Best Brokers for Long-term Investing for UK Investors

This article was updated as of April 16th 2025.

The buy-and-hold strategy is one of the most prominent investment styles in the financial market. As the name suggests, this strategy involves buying and holding assets for a long time, even possibly indefinitely.

Long-term investors commonly employ this strategy. Read on to discover what it is and how to find the right broker for your needs.

What is the buy & hold investment strategy?

The buy-and-hold investment strategy involves buying and holding assets for a long time—typically 10 years or longer, even indefinitely. The consensus is that a buy-and-hold strategy should last at least 5 years.

Those who employ the buy-and-hold investment strategy are looking for assets that are expected to perform well in the future and are quite stable (for instance, mature blue-chip stocks). Also, some investors may seek to buy assets during market downturnsc when their prices are low.

Once you buy the assets, the portfolio is passively managed - in other words, you won't place other buy and sell orders; you just keep your portfolio intact regardless of the market cycle.

One benefit of this long-term strategy is that, as a passive investor, you don't need to always be up-to-date with market developments and won't incur high transaction fees because you won't be placing frequent orders.

While all investments carry risks, a buy-and-hold strategy is considered less risky than other types of strategy. This is because, generally speaking, the economies grow over time, and your investments will also grow.

Key features of the Best Long Term Investment Brokers

Low Fees & Commissions

• No account maintenance fees or inactivity fees.

• Zero-commission trades for stocks and ETFs.

• Low or no fees for mutual funds and bonds.

Robust Research & Analysis Tools

• Access to fundamental data, earnings reports, and analyst ratings.

• Long-term financial metrics and stock screeners.

• Educational resources on long-term investing strategies.

Diverse Investment Options

• A wide range of stocks, ETFs, mutual funds, and bonds.

• Access to retirement accounts like IRAs or Roth IRAs.

• Fractional shares for easier portfolio diversification.

Strong Retirement Planning Support

• The best Investment apps provide tools for goal tracking, asset allocation, and retirement projections.

• Access to Robo-advisors or human advisors for long-term planning.

• Tax-advantaged investment account options.

Reinvestment and Dividend Support

• Automatic dividend reinvestment (DRIP) options.

• Tools to track and manage dividend-paying stocks.

User-Friendly Platform

• Easy-to-navigate interface for portfolio tracking.

• Mobile and desktop compatibility.

• Reliable customer support.

Security & Stability

• SIPC insurance and robust cybersecurity measures.

• Reputable broker with a long track record.

Best brokers for long-term investing in the UK

DEGIRO

Degiro has a competitive transaction fee structure: £1.75 per transaction plus an additional £1 handling fee. They offer free custody services and do not charge fees for dividend processing. To learn more about Degiro's offerings and services, you can read our DEGIRO review for detailed insight.

Interactive Brokers

Interactive Brokers charges transaction fees based on a percentage of the traded value, starting from 0.05%. They also have a minimum charge of £3 per order, which makes them a suitable choice for both small and large trades. Similar to Degiro, they provide free custody and dividend processing, which is attractive to investors who want to minimise their overhead costs.

eToro UK

eToro uses a variable spread fee structure that changes based on market conditions and the securities traded. The broker offers free custody and doesn't charge any fees for dividend distributions, catering to the needs of a wide range of investors. As one of the best trading platforms for beginners and social trading, eToro combines a user-friendly interface with the ability to copy successful traders.

Best brokers for buy & hold strategy for international investments

Interactive Brokers is renowned for its affordable trading options, particularly in the U.S. market. The commission starts from as low as $0.005 per share, with a minimum charge of $1. They offer flexible currency conversion fees that vary based on market conditions and the trader's specific requirements.

eToro sets itself apart from other trading platforms. It employs a variable spread fee model that adjusts according to the market conditions. However, it's important to note that eToro does have a higher currency conversion fee of 0.50%. This is something that investors need to consider when trading in different currencies.

For trading in U.S. stocks, Degiro charges a fee of €1 plus an additional €1, and for trading in European stocks, the fee starts from €3.9 plus €1. They also charge a currency conversion fee of 0.25%, which is comparatively low compared to other brokerage firms.

Fees

When looking for the best long-term investing brokers, fees play a crucial role in determining which broker is the most cost-effective for your investment strategy. Here’s an overview of the key fees you should look for when choosing a broker for long-term investing:

eToro

• Commission Fees: eToro offers zero-commission trading on stocks and ETFs, which is excellent for long-term investors who prefer low-cost trading.

• Account Maintenance Fees: eToro does not charge an annual maintenance fee for standard accounts, but it does charge a $5 withdrawal fee and an inactivity fee if there’s no activity for 12 months.

• Custody Fees: eToro doesn’t charge custody fees, which is a plus for long-term investors.

• Dividend Collection Fees: eToro charges a small fee for dividend collection (for non-US dividends), which can reduce returns over time, though it's usually minimal.

• Inactivity Fees: If you don’t trade or log in to your account for 12 months, eToro charges a $10 inactivity fee per month after that period.

While eToro is a good option for long-term investing due to its zero-commission trading, the inactivity fee can be a drawback for truly hands-off investors. It's best suited for active investors who are okay with occasional logging in.

DEGIRO

• Commission Fees: DEGIRO has low commission fees for stock and ETF trades. It’s generally cost-effective, even for long-term investing, with lower fees compared to many traditional brokers.

• Account Maintenance Fees: DEGIRO does charge a low annual fee for account maintenance (usually around €2.50 per year), but it’s quite low compared to other brokers.

• Custody Fees: DEGIRO does not charge custody fees, which is ideal for long-term investors who want to keep their investments in place without additional costs.

• Dividend Collection Fees: DEGIRO does charge a small fee for dividend collection, but it's still generally cheaper than many competitors.

• Inactivity Fees: DEGIRO does not charge inactivity fees, making it more appealing for long-term investors who don’t plan to trade frequently.

DEGIRO offers a very competitive fee structure, especially for European investors. Its low commission and lack of inactivity fees make it a good choice for long-term, buy-and-hold investors, though you’ll need to factor in dividend collection fees.

Interactive Brokers

• Commission Fees: Interactive Brokers offers very low commission fees, particularly for international markets. It has a tiered pricing model, so commissions can vary depending on how frequently you trade, but it’s highly competitive for both active and long-term investors.

• Account Maintenance Fees: Interactive Brokers does have an account maintenance fee if your balance is below a certain level ($2,000 for standard accounts), or if you don't generate a certain amount of commissions per month. However, if you're a long-term investor with a larger portfolio, this fee can be avoided.

• Custody Fees: There are no custody fees with Interactive Brokers, which is great for long-term investors who want to hold their positions without worrying about extra costs.

• Dividend Collection Fees: Interactive Brokers charges a small fee for dividend collection, but it’s generally quite reasonable compared to other brokers.

• Inactivity Fees: Interactive Brokers charges an inactivity fee if your account is under $100,000 and you don’t generate a certain amount of trading volume each month, which could be a downside for truly hands-off investors.

Interactive Brokers is an excellent choice for long-term investors due to its low commission rates and no custody fees. However, its inactivity fee could be a concern for investors who prefer to leave their investments untouched for long periods. It’s best suited for those with a larger portfolio or who make occasional trades

Product selection

eToro, DEGIRO, and Interactive Brokers are known as some of the best stock brokers and they all offer diverse product selections, but with some key differences.

eToro provides a broad range of assets, including stocks, ETFs, cryptocurrencies, and commodities, with the added benefit of social trading features. It’s ideal for those looking to trade a variety of products, especially for beginners interested in crypto or social investing.

DEGIRO offers a wide range of products as well, including stocks, ETFs, bonds, options, and futures. It is particularly strong for European investors and has access to global markets, although it doesn't support cryptocurrencies.

Interactive Brokers stands out with its extensive product selection, including stocks, bonds, options, futures, ETFs, mutual funds, and forex, along with access to over 120 global markets, making it the best choice for experienced traders or those seeking international exposure.

Are they safe?

Yes, eToro, DEGIRO, and Interactive Brokers are all generally considered safe brokers. eToro is regulated in multiple countries, including the UK, Europe, and Australia, and is a member of the Financial Services Compensation Scheme (FSCS), which offers some protection for investors. It also adheres to strict security protocols, including two-factor authentication (2FA), to safeguard user accounts.

DEGIRO is regulated by the Dutch Authority for the Financial Markets (AFM) and is part of the Investor Compensation Scheme in Europe, ensuring a level of protection for European investors. Interactive Brokers is highly reputable and regulated by top financial authorities, including the SEC in the U.S. and the FCA in the UK. It also provides robust security measures, such as encryption and insurance protections.

While all three are safe, it's always important to understand the specific protections available in your country

FAQ

Is buying and holding a good strategy for beginners?

Buy and hold is a straightforward strategy that doesn't require constant market monitoring or trading. It's suitable for beginners who wish to grow their wealth over time without the complexities of active trading.

How effective is buy & hold in the UK market?

Historically, the buy-and-hold strategy has been effective in the UK, especially in stock markets. Over the long term, markets have risen, rewarding patient investors. However, past performance is not always indicative of future results.

How long should I hold my investments?

This varies based on individual financial goals and market conditions, but generally, buy-and-hold investors look at holding periods of several years to decades.

Which is the best platform for stock trading?

When choosing the best platform for stock trading, eToro is ideal for beginners and those interested in social trading, as it allows you to copy the trades of successful investors.

DEGIRO is perfect for cost-conscious investors in Europe, offering low commission fees and no inactivity fees, making it great for long-term investing.

Interactive Brokers is best for experienced traders and international investors, offering low commissions and access to global markets, with advanced tools for both active and long-term investors.

Which broker is the best for long term investing?

The best broker for long-term investing depends on your specific needs (like fees, account types, research tools, and available assets), but here are some more choices on top of eToro, DEGIRO and Interactive Brokers, that are widely regarded for long-term strategies: Vanguard, Charles Schwab and Fidelity.