Compare our Top-Rated Trading Apps in the UK

What is a trading app?

A trading app conveniently allows traders and investors to place trades and manage their accounts all from their own phone or tablet. Many trading apps also boast other features, such as news feeds, real-time quotes, and charting tools.

How do stock trading apps work in the UK?

In the past, if you wanted to invest in the stock market you would have to approach a recognised stockbroker. The range of products to invest in was limited and you’d pay a lot of money for the privilege.

Nowadays, there are a variety of trading platform apps that anyone can use, straight from their phone. You’ll find apps that offer an excess of options – bonds, stocks, even cryptocurrencies – often for no fee or a low fee.

It’s important to note that although trading platform apps can offer a variety of options, The Motley Fool does not promote or encourage high-risk activities including day trading, CFDs, spread betting, cryptocurrencies, and forex.

What is the best trading app for beginners?

When you’re new to the world of trading, you’ll want to choose a trading app with a simple interface, solid customer service, and enough guidance and resources to learn how things work and how to make the most of your investments. However, you may also seek to use alternative tools for guidance and resources to learn to make the most of your investments. Our top-rated trading platforms for beginners is another good place to start.

Beginners will also want to choose an app with low commissions and fees and that offers a wide range of stocks and other investments.

What is the best trading app for experienced investors?

For experienced investors, look for an app that has a wide range of trading tool sand detailed research. Some apps even offer advanced types of investments, such as options and future contracts, that are more popular with experienced traders.

Fees for stock trading apps

One important factor to bear in mind when comparing trading apps are fees. Even low fees can drastically reduce your portfolio’s return, particularly if you’re a frequent trader. Here are the most common types of trading app fees:

• Trade commissions: You’ll pay these fees when you buy or sell securities, such as stocks, ETFs, or options. In many trading apps, these fees can be very low — between £4.99 to £9.99 per trade.
• Management fees: Some trading apps will charge a small fee for the maintenance of your account. Usually this is calculated based on a percentage of your portfolio.
• Transfer fees: Some brokers charge a fee if you want to transfer your stocks to a different trading app.
• Inactivity fees: Some apps will charge you an “inactivity fee” if you don’t carry out a minimum number of trades within a specific timeframe. For example, you may need to make at least five trades within 12 months, or you’ll be charged £50.
• Platform fees: Some brokers charge a flat monthly or annual fee for using the trading app.

Advantages of using an investing app to trade stocks

Investing apps can be easier and more convenient than more traditional trading methods. Since they entered the personal finance world, people from all backgrounds are trying their hands at investing.

Here are the advantages of using an investing app to trade stocks:

• Cost-effectiveness: Compared to using a stockbroker, trading stocks through an investment app is inexpensive.
• Convenience: With a trading app, opening an account is easy and hassle-free. With just a device and internet connection, you can monitor your investments 24/7. You can also carry out trading activities wherever you are, even while travelling.
• All in one place: Most trading apps use just one interface to display all your investments and their performance. You can also buy and sell shares whenever is convenient, all the while keeping an eye on your profits and losses.
• Faster transactions: Buying and selling shares on a trading app is very quick, as are transaction payments and collections. Trading apps offer a variety of payment methods that enable rapid fund transfers.
• Greater control: With a trading app, you have no need for a broker, meaning you can maintain overall control of all your trading activities and decisions.
• Better understanding: Trading apps offer a window into the world of investing. Making all of your decisions alone, and acting on them, will allow you to gain an understanding much more quickly than through a third party.

Disadvantages of using an investing app to trade stocks

With any advantage comes disadvantages as well. Here are a few for trading apps:

• Risk: Perhaps the biggest disadvantage to trading online is the associated risk. Trading can be highly profitable but can bring unexpected glitches and you can lose money quickly if you’re not on top of things.
• Mistakes can happen: Online trading requires high level concentration and caution. Just one mistake may lead to a big loss. Only trade once you have learned the basics about the world of investing and are feeling awake and in control.

Who is a trading app right for?

Trading apps are right for anyone who would like to participate in short-term trading. Whether you’re an experienced investor or are just dipping your toe in the world of trading, you can most likely find an app that fits your needs.

But it’s important to remember that the value of your investments can go down as well as up, and you may not get back all the money you put in. All investments carry a varying degree of risk and it’s important you understand the nature of these (including any potential currency related or overseas listed) risks.

That said, if you’re looking for long-term investments or prefer to take a more hands-off approach, you may be better served with a traditional online broker. If that’s you, check out our top-rated brokerages in the UK to help you find a better suited investment platform.

How to choose the best stock trading app for you

As with so many personal finance decisions, there’s no best stocks trading app that is right for everyone. Your decision will largely depend on your personal needs and what you want from the app.

Charges is perhaps the most obvious consideration to bear in mind, but there are several other factors to think about to get the best trading app experience for you. These include:

• How user-friendly and intuitive do you find the app?
• What investments are you looking to trade? Shares, funds, or more high-level investments?
• If you’re a beginner, does the app offer the opportunity to practice trading before starting for real?
• Does the app charge other admin fees?
• Does your app have a minimum investment requirement?
• Is the app provider regulated by the Financial Conduct Authority (FCA)?
• Does the app offer any extra rewards/benefits?
• What analytical and research tools does the app provide?

Investment platform alternatives

Continue comparing investing options with any of our other top-rated investment platforms:

• Compare top-rated share dealing accounts
• Compare top-rated stocks and shares ISAs
• Compare robo-advisors

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