Best Online Brokers in the UK 2026

What to check before choosing a broker in the UK

The UK has one of the most mature retail investment markets in the world, but not all platforms are equal. Before depositing real money, there are five things every UK investor should verify.

1. Is it FCA-authorised? Since Brexit, UK financial services are regulated exclusively by the FCA (Financial Conduct Authority) — EU MiFID II passporting no longer applies. Any broker serving UK retail investors must hold a direct FCA authorisation. Check the FCA Register before depositing. A broker with only a CySEC or BaFin licence cannot legally offer retail services in the UK unless it also has FCA authorisation.

2. Is your money protected by the FSCS? The Financial Services Compensation Scheme (FSCS) protects up to £85,000 per person per FCA-authorised firm if the firm fails — not if you lose money on trades. Client money must be held separately from the firm's own funds under FCA rules (CASS). Confirm your platform participates in the FSCS before opening an account.

3. Do you have an ISA or SIPP? A Stocks and Shares ISA (up to £20,000/year) shields all gains and income from CGT and dividend tax — completely tax-free growth. A SIPP (Self-Invested Personal Pension) gives 20–45% tax relief on contributions. For most UK investors, using an ISA or SIPP is more important than choosing the cheapest broker.

4. What are the real costs? UK platforms charge very differently. Hargreaves Lansdown charges a percentage custody fee (up to 0.45%/year) plus dealing commissions. Freetrade charges a flat monthly subscription. Interactive Brokers charges per trade with no custody fee. For large portfolios, HL's percentage fee can be expensive; for frequent traders, per-trade commissions matter more. Compare the full fee schedule for your usage pattern.

5. Beware stamp duty and Spread? UK share purchases attract 0.5% Stamp Duty Reserve Tax (SDRT) — paid automatically. ETFs domiciled in Ireland or Luxembourg typically avoid UK stamp duty. Spread-betting platforms offer CGT-free gains (as they are treated as gambling), but carry leverage risk. For long-term buy-and-hold, a standard share-dealing ISA is usually the right choice.

What UK Investors Need to Know in 2026

The UK CGT annual exemption has been cut dramatically — from £12,300 (2022/23) to £6,000 (2023/24) to just £3,000 (2024/25 onwards). This makes ISA usage more important than ever for long-term investors. Filling your ISA each year before a general dealing account is usually the right strategy.

UK stamp duty (0.5% SDRT) applies to purchases of UK-listed shares but not to ETFs domiciled in Ireland or Luxembourg. Many UK investors favour Irish-domiciled UCITS ETFs (e.g., iShares Core listed on the LSE) to avoid this cost on large positions.

Fringe-note: spread-betting accounts allow you to speculate on price moves with no CGT (treated as gambling by HMRC), but carry leverage risk and are not suitable for long-term investing. Do not confuse spread-betting with a standard share ISA.