What is itbest execution only broker? If you are confident enough to run your own trades without the advice or help of a third party, finding a top execution-only broker should be a top priority.
In this guide, we cover everything you need to know about execution-only brokers to help you gain access to the markets with the lowest fees and commissions.
List of the best execution only brokers in the UK
- eToro– Best overall execution only broker UK with 0% commission.
- Phineus– Top rated execution only broker with 100 free trades
- Hargreaves Lansdown – One of the leading execution-only brokers offering an easy-to-use trading platform
- i Mr– The best execution-only broker to trade thousands of CFDs with low trading fees
- Barclays– A trusted UK execution broker listed on the LSE (London Stock Exchange) and NYSE
Best Execution Only Brokers in the UK
But with so many trading platforms to choose from, how do you decide which one best suits your needs? We've narrowed it down to two of the best brokers that we believe offer everything beginners and experts are looking for. Read on for a detailed revieweToroIFineco BankaRight now.
1. eToro – Overall the only best 0% commission broker in the UK.
Founded in 2006, eToro is now one of the UK's leading execution-only brokerssocial tradingplatforms. With a customer base of over 20 million traders, eToro is ideal for both beginners and experienced investors. This widely popular fintech company offers some of the lowest transaction fees on the market, which is undoubtedly its best selling point.
For example, you can invest in stocks listed on 17 international exchanges with a minimum investment of just $50. Such investment is possible because eToro allows trading in fractional shares. This means you can buy a portion of the entire stock, build a diversified investment portfolio on a limited budget, while being exposed to different markets.
If you're a novice trader interested in execution-only brokers but lack the confidence to trade on your own, you'll be glad to know eToro has you covered. First, you can use a free demo account with $100,000 virtual funds to practice your trading strategies in a risk-free environment. Second, you can use eToro's copy trading features called CopyTrader and CopyPortfolios, which allow you to copy the trades of other experienced investors with the click of a button. You can also invest in pre-built portfolios either from the best eTor traders or in a specific market such as stocks or cryptocurrencies. This is a passive trading style that many novice traders find convenient and effective.
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67% of retail investor accounts lose money when trading CFDs with this provider.
Fees and commissions - Explanation
In general, eToro offers commission-free trading. This means that the only trading fees you pay are market spreads - the difference between the bid and ask prices. eToro offers 0% commission on stocks and ETFs, as well as CFDs, Forex,cryptocurrencies, and more. There are no management fees, ticket fees, conversion fees and additional brokerage fees when investing in exchange-traded funds and shares.
What about overnight and weekend fees? CFD positions that remain open after the market close have a small one-day funding fee based on the value of the trade. In simple terms, this is an interest payment to cover the cost of the leverage used overnight.
In terms of non-trading fees, there are no deposit fees or account fees. However, there is a small withdrawal fee of $5, an inactivity fee of $10 after 12 months without registration, and a conversion fee starting at 50 pips for deposits and trades in non-USD currencies.
No commission means no additional fees. You will find that most execution-only brokers charge a trading fee when trading stocks. eToro even covers markups, meaning an extra 0.5% savings for UK-based clients.
payments
Funding your eToro live trading account is quick and easy. Many different payment methods are available, including bank transfers, debit or credit cards and e-wallets such as PayPal and Neteller to name a few. The minimum deposit is $50 and all payment options except bank transfers are processed instantly.
Is eToro safe?
eToro is one of the most trusted execution-only brokers. This social trading platform is licensed and regulated by several leading financial authorities, including the UK Financial Conduct Authority (FCA), the Cyprus Securities and Exchange Commission (CySEC) and the Australian Securities and Investments Commission (ASIC).
In addition, according to eToro, your funds are held in segregated bank accounts or segregated accounts with an authorized third-party company, which may sometimes be a partner. This UK execution broker also offers negative balance protection.
| method of payment | charge |
| stock trading | 0 % reservation |
| The cost of buying AAPL stock | There is no provision |
| account insurance | Nobody |
| deposit fee | Nobody |
| withdrawal fee | 5 $ |
| a place of inactivity | $10 after 12 months |
| Conversion Fees | From 50 pips |
Advantages:
Disadvantages:
67% of retail investor accounts lose money when trading CFDs with this provider.
2. Fineco – Top rated execution only broker with 100 free trades
founded in 1999,Fineco Bankais an Italian bank with good results and a broad product portfolio. In terms of regulation, it is authorized by the Bank of Italy and subject to certain regulations of the UK Financial Conduct Authority and the Prudential Regulation Authority. Fineco has a banking license, is listed on the Italian stock exchange and is a member of the STOXX Europe 600 index.
Fees and commissions - Explanation
Fineco Bank has competitive stocks andETFFees and no dormancy or withdrawal fees. However, forex trading fees are higher than average and overnight funding fees are also quite high. For stock trading, the commission for UK-based traders is £2.95 per trade for UK stocks and $3.95 per trade for US stocks. However, if you are a new user, you can get 100 free trades through the Fineco welcome bonus.
When it comes to non-trading commissions, Fineco Bank is hard to beat. There are no account, inactivity, deposit or withdrawal fees. However, domestic bank transfers and debit card transfers do not incur withdrawal fees. There is a fee of 0.20% for using Direct Debit, while international bank transfer payments incur a fee of £19.95.
What does FINECO100 offer?
If you open a live trading account with Fineco UK before 30 September 2021 using the relevant promo code, you can get a bonus of 100 commission-free trades on any stock or bond. The bonus of 100 free trades is valid two days after opening a Fineco brokerage account. Commission-free trading covers the following stock markets: UK FTSE, US markets (NYSE, NASDAQ, AMEX), Equiduct, Xetra, Euronext, Borsa Italiana and the following bond markets: Mot, Euromot and Etlx.
payments
Fineco Bank offers a wide range of 21 base account currencies from AUD and CAD to USD and GBP. While there are no deposit fees to worry about, supported payment methods are quite limited as you cannot use credit and debit cards or e-wallets to fund your account.
Is Fineco Bank safe?
Bank Fineco is fully regulated by the Commission Nazionale per le Società e la Borsa (Consob) and the Bank of Italy. This UK execution broker is also partially regulated by the FCA and the Prudential Regulation Authority. In addition, the company is also listed on the Italian Stock Exchange (BIT: FBK), which helps to strengthen the security of the company since it is obliged to publish all its financial reports regularly. In terms of protecting clients' money, merchants based in the United Kingdom and Italy are protected by the Bank of Italy up to €100,000 for cash and €20,000 for securities.
| method of payment | charge |
| Shares and ETFs listed in the United Kingdom | £2.95 per transaction |
| US-listed stocks and ETFs | £3.95 per transaction |
| 100 trades in shares and bonds without commission | At the time of writing, there is a current offer ending on September 30, 2021 offering 100 commission-free stock and bond trades when you open a Fineco trading account with the appropriate offer code.Click hereFor more information. |
| account insurance | Nobody |
| deposit fee | Nobody |
| withdrawal fee | Nobody |
| a place of inactivity | Nobody |
| GBP-Marginsatz | 8,0% |
Advantages:
Disadvantages:
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65.11% of small investor accounts lose money trading CFDs with FinecoBank.
Comparison of execution-only brokerage fees
In this section, we look at the pure broker comparison table below to see how cheap these top trading platforms are.
| Online Brokers UK for execution only | Stock Exchange Commission | end of account |
| eToro | 0 % reservation | Nobody |
| Fineco Banka | £2.95 per trade for UK listed stocks (100 free trades for new users) | Nobody |
| Hargreaves Lansdown | Stock trading commission is based on volume: 0-9 trades: £11.95, 10-19 trades: £8.95, 20+ trades: £5.95 | There are no fees for fund and share accounts. However, there is a share account fee between ISA and SIPP accounts. |
| i Mr | The commission varies depending on the exchange, e.g. B. 0.10% per side for FTSE 350 share CFDs. | Nobody |
| Barclays | A fee of £6 per transaction is charged for each transaction made online. Alternatively, you can set up automated investments for as little as £1 per trade. | Nobody |
What is an execution-only broker?
It does exactly what it promises. Execution-only brokers provide access to an execution-only service, ie H. without personal investment advice. In other words, you take control of your tail and manage your investment portfolio as you see fit, without the intervention or recommendations of experienced traders and portfolio managers. Execution-only brokers can offer investors a cheaper way to buy and sell tradable assets and gain exposure to the financial markets.
Traders who choose an execution-only broker tend to take a more active role in online investing. While there is no personalized investment advice, Best Execution Only brokers typically offer market analysis, trading ideas and research tools to help you make the best decisions and spot unique trading opportunities in real time.
Because execution-only brokers do not offer financial advice, execution-only services are ideal for experienced investors who understand the risk-reward ratio of online trading.
Execution-only versus advisory brokers
Photo by Artem PodrezvonPexels
AsTrade for execution only AccountIt is best suited for traders who:
- You have experience in making independent trading and investment decisions, and all you need is a regulated broker to fill orders quickly.
- Rather take the occasional investment adviceand trade ideas on specific investments and assets, but ultimately have the final say on whether to buy or sell.
- Choose long-term investment strategies such as HODL(buy and hold) and DCA (dollar cost averaging).
- You want to pay per transaction
- Prioritize the flexibility to use leverage, trading options and CFDs and more.
Other,advisory accountsare ideal for traders who:
- You are a beginner or have little or no trading experienceand need professional support and advice on trading and investment decisions.
- Better to delegate control to an experienced investor
- You are not aware of itrisk tolerance
- HOTYou are looking for a ready-made investment portfoliocovers a range of securities, with automated capital matching and regular trading.
- It is better to buy and sell financial instruments in cooperation with a financial advisor, where fees are fixed and not based on volume.
- They want money managers and sophisticated investors to oversee their investment portfoliosProviding referrals and financial advice in the meantime.
Execution-only brokers versus discrete brokers
Most money managers offer trading services in the following categories: execution only, advisory and discretionary trading services. These terms simply indicate your level of involvement in managing your investments. If execution alone is the most practical approach to online investing, then discretionary services are on the passive side of the decision scale.
Fotografija Nataliya Vaitkevich byPexels
See how discretionary brokers work
Discretionary trading services are a popular choice for novice traders with little or no trading experience or those who simply don't have the time and want a more passive approach to online trading. When you choose a discretionary broker, you and your money manager start by setting investment goals and risk tolerance. Together you create a trading plan and strategy that fits your experience, criteria, risk tolerance and goals.
How much risk can you tolerate? What asset classes and markets do you want to be exposed to? How often do you want to participate in the markets? What is your investment budget? These are just some of the issues that will be discussed.
Your Wealth Manager will then direct all trading decisions and will have full authority to execute trades on your behalf. This type of investment management frees you from making important investment decisions every daylong-term investmentsincluding pension funds, ISAs and trusts are much easier to manage. More details abouthow to invest for retirement, be sure to read our beginner's guide.
Therefore, the main difference between executive-only brokers and discretionary brokers is the degree of involvement in investment decisions.
Advantages of execution-only brokerage accounts
In the last decade, the number of DIY trading platforms has increased rapidly. Execution-only brokers offer a low-cost investment opportunity for experienced, tech-savvy traders. With no advisory fees, faster trade executions and lower trading fees, execution-only brokers are popular with experienced traders who want a convenient approach to online trading.
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67% of retail investor accounts lose money when trading CFDs with this provider.
Arguably the main advantage of execution-only trading accounts is that you have access to real-time fundamental research, market news, trade ideas and technical indicator charts. These features make online trading a much more active experience as you have to carefully monitor the markets to make the right investment decisions at the right time and place.
Brokerage fees for execution only
There are several costs to consider when choosing a rideAccount share for trading:
- Deposit and Withdrawal Fees – This is a fee that some brokers charge when you deposit and withdraw funds from your account. For example, when withdrawing funds from eToro, the flat fee is only $5. .
- Platform or Account Fees – These are fees charged for using the trading platform and maintaining a brokerage account.
- Side Fee – Some trading platforms charge a side fee, which means you have to pay a fee every time you open a position and again when you close it. eToro clients can trade large amounts of assets without commission.
Some UK-only brokers offer a regular trading price, which reduces the amount you have to pay when buying and selling tradable assets. To qualify for this rebate, your trading volume for the previous month must reach certain thresholds, such as with Hargreaves Lansdown.
How to get started with an execution-only broker
Let's see how you can get started with eTor - the UK's best execution-only broker - in a few easy steps!
Step 1: Create an eToro account
First, go to the eToro website and click the Join Now button. Enter your details and choose a username and password to open your new trading account on the world's leading copy trading platform.
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67% of retail investor accounts lose money when trading CFDs with this provider.
Step 2: Verify your account
As eToro is FCA compliant, all new users are subject to KYC (Know Your Customer) rules. Simply put, to verify your live brokerage account, you will need to provide proof of identity and proof of address.
Simply click “Complete Profile” on the eToro dashboard and upload copies of your driver's license or passport and a copy of a recent utility bill or bank statement. The processing team will then review your documents and you will be notified when your account has been verified.
Step 3: Deposit money
How do I fund my new eToro trading account? Funding your account is a simple process. Since there are a wide range of payment methods to choose from, simply select your preferred option and follow the instructions below.
- Login to your live trading account with your credentials
- Press the "Deposit Funds" button.
- Enter the amount you want to deposit and select the currency
- At the end, choose the desired payment method
Step 4: Start Investing and Trading Financial Assets with the UK's Best Execution Only Broker - eToro
Once you have successfully funded your live trading account, you have the flexibility and freedom to start investing and trading whatever you want. eToro's advanced ProCharts allows you to explore and use technical indicators such as RSI divergence indicators and MACD to spot unique trading opportunities.
You can browse supported tradeable assets using the Trading Markets link or search for a specific company or asset you want to trade using the search bar. Suppose you wanted tostock marketShares of Apple (NASDAQ:AAPL). Tobuy apple sharesYou must search for AAPL or APPLE and then click "Trade" next to the corresponding result. An order field will then appear where you can enter the amount of your bet. You can also use leverage if you want to trade CFDs and place stop-loss and take-profit orders. When you are satisfied with your investment decisions, simply click 'Open Trade'.
And there it is! You have just invested in shares with a UK broker with 0% commission only for the best execution - eToro.
Invest now with eToro
67% of retail investor accounts lose money when trading CFDs with this provider.
Conclusion - expert opinion
Whether you're a novice trader just trying out the terrain or a greedy, seasoned investor, execution-only brokers offer lower costs and much more flexibility than other investment services. But is there a platform that combines the best of both worlds?
In addition to being one of the best execution brokers, eToro also offers copy trades, allowing you to copy the trades of other experienced investors from the comfort of your own home. Although it is a passive investment strategy, you still have control over what you copy and can close positions at any time.
If you want to trade commission-free with the best execution-only broker in the UK, simply follow the link below and start your trading journey with eToro now!
Trading shares with 0% commission.
67% of retail investor accounts lose money when trading CFDs with this provider.