You could save money when share dealing by using a specialist broker, who acts as an intermediary between you and the stock market.
A broker buys and sells shares for you with the aim of getting the best price possible. There are three types of share dealing broker:
Execution only brokers: They follow your instructions to buy and sell shares without giving you any financial advice
Advisory brokers: They give you advice on the purchase and sale of shares but leave the final decision up to you
Discretionary brokers: They take complete control and deal on your behalf, but usually charge you more for their services
This comparison shows brokers that let you make share dealing trades online.
What costs to look out for
There are several costs to think about before you deal in shares, including:
Charge per trade: This is how much you pay for making a single share dealing trade
Frequent trader rate: This is a discounted charge per trade for making more than a set number of deals each month
Platform fees: Most accounts are free, but some charge an annual fee or a charge for transferring money in or out of your account
This comparison shows how much each share dealing account charges you per trade.
How can shares earn you money?
When you deal in shares, you could earn money through:
Growth: This only applies if your shares grow in value and you sell them at a profit
Dividends: These can be paid out a few times a year, based on company performance
Not all shares offer dividends, and those that do offer an amount that is proportional to the number of shares you own.
Share dealing FAQs
Do I pay tax on share dealing?
Yes, any profits are subject to Capital Gains Tax and you also must pay 0.5% Stamp Duty. Here is more on investment tax.
Can I use a share dealing telephone service?
Some companies let you buy and sell shares over the phone, but the charges can differ to online dealing. Check the charges before you apply.
How can I cut the cost of share dealing?
If you plan to make several trades each month a frequent trader account could reduce your cost per trade. Check the terms with each company.
Can I buy shares in any company?
No, only companies that are listed on stock exchanges, like the London Stock Exchange (LSE) or the Alternative Investment Market (AIM).
Can I deal in shares through a mobile app?
Yes, but only if the company offers a mobile app. You still need to open an account online and add money before you can make any trades on the app.
Can I transfer shares from one broker to another?
Yes, but you are usually charged for transferring shares from each company, e.g. if you own shares from two companies, you pay two lots of charges.
About our share dealing accounts comparison
Who do we include in this comparison?
How do we make money from our comparison?
We have commercial agreements with some of the companies in this comparison and get paid commission if we help you take out one of their products or services. Find out more here.
You do not pay any extra and the deal you get is not affected.