How to open a share-dealing account

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All investing should be regarded as longer term. The value of your investments can go up and down, and you may get back less than you invest. Capital is at risk.

Online share dealing allows you to buy and sell shares in publicly listed companies from your phone, laptop or tablet. Where previously you needed a broker in order to access markets, these days investors trade directly by opening a share-dealing account with an online share-trading platform.

This guide allows you to easily compare online share-trading accounts, and takes you through the steps involved when choosing a platform.

Compare the UK’s leading trading platforms

• Share dealing platforms
• Stocks and shares ISAs
• Pensions (SIPPs)

All investing should be regarded as longer term. The value of your investments can go up and down, and you may get back less than you invest. Capital is at risk.

Or use a stocks and shares ISA

A stocks and shares ISA can be another good option for investors. Legal & General’s award-winning stocks and shares ISA let’s you choose from three investment options. You can let them do it for you, use index-tracking funds to build your own portfolio, or pick your own funds.

Why trade shares online?

Trading shares online offers a secure and easy way to manage your investments. You can place trades at a time and place convenient to you, with the obvious benefits of dividend payments and investing for the future.

There are of course risks attached to trading shares, including the possibility of losing money you invest. It’s important to make sure you’re aware of those risks before you start trading.

See the finder.com/uk share trading guide.

How do I choose an online share-dealing platform?

You’ll need to carefully consider what you need before deciding on the right online trading platform. Some of the issues to consider include:

• Your trading knowledge and experience. Some online trading platforms are designed to suit casual investors. Other trading platforms have features geared towards experienced traders, such as advanced charting tools, speedy execution of trades and live market data. These features may come at a cost,
  however, and may not add much value if you are a less experienced trader.
• The markets you can access. Some share-dealing platforms only provide access to companies listed on the London Stock Exchange, while others will also allow you to place trades on international markets. Some trading platforms will also provide access to other trading instruments, for example forex and contracts for difference (CFDs).
• The fees involved. There are two main costs you need to consider when choosing a share trading platform: the brokerage fee and the ongoing fee. The brokerage fee applies each time you place a trade and is usually around £10-£25, but could be higher based on the size of the transaction. Ongoing subscription fees are charged monthly and vary depending on the provider and the account features you select. Before choosing a platform, make sure you understand the fees you’re likely to pay. As Boring Money CEO Holly Mackay told Finder, “transparency has improved a lot and some platforms are actually now quite good at being very clear on what investors will pay.”
• Trading resources. From educational tutorials to research and investment advice, check what tools a platform offers to help you make informed trading decisions.
• Customer service. If you ever have a problem or need help with a trade, check to make sure you will be able to access prompt and helpful customer support.

It’s also worth pointing out that it can be a lot easier to open a share trading account if you’re an existing customer of the same financial institution; for example if you’re a CommBank customer opening a CommSec share trading account. In this case, you won’t have to provide your name, contact information or proof of ID.

Did you have these enquiries about opening a share-dealing account?

• Do I need to be an UK resident to sign up for a share-trading account?

  This depends on the share trading platform you select. Some are only open to UK residents while others accept customers from all over the world.

• Is it free to sign up for a share dealing account?

  Some share dealing platforms don’t charge anything to open an account. However, other platforms that offer in-depth research and dynamic market data often attract monthly fees. Make sure you’re also aware that a brokerage fee will always apply when you place a trade.

• How can I buy shares online in UK?

  Check out our step-by-step guide to buying shares online for all the information you need to get started.

• Can I place trades over the phone?

  Yes, many online share brokers also offer a phone trading service.

• Do I need to open a share trading account to buy shares?

  Not necessarily. You can buy shares in a float (also known as an initial public offering or IPO) by filling out an application form in the prospectus and paying by cheque, while it’s also possible to purchase shares through a managed fund. You may even be able to purchase shares in the company you work for as part of an employee share scheme.

• Do I need to buy shares through a broker?

  Not necessarily. As per the above question, you can also buy shares through an IPO, managed fund or employee share scheme.

• Can I open a joint share trading account?

  Yes, many platforms will allow you to open a joint account.