Best Broker for Dividend Investing In the UK

Best Broker for Dividend Investing In the UK


In this unpredictable society that we live in, losing money and diverting yourself from your financial goals is quite possible. But there is always one thing that can save you from all your losses and redirect you towards your investment plans. The strategy in discussion is dividend investment. This investment method gives the shareholder the option of investing in the company stocks rather than using a cash pay-out option. 

The Basics of Dividend Investment

A dividend is a form of cash reward that you, as a shareholder, receive from a fund or your company on a per-share basis. When you receive your dividend,

 you have the choice to pocket the cash or reinvest those dividends to buy more shares in that particular fund or company. This is called dividend reinvestment. 

What Is Dividend Reinvestment?

If you plan to reinvest dividends rather than using them as cash, you end up buying more shares. Dividend reinvestment is an excellent strategy, and there are many reasons to prove this statement. A dividend reinvestment strategy is:

Inexpensive: The procedure of reinvestment is automatic. When you reinvest, you do not pay any additional commission or brokerage fee.

Easy: Dividend reinvestment is a very easy and straightforward process.

Flexible: With dividend reinvestment, you can also buy fractional shares.

The Role of Brokers in Dividend Investment

A broker is a firm or a person who acts as an intermediary between the investor and the company. Companies pay dividends to shareholders through a broker’s account. In this article, we have analysed three top brokers for dividend investing. With their pros and cons summarised below, let’s see which brokerage firm is the best platform for dividend investing in the UK, but before that, let’s see who can open an account with a broker company and its pros and cons.

Who Can Open an Account with a Broker?

If you open a brokerage account, you are free to handle your investments. Anyone with a smartphone and an initial amount to deposit can open an account with a broker. The trades, through a brokerage account, are convenient to make. Investment in stocks is a tricky business and requires lots of knowledge. When you open an account with a broker, you do not need a manager or a third-party to guide you. These accounts are self-directed, and you are guided by your broker accordingly. Below are a few pros and cons of opening an account for dividend investing with a broker company or an individual.


  • Brokerage accounts are low-cost options. They cut the middlemen that take most of the money as commission. If you get yourself registered with these accounts, the commission stays in your pocket.
  • With a brokerage account, you can invest in whichever company you feel like.
  • Many brokerage accounts have a feature that allows them to download in your final account. This integration saves all the brokerage account information in your financial records.


  • As a new investor, you might find it hard to understand the investment market even through a brokerage account. This slow learning curve usually ends up in costly investments.
  • You cannot avoid your brokerage account. It requires attention daily. You need to stay updated on the market and any news on share investments. Also, you must be aware of how to react to a changing market.
  • If you own a brokerage account, you must be able to analyse all the reports brokers provide. If you can’t do that, your brokerage account will be of no use to you.

Three Best Brokers for Dividend Investing

  1. Hargreaves Lansdown

 If you are someone with a big investment idea, you would want a big enough broker to buy you shares, ETF, and funds. For new investors, finding a reliable broker can be intimidating. For investors based in the UK, choosing a broker that isn’t a market leader can be tough. So for that, Hargreaves Lansdown is a choice that won’t go wrong. Hargreaves Lansdown was founded in the year 1981 and has over one million clients. For some people, big brokers are safe and more financially equipped. The government does provide all brokers with some protection. But even then, if your broker does go down, it can be a source of headache and stress for you. 

If Hargreaves Lansdown goes out of business, the investors are compensated by the Financial Services Compensation Scheme, which covers an amount as big as £85,000 for every person on every platform. You can claim your compensation online.  

Hargreaves Lansdown is one of the biggest brokers worldwide, which means that they have margins on a huge scale. It is a publicly listed broker firm, which means you can keep a close eye on its accounts and activities as an investor. 

How Do You Make an Account with Hargreaves Lansdown?

Making an account with Hargreaves Lansdown is very easy. To start, you need to have your national insurance number, your debit card details, your bank details, and other identifications, if required. You start with choosing a suitable account category. Once made, you log in to your account.

Once you start investing in stocks, you can then move to the “Cash” tab and press on the “Income account” tab. You then go to your right-hand menu and choose the option of “amend your income instructions.” You end this process with a reinvestment value. After this process, all your dividends are automatically reinvested between the 11th and 21st of every month.


Investment Programs and Pension Options

Hargreaves Lansdown offers investment programs such as SIPPs, ISAs, Junior ISAs, junior SIPPs, and investment accounts. Hargreaves Lansdown also deals with many pension options such as annuities or an income drawdown plan. 

The investment program at Hargreaves Lansdown is called Vantage. This platform is designed for investors to analyse and choose different investment options. The investment products you can deal with are shares, bonds, ETFs, currency services, and funds trusts. 


Hargreaves Lansdown has a website of its own that is easily accessible and offers lots of services and benefits. This website has a wide analysis of companies, reports, financial news, forecasts, and mobile offering services. This website is equipped to offer dividend information, tax certificates, and investments. 

Customer Support

The customer support at Hargreaves Lansdown is extensive. You can easily contact the support through email and phone. 


  • At Hargreaves Lansdown, there is a very low non-trading fee. 
  • There is no withdrawal fee 
  • At sign up, you get the free stock at Hargreaves Lansdown 


  • At Hargreaves Lansdown, the stock and ETF fees are higher than most other brokers. 


Despite being an expensive broker, Hargreaves Lansdown offers a wide variety of services. It is safe and a comfortable broker because of its size and financial stability. Hargreaves Lansdown’s website is very easy to navigate and has a range of investment options for clients. We think Hargreaves Lansdown is a good broker to hold your dividend investments in. 


  1. Trading 212

Tradeing212 was initially a company based in Bulgaria and was named Avus Capital. In 2013, it was incorporated in the UK and was started to be known as Trade212. Since it’s incorporated in the UK now, Trading 212 is regulated by both the Financial Services Commission in Bulgaria and FCA in the UK.

Since its incorporation, Trading 212 has shown rapid growth in its product portfolio. It also has a well-developed trading app that has been downloaded over ten million times since its inception. Trade 212’s app is one of the most downloaded apps around the world.  

Trade212 is a brokerage company that makes its mark with low trading fees and competitive services to provide its clients with immense safety and comfort. It isn’t wrong to say that Trade212 is, slowly and steadily, taking over the investment world. Trade212 doesn’t charge any commission fees on trades. There is also no set limit on how many trades can be allocated at a time. Unlike many brokers, the accounts at Trading 212 are executed quickly, without any follow-ups. For dividend investment Trade212, is an easy broker firm to deal with. 

At Trading 212, you can purchase shares of the Vanguard funds that you have invested in already. Trading 212 also pays dividends. The cash you will receive from a dividend will appear in your free fund’s section in your portfolio. When Trading212 pays you a dividend, you will receive a notification with all the details mentioned. The details show how much dividend you have per share and the number of shares you owned at the recorded dividend date time.

How to Start an Account with Trade212?

Opening an account with Trading212 is very simple and user-friendly. It is an online process. You start with choosing the right brokerage account for yourself. Once selected, you put your details. You will be required to answer some legal questions to ensure that you are legally allowed to trade.

You then fill in your basic identification details such as a passport picture and then seal the deal through a virtual contract. Once signed, your account gets confirmed, and you are free to trade.



The leverage offered at Trading 212 is around 1:3 for all professional accounts. This leverage rate is higher than what many other brokers offer. Leverage is good as it increases the risk of profits, but at the same time, it also increases the risk of losses incurred. Traders are always advised to use leverages wisely. 

Mobile App

Trade 212 has a user-friendly mobile app. It is available for both iOS and Android users. This app has features that provide complete functionality. The app has a feature that allows trade to happen through visualisations only. The navigation is simple and clear, and the data visualisations are well-thought-out. The download is this app is super quick and convenient. This app is the main product of Trade 212, so it has been designed keeping in mind the needs of traders. 

The Trade 212 app is one of the most downloaded apps, and millions of transactions are processed on the app every day. Trade 212 is a company that is committed to providing security and comfort to its clients. The systems used are robust and secure. The app is well-regulated so that the users can feel confident about its security policies. 

Payment Methods

Trade 212 has a variety of payment options to offer. These options include bank transfers, debit and credit card transactions, and digital wallets. In short, all mainstream payment methods are available. 

Customer Support

The customer service at Trade 212 is very responsive. The average contact time is just 50 seconds, which is beyond quick. The customer service at Trade212 can be accessed 24/7. 


  • The real stock and ETFs at Trade212 are commission-free. 
  • The opening of an account at Trade212 is very simple and easy. 
  • At sign up, you will receive free stock. 


  • The product portfolio at Trade212 is very limited when compared to other brokerage firms in this industry.


Trading212 is an online brokerage firm that provides its services to new and experienced investors. It has an excellent mobile app, a simple trading structure, educational features, and a great customer support service to make buying and selling shares a fun experience.  Can we call this broker company the future of trade? Yes, without a doubt!

  1. Freetrade

Selling and buying shares is considered an extremely time-consuming and painful procedure. Just because of this, many people do not opt for buying or selling shares at all. At the London Stock Exchange, according to the official National Statistics, only 11.9% of shares at London Stock Exchange are owned by individuals. Companies own the rest. The worst part is that this percentage is falling every year. This percentage is far below the USA markets, where almost 40 per cent of individuals own shares. 

But thanks to Freetrade, the attitude of British people towards selling and buying shares has changed a lot. According to the Freetrade team, they want to invest in an easy way to earn money rather than a complication. 

 Freetrade was founded in 2016, and since then, it is considered one of the most popular fintech start-ups. This start-up provides a stock trading and dividend investment platform that is entirely free of commission. Freetrade is one of the safest mediums because FCA regulates it. 

Freetrade has an ideal app for investors who are always on the hunt for mobile-based services. This application is intuitive and fast and is available for both iOS and Android customers. It is very easy to set up a Freetrade account. You are asked for a few identification details such as name, address, and passport number.

With a Freetrade account, you do not have to pay a subscription fee, but you will need to fund it once your account is up and running. Freetrade has worked towards building investing plans that are far cheaper and accessible than what other brokers have to offer.  Compared to brokers like Hargreaves Lansdown, which charges £11.95 for a one-off investment, Freetrade takes zero investing fees and takes no commission to buy and sell shares. Exceptions are instant orders on which Freetrade charges a commission cost of no more than 1 pound.  The Freetrade model is similar to the Robin hood model in the USA. 

There are four kinds of accounts that you can open with Free Trade:

  • General Investment Account – standard account for stock and ETF trading
  • Investment Savings Account – a tax-efficient savings account
  • Freetrade plus Account (New) – a tax-efficient solution with an expanded product portfolio and order types
  • SIPP Account (waitlist) – flexible investments in pension savings

How Are Dividends Paid on Freetrade? 

Different companies pay dividends at different intervals. Most companies pay both a final dividend and an interim dividend. There is also a category of those companies that pay out their dividend at the end of every month. 

If you are someone who has shares with Freetrade, the Freetrade management acts as your nominee. This implies that you will be the owner of shares, but Freetrade will be listed as a shareholder on the company’s records. This will result in Freetrade receiving the dividend payment, which they will send to your Freetrade account. We will always try to pay out dividends on payment day or within one working day. But there are times when things that are least expected happen. The distribution of dividends by share registrars happens late. There are also times when they prefer sending a cheque as dividend money rather than cash. All these delays the time when you receive the dividend. 

How to Open an Account with Freetrade?

Opening an account with Freetrade is quite simple. It is also free. You start with choosing an appropriate account category. Add in your personal information. Identify yourself through your passport, and then seal the deal.


Minimum Fund Requirement

No minimum deposit is required. Freetrade doesn’t have a policy of a minimum requirement. Even with £1 in your account, you can freely invest it in your Freetrade account. There are no minimum transaction hurdles with Freetrade. 

Fractional share trading

With a Freetrade account, you have the liberty to buy fractional shares of UK and USA stocks. You can also purchase ETFs using your Freetrade account. This option given by Freetrade allows you to buy a share partially, which otherwise can cost you a lot. 


Transactions through Freetrade do not require you to pay any commission. 

Sound regulation

Freetrade is regulated by FCA in the UK and is also a part of the London Stock Exchange. Being a member at LSE, Freetrade saves you from dealing with third-party brokers who usually charge a fee for their services. 

Dividends on Freetrade

Viewing your dividends on your Freetrade app is easy. Once the Freetrade team has deposited the dividend payment in your account, you will receive a notification. You will also receive an email to confirm the dividend payments and their details. The dividend is paid as cash in your account. You can either reinvest it or use it to buy something good. 

Customer support

With a Freetrade account, you can access the customer support feature through the chat icon in the Freetrade app. But this isn’t available all day. Unfortunately, Freetrade also does not have a helpline number or email address to communicate with the Freetrade team. 


  • With a Freetrade account, you get free stock on sign up 
  • There are no minimum deposit requirements. With a Freetrade account, you do not have to pay a withdrawal or account fee. 
  • Freetrade is a mobile-based broker that suits everyone.


  • When buying overseas shares through Freetrade, you are incurred a 0.45% fee


Freetrade is an excellent broker with flexible policies, no minimum amount for a deposit, services with a commission fee, and a mobile app. It is very popular among the majority of users. It is very easy to open an account with Freetrade, thanks to their very accommodating customer service.

The Verdict

All three brokerage companies mentioned above have their pros and cons. Each one of them deals with investors in their ways. But when it comes to what a majority of people would prefer today, we can’t help but acknowledge the growth and product portfolio of Freetrade.

Freetrade is an investing platform that takes care of your investment issues quite smoothly. The Freetrade app is purpose-built and is extremely mobile-friendly. Making an account at Freetrade is free and without any commission.

With the ease, security, and comfort that today’s individuals would want, Freetrade offers that without any fee. When we compare this factor with Trading 212 and Hargreaves Lansdown, it becomes quite clear which brokerage company individuals and companies would prefer today. Nothing beats that! After analysing and comparing all the three brokers mentioned above, Freetrade has taken the lead for me and is the best platform for dividend investing in the UK.

for more information on Freetrade click the link – Freetrade Review


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