and make adjustments to your portfolio as needed.
10. Continue Learning and Adapting: Share dealing is an ongoing learning process. Stay informed about market trends, economic developments, and new investment opportunities. Consider expanding your knowledge through books, courses, and other educational resources to enhance your investment skills.

How to Choose Which Shares to Buy?

When choosing which shares to buy, it’s crucial to conduct thorough research and analysis to make informed decisions.

Here are some key points to consider.

Research and Understand the Company: Start by researching the company you’re interested in. Review its financial statements, annual reports, and news updates to gain insights into its performance, revenue growth, profitability, and prospects. Understand the industry in which the company operates and assess its competitive position.

Evaluate the Company’s Fundamentals: Analyse the company’s fundamentals, including its earnings per share (EPS), the price-to-earnings ratio (P/E ratio), debt levels, and cash flow. Look for companies with consistent and growing earnings, manageable debt, and strong cash flow. Assess the company’s competitive advantages, such as unique products or services, a strong brand, or a robust market position³.

Assess the Market and Industry Trends: Consider the broader market conditions and trends affecting the industry in which the company operates. Evaluate factors like market growth potential, regulatory changes, technological advancements, and consumer demand. Look for companies that are well-positioned to capitalise on these trends.

Risk Assessment and Diversification: Evaluate the risks associated with the company and its industry. Consider factors such as market volatility, competition, regulatory risks, and macroeconomic factors⁴. It’s important to diversify your portfolio by investing in a range of companies across different sectors and regions to mitigate risk.

Stay Informed: Continuously monitor news, industry updates, and company announcements to stay informed about any developments that may impact the company’s performance. Utilise financial news sources, company earnings calls, and analyst reports for valuable insights.

Tax on Stocks & Shares in the UK

In the UK, there are certain tax implications when it comes to stocks and shares.

1. Capital Gains Tax (CGT): When you sell shares or other investments and make a profit, you may be subject to CGT. The tax is applied to the gains you make above the annual tax-free allowance, which is known as the Annual Exempt Amount. The tax rate depends on your income tax band, with rates ranging from 10% to 28% for individuals.
2. Dividend Tax: If you receive dividends from shares, you may need to pay dividend tax. As of the 2023/2024 tax year, there is a dividend allowance of £2,000, which means you can receive up to £2,000 in dividends tax-free. Any dividend income above this allowance is subject to tax. The tax rates for dividends depend on your income tax band, with rates ranging from 7.5% to 38.1%.
3. Individual Savings Account (ISA): Investing in stocks and shares through an ISA can provide tax advantages. With a Stocks and Shares ISA, any income and capital gains you make from your investments are tax-free. There are annual limits on how much you can contribute to an ISA (£20,000 for the tax year 2023/2024).
4. Self-Invested Personal Pension (SIPP): Investing in stocks and shares through a SIPP can also offer tax benefits. Contributions to a SIPP receive tax relief, meaning you receive tax relief on the money you contribute, subject to certain limits. However, there are restrictions on when and how you can access the funds in your SIPP.
5. Stamp Duty: When you buy shares in UK companies, you may be subject to Stamp Duty Reserve Tax (SDRT). The current rate is 0.5% of the purchase price for shares traded on the London Stock Exchange.

It’s important to note that tax laws and regulations can change, so it’s advisable to consult a professional tax advisor or accountant for personalised advice based on your specific circumstances.

They can help ensure you comply with tax obligations and make the most of any available tax advantages.

Pros & Cons of Share Dealing

Share dealing involves buying and selling shares in a particular company.

As with any investment, it has its advantages and disadvantages. Here are some of the key pros and cons to consider.

Pros:

1. Potential for High Returns: Over the long term, investing in shares has often provided higher returns than other types of investments such as bonds or savings accounts.
2. Income from Dividends: Some companies pay dividends to their shareholders, which can provide a steady stream of income in addition to potential capital gains from selling the shares at a higher price.
3. Ownership Stake: When you buy shares, you become a partial owner of the company. This could come with certain benefits, such as voting rights at annual general meetings (AGMs).
4. Liquidity: Shares in publicly traded companies can usually be bought and sold easily on the stock market, providing relatively high liquidity compared to some other types of investments.
5. Diversification: There are thousands of companies listed on the stock exchanges around the world. This diversity allows you to spread your risk by investing in different sectors, industries, and geographic locations.

Cons:

1. Market Volatility: The price of shares can fluctuate rapidly, sometimes without clear reasons. This can lead to potential losses if you need to sell your shares when prices are down.
2. Potential for Losses: While shares can offer high returns, they also come with the risk of losing the entire investment if the company underperforms or goes bankrupt.
3. Emotional Stress: The ups and downs of the stock market can be emotionally draining. It requires discipline and a level-headed approach not to make impulsive decisions during market downturns.
4. Complexity: Successful share dealing requires understanding the market and individual companies, which can be complex and time-consuming.
5. Costs: Share dealing can involve various fees, such as brokerage fees, transaction fees, and annual fees, which can eat into your returns.

Final Thoughts

Choosing the right share dealing account in the UK depends on your investment goals, trading style, and preferred platform features.

My guide highlights and reviews the top accounts, helping you make a choice.

But, for beginners, I’d recommend eToro as the best share dealing account in the UK.

FAQs

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Sources:

1. https://www.finder.com/uk/investment-statistics ↩︎
2. https://pureadmin.qub.ac.uk/ws/portalfiles/portal/156735123/NBMIC_Trading_Activity_June2017.pdf ↩︎
3. https://business.purdue.edu/faculty/mcconnell/publications/Capital-Market-Imperfections.pdf ↩︎
4. https://www.gla.ac.uk/media/Media_219105_smxx.pdf ↩︎