In this article, we review some of the most popular share-dealing apps on the market comparing the pros and cons of each. We reveal the features and costs of the best trading apps for beginners in the UK which include Freetrade*, eToro and Trading 212.
How to pick the best trading app
There are several considerations when choosing the best trading app for you. We highlight these questions in our review of the best trading apps for beginners below. However, they're worth thinking about if you're considering an alternative as well.
- How user-friendly is the app?
- Is there a minimum investment amount?
- Does it charge a commission on trades?
- Does it charge currency conversion fees?
- Does it charge withdrawal fees?
- Can you invest tax-efficiently through an Individual Savings Account (ISA)
- Is your money protected by the Financial Services Compensation Scheme (FSCS)?
- Are there any other benefits such as a welcome bonus?
Not every trading app will have all of these features and you might decide that not all are as important to you. It's a good idea to consider what's important to you based on your personal and financial goals, and then select a trading app that best suits your needs.
You may also want to consider the variety of trades you can make with your trading app, and in particular, whether it covers FOREX and CFDs. We cover these in a little more detail below.
Can you trade FOREX and CFD's?
Trading FOREX and CFDs is considered risky. Trading platforms often post statistics that reveal the majority of retail investors lose money when attempting to trade CFDs.
FOREX stands for "the foreign exchange market" and FOREX trading is a way to trade fiat currencies against each other. You convert one currency for another and the idea is that you make a profit from the changes in exchange rates.
CFD stands for "contract for difference" and it allows investors to make speculative trades based on the price movement of various assets. CFDs can yield high returns but they can be volatile and riskier than other types of investments. They're also a more complex way of investing and may not be suited to complete beginners. Not every trading platform offers CFDs, so if this is of interest, you'll need to find one that does.
FOREX and CFD trading might not be the best idea if you're a beginner trader, but many trading platforms do offer that option if it is of interest.
Trading apps for beginners - Features and fees comparison table
Below, we provide a table comparing the best trading apps for beginners, explaining the fees as well as the pros and cons of each.
| IG* | Trading 212 | eToro | Freetrade* | Lightyear* | XTB* | Plus500 | |
| FCA Regulated | YES | YES | YES | YES | YES | YES | YES |
| FSCS Protected | YES | YES | YES | YES | YES | YES | YES |
| Minimum Deposit | £0 | £1 | $50 initial deposit, $10 thereafter | £0 | £0 | £0 | $100 |
| Currency Conversion fees | Best available rate + 0.70% | 0.15% | From 0.75% for GBP/EUR account | 0.39% to 0.99% | 0.35% | 0.5% | Up to 0.70% |
| Withdrawal fees | £0 | £0 | $5 for USD accounts
£0 for GBP and EUR accounts |
£0 | £0 | No fees for withdrawals above £50 | £0 |
| Inactivity fees | £0 | £0 | $10 per month (after 1 year of inactivity) | £0 | £0 | EUR 10 per month after 12 months of inactivity and no cash deposit within 90 days | $10 per month (after 3 months of inactivity) |
| Stocks and Shares ISA? | YES | YES | YES (via Moneyfarm) | YES | YES | YES | NO |
| Mobile App | YES | YES | YES | YES | YES | YES | YES |
| CFD trading | YES | YES | YES | NO | NO | YES | YES |
| FOREX trading | YES | YES | YES | NO | NO | YES | YES |
| Trustpilot score | 3.9 | 4.6 | 4.2 | 4.3 | 4.7 | 3.5 | 4.2 |
| Read review | Review | Review | Review | Review | Review | Review | Review |
 Partner Spotlight |
Partner Spotlight Disclosure: Products featuring the "Partner Spotlight" visual are commercial placements purchased by a partner and are clearly highlighted as such. The inclusion of a listing in our best buy table is determined solely by our independent editorial criteria and is based on product merit.
Compare the best trading apps for beginners
Below, we compare the best trading apps for beginners in the UK.
IG
IG is an online investment platform which has been around since 1974. It has a range of features that will appeal to novice investors and advanced traders alike. With IG, customers have access to more than 17,000 markets and can trade complex instruments like CFDs. That being said, it's also a good option for beginner investors with free online courses and webinars, as well as a demo account to help you learn the basics of CFD trading.
IG fees
- £0 commission on all shares and ETFs
- 0.7% FX fee on top of best available rate
- £0 custody fee if you make at least 3 trades in the previous quarter (otherwise, £24 per quarter)
- No withdrawal fees
- No inactivity fees
IG pros
- Access to a free demo account with $10,000 in virtual funds to help practice CFD trading
- IG Smart Portfolios (ready-made portfolios) for those new to investing
- Pays 4% AER variable on uninvested cash (Terms apply)
IG cons
- 0.70% FX charge (higher than some competitors)
Trading 212 - Good for video guides and tutorials
Trading 212 was launched in the UK in 2016 and was among the first of a new wave of share trading apps to offer zero-commission trading. The app provides several video guides and tutorials helping beginner investors to understand the process of buying and selling shares, as well as the riskier types of investments such as CFD and Forex trading. The app also has a demo trading account that allows investors to make dummy trades.
Trading 212 fees
- 0% commission on share trading. Other fees may apply. See terms and fees
- 0.15% currency conversion fee (for the Invest and ISA accounts)
- 0.5% currency conversion fee for the CFD account
- 0.70% deposit fee once you deposit more than £2,000 (Does not apply to bank transfers)
- No withdrawal fees
- No inactivity fees
Trading 212 pros
- Useful video guides
- User-friendly app
- Commission-free trades. Other fees may apply. See terms and fees
Trading 212 cons
- No phone support
- Charges currency conversion fees
eToro - Good for social trading
eToro was founded in Israel in 2007 and has over 30 million users worldwide. Its 'social trading' feature allows investors to copy the trades of other successful traders in real time. While it is this feature that makes it particularly attractive to beginner investors, potential investors should keep in mind eToro's high inactivity and withdrawal fees.
eToro fees
- 0% commission on share trading
- 0.75% for the eToro GBP/EUR account
- $5 withdrawal fee for USD accounts
- $10 per month inactivity fee after 12 months of inactivity
- Overnight funding fees apply and vary depending on your holding.
eToro pros
- Excellent social trading feature
- Easy sign-up process
- Advanced research tools
eToro cons
- High minimum deposit for bank transfer ($500)
- $5 withdrawal fee charged on every withdrawal for USD accounts
- $10 inactivity fee charged on inactive months after 1 year
Freetrade - Good for commission-free trading
Freetrade was founded in the UK in 2018 and provides commission-free trading on thousands of US and UK stocks. Investors can choose to invest via a General Investment Account (GIA), Individual Savings Account (ISA) or Self Invested Personal Pension (SIPP). Freetrade offers a 'Freetrade Plus' account that provides access to additional stocks, priority customer service and 3.5% interest on cash holdings (up to £3,000). Freetrade does not offer CFD or FOREX trading as it doesn't believe in the model of encouraging investors to make the switch to high-risk, speculative products.
Freetrade fees
- 0% commission on share trading
- 0.39% to 0.99% FX fee depending on subscription plan
- ISA & SIPP is now available via the free Basic plan (Previously only available via the paid 'Standard' or 'Plus' plans costing £5.99 or £9.99 per month)
- No withdrawal fees
- No inactivity fees
Freetrade pros
- Free share worth up to £100 when you join*
- Helpful online community
- Simple sign-up process
Freetrade cons
- Limited research tools & tutorials
- No CFDs
Lightyear - Good for cheap trading with no monthly fees
Lightyear launched in September 2021 and boasts a clean interface with low, transparent fees. It's a great option for investors looking to trade US, UK, and EU stocks as well as ETFs. The app also comes with tax wrappers like Cash ISAs and a flexible Stocks and Shares ISA. Investors can earn interest on their uninvested funds or opt to place their cash in a Money Market Fund as well.
Lightyear fees
- 0.1% to trade US shares (min $0.10 per order or max $1)
- £1 or EUR 1 to trade UK/US shares
- Free to trade ETFGs (though fund manager fees apply)
- 0.25% for USD Money Market Funds
- 0.35% FX fees
Lightyear pros
- Fractional shares
- ISAs for those looking for tax wrappers
- No monthly fees
Lightyear cons
- Higher interest on cash only via MMFs where your capital is at risk
- Not all shares are available as fractional shares
- Limited in terms of the assets on offer (only shares or ETFs)
XTB - Good for trading a variety of assets
XTB is an online investment platform that originated in Poland in 2004. It has since amasses more than one million customers and operated in several countries around the world. It also offers the option to invest in more than 5,800 financial instruments including Stocks and ETFs as well as CFDs. CFDs are considered high risk instruments and around 72% of investors lose money when they trade CFDs with XTB. The platform recently launched an ISA which will appeal to customers based in the UK looking for a tax wrapper.
XTB fees
- 0.5% FX fee
- 0.3 minimum spread (CFD)
- Inactivity fee of 10 EUR per month after 12 months of inactivity
- Stocks and ETFs are free for a trading volume of up to EUR 100,000 per month but a 0.2% (min £10) fee applies after that
XTB pros
- Free ISA with interest on uninvested cash
- Low or no commission fees on most trades
- A wide range of assets to suit most traders
XTB cons
- Inactivity fees after 12 months
- FX fees on the higher side
- Withdrawal fees apply for withdrawals under £50
Plus500 - Good for trading forex and CFDs
Plus500 was founded in Israel in 2008 and is used by approximately 280,000 users worldwide. It specialises in Contracts for Difference (CFD), a type of investment that is considered high-risk and isn't suited to all investors, especially beginners. New users can take advantage of Plus500's demo account where users are given a virtual balance where they can place dummy trades. This can provide a valuable way of understanding how share trading works without having to take any risk.
Plus500 fees
- 0% commission on share trading
- Up to 0.70% currency conversion fee
- No withdrawal fee
- $10 per month inactivity fee after 3 months of inactivity
- Overnight funding fees apply and vary depending on your holding. These can get expensive
Plus500 pros
- Useful demo account
- Plus500 Trading Academy with tutorials and an e-book
- Good for CFDs and FOREX
- Can trade on mobile and desktop
Plus500 cons
- Overnight funding fees can be expensive
- Inactivity fees of $10 per month apply after 3 months of inactivity
- Limited customer support
Summary
Some of the best trading apps for beginners include eToro, Freetrade, Plus500, Trading 212 and IG. These apps come with a range of learning resources and demo accounts to help beginner traders get to grips with trading complex instruments and other assets. In addition, they offer low or no commission fees which can be attractive to beginners. Many of them have excellent review scores on Trustpilot indicating customer satisfaction.
It is worth remembering that the value of shares can go down as well as up so it is wise to do your research. Comparing the best trading apps is a sensible first step but make sure that you do some further research into the process of buying and selling shares as markets can be volatile. Around 70% of people who trade complex instruments such as CFDs lose money, a fact that is made clear on the website of every leading platform. Always act with caution and consider the alternatives.
Further reading
We have provided some further reading below:
A beginners guide to investing
How to buy shares for beginners
Best and cheapest investment ISAs for beginners
When investing, your capital is at risk and you may get back less than invested. Past performance doesn’t guarantee future results. Do your own research.
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