How to Find the Cheapest Share Dealing Accounts?

To find the cheapest share dealing account for stock trading, you will need to compare different accounts available for trading today. This work has provided useful insights into understanding the cheapest share dealing accounts available for stock trading today.

What is a share dealing account?

Before you compare share dealing accounts, you must know what it’s all about. A share dealing account is a stock trading account assigned by the broker to registered clients for buying and selling stocks on their platforms.

How to choose the cheapest share dealing account?

The best way for obtaining the cheapest share dealing account is by opening a tax-free account with the selected broker. There are three share dealing accounts that are tax-free for trading stocks today. Here they are:

  • Share Dealing Individual Savings Account (ISA): The ISA is often regarded as a tax waiver account that enables stock traders to maximize their profits from trading without having to share their profits with anyone in the form of tax payment. However, only upto £20,000 can be added annually to an ISA.
  • Self-Investment Personal Pension Account (SIPP): Another tax waiver that enables stock traders to maximize their profits is the Self-Investment Pension Account. However, there are two major challenges in using the SIPP account. The first challenge is that only a maximum of £40,000 can be transferred to this account in a single year. The second challenge with this type of stock trading account is that one can’t take out his profits until the owner crosses 55 years of age.
  • General Investment Account (GIA): The general investment account allows traders to invest a maximum of £12,300 into stocks without paying taxes on the profits made. This type of stock dealing account could be considered the cheapest stock trading account for stock traders today. A major benefit of using the GIA is that no restrictions are withdrawing one’s profits.

Important factors to consider while choosing a stock dealing accounts

  • Spread for using the platform: Spread is seen as the fee charged by brokers for using their platforms. It is usually viewed as the difference between the bid and offer price of given stock purchased in the market. Brokers with the lowest spread are always ideal for stock trading.
  • The number of stocks available for trading: Stock brokers are expected to list a large number of stocks on their platforms for the trader to make his choice.
  • Conversion Charges: Some stock brokers are known to place charges for converting the client’s profits from one currency to another when a withdrawal request is placed. Brokers with low conversion fees are the best for trading.
  • Inactivity Charge: Some brokers often charged their clients for not making a minimum number of trades expected within a given period. Such brokers are highly to be avoided when choosing a broker to trade with.
  • Customer Support services: Brokers are expected to provide a working means for clients to lay out their complaints while using their platforms.
  • Regulations: Any stock broker operating in the country without being registered with the country’s financial regulatory body is considered an illegal dealer and must be avoided.

List of brokers offering the cheapest share dealing accounts

  • eToro – This broker charges 0% commission for trading real stocks on their platforms.
  • Bestinvest – This broker provides multiple stocks for clients at a very low cost.
  • FinecoBank – This broker does not charge any fee for using their platforms.
  • com – This broker provides good leverage for trading stocks with low commissions for using their platforms.
  • Degiro – This broker charges low commission and conversion fees.

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