🏦 Comparison of stock brokers in 2025

The simplest way to explain what the stock market is: imagine an enormous market where each stall sells shares of companies, commonly referred to as “stocks.”

When you see a large number of people queueing at a particular stall, it means the company behind it is performing well; it’s popular. As a result, the price of that company’s stock rises because many people want to buy a share of it.
Conversely, if you notice that a stall is almost deserted and no one is interested in it, it typically indicates that the company is not doing well. In this case, people are less inclined to buy shares of that company; they often prefer to sell their existing shares. Consequently, that company’s share price will drop.

Using our market example again: imagine you own shares in one of the stalls in this vast market that is the stock exchange. When the stall—representing a company—makes profits, it decides to share those profits with its owners, which includes you, the shareholder.

The company director walks around the market, stops by your stall, and places a portion of these profits into your till. As a stall owner, you receive your share of the profits.
This share you receive is what we call a “dividend.”

Investing, especially in the stock market, always carries a certain degree of risk. However, this risk can be put into perspective, particularly if you adopt a long-term view.

Here’s a concrete example:

You’ve just purchased a share in a company. Naturally, the share price will fluctuate over time, depending on that company’s performance and the state of the global economy.
This is where risk comes in: if the share price drops, you might be tempted to sell for fear it might fall further. If you do sell, you realise a loss.
However, if you take a long-term perspective and resist the urge to sell when the price goes down, you do not lock in that loss. As long as you don’t sell, you haven’t “lost” money—at least not in real terms.

Of course, assuming the company doesn’t go bankrupt and performs well over time, the share price will likely rise again eventually. Should you decide to sell at that point, you would realise a profit.

If you wish to invest your money by purchasing stocks on the market, you have a few options:

• Opening a share dealing account: This is likely the most flexible option for those wanting to invest in the stock market. Unlike an ISA, there is no upper deposit limit, allowing you to invest as much as you want. In addition, there are no geographic restrictions, so you can invest in financial markets worldwide. Another key advantage is that your funds are never locked in; they remain accessible at any time should you wish to make a withdrawal.
  You can open a share dealing account either through an online broker or with your traditional bank. Bear in mind that fees at traditional banks tend to be higher than those charged by online brokers.
• Opening an ISA: While a Stocks & Shares ISA does have an annual deposit limit (for instance, £20,000 per tax year), it offers significant tax benefits compared to a standard share dealing account: Any gains you make are generally tax-free. ISAs are popular with UK investors for this reason. Although you can normally withdraw at any time, re-depositing within the same tax year still counts against your annual ISA allowance (unless it’s a flexible ISA, where different rules may apply).
• Buying ETFs: Purchasing an Exchange-Traded Fund (ETF) is the ideal route for those who want to invest in the stock market while minimising risk. By investing in an ETF, you diversify your portfolio by acquiring shares in multiple companies simultaneously. In other words, you’re not putting all your eggs in one basket, reducing the potential negative impact if a single company underperforms.
• Investing indirectly in shares through life insurance-based investments or funds: This method of investing in the stock market appeals to those who prefer not to manage their own investments. Life insurance-based policies, as well as collective investment schemes such as Unit Trusts or Open-Ended Investment Companies (OEICs), are managed by professional fund managers. They keep an eye on market trends and will buy or sell on your behalf.

Comparison between a share dealing account, ISA, ETFs and life insurance-based investments

In the complex world of the stock market, choosing the right broker can make all the difference. Below is our top 3 list of the best stock brokers to help you make your trades confidently: