5 Best ETF Brokers UK (2024)

Which are the best ETF brokers for UK investors? If you are investing, you want your money to perform the best it can. For this, using the right investment platform is crucial.

Choosing a good broker means you can save money on fees and choose from the best investment options. Read the article below to find out which are the best ETF brokers in the UK.

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Best ETF Brokers UK

ETFs are funds that are traded on the stock exchange. To invest in ETFs, you should use one of the best ETF brokers in the UK. These include InvestEngine, Freetrade, eToro, and others.

When investing in ETFs, you may lose money. ETFs can be held long term or actively traded but you should always keep in mind that it may take a few years to make a profit.

You should only invest money you can afford to lose.

1. InvestEngine

InvestEngine is an online investment platform that specialises in exchange-traded funds (ETFs). You can only buy ETFs on InvestEngine.

However, there are over 500 funds available to invest in. This is one of the greatest varieties you will find on UK brokerage platforms.

On InvestEngine, you can either create your own portfolio or let InvestEngine generate one for you. This means InvestEngine is suitable for both beginners and advanced investors.

In terms of fees, InvestEngine is very competitive. ETFs start at 0.05% and managed portfolios have a charge of 0.25%.

You can read more about InvestEngine in my InvestEngine review.

2. Freetrade

Freetrade is an app-based investment platform. It enables you to invest commission free in over 400 ETFs. You can also buy stocks, investment trusts, and other assets on the platform.

One big advantage of Freetrade is that it is commission free. Instead, Freetrade makes money from its paid plan. You can invest in ETFs on the free plan.

If you want extras such as an Individual Savings Account (ISA), you can upgrade to one of the paid plans. These come at £4.99 per month or £9.99 per month.

See my Freetrade review for more details about pricing.

When you sign up to Freetrade through my link, you can get a free share worth between £10 and £100. Signing up to Freetrade is free.

3. eToro

eToro is a social investment platform. It combines aspects of social media, such as following others, with investing.

It also offers options such as copying other investors’ portfolios and learning from them. You can read more about the social features in my eToro review.

eToro is a multi-asset platform. You can invest in over 2000 assets, including ETFs. There are currently 300 ETFs available on the platform.

In terms of fees, eToro makes money by charging 0.5% for deposits and $5 flat for withdrawals.

4. Trading 212

Trading 212 is an online investing platform. On Trading 212, you can invest in over 1000 global stocks and ETFs as well as Contract for Differences (CFD).

Note that trading CFDs is risky and most investors lose money by doing so.

Trading 212 charges for traders that involve currency conversion and deposits via debit card. The fees are very competitive.

Another benefit of Trading 212 is that you can open a practice account. This is helpful for beginners who want to test the waters before committing real money.

However, the downside of Trading 212 is that you may encounter a waiting list and not be able to join immediately. Read my Trading 212 review for more details.

5. AJ Bell

Founded in 1995, AJ Bell is one of the more established investment platforms. It offers shares, trusts, funds, and ETFs to investors.

Overall, there are 3000 ETFs to choose from available on AJ Bell.

If you buy ETFs through AJ Bell, the fee is 0.25%. This is capped at £3.50 per month. Then, there is also a trading fee of £9.95.

Thus, AJ Bell can be very cheap if you want to hold your ETFs long term. If you are trading, AJ Bell is one of the more expensive platforms.

ETF Brokers UK Comparison

	InvestEngine	Freetrade	eToro	Trading 212	AJ Bell
FCA regulated	Yes	Yes	Yes	Yes	Yes
FSCS protection	Yes	Yes	No	Yes	Yes
Number of ETFs	500	400	300	1000 (stocks and ETFs)	1500
Fees	From 0.05%	Free for GIA	0.5% deposits $5 withdrawals	0.7% deposits (debit card)	0.25%
Trustpilot score	4.4/5.0	4.0/5.0	4.3/5.0	4.6/5.0	4.7/5.0

All ETF brokers listed in this post have competitive fees, are easy to use, and have a good variety of ETFs.

All brokers are regulated by the Financial Conduct Authority (FCA) so you can be assured that they are legit and safe to use.

Overall, AJ Bell has the greatest variety of ETFs. However, it is expensive to trade on AJ Bell so it is only recommended for long-term investors.

If you are after a specific ETF, the overall variety might not matter to you. Many ETFs are obscure and for niche investors. All listed brokers offer the most popular ETFs.

What Are ETFs?

Exchange-traded funds (ETFs) are funds that are traded just like stocks. A fund is essentially a basket of shares that are traded together as if they were one.

ETFs are different from other funds in that they can be traded on the exchange like stocks.

The purpose of ETFs is to lower investment risks. When you buy a single stock, it can go either up or down.

Without taking into account other factors, the chance of it going either way would be 50%.

When you have a basket of stocks, all of them can also go either up or down. However, as long as more shares in the basket increase in value than losing value, you are making a profit.

Because the economy is thought to always grow in the long term, it is likely that more shares will gain value than lose it.

However, this does not mean that ETFs are risk free. Your money is still invested in the stock market. As such, you are putting your capital at risk.

You can read more about ETFs, including how they are regulated, here.

How to Buy ETFs

ETFs can be bought just like stocks. Simply sign up to a broker that offers ETFs. You can then search for ETFs or have a look at the list of available ETFs.

Place your buy order and wait until it is processed. This is all you need to do to buy an ETF.

You do not have to buy a whole unit of an ETF. Many brokers also enable you to buy fractional ETFs. This means you can buy 0.5 or 0.7 of a unit.

Buying fractional ETFs is great when you do not have enough money to buy a whole unit or want to invest a fixed amount of money.

Pros and Cons of Investing in ETFs

Pros of ETFs

• Easy way to diversify your portfolio
• Can be bought easily just like stocks
• Managed by professionals to track an index
• Low cost as costs are shared between investors

Overall, ETFs are great because they are a low-effort way to invest. Simply pick one and hold it. The ETF will be automatically adjusted to whichever index it tracks.

Cons of ETFs

• Cannot choose specific stocks
• Your money is at risk
• Cannot control tracking errors
• More expensive than buying single stocks

The downside of ETFs is that you have little control over them. You cannot add or remove specific stocks and if the professionals make an error, you are stuck with it.

While ETFs offer great value, they are also still more expensive than it would be to buy single stocks.

Best ETF Brokers UK

Exchange-traded funds (ETFs) are a basket of stocks that is traded as one unit on the stock exchange. You can buy ETFs just like single stocks.

There are many brokers that enable you to purchase and sell ETFs. The best ETF brokers in the UK include:

• InvestEngine
• Freetrade
• eToro
• Trading 212
• AJ Bell

Of course, there are also many other legit brokers in the UK. The ones listed above have competitive fees, offer a good range of ETFs, and are easy to use.

However, if you prefer another platform, you can of course continue to use it.

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