Best ETF Brokers in the UK for January 2025

Exchange-traded funds (ETFs), investment vehicles that contain a diversified portfolio of stocks, bonds, or a combination of both, have surged in popularity in recent years. The top UK brokers have caught on and offer a vast array of ETFs.

Unlike mutual funds, ETFs trade on stock exchanges, offering greater flexibility and mostly lower fees. The total value of ETFs traded on the London Stock Exchange was £1.27 trillion in November 2024, 36% higher than a year earlier, according to a report by data analytics firm LSEG Lipper.

There are ETFs catering to every investment style, risk profile or goal: tech-focused, cautious, sustainable, you name it. UK investors are increasingly aware of their benefits, such as diversification, low fees, and tax efficiency. In this guide, we’re ranking the eight best ETF brokers in the UK.

These top UK ETF trading platforms compared

In the table below, we have compared the best UK ETF trading platforms by the costs of buying shares of the SPDR S&P 500 ETF Trust (SPY) by State Street Global Advisors, the world’s oldest and most popular ETF, which has more than $400 billion in investments.

Broker	FCA regulated	Demo trading	Social trading	Minimum deposit	Commission for investing in SPY
eToro	Yes	Yes	Yes	Equivalent of $100	None
XTB	Yes	Yes	Yes	None	None on monthly trading below £100,000
FP Markets	No	Yes	Yes	Equivalent of AUD $100	Commission of $0.02 per share
Pepperstone	Yes	Yes	Yes	None	Commission of $0.02 per share
Admirals Markets	Yes	Yes	Yes	Equivalent of $100	No commission, but typical spread of 0.06%
Trading 212	Yes	Yes	Yes	Invest account £1, CFD account £10	None
AJ Bell	Yes	Yes	No	None	Between £3.50 and £5 per trade
Interactive Investor	Yes	No	Yes	None	£3.99 per trade, though it has more than 150 comission-free ETFs

Reviewing the best ETF brokers in the UK

Let’s take a closer look at the features of these ETF trading platforms, to assess their advantages and disadvantages.

1. eToro: Simple-to-use ETF broker offering demo and social trading

• Number of ETFs: More than 300
• Min. deposit: Equivalent of $100 in the UK

With more than 35.5 million users, eToro is a popular social trading platform that caters to both novice and experienced investors. Its unique social trading features allow users to follow and copy the trades of successful traders, offering a hands-off approach to investing.

eToro, founded in 2007, offers a wide range of investment instruments, including ETFs and stocks for direct ownership. It also offers CFD trading on both and many more instruments, like forex, indices, commodities and cryptocurrencies. This means that traders don’t directly own the underlying assets, but rather speculate on their price movements. 

The platform has quite a few positives for those attempting to trade ETFs. It doesn’t charge commission to open or close ETF positions, though there will likely be charges from the fund company. For example, to buy SPY, the ongoing charges are around 0.095% per year.

Another edge that eToro has is a demo account, allowing newbie investors to get their feet wet, whether they plan to invest in ETFs or any of the company’s other instruments. 

eToro also offers investors the ability to own fractional shares of ETFs (or stocks, for that matter) for as little as $10. That means a lower barrier for many younger investors.

2. XTB: Choice of real ETF investing and CFD ETF trading

• Number of ETFs: More than 350
• Min. deposit: None

XTB offers both CFD and non-CFD trading in ETFs and allows investors to buy more than 350 ETFs with 0% commission when they are investing up to €100,000 in a calendar year. After that, there’s a 0.2% commission, with a minimum of £10, not counting a currency conversion fee of 0.5%.

Traders give its trading platform high marks for being user-friendly with tools such as real-time quotes, charts and technical analysis indicators. XTB doesn’t require a minimum deposit, so it’s a good broker for some novice investors.

It also offers leverage on trades, which can amplify traders’ profits and losses. A big plus is that it allows traders to invest in ETFs through fractional trading, lowering the barrier for entry for retail investors.

What’s more, XTB pays interest on uninvested funds in your account and in the UK, the rate is 4.75%, which is paid out monthly within five days of the following month. One downside is the broker charges an inactivity fee of €10 monthly after a year of account inactivity.

3. FP Markets: Offers diverse ways to invest in and trade ETFs

• Number of ETFs: More than 1,300 to buy directly, and 290 ETF CFDs
• Min. deposit: Equivalent of AUD $100

FP Markets stands out as a premier online brokerage, offering a diverse suite of account types to accommodate various trading styles. This platform provides access to a wide array of markets, encompassing forex, stocks, ETFs, indices, commodities, and cryptocurrencies. 

The broker’s emphasis on raw spreads and customizable trading environments has made it a favoured choice for novice and seasoned traders alike.

While FP Markets specialises in CFD trading, it also facilitates direct ETF purchases through the IRESS trading platform (though that requires a minimum deposit of $1,000). With FP Markets’ Direct Market Access (DMA) accounts, traders can access more than 10,000 stocks and more than 1,300 ETFs directly from the stock exchange.

FP Markets also offers 290 ETF CFDs on the MT4, MT5, cTrader, and TradingView platforms. These platforms provide commission-free trading and highly competitive spreads. The ability to own an underlying instrument or just trade its price when it comes to ETF helps set FP Markets apart from its competitors.

4. Pepperstone: Good for experienced CFD traders; ETFs with leverage

• Number of ETFs: More than 100
• Min. deposit: None, though the broker recommends a deposit of at least $200.

Pepperstone is a reputable online broker that specialises in CFD trading. It offers a wide range of assets, including ETFs, as well as forex, commodities, shares and indices. The platform is particularly popular among active traders due to its competitive spreads, fast execution speeds, and advanced trading tools. 

On Pepperstone, when trading CFDs, you’re not buying or selling shares of an ETF on a specific exchange. Instead, you’re speculating on the price movement of the underlying ETF.

CFDs allow you to both buy (go long) and sell (go short) without owning the actual ETF shares. If you anticipate a decline in a particular market sector or region, you can short an ETF CFD, just as you would buy one if you expect it to rise in value.

ETF CFDs also offer leverage, a loan from your broker, enabling you to trade with a smaller initial investment compared to traditional investing. This can amplify potential profits but also losses. For this reason, it’s important to remember that CFD trading, because of the high level of risk involved, isn’t for all investors.

While Pepperstone has copy trading and demo accounts, the demo accounts are only free for one month, which is a limited time to learn trading the markets. 

5. Admiral Markets: Wide choice of ETF offerings for direct investment as CFDs

• Number of ETFs: More than 370 ETFs on CFD trading, including more than 200 ETFs on real trading
• Min. deposit: Equivalent of $100

Admiral Markets offers an above-average amount of ETFs to trade, including many popular US and UK ETFs. It emphasizes CFD trading, but it does offer more than 200 real ETFs to trade, meaning you own the underlying asset. It also allows fractional trading on ETFs, making it easier to start with investing with a lower initial outlay.

The platform is regulated by various agencies, including the FCA in the UK. One of the best things about Admiral Markets is its array of educational resources, including a glossary of financial terms, 46 articles alone on ETF trading, plus video tutorials. Admiral Markets has been around for 13 years in the UK, so it is well-established. It also supports MetaTrader 4 and 5 platforms, complete with advanced charting, technical analysis tools, and automated trading options.

Some of the other advantages of trading ETFs on Admiral Markets is it charges no commissions on ETF trades, it offers a demo account with $10,000 in virtual funds  that allows investors to try out ETF trades with no risk and it has copy trading. The platform is known for dependable customer service through the phone, email or by live chat.

Some of the negatives for Admiral Markets is an inactivity fee of €10 that kicks in after 24 months of inactivity and a demo account that has only $10,000 in virtual funds and lasts only a month unless you sign up for a live account.

6. Trading 212: ETF broker with plenty of ETF options, trading features

• Number of ETFs: More than 1,800
• Min. deposit: Invest account £1, CFD account £10

Trading 212, which has more than 3 million users, is a user-friendly online trading platform that offers a wide range of investment products, including stocks, ETFs, and other financial instruments and requires only a minimum deposit of £1.

One of its unique features is the ability to earn interest on uninvested funds, which can be a valuable benefit for investors. In the UK, the interest rate is 4.9% AER.

Additionally, Trading 212 offers ready-made investment pies, which can be a convenient way to diversify a portfolio. It also has share lending, allowing you to earn interest on your portfolio by essentially lending out your shares.

The platform offers commission-free purchases of its more than 1,800 ETFs. However, if you buy a non-UK ETF, you’ll end up paying a 0.15% currency conversion fee.

It has an Invest Account for commission-free trading, but it also offers a CFD account. It also offers fractional trading, allowing investors to start investing for as little as £1 and there’s a feature it calls “AutoInvest,” where you can build a diversified portfolio and customise it to fit your needs.

7. AJ Bell: Diverse range of ETFs for buy-and-hold investors

• Number of ETFs: More than 3,700
• Min. deposit: None

AJ Bell is a well-established UK-based investment platform that offers ETFs alongside a wide range of other investment products, including shares, funds, investment trusts, bonds and gilts. However, it doesn’t offer forex trading, or CFD trading. 

The platform is known for its user-friendly interface, competitive fees, and comprehensive research tools. AJ Bell offers access to a diverse range of ETFs from leading providers, making it a popular choice for investors looking to diversify their portfolios.

The biggest concern about AJ Bell is its fees. Its management fees are 0.25%, which can add up. On top of that its trading fees for shares and ETFs start at £5 a trade, though they drop down to £3.50 per trade if you had 10 or more trades in the prior month.

Its simplified Dodl account has lower management charges at $0.15, no commissions on trades and pays interest of 5.09% AER on uninvested funds in your account. However, its investment selections are more limited.

The platform puts an emphasis on ETFs, including a list of AJ Bell favourite funds and a screener that can be used to sort its ETFs, which is important because it offers more than 3,700 ETFs in the AJ Bell Dealing account.

8. Interactive Investor: ETF broker best for investors with larger portfolios

• Number of ETFs: More than 1,000
• Min. deposit: None

Interactive Investor is a UK-based investment platform that offers a wide range of investment products, including ETFs. The platform provides a variety of account options, including ISAs and SIPPs, and offers competitive fees. The platform is known for its user-friendly interface, competitive fees, and comprehensive research tools. 

AJ Bell offers access to a diverse range of ETFs from leading providers, making it a popular choice for investors looking to diversify their portfolios. It offers more than 40,000 investment options, including more than 1,000 ETFs. To simplify investing, it also provides a Super 60 investments list of its top ETFs and a Top 50 Fund Index.

Interactive doesn’t charge a monthly management fee that’s percentage based, but one with a flat fee, so that’s a good thing for investors with larger portfolios. 

Its monthly charges begin at £4.99 with its Investor Essentials plan with US and UK trades costing £3.99. However, if your investments grow beyond £50,000, you will pay £11.99 a month in the Investor plan, which includes one free trade a month with additional trades costing £3.99. Its Super Investor plan, at £19.99 a month, delivers four free trades a month with each trade beyond that costing £3.99. However, it has more than 150 commission-free ETFs.

How to choose an ETF broker

When selecting an ETF broker, consider factors like commission and other trading costs, and the specific ETFs they offer. Some brokers allow direct ETF ownership, while others offer them as CFDs to trade. Sign up with one that aligns with your investment goals. 

You may consider other factors, such as the quality of the trading platform and tools; customer service; and security and reliability.

Fees and costs: Look for platforms with low or no trading commissions, consider the expense ratio of the ETFs offered and be aware of any additional fees, such as account maintenance fees or inactivity fees.

ETF selection: The best platforms offer a wide number and a variety of ETFs, covering different asset classes, regions, and investment strategies.  

Trading platform and tools: The platform should be easy to navigate, with clear and intuitive tools as well as providing access to reliable research and analysis tools that can help you make informed investment decisions. 

Customer service: The platform should provide timely and helpful customer service, with easy access to customer support through various channels, such as phone, email and chat.

Security and reliability: ETF platforms should have strong encryption and two-factor authentication and should be regulated by the FCA.

ETF Trading Fees

While ETFs are typically more cost-efficient than mutual fund investing or buying individual stocks, there are a number of different costs involved that investors need to be aware of because these will eat into their returns.

Expense Ratio: 

Otherwise known as the operating expense ratio (OER), this is the fee incurred while holding the ETF. This is the annual fee charged by the fund company to cover operating costs like management, administrative, custodial, distribution and marketing expenses.

It’s expressed as a percentage of the ETF’s assets under management (AUM). The lowest expense ratios are below 0.10%, however, fees topping 10% are not unheard of. Lower expense ratios generally result in higher long-term returns.

Brokerage Fee (Commission):

Other fees are associated with trading the ETFs. Brokerage fees are incurred when buying or selling ETFs through a brokerage firm. While these days many brokers brokers offer commission-free trading on certain ETFs, other charge a fee for each trade. Commissions vary greatly, between 0% and 20%, depending on the trading platform.

Bid-Ask Spread:

This is the difference between the highest price a buyer is willing to pay (bid price) and the lowest price a seller is willing to accept (ask price). This cost is typically between 0.1% and 0.25%. and it occurs during a purchase or sale transaction. This is how market makers are compensated. A wider spread can drive up the overall cost of buying or selling an ETF. 

Implicit Costs:

There are less obvious costs that are charged to the fund and impact the ETF’s overall performance. These include transaction costs incurred by the fund manager when adjusting the composition of the ETF, for instance, to better replicate the performance of the benchmark. The frequency of changes made to the portfolio is expressed as a ratio called portfolio turnover and it’s reported by the issuer of the ETF. 

How to start trading ETFs in the UK: An 5-step guide

If you decided to get in on the trend and start investing in ETFs, follow the steps we’ve outlined below. We’re using eToro as an example to walk you through the process.

Step 1: Open an Account

To invest in ETFs, you’ll first need to choose a broker that offers ETFs, such as eToro. 

To open an account with eToro, you’ll need to provide some personal information, such as a phone number and email address, and verify your identity. To do this, upload a passport or driver’s license, plus a proof of address (e.g.: a recent utility bill or bank statement).

Step 2: Fund Your Account

Make a first deposit of $100  after opening your account. After the first deposit, the minimum deposit requirement is just $10. This is the minimum amount that you’ll need to invest in a fractional share.

Payment options include debit/credit cards, wire transfer, and e-wallets, including Skrill, PayPal, and Neteller.

Step 3: Search ETFs for Your Needs

Once your account is funded, you can start researching ETFs. First and foremost, consider your investment goals, risk tolerance, the ETF’s expense ratio and its underlying assets.

Educate yourself about the how best to choose a suitable ETF. eToro, for instance, offers you explainers and informational about ETFs and the investment process. 

Some brokers offer ETF screener tools to help you find suitable options. Here’s eToro’s:

When selecting ETFs, consider factors like diversification, social and environmental impact, dividend policy, and potential tax implications. 

Step 4: Purchase Your ETFs

Once you’ve picked your ETF, select it for buying and enter the amount of money you’d like to invest in it. Remember that you can invest in ETFs outright and trade ETF CFDs with many brokers, including eToro.

When placing orders, you can choose between market orders, limit orders, and stop orders. Market orders execute at the best available price, limit orders set a maximum purchase price, and stop orders trigger a sale if the price reaches a certain level. 

With eToro, you can invest in a fractional share of any ETF for as little as $10. Once you’ve entered the amount, click “Buy.” 

Step 5: Monitor and Rebalance

After investing, regularly monitor your ETF performance, rebalance your portfolio as needed. Make sure you stay informed about tax implications, costs, and, last but not least, market conditions.

FAQs on UK ETF brokers