Brokers With The Lowest Fees 2025

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Choosing the right broker can significantly impact your investment returns—especially when it comes to fees. Over years of trading across UK and global markets, I’ve learned that even small costs add up quickly, quietly eating into profits. Whether you're a beginner or an experienced trader, understanding the fee structures of top brokers is essential for long-term success.

In this comprehensive guide, we reveal the UK brokers with the lowest fees in 2025, analyze their cost models, and break down the hidden charges that could affect your bottom line. Our evaluation covers spreads, commissions, inactivity fees, withdrawal costs, and more—so you can make informed decisions and keep more of your gains.

Top Low-Cost Brokers in the UK

After extensive hands-on testing and analysis, here are the most cost-effective brokers currently serving UK traders:

IC Markets

Established in 2007 and regulated by ASIC, CySEC, and FSA, IC Markets is globally recognized for its ultra-low spreads and advanced trading technology. With access to over 180,000 clients across 200+ countries, it offers a wide range of instruments including forex, CFDs, stocks, indices, commodities, and crypto.

👉 Discover how IC Markets delivers elite execution speeds and razor-thin spreads for active traders.

Pepperstone

Founded in 2010 and regulated by top-tier authorities like the FCA, ASIC, and CySEC, Pepperstone has built a strong reputation for transparency and performance. It serves over 400,000 clients worldwide with access to 1,300+ financial instruments.

Pepperstone stands out for its fast execution (around 30ms) and no minimum deposit requirement—ideal for new traders testing the waters.

IG Index

As part of IG Group Holdings (LSE: IGG), IG has been a market leader since 1974. It offers access to over 17,000 markets with user-friendly platforms and robust research tools.

IG excels in education and mobile trading but comes with slightly wider spreads compared to niche discount brokers.

Interactive Brokers (IBKR)

A Nasdaq-listed giant with over 40 years in the industry, Interactive Brokers provides access to 150 markets across 33 countries. It's highly regulated and ideal for sophisticated investors seeking global diversification.

IBKR uses a tiered pricing model based on trade value (e.g., 0.08–0.20 bps), making it extremely competitive for large-volume traders.

FXCC

Based in Nevis and regulated by CySEC, FXCC offers ECN trading conditions with zero minimum deposit and tight spreads starting from 0.0 pips.

While limited to MetaTrader platforms, FXCC remains a solid choice for forex-focused traders.

Plus500

With over 25 million registered users globally, Plus500 is known for its intuitive proprietary platform and commission-free trading model.

Though spreads are dynamic and research tools are basic, Plus500 continues to attract beginners with its simplicity and ease of use.

BlackBull Markets

Rebranded in 2023, BlackBull now offers access to over 26,000 instruments with execution speeds under 100ms. Regulated by FMA and FSA, it caters well to stock CFD traders.

Despite strong performance, it charges a $5 withdrawal fee—a minor drawback for frequent fund movers.

How We Selected the Cheapest Brokers

To identify the most affordable brokers in 2025, we analyzed over ten types of fees across major asset classes: forex, stocks, commodities, crypto, and CFDs.

We focused on real-world costs such as:

Each broker received a cost rating from 1 to 5 (higher = lower fees). These scores were combined with usability tests to ensure low cost didn’t come at the expense of reliability or functionality.

Understanding Broker Revenue Models

Many brokers advertise “zero commission” trading—but how do they make money?

The answer lies primarily in the spread, which is the difference between the buy and sell price of an asset. For example:

Even "commission-free" platforms earn through slightly widened spreads—especially on leveraged products like CFDs and forex.

Other revenue sources include:

👉 See how leading platforms balance low spreads with transparent pricing—without hidden surprises.

Common Fees You’ll Pay When Trading Online

Here’s a breakdown of the eight most common costs UK traders face:

1. Commission & Transaction Fees

Most brokers charge per trade—either a flat fee or percentage-based. For instance:

“Commission-free” brokers often offset this with wider spreads or FX markups.

2. The Spread

As mentioned earlier, the spread is often where discount brokers generate revenue. Tight spreads (e.g., <1 pip on EUR/USD) are critical for short-term traders like scalpers and day traders.

Brokers like IC Markets and Pepperstone offer some of the tightest spreads in the industry.

3. Overnight Charges (Rollover Fees)

If you hold leveraged positions overnight (e.g., CFDs or spread bets), you’ll pay financing costs based on benchmark rates like SONIA plus a broker markup.

These can accumulate quickly—especially on large positions held for weeks.

4. Platform Fees

Some brokers charge monthly subscription fees for premium tools or data feeds. However, most modern discount brokers—including all listed above—offer free platform access.

5. Deposit & Withdrawal Fees

Watch out for:

Pepperstone and IC Markets offer free withdrawals via certain methods—always verify before funding.

6. Account Management Fees

Full-service brokers may charge 0.5%–1.5% annually for managed portfolios. While helpful for passive investors, these fees reduce net returns.

Self-directed traders should avoid them unless receiving tangible value.

7. Inactivity Fees

Some platforms charge £10–£15 monthly if you don’t trade within a set period (e.g., 12 months). IG charges £12/month after inactivity; Pepperstone charges nothing.

Always review these policies if you’re a long-term holder or occasional trader.

8. Exit Fees

Closing or transferring your account may incur per-instrument charges—sometimes £25–£50 per holding.

These can be painful if you’re switching brokers after building a diversified portfolio.

Frequently Asked Questions (FAQ)

Which UK broker has the lowest overall fees?

There’s no single “cheapest” broker—it depends on your trading style.
For high-frequency forex traders: IC Markets or Pepperstone
For stock investors: Interactive Brokers
For beginners: Plus500 or IG

Compare based on your preferred assets, trade frequency, and account size.

Do low-fee brokers compromise on safety?

Not necessarily. All brokers listed here are regulated by reputable bodies like the FCA, ASIC, or CySEC. Regulation ensures client fund protection, negative balance protection (for retail clients), and transparent operations.

Always verify regulation status before opening an account.

Are zero-commission brokers really free?

No—they typically earn through wider spreads or FX markups. A “free trade” isn’t truly free if the quoted price includes a hidden margin.

Always compare total trading cost: spread + commission + slippage + funding fees.

What’s the cheapest way to trade US stocks from the UK?

Interactive Brokers offers the lowest all-in cost:

This makes IBKR ideal for UK investors building global portfolios.

Do any low-cost brokers offer good educational resources?

Yes—IG leads in education with webinars, market analysis, tutorials, and its free ProRealTime platform.
Pepperstone also offers strong learning materials and 24/7 support—great for beginners.

Low cost doesn’t have to mean low support.

How can I avoid hidden fees?

Follow these steps:

  1. Read the full fee schedule—not just marketing claims.
  2. Test withdrawal costs before depositing.
  3. Check spread behavior during volatile hours.
  4. Confirm whether rollover fees apply to your instruments.
  5. Look for brokers with transparent pricing dashboards.

👉 Compare real-time pricing across top low-cost brokers and find your perfect fit today.

Final Thoughts

Finding a broker with genuinely low fees requires looking beyond headlines like “zero commission.” True cost efficiency means evaluating spreads, execution quality, withdrawal policies, and hidden charges—all while ensuring regulatory safety and platform reliability.

Whether you're day trading forex or building a long-term stock portfolio, choosing a transparent, low-cost broker is one of the most effective ways to boost your net returns over time.

Start by comparing the platforms above based on your specific needs—and remember: every penny saved on fees is a penny earned toward your financial goals.