The London Stock Exchange (LSE) is one of the oldest and most prestigious stock exchanges in the world. Established in 1698, it has grown to become a global hub for trading equities, bonds, derivatives, and other financial instruments.
The LSE plays a vital role in the global financial system and is home to a diverse range of companies encompassing finance, technology, healthcare, and energy sectors. For investors looking to trade assets on the London Stock Exchange, choosing the right broker is crucial for efficient trading. In this article, we will explore LSE brokers, highlighting some of the top picks to access the London Stock Exchange.
Key Factors to Consider When Choosing an LSE Broker
Selecting the right LSE broker is a personalised decision based on your individual trading needs and preferences. However, there are some key factors that every trader should consider. Here are a few:
- Regulation – The regulation of a broker is probably the most important thing to assess. Traders should ensure the broker they choose is regulated by reputable financial institutions. In this case, prioritising brokers regulated by the FCA is a great place to start.
- Market Access – It is crucial to look at the range of market products that a broker supplies. Ensure the broker provides a deep collection of LSE-listed products and other international markets to help you diversify your portfolio.
- Trading Fees – Broker fees can significantly impact your profitability. Compare the fee structures of different brokers and choose the most cost-efficient broker.
- Trading Platform – Traders should pick brokers that offer advanced trading platforms with user-friendly interfaces. Such a trading platform can greatly enhance your trading experience.
Using the criteria listed above, let’s take a look at some of the best LSE Brokers.
Top Brokers to Access the London Stock Exchange
eToro
eToro is one of the top brokers that offers access to LSE-listed stocks. On this broker site, traders can access a total of 608 different LSE-listed stocks. This includes the stocks of companies covering a wide range of sectors such as finance, technology, and healthcare, among others. Positively, eToro offers LSE-listed stocks both as CFDs and as real underlying assets. This means that traders can own a piece of a company when they buy its real stocks on eToro.
On another note, eToro supports the trading of stocks with favourably competitive charges. With this broker, traders pay a spread of 0.15% when trading stock CFDs. Meanwhile, when trading real stocks, a commission of $1 or $2 may be charged for opening and closing a position, depending on your country of residence and the stock exchange where the asset is listed.
Further, eToro also offers a ton of other stocks and stock CFDs for clients to trade. In total, it offers 6,000 different stocks from 20 different stock exchanges. Additionally, the broker also offers access to other global markets including forex, ETFs, commodities, indices, and cryptocurrencies as CFDs. On top of that, traders can also trade cryptocurrencies as real underlying assets. To trade these instruments, the broker provides its own eToro platform with advanced capabilities. It comes with the CopyTrader technology which allows investors to copy the moves of other investors in the market.
Finally, eToro is a well-regulated broker in several jurisdictions. This broker operates under the strict supervision of the FCA in the UK, the ASIC in Australia, the CySEC in Cyprus, and the FSAS in Seychelles. This strong regulatory is part of why eToro stands out as one of the top LSE brokers in the market.
Pepperstone
Pepperstone is another excellent choice for traders looking to access the London Stock Exchange. This broker allows traders access to a range of 100 UK equities listed on the LSE. It’s important to note that Pepperstone offers LSE-listed instruments as CFDs, allowing traders to speculate on price movements without owning the underlying asset.
Pepperstone also offers other stock CFDs from a variety of other stock exchanges to trade. These include exchanges such as the NYSE, the NASDAQ, and the ASX, among others. The fees that apply when trading stocks on Pepperstone depend on the countries from which the stocks are. For LSE-listed stocks, traders pay a commission of 0.10% per side per trade.
Further, investors can access other market products including CFDs on forex, indices, commodities, ETFs, and cryptocurrencies. The trading platforms available to use on this broker site include MT4, MT5, cTrader, Pepperstone Trading Platform, and TradingView. Additionally, Pepperstone offers a set of tools to assist traders in their activities.
Pepperstone is also highly regulated, ensuring a secure trading environment for its clients. The broker has oversight by the FCA in the UK, the ASIC in Australia, the CySEC in Cyprus, the BaFin in Germany, and other top-tier regulatory bodies worldwide. This strong regulatory oversight ensures that traders have a reliable environment for accessing LSE stocks with leverage.
FP Markets
FP Markets is another top broker that provides seamless access to the London Stock Exchange. This broker offers a wide range of LSE-listed stocks as CFDs, allowing traders to speculate on price movements without owning the underlying shares. The LSE-listed stocks on FP Markets cover various sectors such as finance, technology, healthcare, and energy.
On the FP Markets broker site, traders can trade stocks on MetaTrader 4 (MT4) or MetaTrader 5 (MT5). These platforms provide access to slightly over 1,000 shares and stock CFDs, with MT5 offering a broader selection compared to MT4. Trading fees for stocks are generally low on the FP Markets site. All UK stocks charge a commission of 0.10% per trade per side with a minimum charge of 2 GBP.
In terms of regulation, FP Markets is well-regulated by top financial authorities. These include the ASIC in Australia, the CySEC in Cyprus, and the FSCA in South Africa, among others.
XTB
XTB is another well-established broker that offers access to the London Stock Exchange, through both CFDs and real underlying assets. This dual offering makes XTB a versatile broker for different trading strategies. On this broker, traders gain access to a wide range of LSE-listed companies across various sectors such as finance, technology, healthcare, and energy. The broker also provides access to other global markets, including CFDs on forex, indices, commodities (such as Gold and Silver), cryptocurrencies, and ETFs. ETFs are also available to trade as real assets, making it a one-stop solution for diversified trading.
One of XTB’s standout features is its proprietary trading platform, xStation 5. This platform is renowned for its intuitive interface and advanced capabilities. When trading stocks as real assets on XTB, a 0% commission on monthly turnovers of up to EUR 100,000 (or the equivalent in other currencies) per account applies. For investments exceeding this amount, a commission of 0.2% (minimum 10 GBP) applies. For stock CFDs, the broker applies a varying spread that depends on the share and the market conditions.
XTB’s regulatory background is reputable, to say the least. This broker operates under the strict supervision of the FCA, the CySEC, and the KNF in Poland, among others.
Forex.com
Forex.com is another top contender for top brokers to access the London Stock Exchange. The broker provides access to a wide range of LSE-listed stocks as CFDs, allowing traders to speculate on price movements without owning the underlying assets. In addition to LSE stocks, the broker provides access to other global markets, including CFDs on forex, indices, cryptocurrencies, commodities, and precious metals. Please note that these CFD instruments are only accessible to traders outside the US. Those who reside in the US can only trade forex, futures, and futures options.
Forex.com charges a commission which varies depending on the market. For UK stocks, a commission of 0.08% of the trade applies. The minimum commission rate is 10 of the stock’s base currency. To trade on this broker site, traders can choose from a variety of platforms. These include MetaTrader 4, MetaTrader 5, TradingView, and Forex.com Trader.
In terms of regulations, Forex.com has one of the most robust oversight. Its parent company, StoneX, is regulated by a variety of organisations. These include the FCA, the ASIC, the CySEC, the CIRO in Canada, and the CFTC and NFA in the US.
HFM
HFM is another well-regulated broker that offers access to a ton of stocks including those listed on the London Stock Exchange. This broker operates under the regulation of the FCA, the CySEC, the FSCA, and the FSC in Belize, among others.
They provide a range of LSE-listed stocks as CFDs, allowing traders to speculate on price movements without owning the actual shares. In addition to LSE stocks, the broker provides access to other global markets, including forex, energy, indices, metals, bonds, commodities, cryptocurrencies, and ETFs, all as CFDs.
HFM offers highly competitive trading conditions for stocks. Spreads are consistently low on all the accounts, usually below 1.0 pips. However, there is an accompanying commission of 0.1% per trade. The trading platforms traders can use on the HFM trading site include MT4, MT5, and the HFM Platform. These platforms provide access to comprehensive charting tools, automated trading capabilities, and a user-friendly interface suitable for both beginners and experienced traders.
IG
IG is a global broker that provides one of the deepest collections of stocks from around the world. This broker offers a vast selection of LSE-listed stocks as CFDs, enabling traders to invest in some of the most well-known companies in the UK. The LSE-listed stocks offered by IG cover various sectors, including finance, technology, healthcare, and energy, allowing investors to diversify their portfolios. Moreover, this broker offers a plethora of other market products including CFDs on forex, indices, commodities, cryptocurrencies, thematic and basket assets, options, bonds, and ETFs.
IG charges competitive fees for trading LSE-listed stocks. The commission charged depends on whether they are listed on the FTSE 350 or not. FTSE-listed shares have a commission of 0.10% per side per trade. In contrast, non-FTSE companies have a commission of 0.35% per side per trade. Both have a minimum charge of £10 when trading online and £15 when trading on the phone. IG is a highly regulated broker, operating under the FCA, the ASIC, the BaFin, and the FSCA, among others.
Why Trade LSE-Listed Assets?
The LSE is a preferred destination for investors for a variety of reasons. Here are some highlights:
- Global Reach – As one of the oldest and most influential stock exchanges globally, the LSE attracts a diverse range of companies and investors. Many LSE-listed companies have international operations, providing investors with indirect exposure to global markets.
- Diverse Investment Opportunities – The LSE offers trading in a wide range of companies from established blue-chip companies to emerging growth stocks. It also includes access to FTSE indices including FTSE 100 and FTSE 250.
- Strong Regulatory Framework – The LSE operates under a robust regulatory framework, providing a secure and transparent trading environment for investors. The UK’s FCA provides a robust framework to protect the interests of participating parties.
- Liquidity – The LSE is one of the most liquid markets globally, ensuring that investors can buy and sell assets with ease.
Closing Remarks
The London Stock Exchange offers a wealth of investment opportunities for traders seeking exposure to global markets. Choosing the right broker to access the London Stock Exchange is a critical decision that can significantly impact someone’s trading experience.
The brokers we featured here stand out as top picks due to their strong regulatory frameworks, competitive fees, and advanced trading platforms. However, it’s important to note that the best broker is subjective and depends on your individual needs. This article featured some generally well-regarded brokers that offer access to the LSE but it is not an exhaustive list. It is crucial to conduct your own thorough research before making a decision.
