📊 Comparison of the best ETF brokers in 2025

Do you want to capitalise on the market by investing in exchange-listed trackers while also receiving dividend distributions? Exchange-Traded Funds (ETFs) offer a fantastic opportunity to grow your wealth, whether for medium- or long-term strategies. bestbrokers.co.uk has carefully compiled a comparison of the best ETF-focused brokers, meticulously analysing their brokerage fees, custody fees, distinct advantages, and minimum deposits required.

  • Focus on brokerage fees: Opt for brokers offering reduced fees to maximise your returns.
  • Consider custody charges: Look for a broker with favourable ETF holding terms.
  • Seek unique benefits: Some brokers offer exclusive services that can enhance your investing experience.
  • Check the minimum deposit: Make sure the minimum deposit aligns with your capability and investment objectives.

Compare brokers in one click

Advantages Number of ETFs Min. fees CFDs on ETFs Direct purchase Min. deposit Visit
  • Trade ETFs with competitive spreads and no hidden fees.
  • Wide selection of ETFs on ActivTrader, MetaTrader 4 and 5.
  • Fund protection up to 1 million GBP.
  • Advanced tools for informed and efficient ETF trading.
  • 20 years of experience with cutting-edge technology.
400 £1 Yes No £0
  • Commission-free ETF trading with competitive spreads.
  • Access to 4,500+ shares and ETFs via MetaTrader.
  • Dividend potential on long ETF CFDs.
  • Competitive leverage to maximise your ETF results.
  • TradingView tools for precise technical analysis.
380 £0 Yes No £100
  • Commission-free ETF trading.
  • Access to various global ETFs, expanding your options.
  • Advanced analysis tools, feature-rich platform.
  • Extensive educational resources to understand ETFs.
  • Dedicated customer support to assist with your investments.
1350 £0 Yes Yes £10
  • Commission-free ETF investing.
  • Access to over 533 ETFs across various sectors and regions.
  • Flexible investments, ideal for diversification.
  • Comprehensive information for each ETF available on the platform.
  • Simple management of your ETFs via a unified interface.
680 £0 Yes Yes £50
  • Attractive spreads to maximise investments.
  • Enhanced security against negative balances.
  • No desk interference, ensuring pure transactions.
  • Diverse range of ETFs, covering numerous sectors.
  • High-performance tools, including analytics and VPS.
22 £0 Yes No £100
  • CFDs on major ETFs with competitive spreads.
  • Optimised platforms like ProRealTime and MT5 for ETFs.
  • 24/7 access to the ETF market, with support and expert analysis.
  • Educational resources to understand ETF investments.
  • Free seminars and tutorials for ETF strategies.
6000 $0,02 Yes No £0

What is an ETF? Definition of an ETF

Exchange Traded Funds (ETFs) are investment funds listed on the stock market. What sets ETFs apart from other financial products is that they track the performance of a basket of securities, such as indices (e.g., FTSE 100) or shares (e.g., Apple). ETFs trade on financial markets throughout the day, just like publicly listed shares or bonds, making these products straightforward and accessible to the general public.

What are the advantages of trading ETFs versus buying individual shares?

ETF trading has many advantages compared to purchasing individual shares:

  • Diversification: Since an ETF represents a portfolio of assets, you benefit from instant diversification of your investment.
  • Dividends: Another advantage of investing in share-based ETFs is that holders may receive dividends, stemming from the underlying companies in the fund.

Which products can I invest in with ETFs?

ETF funds allow investors to access a very wide range of financial instruments and products. Numerous ETF options exist, depending on your investment objectives.

  • Equity ETFs can track the prices and performance of certain stocks. For instance, iShares Core FTSE 100 might track the UK FTSE 100 index.
  • Thematic or sector ETFs can be a useful choice for those wanting exposure to a particular area, such as US technology via iShares NASDAQ ETFs.
  • More recently, crypto-related ETFs have emerged, allowing indirect investment in Bitcoin, Ripple, or Dogecoin.
  • There are even ETFs that invest in cannabis-related sectors, such as AdvisorShares Pure Cannabis or Horizons Marijuana Life Sciences.

How are ETFs taxed in the UK?

In the UK, ETFs are generally treated for tax purposes as collective investments. How your gains are taxed depends on factors such as your personal circumstances, whether the ETF is domiciled in the UK or overseas, and whether it has “reporting” or “non-reporting” status.

Dividends from UK-reporting ETFs are usually subject to dividend tax (applying your dividend allowance and tax band), while gains on disposals (sales) may be subject to capital gains tax (CGT), depending on whether you exceed your annual CGT allowance. Always consult HMRC guidance or a tax professional to understand your specific obligations.

Which ETFs are the best?

It is difficult to answer this question definitively as the choice of an ETF depends on the investor’s profile and investment strategy. It is advisable to research thoroughly before investing to find what best suits your needs.

Below is a non-exhaustive list of high-performing ETFs:

ETF Name Sector 1-Year Return
Vanguard S&P 500 Growth ETF (VOOG) US Equities 15.86%
Vanguard Russell 1000 Growth ETF (VONG) US Equities 25.33%
Invesco Nasdaq Next Gen 100 ETF (QQQJ) US Equities 12.64%
VanEck Vectors Semiconductor UCITS ETF (SMH) US Equities 45.01%
Lyxor ETF Leverage CAC 40 (LVC) French Equities 59.46%
Invesco NASDAQ Biotech UCITS ETF (SBIO) US Pharmaceuticals 19.60%

*Please note that past performance is not a guarantee of future results.

Which are the best ETF brokers?

There are many companies offering services for purchasing ETFs. The options can be wide-ranging, and it is easy to become overwhelmed. Nonetheless, it is clear that some brokers provide substantially better conditions than others, whether in terms of available ETF range, platform quality, or commissions.

Below are the ETF brokers recommended by our site:

#1 - ActivTrades

ActivTradesActivTrades allows you to trade ETFs via CFDs, offering some of the lowest spreads on the market. Unlike traditional share-dealing accounts, CFD-based ETFs let you capitalise on market volatility in both rising and falling conditions. You can also use tools like stop-loss orders to manage risk and protect positions. This is a flexible option for investors aiming to maximise opportunities in the ETF space.

Strengths: Client funds protected up to £1 million Competitive ETF spreads
Minimum deposit: £0
Our verdict:

Join ActivTrades and start trading!

#2 - Trade Republic

Trade RepublicTrade Republic is an ideal platform for investors seeking simplicity and low fees. With £1 trades and no withdrawal, inactivity, or FX charges, Trade Republic positions itself as a highly competitive broker in Europe. With over 10,000 shares and ETFs available, plus a clean interface, it’s a great option for beginners or passive investors.

Strengths: Fractional shares and ETFs Automated savings plans No FX or inactivity fees
Minimum deposit: 0
Our verdict:

Join Trade Republic and start trading!

#3 - XTB

XTBXTB is an excellent choice if you want to trade ETFs. The broker provides a very intuitive trading platform along with extremely low fees and commissions compared to competitors. A broad selection of 200 ETFs from various markets and financial sectors is available for direct purchase.

Strengths: Wide range of ETFs Competitive fees High-quality customer support
Minimum deposit: £10
Our verdict:

Visit the broker's website

Last updated on 20/03/25