Compare online trading platforms

You can start online trading by opening an online stock trading account. Once the account is opened, transfer the amount of money you plan to trade into the account. Once in place, that money can be used to buy and sell shares.

No, the company must be listed on a stock exchange such as the London Stock Exchange (LSE) or Alternative Investment Market (AIM). Do your research to check which exchange is best for you.

This type of share dealing involves the purchase and sale of paper share certificates rather than shares you’ve traded digitally. Find out more about certified share dealing and compare accounts with our guide.

Consider signing up for a frequent trader account if you think you’ll make multiple trades per month – this could reduce the cost of each individual trade, although you should always check each company’s terms before signing up.

In terms of how much money you need for stock trading, it's not as much as you might think. Some online trading platforms will let you invest as little as £25 a month. You could start by setting aside a few hundred pounds for trading, then gradually increase how much you invest as you improve your knowledge and gain better insights into the market. As your profits grow, so too can your investments, but remember there are no guarantees, and your investments can go down as well as up.

Yes, if an app is available through the company you’re using. Before you use an app to make trades, you’ll need to set up an online account and transfer money into it. If mobile access is important to you, make sure your broker offers this before you sign up, as not all do.

After a broker has been instructed to carry out a trade, they will try to find another broker looking to trade in the same shares. They will then negotiate a price for the shares and strike the deal. 

How much you pay will depend on when the deal is made, rather than when you placed the order. During working hours, most brokers offer a ‘Quote and Deal’ instruction, where you’re given the best price and have 15 seconds to accept. 

If this isn’t possible, the broker must locate a specialist who offers the types of share they’ve been instructed to trade. You could choose an order that gets the broker to buy at the best price possible when they find a deal, or you can set limits for the maximum you’re willing to pay or the minimum price at which you’re prepared to sell.

Processes vary by broker, so check what kinds of orders you can make with your chosen provider.

These are special payments offered by the company to those who own shares. Share dividends may be paid out up to four times a year, once per quarter. There are two primary conditions for receiving dividends:

• The company must have made a profit after tax

• It must also agree to make dividend payments, through a vote at the company’s annual general meeting (AGM)

If you qualify to receive dividends from your shares, you’ll often be given the option of using the money to purchase additional shares or you can opt to be paid in straight cash.

A stop-loss order is an order placed with a broker to buy or sell once the stock reaches a certain price. The purpose of a stop-loss order is to limit losses.

For example, if the stop loss order is set to 5% below the price you bought the shares, the broker will sell the shares if the price of the stock falls by 5%.

If your shares are held in an ISA, you will not need to pay tax on your profit or purchases.

If they are not in an ISA, you may need to pay stamp duty and capital gains tax.

Stamp Duty Reserve Tax (SDRT) will be 0.5% of the trade's value if you buy UK shares that are settled through CREST (the UK electronic settlement system).

The amount of capital gains tax you pay when you sell your shares will depend on your income tax bracket and how much money you make from the sale. In the 2021/22 tax year, capital gains tax is 10% for basic rate taxpayers and 20% for higher and additional rate taxpayers.

There is a capital gains tax-free allowance of £12,300 for the 2021/22 tax year. This means your gains would need to exceed £12,300 in order for you to be required to pay capital gains tax.

Online stock trading is safe and secure if you use a regulated stock trading platform. But that doesn't take away from the fact that stock trading is an inherently risky activity. That’s why you should not trade with more money than you are willing to lose. It’s also important to educate yourself about trading by reading books and news articles to increase your knowledge.

Our comparison tables include providers with whom we have commercial arrangements. The number of listings in our tables can vary depending on the terms of those arrangements as well as other market developments. They are all from lenders regulated by the Financial Conduct Authority (FCA).

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We have commercial agreements with some of the companies in this comparison and get paid commission if we help you take out one of their products or services. Find out more here.

You do not pay any extra and the deal you get is not affected.