Online stock trading in the UK: everything you need to know

With us, there are two ways to get exposure to stocks online.

Investing

Buy and own 13,000+ stocks and ETFs. From as little as £3 on UK shares and £0 on US shares.¹ ISAs and SIPPs, and transfer your portfolio at no extra cost.
Learn more about share dealing

Trading

Use leveraged spread bets and CFDs to speculate on share price movements without owning the stock. Go long or short on 17,000+ stocks and ETFs using our award-winning platform.³
Learn more about trading

You can open a share dealing, spread betting or CFD trading account. Create one, two or all three of these accounts – but please bear in mind that you’ll need to fund each one separately.
Looking to learn more about online stock trading? Read our guide below or try IG Academy for in-depth courses.

What’s on this page?

1. What is a stock?
2. Why trade or invest in stocks?
3. What is a stockbroker?
4. What is online stock trading?
5. What stocks can I trade online?
6. What are the costs for online stock trading?
7. How to trade or invest in stocks online
8. Where can I learn more about online stock trading?

What is a stock?

A stock is a financial security that represents a portion of ownership in a company. Retail investors can buy shares from companies that are listed on a stock exchange.
The company will apply to list on an stock exchange, for example the LSE or NYSE, so that their shares can be bought and sold by anyone.
When it list on the stock exchange, it's usually by way of an IPO. At this point its share price will be fixed, however from the first day of trading onwards, it will fluctuate according to market conditions.

When you buy shares in a company, you'll become a shareholder and part owner of the company. As an investor, you'll receive dividend payments if the company grants them and have voting rights.

Why trade or invest in stocks?

There are two reasons to take a position in the stock market.

• Firstly, you may want to earn an income from dividends. Certain shares are known as income stocks, and they have a reputation for paying stable and predictable dividends. These can be used for re-investment, or for income purposes. Note that you’ll only be eligible to receive dividends if you buy and hold your shares as a form of investment

• The second reason is speculating on share price movements. For example, if a share you’ve bought appreciates in value, you can sell it for a profit. Conversely, if it depreciates in value from the initial outlay you paid, it’ll result in a loss. When trading spread bets or CFDs, you can also go short, which is a way to profit from a share price falling²

Ready to start trading or investing?

What is a stockbroker?

A stockbroker is a person or company that executes your buy and sell orders on a stock exchange. They function as a middleman between the stock exchange and a client that wants to get exposure, because the public can’t interact with the exchange directly.

Note that a stockbroker must be licensed to facilitate the purchase and sale of assets on your behalf. We’re a licensed stockbroker and have an award-winning platform³ that’s easy to navigate.

What is online stock trading?

Online stock trading is the act of using a platform like ours to take a position on shares. There are two ways to do this: investing and trading.
Investing involves buying and holding shares to own outright, with the intention of profiting in the long run if the stock appreciates over time.

With trading, you speculate on the share price movement without taking ownership. You’ll go long if you think that the price will rise or go short if you think that it’ll fall.² This type of exposure often comes with a higher risk compared to investing and is done with a more short-term outlook.

What stocks can I trade or invest in online?

With us, you’ll trade on 17,000+ international stocks online. When you trade on shares like Amazon, Apple, and Tesla, you’ll take a long or short position and your profit – or loss – will depend on your prediction.
You can also speculate on popular exchange traded funds (ETFs) and investment trusts, which are a collection of stocks that track the performance of more than one company at once.

With investing, you can buy and hold 13,000+ stocks with us, taking ownership of the asset and earning a profit when it appreciates in value. You can buy and own a small piece of the brands you love like Meta Platforms, Netflix, Apple, Amazon and more.
Investors can also diversify their holdings and invest in the price of ETFs and trusts. You can get exposure through our Smart Portfolios, which offers diverse market exposure, built to your liking and managed by our reputable experts.

What are the costs for online stock trading?

The costs for online stock trading depend on the mechanism you choose to get exposure, as trading and investing are very different. When you invest in stocks using our share dealing platform, you’ll be charged zero commission on US shares, and just £3 on UK shares.¹

With trading, the first thing to consider is the spread. This refers to the difference between the buy and sell price.
Additionally, there are fees and charges to consider depending on your position size and brokerage you choose. Spread bets are tax free and you don’t pay stamp duty.⁴ However, they include the spread and, sometimes, overnight fees.
With CFD shares, we charge commission but any losses on CFD positions can be offset against profits for CGT.⁴

How to trade or invest in stocks online

With us, you can invest in stocks using our share dealing offering or trade via spread bets and CFDs. Below, we’ve listed quick steps to get you started:

1. Decide whether you want to trade or invest
2. Create a live account or practise on a demo
3. Search for your preferred stock
4. Select your deal size and manage your risk
5. Open and monitor your position

Where can I learn more about online stock trading?

You can learn more about online stock trading on IG Academy and our website. We have a collection of trading courses that’ll help you sharpen your skills.

As part of your research on financial markets, you can check news and analysis from our industry experts to stay updated on current economic events before you take a position.
Once you’ve built up your confidence using the educational material, you can open a demo account with us to test different trading strategies in a risk-free environment. Your account will be credited with £10,000 in virtual funds to practise without having to risk any real money.
You can analyse and learn more about different market conditions that influence the price of stocks from live charts all housed on one platform. When you’re satisfied with your progress, you can open a live account.

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