Lloyds Bank Review
Lloyds Bank offers trades between £8 - £11, with the opportunity to receive £1.50 trades with reoccurring investments. Overall, the average platform, tools, and research, as well as the lack of a mobile app, do not justify joining Lloyds unless you make reoccurring investments.
Top Takeaways for 2020
After spending over 100 hours testing nine online stock brokers for UK share dealing, here are our top findings on Lloyds Bank:
- Lloyds Bank, which owns Halifax, has the same share dealing product as Halifax. Quotes, charts, and market news are the same.
- Investors who don't make recurring investments each month pay £11 or £8 per trade, which ranks towards the high end of the UK market.
- While Lloyds Bank research matches industry standards, it trails industry leaders such as Hargreaves Lansdown and Barclays.
- Lloyds Bank does not have a mobile app for share dealing. Customers must use the Lloyds website from a mobile browser to trade on the go.
- Lloyds Bank provides access to six international exchanges, significantly less than top brokers such as Saxo Markets and IG Group.
|Offering of Investments|
|Commissions & Fees|
|Platform & Tools|
Commissions & Fees
For traders willing to set up a regular investment plan, overall charges are certainly at the lower end of the UK average. For the majority of traders who have an infrequent trading schedule, the £11 per trade is not worth it. Competitors like DEGIRO are far less expensive.
Lloyds Bank Share Dealing has a flat fee structure of £11 per trade, ranking below average in our commissions and fees rankings. Customers who trade eight or more times per quarter receive a discounted rate of £8 per trade. Meanwhile, traders who enroll in regular investments are eligible to receive £1.50 trades.
Lloyds Bank also offers £1.50 fund trades when trading online, a very cheap rate compared to competitors. The annual custody fee at Lloyds is £40. Although Lloyds bank charges a higher custody fee than Halifax, which charges no fees, overall, Lloyds is a cheaper option. Halifax charges £12.50 per trade while only offering discounted trading for reoccurring investments.
When calculating annual share dealing costs, trading frequency and account balance are the two most important factors to consider. Assuming a £30,000 portfolio in traditional, taxable share dealing account, here are four scenarios of how much Lloyds Bank would cost depending on trade frequency:
- 1 deal per month, 12 trades = £172 (£11 per trade + £40 in annual custody fees)
- 3 deals per month, 36 trades = £436 (£11 per trade + £40 in annual custody fees)
- 10 deals per month, 120 trades = £1000 (£8 per trade + £40 in annual custody fees)
- 20 deals per month, 240 trades = £1960 (£8 per trade + £40 in annual custody fees)
|Share Trading: 0-9 Deals/ Month||£11.00|
|Share Trading: 10-19 Deals/ Month||£8.00|
|Share Trading: 20+ Deals/ Month||£8.00|
|Annual Custody Fee: £0 - £250,000*||£40 (flat)|
|Annual Custody Fee: £250K-£500K*||£40|
|Annual Custody Fee: £500,000 - £1m*||£40|
|Annual Custody Fee: £1m and over*||£40|
|ETFs - Fee||£11.00|
|Investment Trusts - Fee||£11.00|
|Telephone Dealing Fee*||£35.00|
Platforms & Tools
Lloyds Bank offers only a simple trading platform and does not provide a mobile share dealing app or standalone desktop platform. All in all, Lloyds Bank trails industry leaders such as Saxo Markets and IG Group with its offering of trading platforms and tools.
Charting: Charting with Lloyds Bank is a decent experience. Users can alter chart type (line, candlestick, OHLC charts), and compare indices, sectors, and other stocks. There are over 90 different technical indicators available. Price and volume alerts can be set through the watchlist, although users must register to use the watchlist.
Mobile Trading: Lloyds Bank does not have a dedicated mobile app for share dealing. Traders must instead use the mobile website, which is not the same as a dedicated app.
The standard Lloyds quote screen has tabs for an overall summary, technical analysis, news, director deals, dividends, pricing data, and fundamentals. Web Financial Group and Morningstar fuel the research for Lloyds Bank Share Dealing, which meets the industry standards, but fails to offer anything extra. As a comparison, Barclays offers all of the same research as Lloyds, as well as a selection of additional research.
For research, Lloyds offers a share centre and funds centre. The shares centre is where you pull quotes for equities, with standard quotes containing basic charts, market data, fundamentals, and recent company news. The Funds Centre includes lists of top-rated funds by Morningstar, a filtering tool that allows users to sort through 2,000 funds, and three ready made funds with low-cost charges. In addition to these tools, a watchlist tool is available, as well as some third-party news articles and videos.
|Research - Shares||Yes|
|Research - CFDs||No|
|Research - Funds||Yes|
|Fund Research - Research Reports||No|
|Research - ETFs||Yes|
|Research - Bonds||Yes|
|Portfolio Allocation Breakdown||Yes|
Offering of Investments
Lloyds Bank allows investors to trade shares, international shares, ETFs, investment trusts, and over 2,000 funds.
Lloyds only offers access to a handful of international exchanges, where brokers like IG and Saxo Markets offer access to over 20 exchanges. That said, one advantage Lloyds offers that other brokers do not is a full suite of banking products that comes with 250 years of experience.
|Bonds - Corporate||Yes|
|Bonds - Government (Gilts)||Yes|
Lloyds Bank has a five-step educational guide to help users understand if they are ready to start investing. Lloyds also provides 20 easy to read articles to help traders on their investment journey. Each article is quick and easy to read, not going too far in-depth. Lloyds does not offer any webinars or videos, which is an area we'd like to see improved.
|Has Education - Share Trading||Yes|
|Has Education - Funds||Yes|
|Has Education - Retirement||Yes|
|Client Webinars (Archived)||No|
Lloyds Bank will appeal to current banking clients or traders who make recurring investments each month. No matter how you slice it though, customers who plan on paying per trade will find more value elsewhere.
About Lloyds Bank
Lloyds Bank started life in 1765 in Birmingham as Taylors & Lloyds. It was founded by Sampson Lloyd II, John Taylor, and their two sons, each of whom invested £2,000. Lloyds Banking Group was formed in 2009, bringing together well-known brands, including Lloyds, Halifax, Bank of Scotland, and Scottish Widows.
The combined history stretches back more than 300 years and encompasses a diverse business range. Lloyds Bank is the largest retail bank in the UK, and the banking group serves more than 25 million customers.
For the 2020 UK.StockBrokers.com Review we assessed, rated, and ranked nine UK share dealers. Each broker was graded on 46 different variables and, in total, over 12,000 words of research were produced. Our rigorous data validation process yields an error rate of less than .001% each year, providing site visitors with quality data they can trust. Learn more about how we test and Our Team.
About the author: Steve Miley Steve Miley is Director of Research, Europe, for StockBrokers.com and heads the annual UK Share Dealing Broker Review. With 25 years of experience in institutional financial markets, Steve has won multiple Technical Analyst Magazine awards, including "Best Independent Fixed Income" and "Best FX Research." Alongside StockBrokers.com, Steve is the founder of The Market Chartist where he provides market research for institutional clients.
About the author: Blain Reinkensmeyer As Head of Research at StockBrokers.com, Blain Reinkensmeyer has 18 years of trading experience with over 1,000 trades placed during that time. Referenced as a leading expert on the US online brokerage industry, Blain has been quoted in The New York Times, Forbes, and the Chicago Tribune, among others.
All pricing data was obtained from a published web site as of 01/15/2020 and is believed to be accurate, but is not guaranteed. The UK.StockBrokers.com staff is constantly working with its online broker representatives to obtain the latest pricing data. If you believe any data listed above is inaccurate, please contact us using the link at the bottom of this page.