Brokers With Commission-Free Investing

Commission-free stock trading has risen in popularity in the UK. This comes with a clear benefit to investors – lower trading and management fees. As a result, the top platforms and brokers with commission-free investing are attracting beginners and experienced traders alike.

In this guide, we cover what commission-free investing means, its pros and cons, plus what to look for in a low-cost brokerage. We have also compiled a list of the best brokers with commission-free trading in 2025.

Commission-Free Trading Explained

Brokers typically apply a fee when investors place a trade. This is usually a flat fee on every buy or sell order, though it can also be a percentage of the order. At online brokers in the UK, this charge generally ranges from £1 to upwards of £10. In essence, the commission is the cost of making a trade.

Brokers with commission-free investing allow traders to place orders without such fees. This is particularly beneficial to those with less capital as flat commission fees can amount to a notable percentage of an investor’s overall trading portfolio.

Commission Vs Spread

A commission fee is different to the spread. Commissions are added on top when opening or closing a position. The spread is the difference between the bid and ask prices of a security, such as a FTSE-listed stock.

Typically, the bid price (the price you pay to buy a stock from a broker) is a little higher than the market value of the asset, and the ask price (the price the broker pays you when you sell the stock) is a little lower than the market value of the asset.

When opening and closing a position, the broker will pocket the difference between the actual market prices and the quoted prices.

How Do Brokers With Zero Commission Make Money?

But if brokers aren’t making money from commissions and offer low spreads, then how do they continue to operate? Brokerages incur a range of overheads and administrative fees for providing trading services, so they look to other channels to generate revenue…

Hidden Costs & Limitations

Some brokers with commission-free investing apply withdrawal fees – charging traders for withdrawing returns from their accounts.

Brokers may also only offer zero-commission trading on some assets, such as OTC stocks, while forex and cryptos, for example, incur a commission. Alternatively, you may only be able to trade commission-free for a set number of orders each month. Or it may be limited by the size of the order.

Another option is to offer wider spreads to traders. This means the broker will offer a bid price higher and/or an ask price lower than competitors, further away from the actual ticker price.

Subscription / “Freemium” Model

Some brokers with commission-free investing also adopt a subscription or “freemium” model. This is where the brokerage offers different tiers of service, with their more comprehensive, feature-rich accounts requiring regular fees to be paid in set intervals (usually monthly or yearly). Other trading platforms provide a free, basic account type with no frills.

So, while brokers may claim to have ‘free trades’ that are zero-commission, there may be other fees elsewhere in the account package.

Payment For Order Flow

There are other options for brokers to make money as well, such as Payment For Order Flow (PFOF). This is where brokers route client orders to market makers for execution, in return for a fee.

However, the Financial Conduct Authority (FCA) has banned this in the United Kingdom. This was done to protect investors because a PFOF network can create a conflict of interest between clients and brokers. Thus, it is best to make sure any brokerage you use is FCA-regulated.

How To Choose Brokers With Commission-Free Investing In 2025

There is no singular ‘best’ commission-free trading broker for all investors. Everyone is looking to trade with different amounts, in different assets, and with different experience levels.

Currently, the number of commission-free brokers is growing and choosing a provider has become more complicated than just looking for the lowest fees. With that in mind, we have compiled a list of other important considerations:

Platform

Every broker provides a platform for traders to place orders. Some brokers provide well-established platforms such as MetaTrader 4 or MetaTrader 5. However, for newer traders, these interactive platforms can look intimidating and complicated. As many zero-commission brokers aim to draw in less-experienced traders, they typically provide more user-friendly and accessible bespoke platforms.

Of course, there is still a fair share of firms that offer more complicated platforms, such as FXCM. But the good news is that most online brokers allow you to open a demo account. These accounts let you trade with virtual money, meaning you can get accustomed to the platform before risking real cash.

Ultimately, finding a trading platform that provides you with the features and accessibility you are looking for is key to improving your trading experience.

Mobile Investing

Along with having a platform you are comfortable with using on a desktop device, being able to access your account remotely through a mobile app is helpful. Most brokers with commission-free trading offer a mobile investing platform for both Apple and Android devices, but the level of quality and user-friendliness varies between providers.

Similar to desktop platforms, it could be worth creating a demo account to get a feel for the broker’s mobile app.

Assets

Brokers with commission-free investing provide access to different exchanges. Typically, brokers with no commission will offer access to fewer assets than those that charge a commission.

It is also worth noting that within the available assets, some brokers may only offer commission-free trading on a portion of them.

Research & Education

Research and education are recommended for traders looking to make smart investments. Informed decisions lead to greater chances of making profits, so finding brokers with commission-free trading that provides strong research tools can prove invaluable.

Newer traders should also look for brokers with educational services and training materials so that they can learn to trade effectively. These can include articles, tutorials, videos, books, journals and webinars.

Some brokers with commission-free investing also offer social platforms that allow correspondence and interaction between users. This allows for the sharing of thoughts and predictions on stock or market movements, as well as the freedom to discuss with experienced investors.

Along with this, it is common for brokers with social platforms to offer copy trading, allowing traders to ‘copy’ other investors’ portfolios, strategies and positions. This can be a bonus for beginner investors or those looking to trade without much time for research and study.

Customer Support

When you are trading with real equity, having a strong customer support system to fix problems and answer questions is important. It is also useful to know how you can contact the broker, whether it be through e-mail, phone number or social media platforms. The number of hours and days the support channels are open should also be considered.

Brokers with commission-free investing are often looking to cut costs so are more likely to have weaker customer support systems in place.

Other Fees

While you may be looking at commission-free brokers, this does not mean there won’t be any charges. As explained above, brokers often place fees in other parts of their service to enable them to offer zero commission trading. It is worthwhile checking to see where fees may apply, from payment charges and overnight financing costs to fees for premium trading tools.

Minimum Deposits

Generally, zero-commission brokers have relatively low minimum deposit requirements, with the more popular platforms’ ranging from just £1 to over £100.

If you have less to trade with at the beginning, you will have to consider this as it will limit the brokers you can choose from.

Regulation & Security

The Financial Conduct Authority (FCA) is the UK’s financial services and market regulator. As such, if you are looking to trade from the UK then finding brokers with commission-free investing that hold a license with the FCA is important. These brokers will adhere to the rules and regulations set by the FCA to protect you, the investor, from financial malpractice.

As with most accounts holding savings and investments, finding a broker that offers a mobile app or trading platform with heightened security features such as 2-factor authentication is also in your best interest to keep your money safe.

Currency

Not all licensed brokers regulated by the FCA use GBP as their portfolio currency. For example, eToro uses USD as the base currency, so if you deposit money, it will automatically convert to USD with a foreign-exchange fee.

If you plan to trade on foreign exchanges and platforms then it is worth considering each broker’s conversion fees.

Pros & Cons Of Brokers With Commission-Free Investing

Pros

• Zero-commissions can allow for cheaper portfolio diversification
• No restrictions on trading strategy or hedge systems
• Simplified and streamlined trading platforms
• Greater potential profit margins
• Lower minimum deposits
• Beginner-friendly

Cons

• Limited resources & research
• Access to fewer markets
• Wider bid-ask spreads
• Potentially hidden fees

Bottom Line On Zero-Commission Brokers In The UK

Zero-commission trading has taken off and the benefits are clear: cheaper buy and sell orders allow for greater profit margins and portfolio diversification. Typically designed for newer investors, the trading platforms offered by zero-commission brokers are normally more streamlined, accessible, and user-friendly. There are of course exceptions to this, with some zero-commission brokers offering advanced, feature-rich platforms designed for experienced traders.

The biggest drawback of zero-commission brokers may be the number of markets traders have access to. Those looking to invest in more exotic assets may have to look to more established, premium UK brokers such as IG, or brokers specialising in those asset classes.

Ultimately, every brokerage provides different features to traders, and brokers with commission-free investing are no exception. Those looking for social investing platforms may have better luck with zero-commission brokers. Experienced investors looking to trade US shares may find IG to be more suitable with its advanced platform, zero-commission rates on US shares, and low 0.5% FX conversion fee.

Use our list of the best brokers with commission-free investing to get started now. Check out our detailed reviews or skip straight to the sign-up stage.

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