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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.
Broker | Advantages | Number of ETFs | Min. fees | CFDs on ETFs | Direct purchase | Min. deposit | Visit |
---|---|---|---|---|---|---|---|
![]() ActivTrades |
|
400 | £1 | Yes | No | £0 |
Visit the site Our review |
![]() Admiral Markets |
|
380 | £0 | Yes | No | £100 |
Visit the site Our review |
![]() XTB |
|
1350 | £0 | Yes | Yes | £10 |
Visit the site Our review |
![]() eToro |
|
680 | £0 | Yes | Yes | £50 |
Visit the site Our review |
![]() FxPro |
|
22 | £0 | Yes | No | £100 |
Visit the site Our review |
![]() IG |
|
6000 | $0,02 | Yes | No | £0 |
Visit the site Our review |
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.
ETF trading has many advantages compared to purchasing individual shares:
ETF funds allow investors to access a very wide range of financial instruments and products. Numerous ETF options exist, depending on your investment objectives.
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.
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.
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:
ActivTrades 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:
Trade 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:
XTB 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:
Last updated on 20/03/25