Best Stock Trading Apps UK

Stock trading is complicated. Anyone who says it is simple is either trying to play it cool or woefully uninformed. But while there is basically no way to make it simple, you can make it less painful. That is what Webull sets out to do. In addition to providing tons of great services, the core of Webull’s experience is its app.

This app is designed with usability in mind. That means that no matter how much information it has to share with you, the interface will never confuse you or misguide you.

Keeping things clear in that way is not as easy as it might sound, especially with the stock market being as complicated as it is. Webull’s main method of keeping things streamlined is by having a customizable dashboard that you have a ton of input in as a user. This dashboard can focus on different things.

For example, if you want it to show you just the raw stock prices, it can focus on that. If you want it to display the value of your own stocks, that is also an option. It can even show you your stocks over time, as well as trends in the market. Or you could let the app itself take the wheel and show you news.

All of these options combine with its clear interface to make for an easy to navigate experience that also ends up informing you about the biggest changes in the stock market. That means buying stocks is easier and tends towards being more successful than if you did not have this information available.

Drawbacks

The issue many people have with Webull is that it does not take any risks. More specifically, it does not allow users to take any risks. It lacks some of the higher risk securities that many users favor. This can make some users feel as though the information Webull provides them goes to waste.

If you cannot use that information to take risks, then what are you using it on? Obviously, you can still use it on securities that are considered less risky. But that is just not satisfying to some users.

Fidelity offers quite the wide range of services. So wide, in fact, that some people will go all their lives using their apps and services and be shocked to discover what else you can do with these services. 

Most people know Fidelity as a bank. And indeed, their app lets you deposit your paycheck, manage your funds, take out loans, and so on and so forth. But that is not all they do. As you might expect from the fact that they are on this list, Fidelity also serves as a stock trading app.

This intersection of functions benefits a lot of people. Not many people know this, but banks actually take part in a lot of stock trading. For the people who know this, it is their least favorite part of banks.

Many banks will hold thousands of people’s money, but then use that money to trade stocks. As long as the amount of money the bank has access to has increased by the time any given person goes to withdraw their money, then there is no harm done by using other people’s money to trade.

But trading like this is risky. What if a bank uses other people’s money to trade, and then loses all that money? Or what if the stock market crashes and loses all of everyone’s money?

Fidelity bank helps you avoid those concerns. They do not invest your money, but instead offer advice on how you can invest your own money yourself. They take commission fees, but for the most part this just means that your bank is helping you develop your money.

Fidelity even gives you access to riskier securities, like options and CFDs. This is uncommon with such a retail trader-friendly app, but it is worth noting that they do not advise you to take these trades.

They simply make it an option. That, combined with their app’s incredible customizability, make them a great option for both new traders and veteran traders who also want a bank to store their money in.

Drawbacks

Earlier we mentioned the commission fees Fidelity takes. It must be said, these commission fees are larger than many other apps. It should also be said that while Fidelity encourages you to trade, most of the advice they give is automated. That means that while they give you advice, it might not be good.

Granted, their articles, news, and knowledgebase are all curated like any other app. But it is important that you do not get one confused for the other. The Fidelity app will suggest trades to you based on an algorithm, not based on an actual analysis of the market.

Even so, Fidelity is still a great option for anyone who wants their banking and stock trading in one place.

As you probably know, stocks are documents that represent your financial share in a company. A company can have any number of stocks; each stock represents a portion of that company's total wealth. If a company has 30,000 stocks, then each stock is worth 1/30,000th of the company's value.

Most people know this even if they have never traded before in their life. But it is important to state this, as stock trading apps take this simple interaction and turn it into a highly complex artform.

The different ways that you can invest in these stocks are called “investment strategies”, and there are basically an infinite number of different strategies. But of all the various ways of investing that exist, they all fall under two main principles: You are either and never both investing in income or growth.

Income strategies are strategies meant to make money in the short term, while growth strategies are meant to make money in the long term. Stock trading apps help with both, but in different ways.

Stock Trading Apps & Income Strategies

Whatever stock trading app you get, as long as it can trade stocks you can employ an income-based trading strategy. We defined income strategies as “short-term” strategies, but what does that mean?

The simple version is that you are looking for stocks that you can buy at a low price and sell at a high price as quickly as possible to make money. You are not buying the stocks to invest in the company from which the stocks are sold. You are buying the stocks with the intention of selling them.

Income strategies like this are common among “day traders”, or stock traders that make their primary income from buying stocks at low prices and selling them at high prices. So, consider this: Imagine you work on Wall Street. You buy stocks at a rate of only one stock an hour due to the process being slow.

What if instead of buying one stock per hour, you could buy three stocks per hour? Or ten? Even 50? If you are looking to continuously buy and sell stocks all day every day, then you need the ability to trade these stocks as efficiently as possible. That is what stock trading apps allow you to do.

Stock Trading Apps & Growth Strategies

Income strategies benefit from stock trading apps due to the increased speed of trading on the apps. But what about growth strategies? How do they benefit from stock trading apps?

The thing you have to understand about growth strategies is that they are organized in very long timescales. A growth strategy will usually require you to invest in a business that expects to see growth over the next ten to 15 years. But how do you even know which businesses will see growth like that?

This is the next big thing stock trading apps provide: Advanced analysis of the stock market.

Many stock trading apps have knowledgebases, web seminars, and specialized charting tools for figuring out exactly what is going on in the stock market. These are critical for figuring out what businesses and industries have seen ten years or more of growth, and which ones will continue to see that growth.

But even the apps that do not support these knowledgebases, web seminars, and specialized charting tools will at least allow you to view the markets in a more holistic way than any in-person stock market.

Stock trading apps also give you unrestricted access to indexes. These are databases of stocks, companies, commodities, and even entire industries. You can use these to chart how money is flowing through the market. Though these are available through in-person trading, they are less common.

In-person trading usually means a person is restricted to the indexes (and indeed, the stocks and other securities) that are geographically close to them. Stock trading apps remove this restriction.

How Do I Start Trading?

Stock trading has its risks, especially since it typically has short-term objectives rather than the long-term goals inherent in passive investing.

Learning the ins and outs of the stock market and the financial world can be tedious, but it’s crucial if you want to make better trades and minimize losses.

1. Create Your Brokerage Account

The first thing you should do is set up a brokerage account, which will then allow you to deposit investments with a top investment firm. Research about the best stock trading app available in your region.

Basically, you own the assets — it’s just that the broker does the actual work of executing your trades. This step generally takes minutes and you won’t have to shell out anything yet.

2. Know the General Types of Trade Orders

Now that you have an account, you can log in to the website or trading app of your broker. This is where you can make your trades.

You’ll see different order types, but for now, you only have to be acquainted with the two general types: market order and limit order.

A market order is the most common type of trade: 

You’re immediately buying or selling a stock at its present rate. A stock you want to buy will cost equal or approximate to the ask price (or offer price) set by the seller. Consequently, a stock you’re selling will get offers equal to or near the bid price, which is typically lower than the ask price.

Thus, the market order is relatively straightforward to understand. However, the price you sell or acquire a stock for may differ from when you actually placed the trade (i.e., at the last traded price) if the market is fluctuating or shifting fast. If you want to purchase or sell stocks as fast as possible, go for market orders.

On the other hand, a limit order is when you trade stocks at either a particular price or an even better deal.

Now that you know about market orders and limit orders, get a demo account and make practice orders. Your brokerage firm or platform will provide your practice account with virtual money.

3. Set a Budget and Goal — Then Make Your First Order

Before you execute orders, think about your financial position. Don’t rush into the stock market with all the money you have. Similarly, determine the maximum level of risk you’re willing to take for each trade.

Think of an objective as well. Create your first stock market goal. Doing this can help narrow your stock picks from possibly thousands of options. At this point, go ahead and make your first stock order on the brokerage firm’s website or trading platform.

What is Stock Trading?

The process of purchasing and selling company shares is what we call stock trading. From an investment perspective, a stock is the same as one’s partial ownership of any publicly-traded company or corporation.

Thousands of people can buy stocks of the same company, giving them each a share of ownership. The best stock trading apps in the world are designed to handle millions of stocks being traded each day.

For short-term stock traders, movements in the stock market matter a lot whether they happen by the week, day, hour, or even by the minute.

In stock trading, you have to understand active trading. Simply put, it refers to buying and selling stocks depending on cursory price fluctuations. You don’t keep your positions open for long.

There are four general kinds of active trading, and you can practice more than one at a time:

Day Trading

When you say you’re an active trader, some people will immediately think that you’re a day trader. This just goes to show how well-known this approach is, with its defining characteristic being that positions are opened and closed on the same day.

Position Trading

Not everyone thinks this is a form of active trading because the timeframe can extend to months. But highly experienced position traders do partake in active trading: They can close their position just within a few days if their trend analysis of charts supports the short-term move.

Swing Trading

If position traders look for trends, swing traders focus on the exact point a trend stops. Why? Whenever a trend reaches its end, the market experiences a degree of volatility as fresh trends develop. Swing positions often stay longer than day-trade positions but they don’t match the longer period of position trades.

Scalping

This refers to making strategic positions based on price gaps. In other words, you buy a stock for its bid price and then offer it to traders at its offer or ask price, which is generally higher than the bid. Due to the risks inherent in this approach, trades are only held for a short duration.

How to Trade Stocks

Answering the question of how to trade stocks is quite simple, there are 2 unique options.

The two general ways of trading stocks are pit trading and electronic trading. From their names, you can guess that the former is conducted in a physical setting while the latter occurs in a digital space.

Pit trading happens, well, in the pit — a specific section in the trading floor of a stock exchange building. This is where brokers buy and sell stocks.

However, pit trading is no longer the major form of stock trading. Some argued that the physical aspect of it offered transparency, but most major stock exchanges today have since shifted to electronic trading, which is not only less expensive to operate but also better in terms of speed and efficiency.

Our five picks for the best stock trading app are a form of electronic stock trading. You still have a broker executing your orders, but for the most part, you just need your computer or smartphone (and capital) to participate.

How to Risk-Manage

Stock trading isn’t about winning all the time. You may face losses significant and small — and you will make mistakes. These are normal, but nobody wants to crash and burn in the financial industry all the time. Here are a few tips on reducing risks while navigating the stock market:

Find a Reputable Broker

Individual brokers and brokerage firms all have the same responsibility, but they differ in performance and quality. Once you’ve grasped your experience level in trading and realized your preferred strategies, find a top forex broker, or any other that suits them.

For example, if you’re going to be a day trader or an active trader in general, you might want the best stock trading app UK traders can get in terms of low or even zero-percent commission fees.

Also, a platform or brokerage firm that offers top-tier execution speeds and mobile notifications will benefit your trading style.

Don’t Forget about Backtesting

Top online trading platforms and algorithms, in particular, allow people to automate their actions in the stock market. However, you shouldn’t take this pre-programmed approach just because you feel good about the results.

Before doing any sort of automatic stock trading, backtest your strategy. This means gathering historical data to perform trading strategy simulations. Backtesting can then reveal how likely (or unlikely) it is that your plan will lead to favorable outcomes. There are software applications and programmers that can do this for you.

Beware of The Internet

Gossip and rumors are prevalent online — and they can be dangerous for your wallet. On one hand, forums dedicated to trading can be beneficial. But it’s common to see internet users talking about unknown stocks that they argue will exceed expectations soon.

Most of the time, these so-called anonymous financial tips are from malicious people. They do
this on forums and social media because they secretly already bought a ton of shares from the company they’re hyping up. So when others take the bait and create fake demand, their shares skyrocket in value.

If you want to find an online community to discuss stocks, check if the best stock trading app online has an exclusive forum where only verified clients (i.e., people who provided real personal information to set up their accounts) can participate.

Blue-Chip Stock

When a big company has been around for a long time and has a proven track record in financial growth, then it can be called a blue-chip stock. These companies are at the top of their industry and each has billions in stock market value.

Granted, a company doesn’t have to do dividend payments to be considered a blue-chip stock. Nonetheless, the majority of them have done so for many years.

Portfolio

Your stocks, cash, exchange-traded funds, and bonds, among others (even including real estate), comprise your portfolio.

Think of it as the main folder keeping everything that you can offer to the market. Traders can opt to store and develop their own portfolio, but they can also pass its management to a finance expert.

Rally

If your stock surges in value for a while, it’s experiencing a rally. Likewise, a sudden rise in the price of a bond or index is a rally. This usually occurs when the stock market is in a period of stagnant or falling prices, but it’s possible to happen when the opposite occurs.

Bull Market

The stock market is described to be bullish if the value of a considerable number of stocks increases or is foreseen to do so in the coming months — or even years.

Professionals in the stock market have not set an official number for determining a bull market run.

However, there’s a general notion that a bull market run happened if the stocks increased by a fifth of their value after having lost the same percentage, only to then lose the same value gained afterward.

And when the stock market is in decline for a relatively long period, then it’s said to be a bear market.

Spread

In simple terms, this is the difference between the selling price and the buying price. For example, if you’re selling a stock and set the ask price to £40 and the bid price is £32, then the bid-ask spread is £8. Now, if the bid-ask spread is significantly thin, it’s called a haircut.

Annual Report

Each year, companies craft detailed reports about their business. Shareholders 
of publicly traded companies read them to get an overview of financial and executive matters.

If the figures and narrative highlights inside indicate a strong annual performance, shareholders have a good reason to keep their shares longer — or even acquire more.

Initial Public Offering (IPO)

When a private company transitions into a public one, it can declare a public share issuance or an IPO. This just means that the public (such as stock market traders) can now purchase a stock of the company as well.

Short Selling

This typically occurs when the stock market is volatile and you can spot signs of a significant decrease in the value of a specific stock.

The process begins with a trader asking another entity to lend their shares to them. If the other party grants the request, the trader sells those shares. And then when the stock value dwindles, the trader buys enough shares (now at a price lower than what they sold them for) to give back to the other party.

What’s the Difference Between Stock Trading and Investing?

Stock trading and investing involve active participation in the financial market. Some people may argue that trading is essentially investing as well since it involves the allotment of cash or capital to meet an economic objective.

However, stock trades and investments are two different things — and time is the distinguishing factor.

Stock trading is primarily a short-term process. It’s more attuned to the day-to-day market fluctuations. Unless you’re a position trader that will wait as long as investors, you typically open and close positions many times over a short period.

On the other hand, investing takes a lot of time.

Daily, weekly, or even monthly market volatilities won’t make investors budge — they’re in it for years or decades because they have long-term goals. Investors will keep on buying and holding onto more stocks, mutual funds, and bonds over a significant portion of their lives to expand and diversify their portfolios.

Thus, you can think of investors as those who accept defeat in battle so long as they can claim victory in war. More often than not, the best stock trading app can double as the best investment app.

What Is the Best Stock Simulator App?

Rushing into the world of stock trading is a big no-no, especially if you have no background in financial literacy whatsoever. Still, you’ve probably asked yourself the following question:

How Can I Practice Stocks Without Using Real Money?

Well, your best option is a stock simulator app, which is designed to replicate stock market apps. While it can offer real-world market information and help you learn about stock trading, you’re not spending any real money or making actual trades in the stock market.

If you have an Android device, try Stock Trainer: Virtual Trading. It includes 20 world stock markets and stock charts spanning a decade. You’ll learn about limit orders, guaranteed stops, and portfolios in no time.

Similarly, MarketSim is available on iPhone and iPad devices. It was released back in 2016, but the app still receives regular updates. In this app, you have £10,000 in virtual cash to make your trades. There’s no trading limit and you can choose among more than 5,000 stock symbols.

Innovations in digital and financial technology have made stock trading more accessible to any person with a computer device and Internet connection (and a budget).

The apps are even competing among themselves for the title of the best online trading platform for beginners, showing that trading apps are trying to make their craft newbie friendly.

Stock trading apps help people manage their portfolio, execute orders, and browse market charts no matter where they are.

eToro might be our top pick, but we hope that our comprehensive review of stock trading apps will help you find one that best matches your trading strategy and goals.

You Might Also Like:

• Best Penny Stock Trading Platforms UK
• Best Stocks to Buy Now (UK)
• Best Performing Stocks & Shares ISAs
• Best Stock Brokers UK
• Best Free Trading Apps UK (2023)
• Best Investment Apps UK