Best Trading Platforms UK: Investment Platforms Compared June 2026

The UK investment platform market has expanded rapidly. 7.9 million adults used an investment platform in 2024, up 80% from 4.4 million in 2020, according to the FCA Financial Lives Survey 2024. Despite this growth, the UK remains significantly underinvested relative to European peers, with 61% of adults holding £10,000 or more choosing to keep it predominantly in cash.

This guide covers the main FCA-authorised investment platforms available in the UK, what to look for when choosing a platform, the key account types and how charges work.

How many people use investment platforms in the UK?

The FCA Financial Lives Survey 2024, published May 2025, shows 7.9 million UK adults use an investment platform, representing approximately 14% of the adult population. The growth has been substantial: from 2.1 million in 2016 to 7.9 million in 2024, driven by zero-commission trading, app-based platforms and growing awareness of tax-efficient accounts.

35% of UK adults hold investments of some kind excluding property, representing approximately 19 million people. The most common product is direct equities at 20% of adults, with Stocks and Shares ISAs at 17%. CFDs and spread bets account for under 1% of the adult population despite their higher media profile.

The UK has the lowest retail investment participation rate in Europe, with British retail investors controlling 21% of assets under management compared to 84% in Spain, 34% in Italy and 30% in Germany, according to New Financial research. This structural underinvestment is a significant policy concern and the backdrop to ongoing FCA and HM Treasury work on the Advice Guidance Boundary Review.

ISAs: the tax-efficient wrapper for UK investors

Individual Savings Accounts (ISAs) are the primary tax-efficient vehicle for UK retail investment. The annual ISA allowance is £20,000 per adult per tax year. Returns within an ISA - capital gains, dividends and interest - are free of UK income tax and capital gains tax. There is no requirement to declare ISA income or gains on a self-assessment tax return.

The total ISA market reached £872 billion across 22.6 million adult accounts as of HMRC Annual Savings Statistics 2025. Cash ISAs are held by 32% of UK adults and Stocks and Shares ISAs by 17%, with some adults holding both. The average ISA balance was £34,044 as of April 2023, though this figure is skewed upward by larger balances among older savers - over-65s average £64,386 versus £8,288 for under-25s.

AJ Bell analysis identified approximately 4.5 million adults holding more than £10,000 in Cash ISAs with nothing in a Stocks and Shares ISA. Around 3 million Cash ISA holders sit on balances above £20,000 with no investments - a collective pot of at least £101 billion in excess cash. The FCA's Financial Lives data confirms that 61% of UK adults with £10,000 or more in investible assets hold all or most of it in cash, despite evidence that long-term inflation erodes purchasing power of cash savings.

Account types available on UK investment platforms

Stocks and Shares ISA: annual allowance of £20,000, all returns tax-free. The most widely used tax-efficient investment account for UK retail investors. Available on all major platforms.

General Investment Account (GIA): no annual contribution limit, but returns are subject to income tax (on dividends above the £500 dividend allowance) and capital gains tax (on gains above the £3,000 annual exemption from April 2024). Used by investors who have exhausted their ISA allowance or want to hold investments outside the ISA wrapper.

Self-Invested Personal Pension (SIPP): a pension wrapper with substantial tax relief. Contributions receive income tax relief at the marginal rate - a basic rate taxpayer paying in £800 has £1,000 invested after government top-up. Annual contribution limit is £60,000 or 100% of UK earnings (whichever is lower) under the Annual Allowance. Pension funds cannot be accessed before age 57 (rising to 57 from 2028). SIPPs are available on most major platforms.

Lifetime ISA (LISA): for adults aged 18-39, contributing up to £4,000 per year toward a first home purchase or retirement. The government adds a 25% bonus on contributions, equivalent to £1,000 on the maximum £4,000. Withdrawals for other purposes incur a 25% penalty which effectively removes the government bonus plus a portion of contributions.

How platform charges work

UK investment platform charges fall into two categories: platform fees (the ongoing charge for holding investments on the platform) and dealing charges (the cost per trade). The competitive landscape has shifted significantly since 2020, with several platforms reducing dealing charges to zero on certain products.

Percentage-based platform fees favour smaller portfolios - 0.25% on a £10,000 portfolio is £25 per year. Flat fee structures favour larger portfolios - a £15 per month flat fee is 1.8% on a £10,000 portfolio but only 0.18% on a £100,000 portfolio. The crossover point where flat fees become cheaper than percentage fees depends on the specific rates and is typically in the £50,000-£100,000 portfolio range.

Dealing charges have reduced materially. Several platforms now offer zero-commission dealing on UK and US equities, though foreign exchange fees (typically 0.5-1.5%) apply to non-sterling transactions. Fund dealing charges vary - some platforms charge per trade, others offer no-dealing-charge funds but with higher annual management costs built into the fund itself.

FCA regulation and FSCS protection

All UK investment platforms must be authorised by the Financial Conduct Authority. FCA authorisation can be verified at the FCA Register (register.fca.org.uk). Authorised platforms are subject to FCA conduct rules including the Consumer Duty, which requires firms to deliver good outcomes for retail customers including fair value, appropriate products and effective consumer support.

Investments held on FCA-authorised platforms are protected by the Financial Services Compensation Scheme (FSCS) up to £85,000 per person per firm in the event of platform failure. This protection covers the cash and investments held on the platform - it does not protect against investment losses from market movements. The FSCS limit applies per firm, so investors holding more than £85,000 may wish to spread holdings across multiple platforms.

CFD (Contract for Difference) trading is available on certain FCA-authorised platforms. CFDs are leveraged products that amplify both gains and losses. FCA risk disclosures show that 71-79% of retail CFD accounts lose money across the UK's major regulated brokers (FCA risk disclosures, 2025). CFD trading is not suitable for most retail investors and is subject to specific FCA regulatory requirements including leverage limits and mandatory risk warnings.

Frequently asked questions

How many people use investment platforms in the UK?

7.9 million UK adults used an investment platform in 2024, according to the FCA Financial Lives Survey 2024 (published May 2025). This represents an 80% increase from 4.4 million in 2020, driven by zero-commission trading, app-based platforms and greater awareness of tax-efficient accounts such as Stocks and Shares ISAs.

Are UK investment platforms covered by the FSCS?

Yes. Investments held on FCA-authorised UK investment platforms are covered by the Financial Services Compensation Scheme (FSCS) up to £85,000 per person per firm in the event of platform insolvency. This does not protect against losses from market movements - only against platform failure. FCA authorisation can be verified at register.fca.org.uk.

What is a Stocks and Shares ISA?

A Stocks and Shares ISA is a tax-efficient account allowing UK adults to invest up to £20,000 per tax year with all capital gains and income free of UK tax. Returns do not need to be declared on a self-assessment return. 17% of UK adults hold a Stocks and Shares ISA according to FCA Financial Lives 2024. The total ISA market is worth £872 billion across 22.6 million accounts (HMRC Annual Savings Statistics 2025).

What is the difference between a platform fee and a dealing charge?

A platform fee is the ongoing annual charge for holding investments on the platform, typically expressed as a percentage of portfolio value or a flat monthly fee. A dealing charge is the cost per individual trade. Some platforms have reduced dealing charges to zero on certain products while maintaining platform fees. The total cost of using a platform depends on both elements together with the size of the portfolio and frequency of trading.

What percentage of retail CFD traders make money?

FCA risk disclosures required on all CFD platform websites show that 71-79% of retail CFD accounts lose money across the UK's major regulated brokers (FCA risk disclosures, 2025). These disclosures are mandated by the FCA and calculated over a rolling 12-month period. CFD trading involves leverage and is considered high risk - losses can exceed the initial deposit.