Free Share Dealing 🎉

You can now buy shares without fees or commission. These challenger stockbrokers are one way new investors to try buying shares without investing large amounts of money.

Your capital is at risk, please be aware the value of your investment can go down as well as up and you may get back less than you invest. ISA rules apply. These platforms are provided as reference only and not a recommendation.

etoro share dealing

Open or close a stock position on eToro and you will pay zero commission — no markup, no ticket fee, no management fee. Simple as that.

  • Minimum investment £100
  • Fees: Withdrawal £25
Revolut

Challenger bank Revolut has started rolling out commission-free stocks to some of its metal customers.

  • Minimum investment £1
  • Fees: Revolut Premium £6.99/month
freetrade

Investing is one of the best ways to grow your savings. We make it simple, beautiful and free. Download the app and sign up in seconds.

  • Minimum investment £1
  • Fees: ISA £3/month

Invest in a commission-free stocks and shares ISA.

  • Minimum investment £19
  • Fees: Bank withdrawals £5

Stockbrokers 💰

As with all investing your capital is at risk. Buying shares in the stock market can be a rewarding experience and investing for the long term can smooth out the peaks and falls of volatile markets.

The value of shares, ETFs and ETCs 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.

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Share dealing from £5

buy shares with hargreaves lansdown

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freetrade

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etoro share dealing

Buy and sell shares for free with Etoro.

Compare Investment Platforms

Broker Share Charges Ann.Fee Minimum

buy shares with hargreaves lansdown

£11.95
£0
0.45%

etoro share dealing

£0
N/A
£100

Revolut

Is buying shares expensive?

Traditionally any form of investing has been associated with high fees and large mnimum investments. This is because shares were literally bought and sold over the phone and issued as paper certificates. Today exchanges are powerful IT systems capable of processing millions of trades instantly. This has brought the cost of share dealing down significantly as thousands of clients can be managed with technology. In just the last few years a number of platforms have even started offering free share-dealing like Etoro, Revolut and Freetrade.

How to buy shares safely  

Investing in the stock market is widely believed to be one of the best methods of generating wealth. However, everyone knows horror stories of the risks of losing money in the stock market. Many have lost whole fortunes in a very short period of time.
 

What is the difference between shares and stocks?

 

This confusing terminology is actually quite simple. A stock refers to a particular company, while shares can be from a variety of stocks. 

For a start, you should never invest more than you are prepared to lose. You should save up and emergency fund of about three months of living expenses so that in the event of a 2008-style recession you have time for stocks to recover (which they tend to do quite quickly) and you have time to find a new job if you are made redundant. Cash in the bank generally is a wise idea in case of unexpected costs. 

How to Diversify your portfolio

 

Once you have an emergency fund, the next best thing you can do is invest in index trackers, or Exchange Traded Funds. An ETF tracks the performance of an index like the FTSE 100 or the NASDAQ index of US tech stocks. 

These low-cost funds can be made of hundreds of stocks, which brings you one of the most valuable tools in investing which is diversification. By holding a larger number of stocks you are protected from a few performing badly, or collapsing entirely, as they will only make up a small part of your overall exposure. 

Instead, as the market grows so will your portfolio since you are exposed to the breadth of companies that are driving the economy. You can have a bit more control over which stocks you invest in with more specialised ETFS like Legal and General’s ROBO Global ETF that is made up of AI and robotics companies.

How many stocks should you have in a portfolio?

 

Should you decide to either add to your portfolio of ETFs or ignore them entirely, stock-picking becomes and exciting but riskier game. Even if you buy a good portfolio of 10 – 20 stocks in a variety of industries you are still very vulnerable to drops, although gains are also just as concentrated. Star fund managers like Nick Train of Lindsell Train and indeed Warren Buffett himself believe in concentrated portfolios to maximise gains while others say you should have 60 or so stocks to spread your risk. This largely comes down to your personal tolerance to risk and volatility and you should consult a financial advisor if unsure.

How do you value a stock?

 

This is a debate that has plagued investors for decades. In bull markets – when markets rise upwards like a bull attacking – stocks tend to get overvalued. For instance big tech stocks like Netflix, Tesla and Zoom are often loss-making, but investors remain convinced they will turn highly-profitable in the future. As more investors want a piece of that future pie the stock price goes up. But the underlying earnings of the company remain the same. This is fine as long as markets are confident, but when a bear market strikes – a downward drop like a bear’s attack of more than 20% in the market – investors get cold feet and retreat to more secure territory of profitable companies that may not grow much but aren’t going to go bankrupt either.

A key metric to finding the fundamental value of a stock is the Price to Earnings ratio. This divides the price by the earnings of the stock. A good PE ratio is generally variable depending on country and industry. US stocks tend to be more expensive because of their stronger growth rates. Software and tech stocks especially are higher overall. Banks, insurance and utility stocks tend to be lower since they will probably be making the same sort of returns years down the line. Meanwhile a PE ratio that is very low – maybe below 10 for instance – could suggest a stock that is out of favour with the market for a valid reason. Expensive stocks meanwhile could turn out to be justifiably overvalued if they continue on their growth trajectory.

CFD Providers

 

Contracts for Difference are sold by many trading platforms along with leverage. Leverage is a loan  from stockbrokers to amplify gains and losses used by professional traders. This can be very dangerous for retail investors as you can quickly rack up huge losses. 1:30 is a common level of leverage on retail accounts, meaning gains and losses are amplified by 30 times. 

CFDs are actually banned in the US but remain legal in the UK, although regulations are steadily clamping down. That is why you see declarations like “78% of investors lost money last year” in some adverts such as th

These brands will often pay to appear on search results for buying shares, which is misleading as a leveraged contract with a broker is not the same as owning the shares yourself. Brokers may also charge interest on positions held over night – so the most effective strategies of long-term investing cannot be used on these platforms.  

Many CFD providers have begun to diversify by offering normal share-dealing alongside their CFD products. Some even offer free share dealing and ISAs. We have included them here as an opportunity for low-cost investing, but watch out as these businesses still rely on leveraged CFDs as their core revenue streams. 

Trading Vs Investing

What is the difference between trading and investing? Traditionally, investing is associated with buying an asset based on its fundamental values – or its intrinsic worth. This could be shares in a company based on it’s high earnings, strong profitability or excellent management. 

Investors will typically use tools like the Price to Earnings ratio to work out if a stock is priced fairly. In bull markets it is common for stocks to become very overvalued, as investors feel the good times will carry on and so are happy to invest in unprofitable and expensive stocks. In the event of a bear market when investors sell shares to return to the safe haven of cash, it is these overvalued companies that are likely to fall the most, while boring but reliable companies tend to fair better. 

Trading ignores the fundamentals of a stock and looks at technical analysis – essentially patterns in graphs and market trends. Traders take advantage of smaller peaks and dips in the market to buy and sell shares rapidly, often in just minutes or seconds. 

This is why CFD providers tend to be leveraged and charge for holding positions overnight. Traders are expected to buy and sell positions quickly, with only small changes in the price of the underlying asset. Leverage enhances these gains and losses so that speculating on market fluctuations of just fractions of a percent can be made profitable.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 80% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

etoro share dealing

For more than a decade, eToro has been a leader in the global Fintech revolution. It is the world’s leading social trading network, with millions of registered users and an array of innovative trading and investment tools.

75% of retail CFD accounts lose money with this provider

Trade Stocks, Forex, Crypto, and Gold. Zero commission, tight spreads.

80% of retail investor accounts lose money when trading CFDs with this provider.

plus 500

Trade the world’s most popular markets and explore endless trading opportunities.

76.4% of retail CFD accounts lose money with this provider.

World-leading online trading provider, giving you access to opportunities across thousands of financial markets.

74% of retail CFD accounts lose money with this provider.

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