After years of trading UK and global markets, I’ve learned that planning around costs is crucial. No matter how well your trades perform, brokers charge fees that can quietly erode your profits over time. This guide reveals the UK brokers with the lowest trading fees and breaks down key costs to help you keep more of your gains.
Cheapest Brokers in the UK
Based on hands-on testing, these brokers offer the lowest fees without compromising performance:
IC Markets
A globally acclaimed forex and CFD broker known for competitive pricing and superior technology. Regulated by ASIC, CySEC, and FSA.Instruments Regulator Platforms CFDs, Forex, Stocks, Indices, Commodities, Bonds, Futures, Crypto ASIC, CySEC, FSA, CMA MT4, MT5, cTrader, TradingView Min. Deposit Min. Trade Leverage $200 0.01 Lots 1:30–1:1000 Pepperstone
A top-rated forex and CFD broker with transparent fees and regulation by FCA, ASIC, and CySEC.Instruments Regulator Platforms CFDs, Forex, Stocks, Indices, Commodities, ETFs, Crypto FCA, ASIC, CySEC MT4, MT5, cTrader Min. Deposit Min. Trade Leverage $0 0.01 Lots 1:30–1:500 IG Index
A leader in spread betting and CFDs, offering access to over 17,000 markets.Instruments Regulator Platforms CFDs, Forex, Stocks, Indices, Commodities, ETFs FCA, ASIC Web, MT4, TradingView Min. Deposit Min. Trade Leverage $0 0.01 Lots 1:30–1:222
Compare Trading Fees
| Broker | GBP/USD Spread | FTSE Spread | Stock Spread | Inactivity Fee |
|---|---|---|---|---|
| IC Markets | 0.23 pips | 1.0 pips | 0.02 pips | $0 |
| Pepperstone | 0.4 pips | 1.0 pips | 0.02 pips | $0 |
| IG Index | 0.9 pips | 1.0 pips | 0.02 pips | $12 |
Key Features Comparison
| Broker | Automated Trading | Pro Account | VPS | AI Tools |
|---|---|---|---|---|
| IC Markets | ✔ (MT4/5, cTrader) | ✘ | ✔ | ✘ |
| Pepperstone | ✔ (MT4/5) | ✔ | ✔ | ✔ |
| IG Index | ✔ (MT4, ProRealTime) | ✔ | ✔ | ✘ |
Pros and Cons of Top Brokers
IC Markets
- Pros: Tight spreads, fast execution, no inactivity fees.
- Cons: No proprietary platform, no interest on idle cash.
👉 Start trading with IC Markets
Pepperstone
- Pros: Low fees, excellent support, advanced tools.
- Cons: Demo account expires in 30 days.
IG Index
- Pros: Wide asset range, user-friendly platforms.
- Cons: Higher spreads for stocks/CFDs.
How We Selected the Cheapest Brokers
We analyzed 10+ fee types across forex, stocks, and CFDs, focusing on:
- Spreads and commissions.
- Hidden costs (inactivity, withdrawal fees).
- Platform usability and regulation.
Common Trading Fees Explained
- Commissions: Flat fees or percentages per trade.
- Spreads: Difference between buy/sell prices.
- Overnight Fees: Charged for holding leveraged positions.
- Inactivity Fees: Penalties for dormant accounts.
FAQ
Which broker has the lowest fees?
IC Markets and Pepperstone offer some of the tightest spreads and lowest commissions for active traders.
Are there brokers with no inactivity fees?
Yes, IC Markets and Pepperstone charge $0 for inactivity.
How do brokers make money?
Primarily through spreads, commissions, and overnight fees.
Disclaimer: Trading involves risk. Past performance is not indicative of future results.
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