Stockbrokers explained The cost of stockbrokers compared

Stockbrokers may charge a monthly, quarterly or annual account fee – those in our table that do this charge from £5 to £105.75 – but in some cases this is waived if you make a minimum number of trades or your account is of a certain size. Conversely, an inactivity fee may be charged unless you make a certain number of trades within a set period.

Commission is also charged for each trade you make, whether you’re buying or selling. It can be a flat fee or a percentage, regardless of how big the trade is. SimplyStockbroking, for example, charges a flat rate of £8 per trade for its online and telephone service, and Stocktrade charges 0.4% for up to 50 trades for its internet services. Others charge different fees or percentages depending on the size of the trade.

There are usually minimum and maximum amounts of commission charged. For example, NatWest charges a relatively high minimum amount of £45 for its telephone service and has no upper limit. 

Transfer fees apply if you transfer your share holdings to another broker. You usually pay a flat fee for each holding you transfer. The brokers in our table charge from £10 to £25.

In our table below we’ve worked out stockbrokers’ costs for three different scenarios – for occasional investors, semi-frequent investors and frequent investors – to allow you to compare the costs for your own needs.