Ethical Investments

ethical investmentsAs the world has become more aware of green issues – climate change, destruction of the environment, health, and the reduction in natural resources – both at a governmental and individual level, so, too, has the requirement for ethical investments.

A person may shop for only organic foods on the basis of lifestyle choice. This choice may also dictate in which shops that person spends his money. It follows through that investment decisions may also be dictated by lifestyle choice. But this type of investing (known also as socially responsible investing) also offers some eye opening potential returns, as well as being ideal for those more ethically minded investors.

Best Stock Brokers UK

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    At FXCC, traders can access competitive spreads on major indices, including the Dow Jones, NASDAQ, and S&P 500. A notable limitation is the absence of individual stocks, which puts FXCC at a disadvantage compared to competitors like CMC Markets, known for offering thousands of shares.

    Stock Exchanges Fractional Shares Leverage
    Dow Jones, Nasdaq, DAX GER 40 Index, FTSE UK Index, New York Stock Exchange, Euronext, CAC 40 Index France, Deutsche Boerse, SIX Swiss Exchange, Hong Kong Stock Exchange, Japan Exchange Group, Australian Securities Exchange (ASX) No 1:500
    Stocks Spread Share Baskets Platforms
    NA No MT4, MT5
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    FxPro provides a robust range of stock CFDs with access to over 2,000 equities from major US and European exchanges, featuring companies such as Tesla and Apple. Additionally, the broker is expanding its offerings through BnkPro's e-money and investment products.

    Stock Exchanges Fractional Shares Leverage
    Euronext, Hang Seng, FTSE UK Index, DAX GER 40 Index, CAC 40 Index France, Nasdaq, Dow Jones, IBEX 35, S&P 500 No 1:30 (Retail), 1:500 (Pro)
    Stocks Spread Share Baskets Platforms
    Variable No FxPro Edge, MT4, MT5, cTrader, AutoChartist, TradingCentral, DupliTrade, Quantower
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    FOREX.com offers a variety of US, EU, and UK stock CFDs with spreads as tight as 1 point. Traders can explore both established brands and new IPOs, enhancing portfolio diversification opportunities. US stocks are available starting at 1.8 cents per share.

    Stock Exchanges Fractional Shares Leverage
    Nasdaq, S&P 500, DAX GER 40 Index, FTSE UK Index, Australian Securities Exchange (ASX), Euronext, Hang Seng, CAC 40 Index France, Borsa Italiana, Japan Exchange Group, IBEX 35, SIX Swiss Exchange, Dow Jones, Hong Kong Stock Exchange No 1:30
    Stocks Spread Share Baskets Platforms
    0.14 No WebTrader, Mobile, MT4, MT5, TradingView
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    IG provides access to over 13,000 shares for trading and investment, surpassing most rivals in the number of listed firms. The broker stands out with its zero commission policy on US shares. Additionally, out-of-hours trading unlocks more than 70 shares, alongside popular ETFs and trusts, even when markets are shut. They have also introduced an AI Index, highlighting opportunities in leading US firms specialising in artificial intelligence and machine learning, like Nvidia.

    Stock Exchanges Fractional Shares Leverage
    SIX Swiss Exchange, Taiwan Stock Exchange, Toronto Stock Exchange, Tadawul, Deutsche Boerse, Japan Exchange Group, Shanghai Stock Exchange, Euronext, Hong Kong Stock Exchange, National Stock Exchange Of India, Australian Securities Exchange (ASX), Bombay Stock Exchange, London Stock Exchange, Dow Jones, S&P 500, IBEX 35, Borsa Italiana, Russell 2000, Korean Stock Exchange, Shenzhen Stock Exchange No 1:30 (Retail), 1:222 (Pro)
    Stocks Spread Share Baskets Platforms
    0.02 Yes Web, ProRealTime, L2 Dealer, MT4, TradingView, AutoChartist, TradingCentral, ProRealTime
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    Eightcap provides over 590 shares from the US, Australia, and Europe alongside a select range of indices, such as the Dow Jones and FTSE. Their Labs include first-rate educational resources, especially the ‘Navigating Stock Market Volatility’ guide. However, they do not yet offer fractional shares for budget traders, unlike brokers like XTB.

    Stock Exchanges Fractional Shares Leverage
    New York Stock Exchange, CAC 40 Index France, DAX GER 40 Index, London Stock Exchange, Australian Securities Exchange (ASX), Euronext, FTSE UK Index, Japan Exchange Group, Dow Jones, Nasdaq, Hang Seng, Hong Kong Stock Exchange, S&P 500, Russell 2000, Toronto Stock Exchange, SIX Swiss Exchange No 1:30
    Stocks Spread Share Baskets Platforms
    0.03 (Apple Inc) No MT4, MT5, TradingView
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    eToro provides access to a vast range of shares from Europe, the US, and more, including Dubai's leading stocks from 2024. Traders can either operate independently or engage with eToro's vibrant community of millions. Long-term investors might explore the broker's Smart Portfolios, featuring thematic collections such as Big Tech.

    Stock Exchanges Fractional Shares Leverage
    SIX Swiss Exchange, Euronext, Deutsche Boerse, Japan Exchange Group, Shanghai Stock Exchange, New York Stock Exchange, Hong Kong Stock Exchange, Australian Securities Exchange (ASX), Korean Stock Exchange, London Stock Exchange, FTSE UK Index, S&P 500, DAX GER 40 Index, Dow Jones, CAC 40 Index France, National Stock Exchange Of India, Tokyo Commodity Exchange, IBEX 35, Hang Seng, Russell 2000, Borsa Italiana, Taiwan Stock Exchange, Nasdaq, Nasdaq Nordic & Baltics, Dubai Financial Market Yes 1:30
    Stocks Spread Share Baskets Platforms
    0.57 (Apple) Yes eToro Web, CopyTrader, TradingCentral
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    City Index provides access to over 4,700 shares from major stock exchanges through CFDs and spread betting, featuring prominent companies such as Tesla and Apple. Traders can also engage in pre-market and after-hours trading on more than 70 US stocks. Additionally, the platform excels in offering indices aligned with emerging consumer interests, like AI, NFTs, and ESG criteria.

    Stock Exchanges Fractional Shares Leverage
    London Stock Exchange, New York Stock Exchange, Nasdaq, Hong Kong Stock Exchange, Euronext, Australian Securities Exchange (ASX), Borsa Italiana, SIX Swiss Exchange, FTSE UK Index, DAX GER 40 Index, Dow Jones, CAC 40 Index France, Hang Seng, IBEX 35, Russell 2000, S&P 500 No 1:30
    Stocks Spread Share Baskets Platforms
    Variable Yes Web Trader, MT4, TradingView, TradingCentral

Safety Comparison

Compare how safe the Ethical Investments are and what features they offer to protect traders.

Safety Comparison
Broker Trust Rating FCA Regulated Negative Balance Protection Guaranteed Stop Loss Segregated Accounts
FXCC 3.3
FXPro 4.4
Forex.com 4.9
IG Index 4.9
Eightcap 4.3
eToro 4.5
City Index 4.2

Payments Comparison

Compare which popular payment methods the Ethical Investments support and whether they have trading accounts denominated in British Pounds (GBP).

Payments Comparison
Broker GBP Account Debit Card Credit Card Neteller Skrill Apple Pay
FXCC
FXPro
Forex.com
IG Index
Eightcap
eToro
City Index

Mobile Trading Comparison

How good are the Ethical Investments at mobile trading using apps or other mobile interfaces.

Mobile Trading Comparison
Broker Mobile Apps iOS Rating Android Rating Smart Watch App
FXCC iOS & Android 4.8 4.4
FXPro iOS & Android 4.7 4.3
Forex.com iOS & Android 3.6 3.8
IG Index iOS & Android 4.6 4
Eightcap iOS & Android 4.8 4.4
eToro iOS & Android 4 3.8
City Index iOS & Android 3.8 3.1

Beginners Comparison

Are the Ethical Investments good for beginner traders, that might want an affordable setup to get started, along with good support and educational resources?

Beginners Comparison
Broker Demo Account Minimum Deposit Minimum Trade Support Rating Education Rating
FXCC $0 0.01 Lots 4.3 2.5
FXPro $100 0.01 Lots 4 4
Forex.com $100 0.01 Lots 4.3 4.5
IG Index $0 0.01 Lots 4.5 5
Eightcap £100 0.01 Lots 4 3.5
eToro $50 $10 2.5 4
City Index $0 0.01 Lots 4 4.3

Advanced Trading Comparison

Do the Ethical Investments offer features that allow for more advanced trading strategies?

Advanced Trading Comparison
Broker Automated Trading Pro Account Leverage VPS AI Low Latency Extended Hours
FXCC Expert Advisors (EAs) on MetaTrader 1:500
FXPro Expert Advisors (EAs) on MetaTrader, cBots on cTrader 1:30 (Retail), 1:500 (Pro)
Forex.com Expert Advisors (EAs) on MetaTrader 1:30
IG Index Expert Advisors (EAs) on MetaTrader, build your own on ProRealTime 1:30 (Retail), 1:222 (Pro)
Eightcap TradingView Bots 1:30
eToro Automate your trades via CopyTrader - follow profitable traders. Open and close trades automatically when they do. 1:30
City Index Expert Advisors (EAs) on MetaTrader 1:30

Detailed Rating Comparison

Use this heatmap to compare our detailed ratings for all of the Ethical Investments.

Detailed Rating Comparison
Broker Trust Platforms Mobile Assets Fees Accounts Support Research Education
FXCC 3.3 3.3 4.6 3 4 3.5 4.3 2 2.5
FXPro 4.4 4.3 4.5 4 4 3.8 4 4 4
Forex.com 4.9 4.6 3.7 4.3 4.6 4 4.3 4.8 4.5
IG Index 4.9 4.9 4.3 4.5 3.5 4 4.5 4.9 5
Eightcap 4.3 4.3 4.6 3.6 3.8 4 4 3.5 3.5
eToro 4.5 2.8 3.9 3.8 3.4 4.1 2.5 4.3 4
City Index 4.2 4 3.5 4.5 3.8 3.8 4 4.3 4.3

Our Take On FXCC

"FXCC remains a top choice for forex traders, offering over 70 currency pairs, very tight spreads from 0.0 pips in tests, and high leverage up to 1:500 with the ECN XL account."

Pros

  • There are no limitations on short-term trading techniques such as trading and scalping.
  • FXCC is a trusted and licensed broker under the regulation of CySEC, a leading European authority ensuring excellent safeguarding standards.
  • FXCC has introduced MT5, which in our evaluations, mirrored the trading conditions of MT4 by offering swift execution, improved charting, and market depth tools.

Cons

  • The range of research tools, such as Trading Central and Autochartist, is quite limited. Leading platforms in this category, like IG, offer more advanced features.
  • The variety of currency pairs surpasses most options, but the choice of other assets is limited. Notably, stocks are absent.
  • FXCC's exclusive MetaTrader platform is a limitation, especially when compared to more versatile options like AvaTrade, which offers five different platforms to cater to various trader needs.

Our Take On FXPro

"FxPro is an excellent choice for traders, offering swift execution speeds under 12ms, reduced fees since 2022, and outstanding charting platforms like MT4, MT5, cTrader, and FxPro Edge."

Pros

  • FxPro provides four dependable charting platforms, including the user-friendly FxPro Edge. It features more than 50 indicators, 7 types of charts, and 15 different timeframes.
  • FxPro's Wallet is a notable feature enabling traders to securely manage their funds. It ensures additional protection and ease by separating unused funds from active trading accounts.
  • FxPro uses a 'No Dealing Desk' (NDD) model for swift and transparent order execution, usually within 12 milliseconds, making it well-suited for short-term trading strategies.

Cons

  • FxPro, with its $10M funded demo account and expanding Knowledge Hub, mainly caters to experienced traders. Beginners might find its account and fee structure challenging to understand.
  • There are no passive investment options such as copy trading or interest on cash. While traders might not find these essential, competitors like eToro, which accommodate both active and passive investors, offer more extensive services.
  • FxPro offers customer support five days a week around the clock, accessible via various platforms, and the service quality is reliable based on tests. However, the absence of weekend support can be a drawback for traders requiring help beyond standard market times.

Our Take On Forex.com

"FOREX.com excels in serving traders of all levels, offering more than 80 currency pairs, spreads starting at 0.0 pips, and competitive commissions. Its robust charting platforms provide over 100 technical indicators and comprehensive research tools."

Pros

  • An abundance of educational resources is available, such as tutorials, webinars, and an extensive YouTube channel, designed to enhance your understanding of financial markets.
  • The in-house Web Trader remains a standout platform, excellently crafted for budding traders. It features a sleek design and offers more than 80 technical indicators for thorough market analysis.
  • With more than two decades of expertise, strong regulatory governance, and numerous accolades, including a second-place finish in our 'Best Forex Broker' awards, FOREX.com is globally renowned as a reliable trading platform.

Cons

  • FOREX.com's MT4 platform provides around 600 instruments, a notable reduction compared to the more than 5,500 options on its other platforms.
  • Although FOREX.com has expanded its range of instruments, its product offering is confined to forex and CFDs. Consequently, there are no investment options for actual stocks, ETFs, or cryptocurrencies.
  • Funding choices are restricted when compared to top options such as IC Markets. Many popular e-wallets, including UnionPay and POLi, are noticeably absent.

Our Take On IG Index

"IG offers a complete package with an intuitive online platform, top-tier beginner education, advanced charting tools through its TradingView integration, real-time data, and swift execution for seasoned traders."

Pros

  • The web-based platform supports traders at every level, offering advanced charting tools and real-time market data vital for trading. Additionally, IG now includes TradingView integration.
  • IG provides a wide range of professional and engaging educational materials, such as webinars, articles, and analyses, tailored for traders.
  • IG stands out with its extensive range of instruments, offering stocks, forex, indices, commodities, and cryptocurrencies. Additionally, it has recently introduced US-listed futures and options, along with an AI Index. These options enhance opportunities for diversification in trading.

Cons

  • IG imposes a monthly inactivity fee of $12 after two years, discouraging occasional traders.
  • In the UK and EU, negative balance protection is available. However, US clients lack account protection and guaranteed stop losses.
  • IG has ended its swap-free account, diminishing its attractiveness to Islamic traders.

Our Take On Eightcap

"Eightcap excels for traders, offering diverse charting platforms, educational Labs, and AI tools. With over 120 crypto CFDs, it stands out in crypto trading and has won our 'Best Crypto Broker' award twice consecutively."

Pros

  • With spreads starting at 0 pips, minimal commission charges, and leverage up to 1:500 for select clients, Eightcap delivers affordable and flexible trading opportunities. These conditions suit various strategies, such as trading and scalping.
  • Eightcap excels with a suite of advanced trading tools, such as MT4 and MT5, and has recently joined the 100-million-user social trading network, TradingView.
  • In 2021, Eightcap enhanced its lineup, now providing an extensive range of cryptocurrency CFDs. It offers crypto/fiat and crypto/crypto pairs, along with crypto indices for comprehensive market exposure.

Cons

  • The demo account is available for 30 days, after which it requires a request for extension. This is less convenient than XM's offering, which provides an unlimited demo mode.
  • Despite a helpful array of educational guides and e-books in Labs, Eightcap lags behind IG's extensive resources for aspiring traders. IG boasts a dedicated Academy app and features 18 diverse course categories.
  • Eightcap must enhance its range of over 800 instruments to rival top competitors like Blackbull Markets, which offers 26,000+ assets, especially improving its limited commodities selection.

Our Take On eToro

"eToro's social trading platform excels with its outstanding user experience and lively community chat, aiding beginners in spotting opportunities. It offers competitive fees on numerous CFDs and real stocks, alongside exceptional rewards for seasoned strategists."

Pros

  • eToro has launched automated crypto staking, offering a pathway to passive income. However, Ethereum requires users to opt in.
  • In 2025, eToro enhanced its trading experience by incorporating insights from over 10 million Stocktwits users, enabling better assessment of market sentiment.
  • eToro is a globally recognised brand, operating under top-tier international regulations. It boasts a community of over 25 million users.

Cons

  • The absence of extra charting platforms such as MT4 may deter experienced traders who rely on external software.
  • The minimum withdrawal is set at $30, accompanied by a $5 fee. This may impact traders with limited funds, particularly those just starting out.
  • There are no assured stop-loss orders, which could be a valuable risk management tool for novice traders.

Our Take On City Index

"City Index suits active traders perfectly, offering rapid execution speeds averaging 20ms and a customisable web platform with over 90 technical indicators. Its educational resources are exceptional. For UK traders interested in spread betting on 8,500+ instruments tax-free, City Index is an excellent option."

Pros

  • City Index offers access to over 13,500 markets, including forex, indices, shares, commodities, bonds, ETFs, and interest rates. The platform's inclusion of niche markets such as interest rates provides traders with unique opportunities not commonly available on other platforms.
  • City Index offers adaptable trading platforms suited to every expertise level. For newcomers, the Web Trader platform is straightforward and user-friendly. For more in-depth analysis and automated features, MetaTrader 4 (MT4) and TradingView are supported, providing a comprehensive trading experience for all traders.
  • City Index has significantly improved the trading experience. In 2024, they introduced Performance Analytics, providing insights into trades and discipline. The revamped mobile app now includes integrated market research and swipe-access news.

Cons

  • Although many brokers, such as eToro, have broadened their crypto offerings, City Index restricts its clients to crypto CFDs. This limited selection may not meet the needs of traders seeking a wider variety of altcoins.
  • Unlike brokers like AvaTrade and BlackBull, City Index lacks options for passive trading, such as social copy trading or real ownership of stocks and ETFs. This limitation may reduce its appeal to traders seeking a more hands-off approach.
  • City Index does not offer an Islamic account with swap-free conditions, making it less attractive to Muslim traders than brokers such as Eightcap and Pepperstone.

What considerations does an ethical investor have?

What we have mentioned above is very broad brush areas of concern, such as health and environment. More specifically, ethical investors might shun the shares of alcoholic beverages companies, or tobacco producers. Perhaps supporting the stocks of arms manufacturers, gambling organisations, mining companies, and the pornographic industry would be anathema to the ethical investor.

There are no hard and fast rules, however, and ethical investors might choose different levels of ethics to abide by, just as some people don’t eat red meat, whilst others don’t eat any meat, and others shun all dairy produce. An investor might pick out the most ethically aware companies in a sector of the economy: perhaps, for example, the mining company with the best environmental sustainability model. Then again, he might select to invest in the most proactive combatants against unethical practices.

Companies that work for sustainable forestry projects, social housing builders, and renewable energy producers, amongst others, are all types of companies that might appeal to an ethical investor.

The increase in ethical investments

Governments are being forced by worldwide initiatives, such as Kyoto, to accept and adopt greener policies. Taxpayers’ money is being pumped into green investments, and this has helped to create widening ethical investment opportunities.

In the United States, the number of ethical mutual funds grew by 45% between 2007 and 2010. During the same time, the number of Exchange Traded Funds dedicated to ethical investments ballooned by over 75%. In the UK, this growth has been even more spectacular: there are now more than 130 ethical funds available to the UK retail investor. According to the Ethical Investment Products Report, total revenues in the sector between 2007 and 2011 were over £1.2 billion, growing at 9.6% per annum. This rate of growth is expected to slow, but still remain above 6.5% per annum through to 2016, and that is way above the growth expected in more ‘traditional’ sectors.

How ethical are you?

How has your attitude to life, health, and environmental issues changed over the years? Have you stopped smoking, or drinking? Do you buy organic foods, or shun meat? Do you refuse to shop at stores which use cheap foreign labour to produce the goods they sell? Are you more energy conscious now: perhaps you use energy saving light bulbs?

Answering these types of questions will help you assess your ethical attitude to investing. For example, if you don’t smoke, why would you want to own shares in a tobacco manufacturing company? Decisions might be for the long term, or perhaps more short term.

Use a wider approach

As the world pushes toward a greener and more ethical stance, so, too, are existing companies. For this reason, many ethical investors will invest in what at first would appear to be no go areas, on the basis of the progress those companies are making toward greater sustainability.

Investors can take a domestic or global view, and FTSE produces a range of indices based upon ethical approach to business, including carbon strategy companies, and an environmental markets index. The companies that form the constituents of these indices are the most ethical in their field, taking into account areas such as global warming policies, staff diversity, community involvement and vision, and corporate practices.

Selecting the shares of investments within these indices will produce a selection of the most ethically minded companies within their relevant business sector. Of course, a google search for ethical funds will produce a plethora of information to help the ethical fund investor in his decision making.

The advantages and accessibility of ethical investing

Should you decide upon a more ethical approach to investing, you may set upon a course of negative screening – removing the ‘sin stocks’ from your portfolio – or positive principles – investing in socially responsible companies. There are a large number of companies that fit both approaches, and in keeping with your lifestyle.

A growing number of investors choose to invest ethically, and this number is likely to continue to grow, further boosting the market and demand for such stocks.

Laws are being updated on an almost daily basis that impact on companies, ethical or not. Advertising for tobacco and alcohol companies is further restricted, or penalties on companies that emit too much carbon are introduced.

There is no need to believe that investment opportunities are restricted because of socially conscious thinking. Companies that fit the bill for investors with a green or socially responsible approach are growing in number, and for those investors that either do not have the time to commit to research or don’t feel confident in doing so, there are growing numbers of funds that invest with an ethical approach.