Brokers With The Lowest Fees In 2025

Author

Christian Harris

Christian is a UK-based investment writer who's been actively trading an array of financial instruments for over 5 years. Having used most of the major brokers in the UK, Christian provides valuable insights on all things investing for British traders.

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Editor

James Barra

James is a UK-based writer and investor with consultancy experience at some of Britain's largest financial organisations. James authors, edits and fact-checks content for a row of investing websites.

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Fact Checker

Michael MacKenzie

Michael is a UK-based investment writer with over 10 years of experience in the journalism industry. Michael has critically evaluated many of the largest investment brokers in the UK, offering authentic insights.

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After years of trading UK and global markets, I’ve learned that planning around costs is crucial. No matter how well your trades perform, there’s always a broker in the middle, which means paying fees, and over time, they can quietly erode your profits.

Some brokers are more transparent and cost-effective than others. In this guide, we reveal the UK brokers with the lowest trading fees and break down the key costs you’ll face, so you can make smarter choices and hopefully keep a bigger slice of your gains.

How We Chose The Cheapest Trading Brokers

To list the brokers with the lowest trading fees, we analysed over 10 types of fees across major asset classes – including forex, stocks, commodities, crypto, and CFDs.

This included tracking fees that will be relevant to many UK investors, such as costs for trading the FTSE 100 and GBP/USD, along with hidden charges like inactivity fees.

Each broker was given a cost score from 0 to 5 (higher = cheaper). We combined these cost ratings with results from our hands-on testing to pinpoint the trading platforms offering both low fees and a smooth trading experience.

How Do Trading Brokers Make Money?

As someone who’s spent thousands of hours trading online, I’ve learned that keeping costs low is one of the most important parts of protecting your profits.

Unsurprisingly, many discount brokers promote themselves with promises of low or zero fees, but the reality is usually more complex.

Just because a broker doesn’t charge a commission at the moment you place a trade doesn’t mean you’re trading for free.

For instance, many commission-free brokers make their money through the spread—the difference between the buying and selling price. Those small gaps add up fast, especially with frequent trades.

Finding a truly low-cost broker isn’t as simple as it seems. Beyond spreads and commissions, you have to look for hidden costs that aren’t immediately obvious.

These include deposit and withdrawal fees, overnight charges, and account inactivity penalties, all of which can be subtle costs that brokerages charge to make more money.

Costs can also vary widely depending on what you’re trading—stocks, forex, CFDs—and they all come with their own fee structures.

Over time, I’ve made it a habit to dig into the details before opening an account with any broker.

Understanding both trading and non-trading fees has helped me avoid nasty surprises and choose platforms that offer real value in the long run.

Christian Harris

Author

What Fees Will I Pay To Trade Online?

We’ve broken down eight of the most common costs you’ll encounter trading online in the UK:

1. Commission & Transaction Fees

UK brokers often make their money by charging a fee on each trade—whether you’re buying UK shares, ETFs, or international equities.

These charges can be a flat rate per trade or a percentage of the amount you invest. Some brokers also charge more for dealing in international markets. At first, it might sound straightforward—until you start making regular trades and see how quickly those costs add up.

For example, most UK brokers we’ve tested charge a fee when you buy or sell shares on the London Stock Exchange, or invest in ETFs like the iShares FTSE 100 (ISF). These fees apply whether you’re trading manually or using an ISA or SIPP wrapper.

Flat fees seem like a better deal when you trade larger amounts, but when you make frequent trades—even small charges can chip away at your returns.

It’s easy to forget that you pay to both enter and exit a position, which can nudge your breakeven point higher than expected.

Over time, you’ll realise that not all trades are treated equally. Some platforms offer cheaper fund investing compared to stock dealing.

I remember checking out Lloyds Bank’s stock dealing platform, and being surprised to see that it charged just £1.50 to invest in funds, but £11 for each stock, index tracker, or ETF trade—not to mention a 1% foreign exchange fee for international trades.

That highlighted how an affordable broker for one type of investment can be far from ideal if you’re trading a mix of asset types.

Christian Harris

Author

Even platforms advertising “commission-free” UK share dealing often have fees tucked away, such as foreign exchange markups or charges for advanced features.

For instance, when I tried out eToro, I liked that there was no commission on regular stock trades, but I found that leveraged trades, which are treated as derivatives, did come with a fee.

It drove home the importance of investigating a broker’s terms and conditions in detail. Things like margin rates, transaction fees for specific instruments, and even inactivity charges can make a big difference in the long run.

Ultimately, if you’re trying to minimise fees, shortlist brokers and compare their fee structures side-by-side. Pay close attention to FX fees, fund costs, and whether UK or overseas shares are your priority.

2. The Spread

When I first encountered brokers claiming “no commission,” I wondered how they made money. It turned out, most profited through the spread.

The spread is the difference between the buy and sell price of an asset. It’s obvious in forex, but it’s also baked into prices of UK shares, ETFs, and even cryptocurrency.

For example, if you’re trading GBP/USD, you might see a buy price of 1.32992 and a sell price of 1.32997. That 0.5-pip spread is how the broker earns.

GBP/USD Spread On IG’s Web Platform

Spreads can also widen during volatile periods—like UK market opens, or post-BoE announcements. Even with a low-cost broker, your timing can affect what you pay.

This is especially noticeable on less liquid UK AIM stocks or exotic FX pairs where spreads are wider.

From my experience, many “commission-free” brokers use this spread as their primary revenue source. They’ll advertise zero trading fees, which sounds great, but they widen the spread just enough to profit on every transaction. So in a sense, you’re still paying a cost—it’s just built into the quoted price.

I learned this the hard way when I started placing more short-term trades. The spread would often mean I was already slightly in the red when I opened a position, especially in less-liquid or exotic currency pairs where spreads tend to be wider.

I started paying more attention to the bid-ask difference before placing any trade.

Christian Harris

Author

If you’re looking for a budget-friendly broker, focus on those offering tight spreads and transparency—like IC Markets.

3. Overnight Charges

In the UK, leveraged trading is common via spread betting or CFDs. While these instruments can amplify your exposure, they come with overnight financing fees if positions are left open after hours.

This cost—called a “rollover” fee or “swap”—is like daily interest on your borrowed amount. Even the cheaper UK brokers charge a markup over the base rate (like SONIA or LIBOR). If you hold positions for more than a few days, those costs add up fast.

4. Platform Fees

In our experience evaluating hundreds of different trading platforms, we’ve encountered a few that charge a fee just for using their tools and services.

Sometimes, the fee is a flat monthly or yearly fee, and in other cases, it’s a small percentage of the total value of your investments.

At first, I thought these fees might guarantee better features or support, but that’s not always the case.

Back when full-service brokers were the norm, you’d typically pay more for personalised financial advice, access to premium research, and a wider range of investment products. On the other hand, discount brokers offered fewer extras at a much lower cost.

These days, though, the lines have started to blur. Many online platforms now offer self-directed investing with little to no platform fees, and a surprising number still provide solid tools and resources.

In my personal trading, I’ve gravitated toward low-cost platforms that let me manage my trades without charging for access.

As someone who prefers to do my research and make independent decisions, I’ve found that paying a monthly fee to use a platform doesn’t always offer me enough value to justify the cost.

Christian Harris

Author

That said, premium services appeal to investors who want more guidance or access to specialised tools. But if you’re confident in managing your portfolio on your own, plenty of affordable (or even free) platforms make it easy to stay in control and keep your overheads low.

5. Deposit & Withdrawal Fees

Deposit and withdrawal fees can sneak up on you, especially if you make regular transfers.

Depending on the broker, the cost might be a flat rate or a percentage of the amount, and I’ve found that the payment method you choose often matters, too. Using a debit card or credit card can sometimes cost more than a bank wire transfer—in some cases, it’s the opposite.

For example, when I first used eToro, I appreciated that deposits in USD were free, but I was caught off guard by the $5 flat fee it charges for every withdrawal.

It doesn’t sound like much, but it adds up quickly if you’re withdrawing regularly or in smaller amounts. It made me rethink how often I move money around and strategically plan my withdrawals.

Similarly, if you’re investing in US stocks via a UK broker, watch out for the FX markup—often 0.5%–1.5% per transaction on many platforms we’ve evaluated.

6. Account Management Fees

Some brokerages offer a full-service package like tailored advice, direct access to a personal broker, financial planning and portfolio management.

This kind of support sounds appealing, especially if you’re still getting to grips with investing. But when you see the account management fees, you might question whether the extra cost is worth it.

There’s no doubt that investing can be complex, and having an expert in your corner can be helpful. But I’ve learned that no matter how experienced a broker might be, it’s still my money on the line, not theirs.

And while they may have your best interests in mind, they also benefit from frequent trading activity, since more trades often mean more commissions and fees on top of those management charges.

Even well-meaning brokers can suggest trades that rack up costs without necessarily improving returns. If you aim to find a broker with the lowest overall fees, it’s essential to look closely at what you’re paying for with account management services—and whether you genuinely need them.

7. Inactivity Fees

Inactivity fees can easily catch out more hands-off investors, especially if you tend to hold long-term positions.

With some brokers, avoiding the fee is as simple as logging into your account periodically. But we’ve come across platforms where that’s not enough—you have to place a trade within a specific period to keep your account ‘active’.

I was charged this way once after going a few months without making a move, and it was frustrating because I hadn’t lost money on a bad trade—I was just penalised for doing nothing.

Since then, I have habitually checked the inactivity policy of any platform I use. It’s a small detail, but it can save you from unnecessary charges if you don’t plan to trade frequently.

Fortunately, some brokers, like Pepperstone, have no inactivity fees.

Christian Harris

Author

8. Exit Fees

One cost you might not think much about—until you face it—is a fee for closing an account or transferring investments to another platform.

Some brokers charge a fee for each asset you want to transfer out, and if you’ve built a fairly diverse portfolio, those charges can stack up fast.

Bottom Line

In the UK, broker fees vary widely—not just in trading commissions, but also in FX rates, platform charges, and account handling costs.

If you’re investing through an ISA or SIPP, the long-term impact of these fees is even more important—because they directly reduce your tax-free gains.

That’s why it’s so important to choose a broker with a transparent and cost-effective fee structure. Even if you’re not trading frequently, these small charges add up over time.

Start by comparing our list of the cheapest UK brokers to find one that matches your trading style—and helps you keep more of your gains.

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