7 Best ETF Platforms in the UK in 2024
Dom Farnell
Co-Founder
Dom is a Co-Founder and of TIC. A passionate investor and seasoned blog writer with a keen interest in financial markets and wealth management.My goal is to empower individuals to make informed investment decisions through informative and engaging content.
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Quick Answer: Which is the Best ETF Platform?
Here are the Top 7 Best ETF Platforms in the UK
- Spreadex – Best overall platform for Trading ETFS
- IG – Best Overall Platform for Investing in ETFS
- eToro – Social Trading, User-Friendly, Broad Asset Range
- Saxo – Preferred for active traders and investors seeking engagement
- Interactive Brokers – Great for Experienced Investors
- Lightyear – Top choice for beginners for overall ease and support
- Hargreaves Lansdown – Unmatched for a diverse fund portfolio offering.
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Page Contents:
ETF Trading Platform Comparison Chart
Spreadex | 
IG |  eToro |  Saxo | 
Interactive Brokers | 
Lightyear | 
Hargreaves Lansdown | |
Regulator | FCA | FCA | FCA | FCA | FCA | FCA | FCA |
Mobile App Usability | 4.5/5 | 3.5/5 | 5/5 | 4.6/5 | 4/5 | 4.6/5 | 3.5/5 |
Variety of Assets | over 1,000 global ETFs, 3,000+ stocks, 15 major commodities, and more than 50 forex pairs for trading. | 18,000+ markets, stocks, ETFs, commodities, currencies, bonds, funds | ETFs, Stocks, Crypto, CFDs & Social Trading | Invest in 7,000+ ETFs from tech, healthcare, environment and other major sectors | 13,000+ ETFs, global stocks, bonds, mutual funds, options, futures, forex, CFDs. | Stocks 3000+, ETF's 1000+ | Stocks, shares, funds, bonds, ISAs, SIPPs |
ISA Available | No | Yes | Yes | Yes | Yes | No | Yes |
Trust Pilot Score | 4.6/5 | 4.1/5 | 4.3/5 | 3.9/5 | 3.3/5 | 4.8/5 | 4.1/5 |
Fee Score | 4.2/5 | 4/5 | 4/5 | 4/5 | 4.9/5 | 4.5/5 | 3.5/5 |
ETF Availability | Excellent | Excellent | Good | Limited | Excellent | Limited | Excellent |
Overall Review Score | 4.5/5 | 4.5/5 | 4.7/5 | 4.6/5 | 4.5/5 | 4.4/5 | 3.9/5 |
Top 7 Best ETF Trading Platforms
Spreadex - Best overall ETF Platform for UK Traders
Spreadex excels in providing a versatile and user-friendly platform tailored for traders who seek flexibility and control.
Their platform is designed with advanced charting tools and customizable layouts, allowing traders to analyse and execute trades with precision.
Spreadex also offers a wide range of ETFs, enabling investors to diversify their portfolios easily.
Their commitment to customer support and educational resources ensures that both new and experienced traders have the guidance they need.
Additionally, Spreadex’s platform is known for its speed and reliability, making it a strong choice for those looking to trade ETFs efficiently.
Pros
Cons
The value of your investments may go up or down. Your capital is at risk.
- Customisable Trading Platform: Spreadex offers a highly customizable platform, allowing users to tailor their trading environment to their specific needs, which is ideal for ETF traders looking for flexibility.
- Wide Range of ETFs: The platform provides access to a diverse selection of ETFs, enabling traders to build well-rounded and diversified portfolios.
- Advanced Charting Tools: Spreadex includes sophisticated charting and technical analysis tools, making it easier for traders to analyse ETF performance and make informed decisions.
- No Commission Fees: Spreadex does not charge commission fees on trades, making it more cost-effective for ETF investors.
- Limited Educational Resources for ETFs: While Spreadex provides some educational content, it may not be as comprehensive as other platforms specifically focused on ETF trading.
- Lack of Automated Trading Features: Unlike some competitors, Spreadex does not offer automated trading options, which might be a drawback for traders looking for algorithmic trading or robo-advisory services.
IG – Market Coverage, Pro Tools, Educational Resources
IG is renowned for its broad market range and comprehensive additional services, catering to both casual investors and seasoned traders.
With access to over 17,000 markets, including a wide selection of ETFs, IG stands out for its trading technology and versatility.
The platform also offers extensive educational resources and analysis tools, making it suitable for those who seek to trade a variety of asset classes beyond ETFs, including stocks, indices, and forex.
Pros
Cons
Please bear in mind that the value of investments can decrease in addition to increasing, which means there is a possibility of receiving an amount lower than your initial investment. It is generally advisable to retain your investments for a minimum of five years in order to maximize the likelihood of achieving your desired returns. Capital at risk.
- Wide ETF Selection: IG offers extensive access to ETFs across various markets, enabling diversified portfolio strategies.
- Advanced Trading Platforms: Features sophisticated platforms and apps suited for ETF trading, with tools like advanced charting.
- Comprehensive ETF Resources: Provides in-depth analysis and educational content focused on ETF trading to inform investment decisions.
- Complex Pricing for ETFs: The fee structure for ETF trading can be intricate, potentially confusing for new investors.
- Minimum Deposit for ETF Trading: Certain ETF trading accounts may have higher minimum deposit requirements, limiting accessibility.
- Daunting for ETF Beginners: The vast range of ETFs and advanced tools might overwhelm novices initially.
eToro - Social Trading, User-Friendly, Broad Asset Range
eToro caters to both novice traders and seasoned investors seeking a dynamic trading experience.
Renowned for its innovative platform, eToro offers a diverse array of investment options, including ETFs, stocks, and cryptocurrencies. It is uniquely designed to support users of all levels through an intuitive interface and social trading features.
With its competitive pricing structure and expansive social trading tools, eToro empowers its users to make informed trading decisions. The platform’s CopyTrader feature, in particular, allows investors to mirror the trades of experienced peers, making it a favored choice for those who value community insights and collaborative investment strategies.
Pros
Cons
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.
- Social Trading Platform: eToro offers a unique social trading feature that allows users to follow and copy the trades of experienced investors, making it particularly accessible for beginners who wish to learn from seasoned traders.
- Diverse Investment Options: With access to over 300 ETFs covering various sectors, geographies, and industries, eToro provides ample opportunities for diversification, allowing users to spread their investments across multiple assets.
- User-Friendly Interface: eToro is designed with a focus on usability, making it easy for both novices and experienced traders to navigate its platform and manage their investments effectively.
- Withdrawal Fees: eToro charges a flat fee for withdrawals, which may deter smaller traders or those who wish to cash out small amounts frequently.
- Limited Advanced Tools for Technical Analysis: While eToro is great for beginners and intermediate traders, it may not meet the needs of advanced traders looking for complex technical analysis tools.
- CFD Trading Risks: A significant portion of trading on eToro involves CFDs (Contracts for Difference), which come with higher risk. This can be a drawback for those looking to invest in ETFs directly rather than speculating on their price movements.
TIC Score 4.6/5
Saxo Bank provides a vast selection of Exchange-Traded Funds (ETFs), offering investors access to over 7,000 ETFs that cover a multitude of sectors including technology, healthcare, and environmental markets.
Their expansive ETF portfolio is designed to cater to both novice and seasoned investors looking for diversified investment opportunities across global markets.
With Saxo’s user-friendly platform, investors can seamlessly integrate ETF trading into their investment strategy, leveraging Saxo’s competitive fees and robust trading tools to optimize their market position.
Pros
Cons
Please bear in mind that the value of investments can decrease in addition to increasing, which means there is a possibility of receiving an amount lower than your initial investment. It is generally advisable to retain your investments for a minimum of five years in order to maximize the likelihood of achieving your desired returns. Capital at risk.
- Extensive ETF Portfolio: Saxo offers an impressive range of over 7,000 ETFs, giving investors unparalleled access to a diverse spectrum of sectors globally.
- Advanced Trading Tools: Traders have access to sophisticated tools and analytics, making it possible to execute complex trading strategies and in-depth market analysis.
- Global Market Reach: Saxo provides a gateway to international markets, allowing for broader investment strategies and diversification.
- Complex Interface for Beginners: New traders might find Saxo's platform overwhelming due to its advanced features and detailed analytical tools.
- Fee Structure: While offering competitive fees, the costs can accumulate, especially for less active traders who might not fully benefit from the fee model.
- Minimum Deposit Requirement: Saxo typically requires a higher minimum deposit to start trading, which may be a barrier for investors with limited capital.
TIC Score 4.5/5
Interactive Brokers - Great for Experienced Investors
Interactive Brokers is renowned for its advanced trading technology and comprehensive range of investment products, making it a top choice for active traders and investors seeking a robust trading platform.
With access to over 13,000 ETFs, alongside a wide variety of global stocks, bonds, mutual funds, and more, Interactive Brokers caters to a diverse clientele, from individual investors to institutional traders.
Its competitive pricing structure, combined with a vast array of sophisticated trading tools, positions Interactive Brokers as a leader in the industry, ensuring that investors have the resources they need to succeed.
Pros
Cons
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- Exceptional Trading Tools: Interactive Brokers provides a wealth of advanced tools and technology, empowering investors to trade efficiently and effectively.
- Extensive Investment Options: With access to over 13,000 ETFs, global stocks, bonds, mutual funds, and more, it meets the diverse needs of a wide range of investors.
- Competitive Pricing: Interactive Brokers offers a tiered pricing structure that benefits active traders and those with larger portfolios, ensuring cost-effectiveness.
- Costs for Infrequent Traders: The tiered pricing may be less advantageous for those who trade infrequently or maintain smaller balances.
- Learning Curve for Beginners: The platform's extensive tools and features might be overwhelming for new investors, requiring time to master.
- International Access Fees: While offering global markets, trading international assets might involve higher fees depending on the region and asset class.
TIC Score 4.6/5
Lightyear is a top choice for beginners in ETF trading, celebrated for its overall ease of use and exceptional support.
The platform distinguishes itself by offering a streamlined, intuitive user experience coupled with zero-commission trading, although other fee’s may apply this still makes it financially attractive for novice investors.
As a newer entrant to the market, Lightyear is committed to removing financial barriers, offering transparent pricing and a curated selection of ETFs that cater to investors who value simplicity and affordability.
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Pros
Cons
Please bear in mind that the value of investments can decrease in addition to increasing, which means there is a possibility of receiving an amount lower than your initial investment. It is generally advisable to retain your investments for a minimum of five years in order to maximize the likelihood of achieving your desired returns. Capital at risk.
- User-Friendly Interface: Simplifies ETF trading for beginners with an easy-to-navigate app.
- Low Trading Fees: Offers cost-effective ETF trading with 0% commission; other fees may apply.
- Interest on Uninvested Cash: Earns competitive rates on uninvested balances, enhancing returns.
- Limited Investment Options: Primarily stocks and ETFs, with a lack of alternatives like cryptocurrencies.
- No ISA or Pension Accounts: Misses on tax-efficient options like Stocks and Shares ISAs or SIPPs.
- Limited Educational Resources: Offers fewer learning materials for investment education compared to rivals.
TIC Score 3.9/5
Hargreaves Lansdown – Unmatched for a diverse fund portfolio offering.
Hargreaves Lansdown is unmatched in the realm of diverse fund portfolio offerings, making it an exceptional choice for investors looking to access a broad range of ETFs and mutual funds.
As one of the UK’s leading investment platforms, Hargreaves Lansdown is renowned for its extensive research, comprehensive investment choices, and premium customer service.
This platform is ideal for investors seeking to build a diversified portfolio underpinned by expert insights and analysis.
Pros
Cons
Please bear in mind that the value of investments can decrease in addition to increasing, which means there is a possibility of receiving an amount lower than your initial investment. It is generally advisable to retain your investments for a minimum of five years in order to maximize the likelihood of achieving your desired returns. Capital at risk.
- Extensive ETF Selection: Hargreaves Lansdown provides access to a wide array of ETFs, ideal for creating a diversified investment portfolio.
- High-Quality Research on ETFs: Offers detailed analyses and tools specifically for ETF investments, aiding in informed decision-making.
- User-Friendly Platform: Its intuitive interface makes it straightforward for investors to explore and manage ETFs.
- Higher ETF Trading Fees: The platform's trading fees for ETFs may be higher than some competitors, potentially impacting returns.
- Overwhelming for ETF Beginners: The breadth of ETF options and data available might intimidate new investors.
- Limited Global ETF Trading: While offering a range of ETFs, the platform may have restrictions on trading international ETFs compared to more global-focused brokers.
Understanding ETFs
Exchange-Traded Funds (ETFs) are a popular form of investment that offers the flexibility of stocks with the diversification benefits of mutual funds. They are traded on stock exchanges, allowing investors to buy and sell shares throughout the trading day at market prices.
What is an ETF?
An ETF is a type of investment fund that holds a collection of assets, such as stocks, bonds, or commodities, and is designed to track the performance of a specific index or sector. ETFs offer investors a way to invest in a wide array of assets without having to buy each one individually.
Stocks and Shares
ETFs that focus on stocks and shares invest in a variety of companies, ranging from large-cap to small-cap stocks.
They offer exposure to specific industries, geographical regions, or investment styles (e.g., growth or value).
Key benefits include diversification and the potential for growth.
Bonds
Bond ETFs invest in different types of debt securities, including government, municipal, and corporate bonds.
They provide regular income through interest payments and tend to be less volatile than stock ETFs.
Investors can choose from short-term, mid-term, and long-term bond ETFs based on their investment horizon and risk tolerance.
Property
Property or Real Estate ETFs invest in stocks of companies involved in the real estate industry, such as real estate investment trusts (REITs).
They offer a way to gain exposure to the real estate market without owning physical properties.
Benefits include potential income from rent and property appreciation, along with diversification across various real estate sectors.
ETF Trading Platforms
ETF trading platforms are online brokerages that provide investors with the tools and resources needed to buy and sell ETFs. These platforms vary in features, fees, and available ETFs, making it important for investors to choose one that fits their investment style and goals.
What’s an ETF trading platform?
An ETF trading platform is a digital service that enables investors to trade ETFs through a user-friendly interface. These platforms offer real-time market data, research tools, and educational resources to help investors make informed decisions.
Trading ETFs
Research and Selection: Use the platform’s tools to research ETFs based on performance, sector, and risk.
Buying and Selling: Execute trades during market hours, with the option to set market, limit, and stop orders.
Portfolio Management: Monitor your investments and adjust your portfolio as needed to align with your investment strategy.
ETF Comparisons and Types
Is an ETF the same as an index fund?
While both ETFs and index funds are designed to track the performance of a market index, there are key differences:
Trading: ETFs can be traded throughout the day like stocks, while index funds are bought and sold at the end of the trading day at the net asset value price.
Minimum Investment: ETFs can be bought with the price of a single share, whereas index funds may require a minimum investment.
Passive vs Actively Managed Funds
Passive Funds: These funds aim to replicate the performance of a specific index. ETFs often fall into this category, offering lower fees due to reduced management activity.
Actively Managed Funds: Managers of these funds actively select investments to outperform the market, leading to higher fees. Some ETFs are actively managed, offering investors the potential for higher returns with increased risk.
Choosing between passive and actively managed funds depends on your investment strategy, risk tolerance, and financial goals.
ETF Investment Options
Investing in ETFs offers flexibility and accessibility, allowing investors to diversify their portfolios across various asset classes. Understanding the investment options available for ETFs, including tax-efficient accounts and retirement savings, can enhance your investment strategy.
Can you buy ETFs within a Stocks & Shares ISA?
Yes, ETFs can be purchased within a Stocks & Shares ISA.
This allows for tax-efficient investing, as gains and dividends from ETFs within an ISA are not subject to capital gains tax or income tax.
It’s an excellent way for investors to grow their wealth over time while minimizing tax liabilities.
Can you buy ETFs within a pension?
Yes, ETFs are also eligible to be held within pension schemes, including Self-Invested Personal Pensions (SIPPs).
Investing in ETFs through a pension can provide a diversified investment portfolio with potential tax advantages, as investments grow tax-free until retirement.
This option is particularly appealing for long-term investors looking to build their retirement savings.
Costs and Fees
Understanding the costs and fees associated with ETF investing is crucial for managing your investment efficiently. These costs can impact your overall returns and vary depending on the trading platform and the ETFs themselves.
ETF Trading Platform Fees
Platform Fee: A yearly charge levied by the platform for using their services. It’s usually a percentage of your investment value.
ETF Fees: Also known as the expense ratio, this is an annual fee that covers the fund manager’s costs, expressed as a percentage of the fund’s average net assets.
ETF Trading Fees: Charges incurred each time you buy or sell ETF shares. Some platforms offer commission-free trading for certain ETFs.
Currency Conversion Fees: If you’re buying ETFs listed in a currency different from your account’s base currency, you may face currency conversion charges. This fee varies by platform and can significantly affect transactions involving foreign ETFs.
By carefully considering these investment options and associated costs, investors can make informed decisions that align with their financial goals and risk tolerance.
Pros
Cons
- Diversification: ETFs often hold a basket of different assets, providing instant diversification.
- Liquidity: Since ETFs trade like stocks, they can be bought and sold quickly.
- Lower Costs: Generally, ETFs have lower expense ratios compared to traditional mutual funds.
- Transparency:Many ETFs regularly disclose their holdings, providing clear insight into where your money is invested.
- Market Risk:Like any investment, ETFs are subject to market fluctuations.
- Over-Trading: The ease of trading ETFs can lead to over-trading, which might incur additional costs and impact long-term investment strategies.
- Niche Focus Risks: Some ETFs focus on specific sectors or themes, which can be riskier than broad-market ETFs.
Is it safe to invest in ETFs?
Investing in ETFs is generally considered safe, especially when compared to individual stocks, due to their inherent diversification. However, like all investments, ETFs carry some level of risk, which varies depending on the type of ETF and the underlying assets it holds. Here are key points to consider regarding the safety of investing in ETFs:
Diversification: ETFs typically hold a wide range of assets, spreading out the risk. This means that the poor performance of a single asset will have a less significant impact on the overall investment.
Market Risk: All investments are subject to market risk. The value of an ETF can go down as well as up, depending on the performance of the underlying assets or market sectors it tracks.
Liquidity: Most ETFs are highly liquid, meaning they can be easily bought and sold during trading hours at market prices. However, some niche or specialized ETFs may have lower trading volumes, which could impact liquidity and pricing.
Expense Ratios and Fees: While ETFs often have lower expense ratios compared to mutual funds, fees can vary, and it’s important to understand the costs associated with any ETF investment.
Interest Rate Risk: For ETFs that invest in bonds, interest rate changes can affect their value. Generally, when interest rates rise, bond prices fall, and vice versa.
Currency Risk: ETFs that invest in international markets or assets may be subject to currency risk. Fluctuations in exchange rates can affect the value of these investments.
To mitigate risks and ensure a safe investment experience with ETFs, investors should:
Research and Choose Wisely: Select ETFs that align with your investment goals, risk tolerance, and time horizon.
Diversify: Even within ETF investing, diversification across different sectors, asset classes, and geographies can reduce risk.
Stay Informed: Keep abreast of market trends and economic factors that could impact your investments.
Consider Long-Term Investing: Over the long term, markets tend to increase in value, which can help smooth out short-term volatility.
In conclusion, while no investment is without risk, ETFs offer a relatively safe option for investors looking to diversify their portfolios and reduce exposure to the volatility of individual assets. Proper due diligence and a well-considered investment strategy are key to maximizing the safety and potential returns of ETF investments.
References
FAQs
The best ETF platform in the UK for beginners offers user-friendly interfaces, educational resources, and low-cost options. Platforms like Trading 212 and Lightyear are often recommended for their comprehensive services and support for beginners.
ETF brokers specialize in offering a wide range of exchange-traded funds with lower fees and often provide tools specifically designed for ETF trading. Traditional brokers, on the other hand, offer a broader range of investment products but may have higher fees for ETF transactions.
Yes, you can find specialized ETF brokers in the UK that cater to investors looking to focus exclusively on ETF investments. These brokers typically offer extensive ETF selections, competitive pricing, and specialized trading tools.
When choosing an ETF platform, look for features like a wide range of ETFs, competitive fees, comprehensive research tools, user-friendly interface, and strong customer support. Also, consider platforms that offer educational resources to help you make informed decisions.
Trading tools on ETF platforms can enhance your investment strategy by providing real-time market data, analytical tools, and the ability to set up alerts. These tools help you make more informed decisions, manage your portfolio efficiently, and identify potential investment opportunities.
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