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 think about what's important to you based on your personal and financial goals and then select a trading app that is most suited to your needs.
You may also want to think about the variety of trades you'd be able to 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 which reveal that the majority of retail investors lose money when they attempt 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.
| eToro | Freetrade* | Plus500 | Trading 212 | IG | |
| FCA Regulated | YES | YES | YES | YES | YES |
| FSCS Protected | YES | YES | YES | YES | YES |
| Minimum Deposit | $100 initial deposit, $10 thereafter | £0 | $100 | £1 | £500 to start investing (£50 by bank transfer) |
| Currency Conversion fees | 0.75% for GBP/EUR account | 0.39% to 0.99% | Up to 0.70% | 0.15% | Best available rate + 0.50% |
| Withdrawal fees | $5 for USD accounts
£0 for GBP and EUR accounts |
£0 | £0 | £0 | £0 |
| Inactivity fees | $10 per month (after 1 year of inactivity) | £0 | $10 per month (after 3 months of inactivity) | £0 | £0 |
| Welcome bonus | N/A | N/A | N/A | N/A | N/A |
| Stocks and Shares ISA? | YES (via Moneyfarm) | YES | NO | YES | YES |
| Mobile App | YES | YES | YES | YES | YES |
| CFD trading | YES | NO | YES | YES | YES |
| FOREX trading | YES | NO | YES | YES | YES |
| Trustpilot score | 4.2 | 3.9 | 4.1 | 4.6 | 3.6 |
| Visit Site | Website | Website | Website | Website | Website |
| Read review | Review | Review | Review | Review | Review |
Compare the best trading apps for beginners
Below, we compare the best trading apps for beginners in the UK.
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
- $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 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 only available via a paid plan (from £5.99)
- No withdrawal fee
- No inactivity fee
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
- No desktop version
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
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
- 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
Trading 212 cons
- No phone support
- Charges currency conversion fees
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
- £8 per trade for UK shares (0-2) shares, or £3 per trade for UK shares (3+ trades in the previous month)
- Commission-free trading on US shares if you make more than three trades per month (otherwise £10 per trade)
- 0.5% FX fee on top of best available rate
- £24 custody fee for those who don't make at least three trades per quarter (or have £15,000 invested in IG Smart Portfolio)
- 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
IG cons
- No interest paid on uninvested cash
- Lower fees are only available to those who make several trades
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
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