What is a share dealing account?

A share dealing account is used to purchase and sell shares. There are numerous accounts offering different features and charges, so review your options carefully to find one that fits your specific needs and investment targets.

How do I start online trading?

You can start online trading by opening an online stock trading account. Once the account is opened, transfer the amount of money you plan to trade into the account. Once in place, that money can be used to buy and sell shares.

Can I buy shares in any company?

No, the company must be listed on a stock exchange such as the London Stock Exchange (LSE) or Alternative Investment Market (AIM). Do your research to check which exchange is best for you.

How do brokers execute trades?

After a broker has been instructed to carry out a trade, they will try to find another broker looking to trade in the same shares. They will then negotiate a price for the shares and strike the deal. How much you pay will depend on when the deal is made, rather than when you placed the order. During working hours, most brokers offer a ‘Quote and Deal’ instruction, where you’re given the best price and usually have 15 seconds to accept. If this isn’t possible, the broker must locate a specialist who offers the types of share they’ve been instructed to trade. You could choose an order that gets the broker to buy at the best price possible when they find a deal, or you can set limits for the maximum you’re willing to pay or the minimum price at which you’re prepared to sell. Processes vary by broker, so check what kinds of orders you can make with your chosen provider.

How can I cut the cost of share dealing?

Consider signing up for an account with frequent trader rates if you think you’ll make multiple trades per month – this could reduce the cost of each individual trade, although you should always check each company’s terms before signing up.

Do I pay tax on share dealing?

Yes. Your profits are subject to CGT (Capital Gains Tax) and you may pay a 0.5% Stamp Duty charge when you buy shares. Find out more about investment tax here.

What's the best share dealing account in the UK?

The best share dealing account depends on each person’s circumstances and investing goals. Compare features to choose the one best suited for your particular needs.

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Invest in the stock market for greater returns on your money

You could find savings on fees and added features for your portfolio by comparing share dealing accounts

Your investments are not guaranteed: Shares can fall in value, as well as rise, and you may not get back the full amount you put in.

What is share dealing?Types of share dealing brokers Best share dealing platforms Share dealing costs Best shares to buy How to earn money Pros and cons Share dealing and taxes Jargon buster FAQs

What is share dealing?

A share is a unit of ownership in a listed company. Share dealing lets you buy stock in companies large and small, such as Amazon, Google, or Microsoft, to potentially make a profit if you sell that stock after its price rises.

Share dealing is carried out through a share dealing account in which you deposit money, and make your trades using the money you've invested.

What is the best online share dealing platform?

There isn't a one-size-fits-all trading platform that'll work for everyone. Choosing the best share dealing platform for your needs depends on your individual circumstances, however, there are some key elements everyone should consider:

How often you buy and sell shares
How much experience you have with investing
The amount of money involved

Think about what features you need from your share-dealing platform and your overall goals before making a choice.

If you're an experienced investor, you might not need all the bells and whistles. If you're new to trading, it can help to have some guidance to help you on your investing journey, which many platforms provide as part of their service.

The following are some of the more well-known trading platforms available:

Which are the best shares to buy

How much do you want to invest?

This is the amount of money you've set aside for investing. You should never invest more than you can afford to lose.

How long do you want to invest?

This is the amount of time you're willing to leave your money invested between buying and selling stock.

How much risk do you want?

Risk is the uncertainty you face when making an investment. It's the size of potential gain versus the potential loss.

How do you earn money from share dealing?

There are a few ways that you can earn money when trading stocks.

Growth: With this strategy, you buy shares and hang on to them until they hopefully increase in value. Once you've reached your goal price, you can sell the shares at a profit.
Dividends: With this option, you buy stock in the hope of receiving dividends (a regular share of the company's profits). Not all companies pay dividends, and some only pay them now and then, so you need to research the best stock options to support this approach. With companies that do pay dividends, payouts usually occur a few times each year. How much you get depends on how many shares you own and how the company has performed.
Day trading: This is a form of trading when you buy and sell shares over the course of a single trading day by taking advantage of small fluctuations in the prices of shares during the period. This is a high risk activity that's best for experienced traders.

Do you have to pay tax on the shares you buy?

You will not need to pay tax on your profit or purchases if your shares are held in an ISA or SIPP. If they are not, you may need to pay two forms of taxes.

Stamp Duty Reserve Tax (SDRT). This charges 0.5% of the trade's value if you buy UK shares that are settled through CREST (the UK electronic settlement system). If you buy shares using a stock transfer form rather than electronically and the transaction is over £1,000 you pay Stamp Duty at 0.5%.

Capital Gains Tax (CGT). When you sell your shares and make a profit, you are required to pay tax on the gains you made. The rate at which CGT is charged depends on which income tax bracket you are in and how much money you make from the sale.

From 6 April 2026:

If you’re a basic rate taxpayer, gains falling within the basic rate band are taxed at 18%, while gains above this are taxed at 24%
If you’re a higher or additional rate taxpayer, your gains are typically taxed at 24%

You receive a capital gains tax-free allowance for every tax year. For the 2026/27 tax year, the capital gains tax-free allowance is £3,000 (£1,500 for trusts, unless the beneficiary is vulnerable, in which case it’s £3,000).

Your gains would need to exceed this for you to be required to pay capital gains tax on your profits from any trades you make.

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About the author

Lucinda O'Brien

Lucinda O'Brien has spent the past 10 years writing and editing content for regional and national titles. She applies her industry knowledge to ensure readers can make confident financial decisions.

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