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How to open a share dealing account
How to choose the best share dealing account for your needs and start investing in UK and international markets.
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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 dealing accounts, and takes you through the steps involved when choosing a platform.
Compare the UK’s leading share dealing platforms
Updated August 25th, 2019
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 your trading needs before deciding on the right online share trading platform. Some of the issues to consider include:
- Your trading knowledge and experience. Some online share 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.
- 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.
How to open a share trading account
The exact process for opening a share trading account varies depending on the trading platform you select. However, you’ll generally need to complete the following steps when signing up:
- Choose your broker. Research a range of options to find the online stockbroking provider that offers all the features you want at an affordable price. Some providers also offer a choice of share trading platforms, for example a free web-based platform for casual investors and a more complicated software package with a monthly subscription fee for experienced traders.
- Choose your membership level. Some providers offer a choice of membership tiers, each with a different level of features and a different ongoing fee. For example, you may need to choose between a Bronze, Silver or Gold trading account.
- Provide your details. You’ll need to provide your full name and a valid form of photo ID, as well as your email address, phone number.
- Link your bank account. You’ll need to supply details of the bank account which will be used to finance your trades and you may be required to deposit a minimum amount. Some share dealing platforms will also require you to open a cash management account with a specific financial institution before you can start trading.
- Submit your application. Your application to open a share trading account will usually be processed within 1-2 business days.
- Start trading. Once your application has been approved you can login to your account and start trading.
Did you have these enquiries about opening a share dealing account?
Ask an Expert
If I want to invest with a broker that is not from my bank, can I do it from my bank account or I would have to transfer my money? How could he get access to my account?
Hi Lucas,
Thanks for getting in touch with Finder. I hope all is well with you. :)
Yes, it is possible that you use your own bank account to invest with a broker that is not from your existing bank. However, this would depend on the broker that you choose. For this reason, it would be a good idea to directly as your broker and check your available options.
I hope this helps. Should you have further questions, please don’t hesitate to reach us out again.
Have a wonderful day!
Cheers,
Joshua