London Stock Exchange

The London Stock Exchange (LSE) is the primary stock exchange in the UK, with just under 2000 companies from over 100 countries listed. The best brokers with access to the London Stock Exchange offer trading on the share prices of listed stocks, plus associated indices like the FTSE 100 and FTSE 250. This review ranks the top London Stock Exchange brokers with expert ratings and comparisons.

Choosing London Stock Exchange Brokers

Online brokers are the intermediary through which you trade assets on the exchange. Fortunately, as one of the world’s oldest and leading exchanges, there is a long list of London Stock Exchange brokers to choose from. When comparing trading firms, consider:

Fees

Research both trading and non-trading fees when comparing London Stock Exchange brokers. These include commission charges and in-built spreads, which will negate a portion of your profit per trade. These can also include non-trading fees such as inactivity charges, overnight rollover fees, or charges for making deposits and withdrawals.

Importantly, look for London Stock Exchange brokers with a transparent fee structure and competitive costs. Pepperstone, for example, offers CFDs on UK shares with a 0.10% commission per side with a minimum of 10 GBP. Alternatively, spread betting on London Stock Exchange shares comes with a 0.10% spread markup.

Note, it is normally cheaper for British investors to trade through UK-based brokers that use GBP as a base currency, so no conversion fees are necessary.

Vehicles

A key question for investors comparing London Stock Exchange brokers is how they want to trade. Whether you are a buy-and-hold investor or a day trader, you will need a brokerage that provides the right trading vehicle. Popular options include:

• Stocks – The direct purchase and sale of stocks will typically suit longer-term investors. Traders will own a piece of the company and can receive dividend payments and voting rights.
• CFDs – Contracts for difference allow traders to speculate on stock price movements without actually buying or selling the underlying securities. Leverage also enables investors to take much larger positions than their current cash would allow.
• Spread Betting – A similar derivative to CFDs and also popular among retail traders, particularly in the UK where profits from this type of trade are tax-exempt.
• ETFs – Longer-term LSE investors may choose exchange-traded funds, which bundle together a range of securities listed on the London Stock Exchange. Popular examples include ETFs that track the FTSE 100, giving the trader exposure to the biggest companies on the exchange. However, traders can find ETFs with a diverse range of features, including sector-specific funds.
• Binary Options – Some retail traders opt for binary options to make a straightforward bet on a stock. The timeframe and potential profit/loss are determined before the contract begins, and all the trader needs to do is predict whether the asset’s price will rise or fall.

Platform

The platform is the terminal through which investors analyse chart data and execute trades. The best London Stock Exchange brokers will offer industry-recognised platforms such as MetaTrader 4 and MetaTrader 5 or provide proprietary technology.

Look out for a range of analysis features, customisable charts, and useful tools to create the best conditions for successful investing. You should also consider access to a mobile app if you want to keep up with investments on the go.

eToro, for example, provides an intuitive web-based, multi-asset platform alongside a sleek mobile app. Retail investors can create custom watchlists, access expert research analysis and view portfolio performance within one interface.

eToro UK Stock Trading Platform

Market Execution

Traditionally, London Stock Exchange brokers request individual security prices from market makers, known as Retail Service Providers (RSPs). However, this is changing and some of the best London Stock Exchange brokers now offer Direct Market Access (DMA). This permits retail investors to access the same pricing and order book execution model as provided to institutional investors.

IG Index, for example, provides its customers with access to free market depth data from the LSE and direct trading on the exchange’s order book. Note, a £3 fee applies for UK shares if three or more orders are executed per month.

Regulation

One of the most important factors to consider when comparing London Stock Exchange brokers is their regulatory status. Oversight from reputable financial regulators such as the UK’s Financial Conduct Authority (FCA) will ensure that your personal information and finances are better protected against fraud, scams, or misconduct.

You may not be covered by any compensation schemes, have access to negative balance protection or have your funds held segregated from a broker’s money if you choose an unregulated broker or one with more lenient supervision.

Customer Support

Customer service quality and access are important when choosing between London Stock Exchange brokers, especially for beginners. Access to a customer support team during trading hours will be helpful if you have any urgent platform queries or need withdrawal guidance.

Many of the top brokers with access to the London Stock Exchange provide 24/5 help, though Pepperstone ranks even higher with a 24/7 toll-free telephone contact number.

Live Chart

What Is The London Stock Exchange?

Established in 1698, the London Stock Exchange (LSE) was one of the first official stock exchanges in the world. In 2007, the LSE merged with the Milan Stock Exchange (the Borsa Italiana), creating the multinational stock exchange operator, the London Stock Exchange Group (LSEG). Today, LSEG is ranked the eighth-largest stock exchange globally, and the second-largest stock exchange in Europe. The stock exchange is physically located in the city of London, with headquarters in Paternoster Square.

London is Europe’s largest capital market, providing companies with access to some of the world’s deepest and most liquid capital pools. The LSE also offers a range of equity, fixed-income, and exchange-traded products available to retail investors via London Stock Exchange brokers.

Some of the largest companies listed on the LSE include Unilever, Shell, and HSBC. The company also owns several financial subsidiaries including Refinitiv, LSEG Technology, and FTSE Russell.

History

Below we outline the key dates in the formation of the London Stock Exchange:

• 1698 – John Castaing publishes a list of commodity, currency, and stock prices at Johnathon’s Coffee House
• 1773 – A more formal trading establishment is formed with a dealing room, known as ‘New Jonathan’s’
• 1840 – The telegraph machine is implemented by the exchange with NYSE prices available in London within 20 minutes
• 1872 – The ticker tape machine is introduced, followed by the telephone in 1880 for faster price information transmissions
• 1970 – The introduction of the Market Price Display System gives London Stock Exchange brokers access to real-time prices of securities
• 1984 – The Financial Times Stock Exchange 100 (FTSE 100) is launched, an index of the 100 biggest organisations by market cap
• 1986 – A computerised trading floor replaces the old physical processing technique, known as the ‘Big Bang’
• 1995 – The Alternative Investment Market (AIM) launches with 10 companies originally listed for access to investor capital
• 2007 – The London Stock Exchange merges with the Italian Stock Exchange Borsa Italiana, creating the London Stock Exchange Group (LSEG)
• 2019 – A relationship between the Shanghai Stock Exchange is established with London-listed firms able to issue CDRs in Shanghai and Shanghai companies approved to issue GDRs in London

Markets

The London Stock Exchange consists of four markets; the Main Market, AIM, High Growth Segment, and Premium Main Market. Each market has different capital-raising requirements and admission needs.

• Standard Main Market – The core European listing standards for international organisations. It is typically reserved for larger, more established companies as it has strict listing requirements for entry
• Premium Main Market – Companies need to pass even higher listing criteria to gain a place in the top-tier market
• High Growth Segment – A market designed for innovative and high-growth organisations looking to increase business visibility with potential customers and the investor community
• Alternative Investment Market (AIM) – The LSE market for small and medium-sized growth companies. Today, the number of AIM-traded stocks represents 3500+ global organisations taking advantage of the opportunity to raise equity capital

Indices

Several well-known indices are available at the best London Stock Exchange brokers and they can also form the basis of ETFs that track the price of multiple securities. The most popular and widely traded is the FTSE 100, though brokers with access to the London Stock Exchange may also offer some of the below.

• FTSE 100 – The Financial Times Stock Exchange (FTSE) 100 index is a market-capitalisation weighted index of UK blue chip companies, comprising the top 100 firms trading on the LSE.
• FTSE 250 – A market-capitalisation-weighted index consisting of the 101st to the 350th largest companies listed on the London Stock Exchange. Although not as well known, the index includes some major companies including Cineworld Group, Greggs, National Express, and Royal Mail.
• FTSE 350 – A market-capitalisation-weighted index combining FTSE 100 and FTSE 250 firms.
• FTSE SmallCap – An index made up of small market capitalisation organisations consisting of the 351st to the 619th largest-listed companies on the main market exchange.
• FTSE All-Share – A market-capitalisation weighted index comprising the FTSE 350 and the FTSE SmallCap index.

Largest Stocks

Below are the five largest companies listed on the London Stock Exchange with their ticker symbols and market cap as of 2023:

• AstraZeneca – Ticker symbol AZN, market cap of approx £175 million
• Shell – Ticker symbol SHEL, market cap of approx £165 million
• Unilever – Ticker symbol ULVR, market cap of approx £105 million
• HSBC – Ticker symbol HSBA, market cap of approx £100 million
• BP – Ticker symbol BP, market cap of approx £85 million

The top London Stock Exchange brokers, including Pepperstone, also split out UK shares by sector:

Pepperstone UK Shares

Trading Hours

The London Stock Exchange standard operating hours are from 8am to 4:30pm (GMT) Monday to Friday. Note, a daily market closure applies between 12pm and 12:02pm (GMT). Interestingly, the LSE has some of the longest opening hours in the world, with a standard 8 hours and 28 minutes of trading time per day.

Some London Stock Exchange brokers also support extended hours, with a pre-trading session from 5:05am to 7:50am (GMT) and a post-trading session from 4:40pm to 5:15pm (GMT). During these hours assets will typically see less liquidity but increased volatility. As a result, there are often wide price swings.

Should You Invest In The London Stock Exchange?

A London Stock Exchange listing maximises access to long-term capital and liquidity, helping companies attract a range of domestic and overseas investors. But should you trade assets listed on the London Stock Exchange?

Trading UK shares may offer retail investors a way to create returns faster than depositing money in a standard banking account with annual interest payments. The FTSE All-Share Index, for example, provided an average annual return of 6.4% for investors between 1993 and 2018.

Additionally, some LSE stocks provide dividend payouts on a quarterly or annual basis. You can withdraw these dividends to supplement your income or reinvest them. This compounds your gains, which may exceed those made from interest in a standard savings account.

Points To Consider

• Portfolio Management – In today’s world, individuals have many options regarding the management of their invested funds. London Stock Exchange brokers may offer a range of solutions, such as fully managed profiles, robo-advisors, and self-managed accounts.
• Investment Capital – How much you invest in London Stock Exchange products will depend on your personal circumstances. Your budget and expected returns timeframe will influence how much to put on the line. When making long-term investments, some suggest a minimum timeline of three years. Active traders usually open and close positions more quickly – in some cases within minutes. Whatever your approach, ensure that you don’t stake too much capital on a single trade, and keep some cash in reserve to help you claw back any losses.
• Research – The best London Stock Exchange brokers will provide live news streams with information relevant to listed companies. This, alongside educational content and expert analysis, can help you make forecasts on price movements and execute trades more accurately.
• Practise – If you are new to trading, or exploring a new platform, it is worth spending time in demo mode before putting your capital at risk in a live environment. Many London Stock Exchange brokers provide demo accounts free of charge, with profiles funded with virtual money.

Bottom Line On London Stock Exchange Brokers

London Stock Exchange brokers provide investment opportunities on some of the largest publicly-traded companies. When comparing firms look for low fees, stable platforms and apps, analyst insights, responsive customer support, and oversight from a trusted regulator like the FCA.

Alternatively, choose from our list of the best London Stock Exchange brokers.

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