10 Best ETF Brokers UK for 2023

ETFs are popular investment vehicles for those that wish to diversify across a wide selection of assets, and gain exposure to markets that are difficult for casual investors to access.

Moreover, ETFs are typically very cost-effective, with annual expense ratios often sitting below 0.5%.

In this comparison guide, we rank and reveal the 10 best ETF brokers in the UK for 2023.

Best ETF Brokers UK Reviewed & Compared

When evaluating the best ETF brokers for beginners in the UK, investors will first need to ensure that their preferred markets are supported and if so, what fees will apply.

Furthermore, it is also important to assess the minimum ETF investment required by the broker and what other assets it supports, such as individual shares or cryptocurrency.

Read on to help clear the mist when selecting the best online ETF broker in the UK.

1. eToro – Overall Best Online ETF Broker in the UK

eToro offers the ultimate place to invest in ETFs in the UK. In particular, we found that eToro is the overall best ETF broker for beginners, especially when it comes to fees. This is because eToro enables UK investors to buy and sell ETFs without paying any commission. Moreover, eToro does charge any ongoing account fees.

eToro is also the best ETF broker for those on a budget, considering that the minimum investment is just $10 (about £8). Crucially, eToro supports fractional investing, so the $10 minimum requirement remains in place irrespective of the ETF share price that is being traded.

We also like eToro for its swift account opening process. It takes just five minutes to register and investment funds can be deposited instantly with a debit card or e-wallet like PayPal. UK bank transfers are also supported. The minimum deposit across all supported payment methods is just $10.

In terms of supported ETFs, eToro offers hundreds of investment options across plenty of asset classes and markets. The most popular ETFs to invest in here are those that track leading stock indexes, such as the FTSE 100, Dow Jones, S&P 500, and NASDAQ Composite. eToro also supports ETFs that track dividend stocks, growth stocks, and emerging market stocks.

We also found that eToro enables investors to gain exposure to commodities via ETFs, such as gold and silver. In addition to ETFs, eToro is also one of the best places to buy shares in the UK. There are no commissions charged when buying UK-listed stocks and this is also the case for international markets, such as those based in the US and Europe.

Moreover, when buying UK-listed shares, eToro waivers stamp duty tax. This saves investors a further 0.5% on the investment amount. When buying and selling shares at eToro, the minimum investment is also set at $10. eToro is also the best place to buy cryptocurrency. Dozens of cryptocurrencies are supported, including popular coins like Bitcoin, Dogecoin, and Ethereum.

eToro charges a transparent fee of 1% on cryptocurrency purchases. eToro is also viewed as one of the best forex brokers in the UK. This will appeal to investors that wish to trade or hedge currency pairs like GBP/USD. Another popular investment product that is offered by eToro is its smart portfolios.

These operate in much the same way as ETFs, as smart portfolios are professionally managed and they offer access to a diversified basket of assets through a single trade. However, each smart portfolio is hand-picked by the eToro team and specifically tracks a niche area of the stock markets.

For instance, this includes a selection of stocks from retail, medical tech, durable goods, renewable energy, and utility spaces – plus dozens more. eToro also offers a copy trading tool that is aimed at passive investors. After selecting a trader to copy, all future investments will be replicated in the eToro user’s portfolio.

Finally, we found that eToro is a safe and reliable place to invest in ETFs. This ETF broker is authorized and regulated by multiple bodies, including the FCA. Furthermore, UK investors are covered by the FSCS when making ETF investments on this platform. Moreover than 30 million investors now use eToro for their trading needs.

81% of retail investor accounts lose money when trading CFDs with this provider.

2. XTB – Trade 60 ETFs on a 0% Commission Basis   

XTB is considered one of the best CFD brokers in the UK. In addition to stocks, commodities, forex, and indices, XTB supports more than 60+ tradable ETFs. This covers some of the most traded ETF markets in this industry, such as the SPDR S&P 500 and the SPDR Dow Jones Industrial Average.

XTB also supports ETFs that track commodity markets like gold and uranium. One of the most traded ETFs at XTB as of writing is Ark Innovation. This ETF offers diversified and managed access to growth companies and emerging concepts. All of the ETFs hosted on the XTB platform can be traded at 0% commission.

Furthermore, as each ETF is represented by a CFD instrument, XTB offers leverage of up to 1:10. This means that for every £1,000 traded, a balance of just £100 is required. XTB also supports long and short orders, so ETF traders can attempt to profit from both bullish and bearish markets.

When accessing ETFs at XTB, trading is conducted via the xStation platform – which is unique to the broker. xStation can be accessed online and via an iOS/Android app. The platform offers all of the tools and analysis features that an investor will require when trading ETFs. This includes market insights and technical indicators.

XTB is not only authorized and regulated by the FCA, but licensing bodies in Spain and Poland. Opening an account is seamless at XTB and the broker supports debit cards and bank transfers – which are processed fee-free. Although Skrill is supported too, this comes with a 2% fee.

81% of retail investor accounts lose money when trading CFDs with this provider.

3. Plus500 – Low-Cost Trading Platform With Commodity ETFs

Plus500 is a low-cost CFD trading platform that supports every asset class imaginable. In terms of ETFs, this platform is particularly good for gaining exposure to the global commodity markets. For instance, those with an interest in energy can trade the US Oil Fund ETF. Hard metals ETFs include the GLD Gold and iShares Silver.

The Commodity Index Fund ETF may appeal to trades that want access to the broader commodity markets. Another popular ETF at Plus500 is the Global Lithium & Battery Tech. Plus500 also supports ETFs that track popular stock indexes, such as the iShares UK 100. Regardless of the ETF being traded, Plus500 offers a 0% commission model.

This is also the case when trading other supported assets on the Plus500 platform. This includes thousands of UK and international stocks, currency pairs, individual commodities, and options. Another benefit of choosing Plus500 is that leverage is offered on all supported markets, including ETFs.

Plus500 also supports long and short positions. There is a minimum deposit of £100 at Plus500 and no fees are charged when making a payment. Accepted payment methods include debit cards, e-wallets, and bank transfers. Finally, Plus500 users can download the mobile app to trade ETFs while on the go.

84% of retail investor accounts lose money when trading CFDs with this provider.

4. Skilling – Top ETF Broker for Trading Stock Indexes

Skilling is another option to consider on this list of the best ETF brokers. Skilling specializes in CFD instruments just like XTB and Plus500, which means that leverage is supported on all available markets. In particular, we found that Skilling is a great option for those that wish to trade stock index funds via ETFs.

This covers major stock indexes found in the UK and US, as well as Japan, India, China, and plenty of European exchanges. Skilling also supports commodity-based ETFs, such as Teucrium Wheat and Global X Lithium. Skilling is suitable for a range of trader profiles, especially those on a budget.

This is because the minimum ETF trade size is just 0.1 lots. Moreover, we like that Skilling operates on a spread-only basis, so no commissions are charged when trading ETFs. Alongside ETFs, Skilling is also one of the best places to trade stocks, with multiple global marketplaces supported.

Skilling also supports forex and individual commodity CFDs. To get started with Skilling, a minimum first-time deposit of £100 is required. We like that Skilling does not charge any fees on bank transfers, debit cards, and Paypal, but Skrill payments will cost up to 2.9%. Skilling also offers a mobile app for trading ETFs on the move.

75% of retail investor accounts lose money when trading CFDs with this provider.

5. AvaTrade – Advanced Trading Features and Analysis Tools

AvaTrade is a popular trading platform in the UK that specializes in CFD instruments, across most asset classes. Alongside ETFs, this also includes currencies, options, bonds, stocks, indices, and commodities.

As such, AvaTrade is considered by some traders to be the best options trading platform in the UK. Some of the most traded ETFs hosted by AvaTrade include the VanEck Vectors Gold Miners, Dow Jones US Home Construction Index, and Financial Sector SPDR.

AvaTrade is also a good option to gain exposure to the emerging markets. For example, the platform supports the MSCI Brazil Index ETF. When trading ETFs here, both long and short positions are supported. As is the case with all of the ETF brokers discussed so far, AvaTrade also supports leverage.

AvaTrade accounts take seconds to open and the minimum deposit requirement for UK traders is £100. Supported platforms are inclusive of MT4, MT5, and DupliTrade. Moreover, AvaTrade offers its own native trading platform, which can be accessed online or via the provider’s mobile app.

76% of retail investor accounts lose money when trading CFDs with this provider.

6. IG – 5,400 ETFs From Multiple Sectors 

IG is a premium ETF broker that has been offering trading services for nearly 50 years. This UK-based platform provides access to more than 5,400 ETFs from a wide range of sectors. This is inclusive of stock indexes, currencies, commodities, and specific industries. When it comes to fees, IG charges £8 for each ETF that is traded – which is considered expensive.

IG clients can reduce this to £3 per trade but this requires a minimum of three trading positions in a month. There is also a 0.5% fee to pay when investing in ETFs that are listed outside of the UK. In addition to ETFs, IG also offers a selection of smart portfolios.

Each smart portfolio is professionally managed and includes leading ETFs backed by the likes of iShares, Vanguard, and SPDR. There is a 0.5% annual management fee when investing in smart portfolios at IG. This is in addition to 0.09% in transaction costs. Alongside ETFs and smart portfolios, IG is also one of the best UK stock brokers for buying individual shares.

7. Hargreaves Lansdown – Wide Range of UK-Listed ETFs and Support for ISAs

Hargreaves Lansdown is one of the best ETF brokers for investing in UK-listed markets. The platform supports virtually all listed markets on the London Stock Exchange and the AIM, and the minimum first-time deposit is just £1. Some of the most popular ETFs traded at Hargreaves Lansdown include WisdomTree Physical Gold, iShares Core FTSE 100, and Vanguard FTSE 250.

Hargreaves Lansdown is also one of the best UK ETF brokers for investing through an ISA. When it comes to fees across the board, however, Hargreaves Lansdown is considered expensive. For instance, it costs a minimum of £11.95 to invest in ETFs and this is only reduced when 10 or more trades are made in the prior month. Moreover, ISAs cost 0.45% annually.

8. FreeTrade – Mobile Investment App for Buying and Selling ETFs

Those in the market for the cheapest ETF broker in the UK might consider FreeTrade. After all, this popular investment platform does not charge any trading commissions when buying and selling ETFs. Moreover, when trading via the basic plan, there are no monthly or annual fees to contend with.

In total, FreeTrade supports more than 400 ETFs, covering equities, commodities, bonds, dividend stocks, emerging markets, and much more. This is in addition to thousands of UK and international stocks. We also found that FreeTrade is one of the best UK ETF brokers for mobile trading. The FreeTrade app is free to download on iOS and Android smartphones.

9. AJ Bell – Handy ETF Screener to Find Suitable Investments

AJ Bell is a UK-based investment platform that supports individual shares as well as a wide range of ETFs. One of the best features of AJ Bell is that the platform offers a free ETF screener. This enables investors to input their investment requirements via handy filters, and AJ Bell will list suitable options.

AJ Bell also offers investment ideas through expert-driven market insights and research reports. The main drawback with this ETF market broker is that fees are high. Unless more than 10 ETFs have been traded in the prior month, there is a commission of £9.95 to pay on each investment. We also found that there is a £1.50 fee to reinvest ETF dividends.

10. Pepperstone – Best ETF Platform for Advanced Traders

Pepperstone is a global CFD trading platform that is particularly popular with UK traders. There is no minimum deposit requirement to open an account and multiple payment types are accepted – inclusive of debit cards. We found that Pepperstone is one of the best online ETF brokers for advanced traders that wish to enter positions on a short-term basis.

Not only is this because Pepperstone offers hugely competitive fees alongside leverage and short-selling, but support for MT4, MT5, and cTrader. This means that when trading ETFs, informed decisions can be made via technical and economic indicators, alongside high-level charting. Pepperstone does not charge commissions when trading ETFs on the standard account.

78.8% of retail investor accounts lose money when trading CFDs with this provider.

How We Ranked the Top UK ETF Trading Platforms

The best ETF brokers in the UK carry a range of common characteristics, such as support for a wide selection of markets, low fees, and small account minimums.

Read on to find out more about how we compiled our UK ETF broker comparison for this guide.

FCA Regulation and FSCS Protection

The best ETF brokers available to UK investors will be authorized and regulated by the FCA. Crucially, this ensures that the investor has access to fair trading conditions and that capital is held in segregated accounts.

Moreover, investors should only consider ETF brokers that are members of the FSCS protection scheme. Put simply, if the unlikely event that the ETF broker collapses, investment funds of up to £85,000 are covered by the UK government.

Range of ETFs

There are many thousands of ETFs that trade on UK and international exchanges across a wide selection of sectors. This includes ETFs that track stocks, indexes, commodities, and even currencies.

However, whether or not the chosen broker supports a particular ETF remains to be seen. As such, investors should check through the list of supported ETFs before signing up.

Fees

There are several fees that need to be considered when choosing the best ETF trading platform in the UK.

This includes the following:

Payment Fees

Some ETF brokers charge deposit fees, while others offer fee-free payments.

XTB and Plus500 both support free deposits across debit cards and bank transfers. IG, on the other hand, charges 0.5% and 1% on Visa and MasterCard deposits respectively.

ETF Commissions

The best ETF investment platforms in the UK enable investors to buy and sell assets on a commission-free basis. eToro is the stand-out broker in this regard, with both ETFs and individual shares available to buy at 0% commission.

In comparison, AJ Bell charges £9.95 every time the account holder buys or sells an ETF on its platform. At Hargreaves Lansdown, this is even pricier at £11.95.

Foreign-Listed ETFs

Some of the most traded ETFs are actually listed on foreign exchanges such as the NYSE and NASDAQ in the US. This does, however, mean that additional fees may apply.

For example, the likes of IG and Hargreaves Lansdown charge a foreign exchange fee, which varies depending on how much capital is being invested.

The good news is that eToro – which we found to be the overall best ETF broker in the UK, offers commission-free access to foreign-listed funds, with no additional markup.

Expense Ratios

The expense ratio is not a fee charged by brokers but rather by the ETF provider itself.

This includes all fees relevant to the ETF market, such as buying and selling assets and currency exchange charges, as well as providing customer support and facilitating payments.

Ultimately, just make sure that the ETF broker does not add a markup to the official expense ratio.

Tools & Analysis

With so many ETFs in the market, knowing which investments to make and when can be challenging for beginners. As such, the best UK ETF brokers offer in-house tools that can help with the decision-making process.

Examples include ETF screeners, market insights, investment ideas, and research reports.

Moreover, eToro offers smart portfolios that for all intents and purposes operate like ETFs. The key benefit of smart portfolios over ETFs is that they track niche markets, such as BigTech and metaverse stocks.

Minimum Deposit and Trade Requirement 

The minimum deposit will vary from one ETF broker to the next. At XTB, for example, there is no minimum deposit requirement. But at IG, the minimum stands at £250 when making a deposit with a UK debit card.

Investors should also assess the minimum ETF trading requirement. At eToro, the broker supports fractional ETF investments from just $10 (about £8).

Some brokers, however, require investors to buy a full ETF share, which can run into hundreds of pounds.

Demo Account

First-time investors might wish to get started with a demo account. This enables investors to buy and sell ETFs online without risking their own money.

Mobile App

Many investors in the UK will look to buy and sell ETFs via their smartphone. In this regard, it’s a good idea to choose an ETF broker that offers a native mobile app.

Most of the ETF brokers reviewed on this page offer a free app for iOS and Android. Both eToro and XTB offer a user-friendly app that comes with full account functionality.

Payment Methods

Moving money into and out of a UK ETF broker should be fast and cost-effective.

Most ETF brokers support instant deposits via a UK debit or credit card, while some also support e-wallets. Check what the minimum deposit requirement is on a specific payment method, as this can vary depending on the broker.

Customer Service 

Top ETF brokers in the UK offer unrivaled customer service around the clock – usually via a live chat feature. When researching the 10 providers discussed on this page, we assess the level of customer support and how long it took for us to receive a reply.

Although live chat is the preferred option for most investors in the UK, some ETF brokers also offer email and telephone support.

How do ETF Brokers Work?

ETF brokers enable investors in the UK to buy and sell exchange-traded funds from the comfort of their own homes. Top-rated brokers like eToro enable account holders to invest in ETFs in the traditional sense, meaning they indirectly own the underlying asset.

Alternatively, some ETF brokers specialize in contracts-for-differences (CFDs). XTB and Plus500, for instance, enable account holders to trade ETFs with leverage and even engage in short-selling.

Either way, it usually takes just minutes to open an ETF brokerage account and deposit funds. After that, the investor can choose which ETFs they want to buy or trade.

How to Invest in ETFs Through a Regulated UK Broker

In this section, we explain how to invest in ETFs via eToro without paying any trading commissions or account fees:

Step 1: Open an Account

Step one requires the investor to visit eToro and open an account.

Some basic information will need to be entered, such as a name, home address, and mobile number.

Step 2: Deposit Funds  

No KYC process is required for UK investors at eToro until €2,000 (about £1,800) has been deposited or withdrawn.

As such, the investor can now make a deposit of $10 (about £8) or more with a debit card, e-wallet, or bank transfer.

Step 3: Search for ETF Investment 

Click on the ‘ETF’ button at the top of the page and then spend some time deciding on which ETF to invest in. eToro supports more than 300 ETFs from both the UK and international markets.

Alternatively, use the search bar to find a specific ETF.

Step 4: Confirm ETF Investment  

Click on ‘Invest’ next to the chosen ETF and enter the amount to invest, from $10.

Click on ‘Open Trade’ to confirm the ETF investment.

81% of retail investor accounts lose money when trading CFDs with this provider.

Conclusion

In summary, the 10 best ETF brokers in the UK have been reviewed.

UK-based investors have plenty of options in this regard but overall, we found that eToro is the best UK ETF broker in 2023.

eToro supports over 300 ETFs from the UK and international markets – all of which can be traded at 0% commission.

81% of retail investor accounts lose money when trading CFDs with this provider.

FAQs