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Stockbrokers

After the crash of 2008 many companies were on the brink of collapsing, the price of Gold hit historical highs and the stock markets went down to historical lows. Many investors liquidated their accounts from traditional share investments, and instead chose to save or invest in safe havens like Gold. 

Almost a decade on the picture has changed, continuous all-time highs in most major Indexes, with investors being excited by a new breed of companies going public, especially in the Tech sector. This has created a huge demand for ownership, and in turn huge competition among brokers of these stocks.

Best Stockbrokers 2019

1
Min. Deposit
$50
Exclusive promotion
Our score
10
Access over 220 of the most popular company shares
Trade on spreads from 1 pt on UK shares
Go long or short on global top companies
Start trading
Description:
Founded in 1999, part of GAIN Capital Holdings. Licensed in highly regulated jurisdictions, FCA, IIROC, NFA, CFTC, CIMA,FSA. Payment methods ACH, debit card, bank wire transfer. $50 minimum deposit.
Payment methods
Debit Card, Bank Wire, ACH, Credit Card, PayPal
Full regulations list:
NFA, CFTC, FCA, FSA, IIROC, CIMA, FFA Japan, MAS, SFC of Hong Kong
Forex trading involves significant risk of loss and is not suitable for all investors.
2
Min. Deposit
$500
Exclusive promotion
Our score
9.3
Low-cost UK shares Invest from just £5 per trade
Huge choice of investments - Invest in over 12,000 shares
Expert service provided
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Description:
The world-leading online trading and investments provider giving clients access to opportunities across thousands of financial markets through our intuitive platforms and apps.
Payment methods
Credit Card, Debit Card, Bank Transfer, PayPal
Full regulations list:
FCA, ASIC, FINMA, is a licensed bank (IG Bank in Switzerland)
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 68% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.
3
Min. Deposit
$250
Exclusive promotion
Our score
8.7
CFTC Regulated exchange based in the US
Trade around the clock, how you want, when you want
100% defined risk trades on Forex, Stock Index Futures and Commodities underlying markets
Start trading
Description:
Nadex is the first, and largest, CFTC regulated exchange designed for the individual trader. Nadex offers around the clock trading on Forex, Stock Index Futures and Commodities. Nadex offers three unique contract types: Binary Options, Touch Brackets and Call Spreads giving traders the ability to trade how they want, when they want.
Payment methods
ACH, Debit Card, Wire Transfer
Full regulations list:
CFTC
Trading on Nadex involves financial risk and may not be appropriate for all investors.

So what is the job of a Stock Broker? Who are the best ones for investors to use? We detail all you need to know below.

What is a Stock Broker?

A stockbroker acts as a middleman between the stock exchange and a private investor. Stockbrokers provide individuals the opportunity to buy shares within a respective public company that is listed on the stock exchange. 

This service is done for a fee or commission that the broker charges the individual for conducting the transaction on their behalf. Depending on the stock you would want to purchase, it is necessary to have a broker which offers you access to the exchange which they are listed on. 

Most brokers would grant you access to exchanges listed on their domestic exchanges. For example, a US stockbroker may give you access to as US exchanges, S&P500, DOWJONES, NASDAQ etc. A good stockbroker will be well connected with global share exchanges, allowing you to invest in companies beyond your own country.

Is stock trading for me?

This question can be answered quite simply, but first, you need to answer this. Are you looking for a long term or short term returns?

 If you are looking for short term returns then maybe day trading CFDs would suit you better. If you are more conservative and interested in longer-term gains then stock trading is indeed for you.

However, in choosing stock trading, you will likely need a larger account size than you would if trading CFDs.

Pros and Cons of a Stock Broker

Pros:

  • Gives you access to various markets
  • No need to contact each individual company you want to buy shares in
  • Well regulated – safety of funds

Cons: 

  • Commissions can be high
  • Can usually not hedge (buy/sell simultaneously)

FAQ’s

How will I know if I am due dividend payments?

Your stockbroker should give you a e-dividends calendar to show when dividends are due for a particular share.

Are commissions and other fees similar the same for each share? 

Commissions usually vary on the volume you will be buying, rather than the share price of the company.

Can the stockbroker recommend me shares to invest in?

It depends on the type of broker. Some will offer you an advisory service and others will only offer you trade execution services. 

Is there an overnight fee? 

Most stockbrokers will charge an overnight interest, as they must pay the exchange a holding fee for each day they have a position open.