Cheap Online Share Dealing

In my quest to make my hard earned money work as hard as possible, I need to find a cheap online broker so that the dealing fees I incur have the minimum effect on my portfolio’s profitability.

As I mentioned in a previous post, dealing fees can eat into your capital, so the less I spend buying and selling shares, the more money I have to invest.

The Share Centre have introduced a Premium Trading Option, but at £2500 + VAT is this really the way to go?

I’ve had a look around the internet over the last couple of days, to find out which online broker offers the cheapest dealing fees. Two candidates have stood out.

www.x-o.co.uk (I think “x” “o” stands for eXecution Only) has a headline flat rate of £5.95, whatever the size of the trade. And there’s no annual admin fee.
X-O.co.uk is a brand name of Jarvis Investment Management Ltd (Jarvis) who also back the N&P share dealing account I have and I’ve been happy with their platform so I would assume x-o.co.uk uses the same backend.

The other online dealing service on my radar is JPJ Share.
Their headline rate for online dealing is an astonishing £4.75 per trade. A little digging tells me that this is the rate when you trade over 15 times per calendar month. Deal less than 15 times in a calendar month and the costs is £5.75 (20p cheaper than x-o.co.uk). When you do trade over 15 times, the “frequent trader discount” is refunded during the following month.

And subscribers to T1PS.COM pay just £4.25 per trade, but I’m not sure if this is a frequent trader price.

JPJshare.com is a trading name of Rivington Street Stockbrokers Limited which is licensed by the Isle of Man.

This is a very simplified look at the x-o.co.uk and JPJ Share offers. It’s not just the cost of dealing that you should be considering of course. Other factors influencing your choice could include:

  • Whether they employ a “price improver” service which could purchase shares at a cheaper price than other brokers
  • Whether there’s a quarterly or annual management fee
  • Whether they charge for corporate actions
  • Whether they charge to withdraw funds
  • What research tools they offer
But as the point of this post was to highlight the cheapest online share dealing service then JPJ Share pips x-o.co.uk at the post, especially if you are likely to be a “frequent trader”. However, I’m not sure if there are an implications of using an Isle of Man broker.
On balance, I think I would go for x-o.co.uk, simply because I have experience using the N&P platform, which I assume would be similar to x-o.co.uk given they are both backed by Jarvis.

One Reply to “Cheap Online Share Dealing”

  1. Thought I should update this post to make mention of iWeb.

    This online service (from Halifax share dealing), now offers share dealing for just £5!

    There’s a £25 one-off joining fee, but I think this is worth it for on-going share dealing at just £5.

    While the Amateur Investor doesn’t have an account with iWeb at the moment, this will not be the case for much longer.

    I will report back on the service at a later date.

    In the meantime, do any A.I. readers use iWeb?

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