As e-trading continues to grow across the UK, an increasing number of online brokers are emerging, each of which offers its own unique set of services, features, and benefits.

Factors to Consider When Choosing an Online Broker:

The Commission Structure:

Most brokers offer stocks, bonds, exchange-traded funds, options, and mutual funds as part of their investment menu while some online firms also allow FOREX (foreign exchange), cryptocurrency, and future trading.

Of course, the investment options offered by an online firm will help you identify if your investment needs will be fulfilled or not. But, other than that, you should also pay attention to the amount of commission that you will be against trading each instrument. If you feel that your preferred instruments are associated with higher commissions, you might want to shop around a bit more.

Reliability:

Some brokers have been around for decades, while others are newcomers in the trading space. A newbie does not mean that an online broker is untrustworthy (after all, every brokerage firm needs to be registered with the Securities and Exchange Commission (SEC)).

However, being a newbie does mean that the particular brokerage firm has yet to prove itself during various unusual scenarios and situations (COVID-19, for example). If this is something that you are uncomfortable with, you are better off signing up for an older, more established brokerage firm.

Account Protection and Online Security:

The third thing that you need to consider is the extent to which your chosen online trader can protect your personal and sensitive information. Below are a few things that can help you determine this:

• The presence of two-factor authentication
• The kind of technology used by the brokerage firm
• Does the brokerage firm offer clear explanations on how their employed technologies will help protect your information?
• The company should NOT sell your information to any third-parties (such as advertisers)

Ability to Create Customized Alerts and Watch Lists:

More active traders would want to receive important alerts and other notifications through text (alongside emails). In addition, if you conduct regular and frequent trades, your chosen platform should also allow you to establish several watch lists using different criteria.

The 3 Best Online Brokerage Firms in the UK:

1)   AstroHoldings:

Even though AstroHoldings is not as established or well-known as the other two platforms on this list, it might actually be the best of the lot. Not only can you trade a wide range of asset classes (stocks, CFDs, FOREX, gold and other commodities, and cryptocurrencies), but you can also gain access to a number of different trading accounts and pick one based on your goals and level of trading experience. In addition, AstroHoldings has its unique and easy-to-use trading station, which is particularly useful for beginners stepping into the trading world, as well as for any traders new to CFD and FOREX trading. To further assist its newbie clients, AstroHoldings has a library of educational videos and other materials, familiarizing traders to asset classes like CFDs, FOREX, and commodities.

In addition, clients can also access a number of trading charts and other tools that can help them keep track of the most popular trades and pick the right instruments. The more active traders can even arrange to receive price and execution notifications through SMS.

The firm also takes its clients’ security extremely seriously, and has implemented Comodo Security, Verisign Security, and SSL Encryption to ensure that their clients and their money remain safe and secure at all times. In addition, every client gets access to a representative’s direct email address and other contact details.

The only drawback with AstroHoldings is that it does not have a mobile application as of now, which might be discouraging for clients who do not have access to laptops or computers, or like executing trades on-the-go. However, a mobile app is in the works, and should be launched sooner rather than later.

2)   IG:

The reasons that IG makes it to our list are its excellent online platform, sophisticated trading and research tools, brilliant education, and relatively low rates. Also, IG’s mobile app, available for both Android and IOS, is extremely intuitive and easy-to-use. Semi-frequent traders can even trade US stocks without paying any commissions.

The commissions, however, are slightly on the higher side, especially when compared to newer platforms like AstroHoldings. Secondly, the research, although detailed, can still improve (particularly in areas like fund investing, retirement investing and corporate and government bonds.

3)   Interactive Tools:

Interactive Tools, with its powerful trading and charting tools, a team of experienced and capable brokers, and wide investment range, is an excellent choice for professional traders. Less-experienced traders, meanwhile, can benefit from the low rates of commission, as well as the topnotch research available in the Client Portal web-based platform.

As for the cons, the only major problem that we could identify was the absence of SIPP and ISA accounts. If you are a UK trader looking to leverage the tax benefits associated with said accounts, you will have to choose a different trading platform.

Final Word:

To conclude, each of the three UK trading platforms discussed in this review guide comes with its own set of benefits and features.

However, we believe that AstroHoldings’ wide range of tradable assets and account types, excellent trading tools and educational materials, and robust and sophisticated security measures really make it stand out from the rest.