The Best Trading Apps for Beginners in the UK
Finding the best trading apps for beginners UK can feel like a daunting task. The financial market is a bustling place, and as a new investor, you need a platform that is not only user-friendly but also safe, affordable, and regulated.
Choosing the right app is arguably the most crucial decision you’ll make at the start of your investing journey.
This detailed guide has been created to give you a clear, unbiased overview of the top trading apps available in the UK. We will dive deep into their features, fee structures, and regulatory standing to help you make an informed choice that aligns with your financial goals.
Whether you’re looking to invest a small amount each month or build a long-term portfolio, there’s a perfect app out there for you.
What to Look for in a Beginner-Friendly Trading App
Before we dive into our reviews, it’s essential to understand the key criteria for selecting an app. A great trading app for a beginner isn’t just about flashy features; it’s about simplicity, security, and affordability.
Low Fees and Commission-Free Trading: As a beginner, every pound counts. Look for apps that offer commission-free trading on UK and US stocks. However, be aware of other potential charges like a platform fee, currency conversion fees, or withdrawal fees.
Intuitive User Interface (UI): The app should be simple to navigate. You should be able to find stocks, place a trade, and check your portfolio without getting lost in complex charts or jargon. A clean and uncluttered design is a huge plus.
Educational Resources and Demo Accounts: The best apps offer more than just a platform to trade; they offer a platform to learn. Look for in-app tutorials, articles, or a demo (virtual) account where you can practice trading with fake money.
Security and Regulation (FCA): This is non-negotiable. Always choose an app regulated by the Financial Conduct Authority (FCA). FCA regulation ensures the company adheres to strict financial standards. Furthermore, check if your funds are protected by the Financial Services Compensation Scheme (FSCS), which covers up to £85,000 of your money if the firm goes bust.
Access to Investments: Ensure the app provides a good range of assets, including stocks from the London Stock Exchange (LSE), popular ETFs, and other assets you might be interested in.
Customer Support: When you’re new to trading, questions will arise. Reliable and responsive customer support via live chat, email, or phone is invaluable.
Detailed Reviews of the Best UK Trading Apps for Beginners
1. Trading 212
Why Trading 212 is a Top Choice for UK Beginners
Overview: Trading 212 has become a market leader in the UK, particularly among young investors, largely due to its commitment to commission-free trading. The platform offers a clean, easy-to-use interface that strips away the unnecessary complexities often found in other apps. It’s an excellent entry point for anyone looking to make their first trade.
Key Features and Fees: Trading 212’s primary draw is its free stock trading. It offers two main types of accounts for beginners: a General Investment Account (GIA) and a Stocks & Shares ISA, allowing you to invest up to £20,000 per tax year completely tax-free. The app also stands out for offering fractional shares, which means you can invest in expensive stocks like Amazon or Google with as little as £1. While it’s commission-free, be aware of the 0.15% currency conversion fee when buying US stocks.
User Experience: The mobile app is highly rated for its simplicity and clean design. For beginners, the ‘Practice’ mode is a game-changer, allowing you to use a virtual portfolio of £50,000 to hone your skills risk-free.
Security: Trading 212 is regulated by the FCA, and funds are protected by the FSCS up to £85,000. This provides a strong layer of confidence for new investors.
2. Freetrade
An Uncomplicated and Focused App for UK Investors
Overview: True to its name, Freetrade is all about making investing accessible and free. It has a slightly more UK-centric feel than some of its rivals and has built a loyal community of users. The app’s design is minimalist, focusing on core functionality rather than advanced trading tools, which makes it perfect for beginners.
Key Features and Fees: Freetrade offers a basic free plan with access to a wide range of UK and US stocks. They also offer a Stocks & Shares ISA and a SIPP (Self-Invested Personal Pension) on their paid plans, which cost a small monthly subscription fee. Unlike Trading 212, Freetrade has a more transparent fee structure with a clear focus on long-term investing rather than short-term trading.
User Experience: The app’s strength is its simplicity. It’s designed for ‘buy and hold’ investors, not day traders. The onboarding process is quick and seamless, and it provides simple stock analysis tools to help you make informed decisions.
Security: Freetrade is also regulated by the FCA and protected by the FSCS. It’s a well-established player in the UK market, known for its transparency and security.
3. eToro
The Pioneer of Social Trading for Beginners
Overview: eToro is unique among trading apps for its social trading features. It’s a global platform that allows you to connect with, follow, and even automatically copy the trades of successful investors. This is a powerful learning tool for beginners who may not yet have the confidence to make their own investment decisions.
Key Features and Fees: eToro offers commission-free stock and ETF trading. Its flagship feature is CopyTrader, which allows you to mimic the portfolios of top-performing investors. It also offers a huge range of assets, including stocks, forex, commodities, and cryptocurrencies. While trading stocks is free, be mindful of withdrawal fees and currency conversion fees.
User Experience: The app has a social media-like feel, with user profiles and news feeds. This makes it highly engaging. It also provides a free virtual portfolio with $100,000 to practice trading in a real-time environment.
Security: eToro is regulated by multiple authorities globally, including the FCA in the UK. This gives it a strong reputation for safety, and UK customers are covered by the FSCS.
4. Hargreaves Lansdown
The Trusted Legacy Brand for UK Investors
Overview: Hargreaves Lansdown (HL) is a giant in the UK investment landscape. While it might not be a ‘free’ app, its reputation, research resources, and comprehensive support make it an excellent choice for beginners who value a high-quality, trusted service. It’s ideal for those who plan to build a larger, long-term portfolio.
Key Features and Fees: HL charges a platform fee and trading commissions, but in return, you get access to an incredible array of research, articles, and fund analysis. It offers a wide range of account types, including a GIA, Stocks & Shares ISA, and an award-winning SIPP.
User Experience: The app is robust and provides a wealth of information. While it may seem less ‘fun’ than newer apps, its focus on serious investing is clear. For new investors, the educational content is second to none, helping you understand complex topics.
Security: As a publicly listed company and one of the UK’s largest investment platforms, HL is a symbol of trust. It is fully FCA regulated and provides FSCS protection.
5. Interactive Investor
The Best for Predictable Flat Fees
Overview: Interactive Investor (ii) stands out with its unique flat-fee model. Instead of paying a percentage of your portfolio, you pay a fixed monthly fee. This makes it particularly cost-effective for beginners who anticipate their portfolio growing to a larger size, as the fees won’t scale with your investments.
Key Features and Fees: ii offers a clear, tiered flat-fee plan. This covers all trading and holding fees, making your costs predictable. It provides access to a massive range of investments, including UK and international stocks, funds, ETFs, and investment trusts.
User Experience: The app is solid and reliable. It’s geared towards investors who want control and a wide variety of investment choices. For a beginner, the flat-fee model can be very reassuring, as there are no hidden percentage-based charges.
Security: Like the other top platforms, ii is fully FCA regulated and covered by the FSCS.
Comparison of the Top Trading Apps for Beginners UK
| Feature | Trading 212 | Freetrade | eToro | Hargreaves Lansdown (HL) | Interactive Investor (ii) |
|---|---|---|---|---|---|
| Primary Audience | Commission-free investors | Buy & hold investors | Social traders | Long-term investors | Cost-conscious long-term investors |
| Commission on UK Stocks | £0 | £0 (Basic Plan) | £0 | From £5.95 to £11.95 per trade | Included in monthly fee |
| Platform Fees | £0 | £0 (Basic Plan) | £0 | Up to 0.45% per year | Flat fee (e.g., £9.99/month) |
| ISA Account | Yes | Yes | No | Yes | Yes |
| SIPP Account | Yes | Yes (Paid Plan) | No | Yes | Yes |
| Social Trading | No | No | Yes (CopyTrader) | No | No |
| Fractional Shares | Yes | Yes (UK & US) | Yes (US) | Yes (for a selection of US stocks) | No |
| Minimum Deposit | £1 | £2 | $50 (~£40) | £1 | £25 (or monthly fee) |
| Ease of Use for Beginners | Excellent | Excellent | Good | Fair | Fair |
| Educational Content | Good | Good | Good | Excellent | Fair |
| Customer Support | Good (Email) | Good (In-app chat) | Fair | Excellent (Phone, Email) | Good (Phone, Email) |
| Key Advantage | True commission-free trading & fractional shares | Simple, UK-focused, and transparent | Unique social trading & crypto access | Trust, brand reputation & in-depth research | Predictable flat-fee model for large portfolios |
| Best For | New traders who want to start small and test strategies without fees. | Investors who prefer a clean, simple interface and are focused on UK stocks. | Beginners who want to learn by observing or copying other traders' strategies. | Those who value a highly secure, trusted platform with extensive research tools. | Investors planning for long-term growth and a predictable cost structure. |
Getting Started: A Simple Step-by-Step Guide
Educate Yourself: Use a demo account and the app’s educational resources to understand how trading works.
Verify Your Identity: Have your ID and proof of address ready for the account setup.
Fund Your Account: Use a debit card or bank transfer to deposit funds.
Diversify Your Portfolio: Don’t put all your money into one stock. Start with low-cost ETFs or index funds to spread the risk.
Stay Consistent: Build the habit of investing regularly, even if it’s a small amount.
Frequently Asked Questions (FAQs)
Is it a good idea to start trading with an app in the UK?
Yes, trading apps have made the market more accessible and affordable than ever before, but it’s crucial to educate yourself and start with a small amount you can afford to lose.
What is the minimum amount I need to start investing in the UK?
Many apps like Trading 212 and Freetrade allow you to start with as little as £1, thanks to fractional shares.
How do I know if a trading app is safe and legitimate?
Always check if the app is regulated by the FCA and if your funds are protected by the FSCS. You can usually find this information in the app’s ‘About Us’ section or on their website.
Conclusion
Choosing the right trading app is a personal decision that depends on your goals and preferences. For beginners in the UK, the best apps are those that offer a blend of low fees, ease of use, and strong security.
Platforms like Trading 212 and Freetrade are excellent for their commission-free models, while eToro’s social features can be a great learning tool. For those who prioritise a long-standing, trusted brand with extensive research, Hargreaves Lansdown is a solid choice.
The most important thing is to get started. Pick an app, educate yourself, and begin your journey into the world of investing. For more in-depth guides and tips on stock market basics, be sure to explore the rest of our content here at TradingPartner.in.