Best Day Trading Brokers & Platforms UK 2024 (2024)

In a nutshell, the best day trading brokers in the UK are Plus500, eToro, and Spreadex. Plus500 offers a user-friendly platform with a range of trading instruments. eToro stands out for its social trading features and diverse market access, while Spreadex is known for its tight spreads and robust trading platform.

Looking for your perfect day trading broker?

I’ve tested, scored, and ranked the best day trading brokers in the UK.

Whether you’re looking for security, user-friendliness, or extensive trading options, I’ve got you covered.

11 Best Day Trading Brokers UK Ranked

Here is a quick list of the best day trading brokers to use in the UK based on my hands-on analysis:

Your capital is at risk.

1. Plus500 – One of the best UK day trading brokers for low fees
2. eToro – Best day trading broker UK for beginners
3. Spreadex – Best broker for day trading with tight spreads
4. Trade Nation – Best broker for day trading with fixed spreads
5. IG – Best day trading broker for a range of investment options
6. XTB – Best day trading broker for advanced day traders
7. AvaTrade – Best broker for forex day trading
8. Pepperstone – Best for AI trading analysis & automation
9. CMC Markets – Best day trading broker for selection of currency pairs
10. Saxo – Best day trading broker for a selection of 71,000+ instruments
11. Capital.com – Best UK broker for day trading CFDs

Best Day Trading Brokers Compared for UK Traders

Here I’ve compared the brokers based on five key rating criteria you must consider and compare.

What are the best day trading brokers in the UK?

Best Day Trading Broker UK Reviews

In 2023, around 2 in 5 Brits (42%) invest and trade, up from 36% in 2021¹.

Choosing the best day trading broker is crucial for newcomers in the market.

Having worked in the retail investment sector in London over the last four years, I had the opportunity to experience the rise first-hand.

Additionally, in my role working for one of the UK’s leading financial companies,“a trustworthy and respected provider of news, education and market analysis for the everyday investor”, I was able to work with and test some of the biggest day trading brokers on the market.

Using my experience in this field, I’ve compiled a list of the best day trading brokers in the UK based on five key criteria:

1. Minimum deposit
2. S&P 500 CFD spread (average)
3. Commission
4. Platform fee
5. Types of assets

Factors such as safety, usability, trading platforms available, research tools, educational materials, and additional features were also considered.

All the day trading brokers I’ve reviewed below are regulated by the UK’s financial watchdog, the Financial Conduct Authority (FCA).

You can also read abouthow we test brokers here.

This article was reviewed byTobi Opeyemi Amure, a trading expert and writer atInvestopedia,Investing.com, andTrading.biz.

1. Plus500 – One of the best UK day trading brokers for low fees

Plus500 offers a prominent and trusted day trading broker, with features like online share trading, U.S. futures, and a large selection of CFDs.

Is Plus500 safe?

Plus500 is authorised and regulated by theFinancial Conduct Authority (FCA) licence number #509909,Australian Securities & Investment Commission (ASIC),Japanese Financial Services Authority (JFSA),Financial Markets Authority (FMA),Monetary Authority of Singapore (MAS), and theEuropean Union via MiFID.

Plus500 is on the Main Market of the London Stock Exchange and offers negative balance protection for CFD trading.

What can I trade on Plus500?

You can primarily trade CFDs, including forex, stock index, stock, ETF, commodity, and crypto. However, they don’t offer popular asset classes like ETFs or options.

Plus500 offers a total ofover 2,800 tradeable instruments.

Does Plus500 charge commissions and fees?

Plus500 doesn’t charge a withdrawal fee and offers average forex CFD fees. After 3 months of inactivity, they charge a $10 quarterly inactivity fee. They also have a currency conversion fee of up to 0.7%.

When trading CFDs with Plus500, all costs are included in the spread; there’s no commission.

• S&P 500 CFD (average spread): 0.7 points
• EURUSD (average spread): 0.8 pips

Mobile trading app?

The Plus500 app is similar to its WebTrader version but falls short of industry leaders in advanced features.

It lacks synchronisation with web charts and essential features such as news and advanced trading tools.

Trading platforms?

The Plus500 WebTrader platform, designed for casual investors, offers features like pre-defined watchlists, client sentiment alerts, and a Dow Jones-linked economic calendar.

Although it provides 110 chart indicators and 20+ drawing tools, the settings won’t match the mobile app.

Plus500 has its own platform, which includes risk tools like trailing stops and guaranteed stop-loss orders but lacks support for algorithmic, social copy trading, and MetaTrader suite.

Research tools and educational content?

Plus500’s research is improving but still trails top industry players, lacking integrated forex news.

They’ve added sentiment features from Trading Central and FactSet and introduced the +Insights module for detailed trader statistics, including Trader’s Trends.

It offers client sentiment data, a Dow Jones economic calendar, daily fundamental analysis articles, and alerts for sentiment data changes.

Their educational content is limited compared to leading brokers, but they have introduced a Trading Academy with videos, webinars, articles, and feature content from the Corellian Academy on YouTube.

Their Trader’s Guide section contains several articles and about a dozen educational videos.

Which type of day trader is Plus500 best for?

Plus500 is best suited for intermediate traders seeking ease of use and simplicity, with its user-friendly platform and low minimum deposit for live accounts. However, active traders wanting comprehensive market research might find the broker lacking.

Read my full Plus500 review.

Key rating criteria:

Pros:

• No commission on buy/sell and low spreads
• Free unlimited demo account
• Over 2,800 trading instruments
• Real-time quotes and advanced analytics

Cons:

• No API integrations
• Lacks social copy trading
• No spread betting

82% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

2. eToro – Best day trading broker UK for beginners

A close runner-up on my list of the best day trading brokers and what I recommend to beginners iseToro.

Is eToro safe?

eToro’s safety is reinforced by its authorisation and registration from the Financial Conduct Authority (FCA), Australian Securities & Investment Commission (ASIC), and the European Union via MiFID.

eToro stores client funds in trusted banks and uses SSL encryption for data protection. They provide a Two Factor Authentication (2FA) option for your account.

eToro currently has over 33 million users worldwide² and has a 4.4-star rating on Trustpilot from over 21,000 reviews.

What can I trade on eToro?

eToro offers a total ofover 4,000 tradeable instruments.

You can trade real stocks, ETFs, cryptos, CFDs, indices, commodities, and forex.

• Stocks: 3,200
• Currencies: 52
• Commodities: 32
• Crypto: 74
• Indices: 20
• ETFs: 420

Does eToro charge commissions and fees?

eToro provides free stock and ETF trades. They charge low fees for forex and CFDs, but they do have a $5 withdrawal fee, conversion fee, and inactivity fee.

• Real stocks & ETFs: £0
• S&P 500 CFD (average spread): 0.8 points
• EURUSD (average spread): 1 pip
• Commodities: From 2 pips
• Indices: From 0.75 points
• Crypto: 1% fixed added to the market price (Bid-Ask spread)
• Withdrawal fee: $5
• Inactivity fee: $10 per month after one year of inactivity

Mobile trading app?

eToro’s mobile app is easy to use and matches its web platform in design. They have two apps: the main eToro app and the eToro Money app for crypto and cash transfers, both on Android and iOS.

The app has dark and light themes and synced watchlists. Its charts show five indicators, unlike the web’s 67, and miss drawing tools.

eToro Money app handles money and crypto, has a similar design, and supports social trading. Both apps ensure security with a two-step login, touch/face ID, and a good search feature.

Trading platforms?

eToro combines individual and copy trading on its user-friendly web platform.

Here, you can set up watchlists and easily find markets. The ProCharts feature provides 66 indicators, 13 tools, and different layouts. eToro’s Smart Portfolios groups traders into funds, helping both passive and active traders.

One of its biggest advantages is its CopyTrader functionality. If you’re not sure how or what to trade, this unique functionality allows you to automatically replicate the trades of successful traders on the platform.

All copy trades on eToro are done by hand, setting it apart from brokers that use both manual and auto methods.

You can place orders such as Market, Limit, Stop-loss, and Trailing stop-loss. The web platform lets you set price alerts and notifications. You see notifications as icon changes or browser alerts, while mobile users get push notifications.

eToro provides clear fee reports. You can view your portfolio as an asset list or a pie chart.

Research tools and educational content?

eToro competes with top brokers with its range of improved research tools, weekly videos, and unique features such as Trading Central for certain members.

It’s strong in fundamental analysis but weaker in technical analysis, despite recent additions like eToro Plus and Weekly Crypto Roundup.

eToro’s feed, similar to Twitter, offers mixed content quality, but in-house and third-party sources are often more trustworthy.

eToro’s Learning Academy is growing however is not yet on par with competitors. The academy provides categorised videos and articles, and beginners can find useful details about trading tools on the platform.

Still, eToro’s YouTube needs clearer organisation between research, promo, and education videos.

Which type of day trader is eToro best for?

Used as a day trading broker, eToro is best suited for retail traders interested in copy trading and experienced traders willing to share their strategies. But it’s not ideal for active, high-volume traders or those interested in algorithmic trading.

Read my full eToro review.

Key rating criteria:

Pros:

• Commission-free stock trading
• Low spreads
• Registered by top-tier authorities like FCA
• User-friendly interface
• Copy trading
• Demo/virtual trading account

Cons:

• Charges on withdrawals

{etoroCFDrisk}% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. Other fees apply. Your capital is at risk. For more information, click here.

3. Spreadex – Best broker for day trading with tight spreads

Spreadex, an award-winning UK trading platform, is highly acclaimed for its exemplary customer service and efficient mobile app, making it a standout choice in the CFD trading domain.

Is Spreadex safe?

Spreadex, established in 1999, is a trustworthy platform regulated by the UK’s Financial Conduct Authority (FCA). It has over 20 years of reliable conduct, although it doesn’t hold a banking license or disclose financial records publicly.

Its FCA regulation ensures protection up to £85,000, and it offers negative bank balance protection for added safety.

What can I trade on Spreadex?

Spreadex provides a wide array of CFDs and forex pairs. Although it doesn’t offer other assets like stocks and ETFs, its selection includes indices, shares, bonds, commodities, cryptocurrencies, and options. The range is substantial for forex and CFD traders.

Does Spreadex charge commissions and fees?

Spreadex stands out for its no non-trading fees policy. Deposits, withdrawals, and inactivity are all free of charge. While its CFD fees are slightly higher than some competitors, the transparency of its fee structure and competitive forex fees are notable advantages.

Mobile trading app?

The mobile app of Spreadex has won accolades for its reliability and user-friendliness. Its intuitive layout and customizability make mobile trading efficient, though it lacks biometric login features.

Trading platforms?

Spreadex’s web platform impresses with its sleek design and excellent search functionality. It allows extensive customization and provides essential tools for effective day trading, including price alerts. The continuity between the mobile and web platforms enhances the trading experience.

Research tools and educational content?

The platform offers powerful charting tools with 39 technical indicators and a user-friendly interface for trading directly from charts. However, it falls short in providing trading ideas and fundamental data. Its educational content is comprehensive, but the absence of webinars and demo accounts might limit learning opportunities for new traders.

Which type of day trader is Spreadex best for?

Spreadex is best suited for active CFD and forex traders who value a mix of safety, comprehensive charting tools, and an efficient trading platform. It’s ideal for those who prefer a platform with strong customer service and are less reliant on fundamental research tools.

Read my full Spreadex review.

Key rating criteria:

Pros:

• Wide range of CFDs and forex pairs
• Transparent, competitive fee structure
• Excellent customer service
• User-friendly interface

Cons:

• Limited market variety beyond forex/CFDs
• No demo account for practice

64% of retail investors lose money when trading spread bets and CFDs with this provider.

4. Trade Nation – Best broker for day trading with fixed spreads

Trade Nation, established in 2014, has rapidly become a prominent day trading broker in the UK, known for its commitment to transparency and customer-focused approach.

The platform is regulated by reputable global financial governance bodies, including the UK’s Financial Conduct Authority (FCA), ensuring a secure and credible trading environment.

Trade Nation stands out for its competitive, fixed spreads across various markets, offering clarity and consistency in trading costs without hidden fees or commissions.

The platform caters to both beginner and advanced traders, providing an easy-to-use interface with a full suite of advanced trading tools.

These tools include Smart News, an AI-driven feed for real-time market news, Signal Centre for actionable trading ideas, and an advanced charting package for in-depth technical analysis. Additionally, sentiment analysis tools and insights from Trading Central enhance traders’ ability to make informed decisions.

Trade Nation’s offerings include over 1,000 global marketplaces, making it an attractive option for traders looking for diversity in trading options. The platform’s fee structure is spread-only, with no separate commission charges, benefiting day traders with tighter spreads and lower transaction costs.

However, financing charges apply for overnight positions, and an inactivity fee is charged after 12 months of inactivity.

With 24-hour customer support five days a week, Trade Nation ensures traders have assistance whenever needed, along with resources like demo accounts for skill improvement.

The platform’s cloud-based trading system allows access from any device, ensuring flexibility and convenience.

While it may have limitations in product range and educational resources, its user-friendly web-based platform, great customer support, and negative balance protection make Trade Nation a competitive choice for day traders in the UK.

Read my full Trade Nation review.

Key rating criteria:

Pros:

• Fixed spreads
• Low-cost spread trading
• No hidden fees

Cons:

• A small selection of assets

75% of retail investor accounts lose money when trading CFDs with this provider.

5. IG – Best day trading broker for a range of investment options

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.

IG is a publicly-traded, globally-regulated multi-asset broker providing a comprehensive trading package with top-notch research tools, industry-leading education, and a wide array of tradeable markets.

Is IG safe?

IG is authorised and regulated by the Financial Conduct Authority (FCA), Australian Securities & Investment Commission (ASIC), Japanese Financial Services Authority (JFSA), Monetary Authority of Singapore (MAS), Swiss Financial Market Supervisory Authority (FINMA), Financial Markets Authority (FMA), Commodity Futures Trading Commission (CFTC), and the European Union via MiFID.

IG Group, the parent company of IG, is listed on the London Stock Exchange and it provides negative balance protection for forex spot and CFD trading

What can I trade on IG?

You can trade real stocks & ETFs, exchange-traded securities, and CFDs (currency pairs, stock indices, stocks, ETFs, commodities, crypto, bonds, and futures).

IG offers a total ofover 19,537 tradeable instruments, largely through CFDs and spread bets.

Does IG charge commissions and fees?

IG has low non-trading fees, including free withdrawals and an inactivity fee that only applies after 2 years. However, IG charges higher fees for real stocks compared to its competitors, while its options fees remain low. Additionally, IG does not impose account, deposit, or withdrawal fees.

• S&P 500 CFD (average spread): 0.4 points
• EURUSD (average spread): 0.6 pip

Mobile trading app?

IG’s mobile app is one of the best in the industry, boasting extensive charting features, including 30 technical indicators, 20 drawing tools, and 16-time frame options across different chart types.

While it strikes a balance between user-friendliness and depth, it’s worth noting the absence of preset watchlists or screeners, which could be a slight inconvenience when browsing its vast product offerings.

Additionally, IG provides a separate mobile app, IG Academy, for educational content.

Trading platforms?

IG provides a wide range of trading platforms and tools suitable for traders of all experience levels. Their flagship web platform is user-friendly and offers advanced charting with up to four alerts on 11 indicators, various chart types, and a tick chart.

They also offer specialty platforms like L2 Dealer for share trading and ProRealTime charts with almost 100 indicators and automated strategy support.

Integrated trading signals from PIA First and Autochartist further enhance the trading experience.

Research tools and educational content?

IG provides a wide selection of top-notch research tools, blending their resources with third-party offerings. This encompasses Reuters news, trade signals, IGTV shows, economic calendars, and daily blogs.

They also offer advanced features, such as a customisable screener, a “Recommended News” section personalised to your account, content from DailyFX, and a social network called IG Community for collaborative research and insights sharing.

IG stands out in education, providing various resources like videos, articles, webinars, and DailyFX guides. The IG Academy offers courses based on experience levels, complete with progress tracking and quizzes.

Their IG Community, consisting of 64,000+ members, adds crowd-sourced educational content. In summary, IG’s educational offerings are comprehensive and in my experience leave little room for improvement.

Which type of day trader is IG best for?

I recommend IG for retail forex and CFD traders seeking a trusted day trading broker with top-notch tools, research, and access to a wide range of global markets, offering over 19,500 tradeable assets.

Their web trading platform is among the best available, making IG suitable for all types of day traders.

Read my full IG review.

Key rating criteria:

Pros:

• Premium web trading platform
• Excellent educational resources

Cons:

• High stock fees

6. XTB – Best day trading broker for advanced day traders

XTB provides exceptional customer service, a vast range of forex and CFDs, and a superior trading experience through its feature-rich xStation 5 platform and extensive educational resources.

Is XTB safe?

XTB is authorised and regulated by the Financial Conduct Authority (FCA) and the European Union via MiFID.

It is listed on the Warsaw Stock Exchange and offers negative balance protection.

What can I trade on XTB?

You can trade CFDs on 1,848 stocks, 135 ETFs, 22 commodities, 36 indices, 5 cryptocurrencies, and 57 forex pairs.

XTB offers a total ofover 6,010 tradeable instruments.

Does XTB charge commissions and fees?

XTB delivers low trading fees and has standard non-trading fees. While they often don’t charge a withdrawal fee, they do have an inactivity fee. You can trade real stocks and ETFs without commission if your monthly trade is under €100,000.

• S&P 500 CFD (average spread): 0.6 points
• EURUSD (average spread): 1 pip

Mobile trading app?

XTB’s xStation 5 mobile app outperforms the MetaTrader 4 app in the forex market. It provides streaming news, watchlists, an economic calendar, and long webinar-style videos.

However, the app’s charts have flaws: they don’t sync watchlists with the web and offer just 13 indicators, but they do save trend lines automatically and simplify adding indicators.

Trading platforms?

XTB mainly recommends the xStation 5 platform, known for its design and features, but provides MetaTrader 4 in some places. xStation 5 has charting tools such as a candlestick countdown timer and shows economic news.

The platform works on many devices and has tools like heat maps, stock screeners, and data on XTB client trading positions.

Research tools and educational content?

XTB provides quality research from its team and other sources but has fewer daily English posts than leading brokers. Their Premium Research service offers unique strategies, news headlines, an economic calendar, and market sentiment tools.

However, XTB’s platform doesn’t easily differentiate between its articles and those from third parties.

The day trading broker provides extensive educational resources, including articles, videos, and webinars. Their “Learn To Trade” section features 200 lessons, tutorials, and exclusive content for live accounts.

The academy covers forex and CFD topics, offers quizzes, and has a Masterclass video series on its platform and YouTube.

Which type of day trader is XTB best for?

XTB is a great option for traders specialising in forex and CFDs, valuing efficient account processes and versatile transaction options.

Key rating criteria:

Pros:

• Commission-free stocks and ETFs for investments up to 100k per month
• Free and quick deposit and withdrawal process

Cons:

• Primarily limited to CFDs
• Inactivity fees

7. AvaTrade – Best broker for forex day trading

AvaTrade is renowned for its diverse trading platforms for day trading, superior educational content, copy trading tools, competitive mobile features, and industry-standard pricing and research.

Is AvaTrade safe?

AvaTrade is authorised and regulated by the Australian Securities & Investment Commission (ASIC), Canadian Investment Regulatory Organisation (CIRO), Japanese Financial Services Authority (JFSA), and the European Union via MiFID.

AvaTrade providesnegative balance protection.

What can I trade on AvaTrade?

You can trade CFDs for stocks, indices, forex, and commodities.

AvaTrade offers a total ofover 1,260 tradeable instruments.

Does AvaTrade charge commissions and fees?

AvaTrade charges low fees for CFDs and average fees for forex. While deposits and withdrawals don’t have fees, there’s a £50 inactivity fee every quarter after 3 months of no activity. They don’t charge a commission for FX per lot.

• S&P 500 CFD (average spread): 0.5 points
• EURUSD (average spread): 0.9 pip

Mobile trading app?

AvaTrade provides mobile platforms like AvaTradeGO, AvaOptions, and the MetaTrader suite. The AvaTradeGo app has watchlists and a feature named AvaProtect, but its charts, with 93 indicators, miss drawing tools and have few chart types.

The AvaOptions app has a smart design but only works in landscape mode.

Trading platforms?

if you’re looking for a large selection, you’ll get access to numerous platforms such as AvaTrade WebTrader, AvaOptions, MetaTrader, ZuluTrade, and DupliTrade. The WebTrader platform offers 90 chart indicators, competitive with industry leaders.

AvaTrade is perfect for copy trading with platforms like ZuluTrade, DupliTrade, and the recent AvaSocial launch in the U.K. through a partnership with Pelican Exchange.

Professional options traders can access AvaOptions with a $1,000 minimum deposit, but the platform’s complex layout requires a redesign.

Research tools and educational content?

AvaTrade offers daily research content in video and articles and gives access to Trading Central research modules. While they have improved, their research doesn’t match the best day trading brokers.

The main focus is Trading Central, with features like Market Buzz and Analyst Views, and they also provide daily market analysis articles and videos on their blog and channels.

Which type of day trader is AvaTrade best for?

I’d recommend AvaTrade for beginner day traders or experienced traders who value a wide range of trading platforms and educational content.

Read my full AvaTrade review.

Key rating criteria:

Pros:

• Extensive social integrations
• Research tools
• Social and copy trading platforms
• No trading commissions and low spreads

Cons:

• Limited selection of available assets
• Variety of platforms might cause inefficiency for some traders

8. Pepperstone – Best for AI trading analysis & automation

Pepperstone provides a vast array of tradeable markets, quality research, support for social copy trading, and integrates platforms like TradingView, cTrader, and MetaTrader, further enriched by a broad selection of third-party tools and plugins.

Is Pepperstone safe?

Pepperstone is authorised and regulated by the Financial Conduct Authority (FCA), Australian Securities & Investment Commission (ASIC), and the European Union via MiFID.

Pepperstone provides negative balance protection for forex spot and CFD trading.

What can I trade on Pepperstone?

You can only trade forex and a range of CFDs (commodity, stock index, ETF, share, and crypto). Real stocks and ETFs are not available.

Pepperstone offers a total ofover 2,342 tradeable instruments.

Does Pepperstone charge commissions and fees?

Pepperstone delivers affordable forex and non-trading fees, with no inactivity or account charges. However, some CFD financing rates are relatively high for specific assets, and there is a $3.50 FX commission per lot per trade, along with a 0.10% commission in addition to the spread.

• S&P 500 CFD (average spread): 0.4 points
• EURUSD (average spread): 0.1 pip

Mobile trading app?

Pepperstone provides various third-party mobile trading apps like TradingView, MetaTrader (MT4 and MT5), and cTrader for Android and iOS.

However, the top-rated day trading brokers often stand out by offering their custom mobile apps with exclusive features and benefits, setting them apart from the competition.

Trading platforms?

You’ll have access to a diverse selection of third-party trading platforms, such as MetaTrader (MT4 and MT5), cTrader, and TradingView.

Both cTrader and MetaTrader support algorithmic trading but with some distinctions.

Additionally, Pepperstone offers practical trading tools like Smart Trader Tools plugins, Capitalise.ai, Autochartist, and API trading, as well as social copy trading options through myFxbook and DupliTrade (excluding the EU), which requires a $5,000 minimum balance.

Research tools and educational content?

Pepperstone provides research content in video and written formats, with quality slightly above the industry average but not on par with category leaders.

Traders have access to in-house content, third-party tools like Autochartist and Delkos, and MetaTrader add-ons called Smart Trader Tools.

Pepperstone’s research comprises daily articles and videos covering technical and fundamental analysis, available on their website, YouTube channel, and cTrader platform for streaming news headlines.

Pepperstone provides numerous archived webinars and videos but falls short in written content compared to leading educational providers.

They offer approximately 40 trading guide articles, around a dozen platform tutorials, and frequent webinars.

Which type of day trader is Pepperstone best for?

Pepperstone is an excellent day trading broker for both beginner and experienced forex CFD traders, thanks to its wide range of markets, support for third-party platforms like MetaTrader and cTrader, and low minimum deposit requirements. However, a unique proprietary platform would push it up my list.

Read my full Pepperstone review.

Key rating criteria:

Pros:

• No minimum deposit requirement
• Excellent customer service
• Funds are segregated from other users for additional security

Cons:

• Limited to CFD trading
• Does not accept cryptocurrency payments
• No penny stocks

9. CMC Markets – Best day trading broker for selection of currency pairs

CMC Markets, established as a comprehensive day trading broker, excels in offering a wide array of financial instruments, making it a top choice for both beginners and seasoned traders in the UK.

The platform is regulated by the UK’s Financial Conduct Authority (FCA) and listed on the London Stock Exchange, ensuring a secure trading environment.

With access to over 12,000 tradable assets, including an unrivaled selection of 333 currency pairs, CMC Markets provides one of the most extensive ranges in the market.

Their ‘Next Generation’ platform, noted for its user-friendliness, is available on Android and iOS, and offers advanced trading tools such as more than 115 technical indicators, over 70 patterns, and 12 chart types.

Additionally, the platform supports MetaTrader 4 for those who prefer this interface. A standout feature is the no minimum deposit requirement, making it accessible for all types of traders.

CMC Markets’ pricing structure is competitive, with low spreads and rebate programs for active traders. The platform also offers valuable features like negative balance protection and guaranteed stop losses.

Their extensive research and educational resources include a wide range of technical indicators and comprehensive charting options, alongside tools like pattern recognition scanners and advanced order execution.

While it has some drawbacks, such as high CFD spreads on certain indices and the absence of backtesting capabilities, CMC Markets compensates with benefits like a premium membership for savings on spreads, a complimentary Financial Times subscription, and interest on uninvested cash for CMC Alpha members.

All registered users receive a demo account with £10,000 virtual funds for practice, and despite not offering ISAs or SIPPs, it remains a robust broker for day trading with its diverse asset offerings and strong regulatory framework.

Read my full CMC Markets review.

Pros:

• Top-notch research and educational tools
• Diverse selection of assets

Cons:

• Customer support is only 24/5
• Higher stock CFD fees

10. Saxo – Best day trading broker for a selection of 71,000+ instruments

Saxo Bank, a leading Danish brokerage, stands out as one of the best day trading brokers in the UK, renowned for its extensive range of financial products and sophisticated trading experience.

As the UK division of Saxo Bank, it provides investors with access to over 72,000 financial instruments from global markets, including stocks, bonds, ETFs, forex, CFDs, futures, commodities, and options.

Saxo Bank caters to a diverse range of investors with its multi-tiered platform offerings. Beginners can leverage the simplicity of SaxoInvestor, which provides curated stock lists and easy access to various asset classes.

More experienced traders can take advantage of the advanced features of SaxoTraderGO, an award-winning platform with enhanced charting tools, analysis options, and both mobile and desktop access.

For professional traders, SaxoTraderPRO offers a fully customisable, professional-grade experience with algorithmic orders, advanced charting, and workspace customisation across multiple screens.

The platform offers competitive, transaction-dependent fees and supports account opening in several major currencies, including USD, EUR, and GBP, across three account types: Classic, Platinum, and VIP.

The minimum initial funding requirement is £500. Saxo Bank is also known for its robust trading tools, real-time market insights, and professional-grade analytics, which empower traders to make informed decisions. Furthermore, it is regulated by top-tier authorities, including FINMA, ensuring a secure trading environment.

Traders at Saxo benefit from low transaction fees on higher trading tiers, with a range of account services available to suit different trading styles and needs. The platform’s connectivity to third-party tools, including advanced strategy backtesting and responsive charting, enhances its appeal.

With its commitment to best-in-class execution, competitive pricing, and a comprehensive suite of trading tools, Saxo Bank is a top choice for traders seeking a seamless and efficient trading experience in the UK market.

Read my full Saxo review.

Pros:

• Industry-leading research
• Extensive range of offerings
• Advanced charting

Cons:

• No live chat
• Does not offer MT4

11. Capital.com – Best UK broker for day trading CFDs

Capital.com, established as a competitive day trading broker in the UK, excels in offering a vast array of CFD trading and spread betting options.

The broker supports an extensive selection of over 3,700 markets, encompassing stocks, forex, indices, commodities, and ETFs.

Known for its affordability, Capital.com requires a minimum deposit of just £20 for debit/credit card and e-wallet deposits, and £250 for UK bank transfers, without charging any deposit or withdrawal fees.

Traders on Capital.com benefit from 0% commission trading across all markets, with highly competitive spreads starting from 0.6 pips for popular pairs like EUR/USD.

The platform is integrated with TradingView, providing access to advanced charting capabilities and up to 75 technical indicators, ensuring top-notch execution quality.

For mobile trading, Capital.com offers dynamic apps tailored for different trading styles and educational purposes, including the innovative Investmate app for trading education.

One of the standout features of Capital.com is its commitment to client education and improvement.

The broker provides extensive educational tools, including guides, webinars, and videos, and allows users to open up to 10 demo accounts with £100,000 in virtual funds each, mirroring live market conditions.

This is especially beneficial for beginners to practice and test different trading strategies in a risk-free environment.

Capital.com’s MT4 integration offers access to all markets, including shares, which is a unique advantage over other day trading brokers.

The CFD trading app is another valuable tool, offering more than 70 technical indicators and the ability to set price alerts.

However, the broker has some limitations, such as a limited number of currency pairs and no price alerts on the web trading platform.

Regulated by multiple tier-1 authorities, Capital.com ensures a secure trading environment. Its combination of low costs, diverse market access, advanced trading tools, and strong educational support makes it an appealing choice for both beginner and experienced traders in the UK.

Read my full Capital.com review.

Pros:

• Commission-free trading
• Top-rated customer service

Cons:

• No price alerts

How to Choose the Best Day Trading Broker

Choosing the right day trading broker can make a significant difference in your trading experience and success.

Along with the key rating criteria I used to rank the brokers, here’s what to look for:

1. Regulation: Always ensure that the broker you’re considering is regulated by a reputable regulatory body. In the UK, for instance, look for brokers regulated by the Financial Conduct Authority (FCA). Regulation ensures that the broker is reliable and adheres to stringent standards of security and transparency.
2. Trading Instruments: Depending on your trading strategy, you’ll want a broker that offers a wide range of instruments. Some traders focus on specific assets like forex or stocks, while others prefer having a broader range of options, including commodities, ETFs, or indices.
3. Fees & Commissions: Consider the cost of trading on each broker. These can include spread costs, commissions, and any additional fees such as inactivity fees or withdrawal fees. Some brokers offer commission-free trades but may have wider spreads. Find a balance that suits your trading frequency and volume.
4. Trading Platform Technology: You’ll want a platform that’s user-friendly and comes with a suite of tools to support your trading decisions. This includes charting tools, real-time data feeds, and the ability to execute trades quickly. Consider whether the platform offers desktop, web-based, and mobile trading options.
5. Education & Research Tools: Especially for beginners, brokers that provide educational resources, research tools, and market analysis can be beneficial. Look for brokers with robust educational content, news feeds, market research, and analysis tools.
6. Customer Service: Good customer support can be critical, particularly for new traders. Check if the broker provides 24/7 customer service, and through what methods (e.g., phone, live chat, email).
7. Demo Account: A demo or practice account is a valuable tool, especially for beginners or when trying out a new broker. This feature allows you to practice trades and get comfortable with the platform’s interface before investing real money.
8. Leverage: Leverage can amplify your profits but can also increase losses. brokers offer different levels of leverage, so understand how much you’re comfortable with and pick a broker that aligns with your risk tolerance.
9. Order Types: A good day trading broker will offer a range of order types, including market orders, limit orders, stop orders, and more. These can help manage risk and improve trading strategies.
10. Reputation: Finally, consider the reputation of the broker. Read reviews from other users, look at ratings on sites like Trustpilot, and gather as much information as you can.

Remember, what works best for one trader might not be the best for another. It’s essential to identify your trading needs and objectives before selecting the right day trading broker for you.

What Is Day Trading?

Day trading is a form of speculation in securities, specifically buying and selling financial instruments within the same trading day.

This implies that all positions are usually closed before the market closes for the trading day to avoid unmanageable risks and negative price gaps between one day’s close and the next day’s price at the open.

Day traders are typically well-educated and well-funded. They use high amounts of leverage and short-term trading strategies to capitalise on small price movements in highly liquid stocks or currencies. They are different from investors, who are likely to hold positions for months, years, or even decades.

The main goal of day trading is to make a profit from short-term price fluctuations. Day traders achieve this by buying and selling stocks quickly with the hope that the stocks they buy will either rise or fall in value for the short period in which they own the stock, allowing them to lock in quick profits.

Day trading can be profitable but it is risky, complex, and requires knowledge and understanding of the market. It’s also important to understand the legal implications and meet the minimum financial requirements established by regulatory bodies.

Additionally, day trading requires a solid strategy and a lot of patience and discipline.

How to Become a Day Trader

Becoming a day trader involves several steps and requires an understanding of financial markets, a well-thought-out strategy, and sufficient capital.

Here’s a step-by-step guide to help you on your journey:

1. Educate Yourself: Understand the basics of trading and how the financial markets work. Familiarise yourself with market trends, indicators, and patterns. Books, online courses, webinars, and blogs can be valuable sources of information. A strong foundational understanding of the market is key to successful day trading.
2. Create a Trading Plan: Develop a clear strategy that includes the types of securities you will trade, the amount of capital you’ll invest, the risk level you’re comfortable with, and your specific entry and exit points. Your plan should also include a detailed budget, as well as plans for dealing with potential losses.
3. Choose Your Market: Day trading can be done in various markets, including stocks, forex, commodities, and cryptocurrencies. Each market has its characteristics and requires different strategies and levels of investment. Choose a market that aligns with your interests, goals, and risk tolerance.
4. Select the Right Day Trading Broker: Look for a broker that offers quick execution of trades, real-time market data, and tools for charting and analysis. Your broker should also have a user-friendly interface and reliable customer support.
5. Practice: Consider using a demo trading account to practice your trading strategies before you start trading with real money. This allows you to test your plan and make adjustments without risking actual capital.
6. Start Trading: Begin by trading small and slowly increase your trade size as you gain more confidence and experience. Ensure that you’re monitoring your trades and sticking to your strategy.
7. Manage Your Risk: Implement risk management tools such as stop-loss orders to limit potential losses. Don’t invest more than you can afford to lose and regularly review your trades to learn from your successes and failures.
8. Continuous Learning: Stay updated on market news and trends. Regularly review and adjust your trading plan as needed. Constant learning and adaptation are essential for day trading.

What Are the Best Markets for Day Trading in the UK?

Day trading can be conducted in various financial markets, each offering different benefits and challenges.

Here are some of the most popular markets for day trading in the UK:

1. Forex: The foreign exchange market is one of the largest and most liquid markets in the world. Traders in the UK often focus on the major currency pairs, such as GBP/USD, EUR/USD, and USD/JPY. Forex trading is 24/5, providing flexibility to traders. Read my guide on how to trade forex UK.
2. Stock Market: Day trading individual stocks can offer high potential returns but also comes with significant risk. The UK stock market, specifically the London Stock Exchange (LSE), is one of the leading stock markets globally, providing numerous opportunities for traders.
3. Indices: Indices like the FTSE 100, which represents the largest publicly traded companies in the UK, can be a good choice for day traders as they provide exposure to a broad market segment and can be less volatile than individual stocks.
4. Commodities: Commodities like gold, oil, and natural gas can be suitable for day trading due to their high liquidity and the impact of various factors such as geopolitical events, supply-demand shifts, and economic indicators on their prices³.
5. Cryptocurrencies: Cryptocurrencies like Bitcoin, Ethereum, and others have seen a surge in popularity amongst day traders due to their high volatility, which can create numerous trading opportunities. However, the crypto market can be risky and unpredictable.
6. CFDs: Contract for differences (CFDs) allow traders to speculate on the price movements of various underlying assets, including stocks, forex, commodities, and indices, without actually owning the asset. They can provide high leverage but come with significant risk. Read my guide on how to trade CFDs.

Remember, the best market for you will depend on your trading strategy, risk tolerance, available capital, and market knowledge. It’s important to thoroughly research and understand each market before deciding which is best for you.

Day Trading Strategies

Day trading strategies vary widely, and the best one for you will depend on your trading style, risk tolerance, and market knowledge.

Here are some common day trading strategies:

Scalping: This is a fast-paced strategy where traders make numerous trades throughout the day, aiming to profit from small price movements. Traders who use this strategy must be able to make quick decisions and have a solid understanding of technical analysis.

Breakout Trading: Breakout traders identify key levels of support or resistance in a market, then place trades when the price breaks through these levels, in the expectation of a substantial move in the breakout direction.

Momentum Trading: Momentum traders focus on stocks or other assets that are moving significantly in one direction on high volume. The momentum trader jumps in and rides the wave until it shows signs of reversal.

Reversal Trading (also known as contrarian trading): Traders using this strategy aim to identify when a trend is going to reverse, aiming to profit from the early stages of a new trend. This approach requires a solid understanding of technical indicators and considerable experience.

News Trading: News traders capitalise on trading opportunities that may arise from news or events that can affect the market. This could include economic data releases, earnings reports, or major geopolitical events⁴.

Swing Trading: Though not strictly a day trading strategy, as positions can be held overnight, swing traders aim to capture ‘swings’ in the market over days or weeks. They use technical analysis to identify when a price might rise or fall.

Technical Analysis Trading: This strategy revolves around statistical trends gathered from trading activity, such as price movement and volume. Common technical analysis tools include moving averages, trend lines, support and resistance levels, and numerous types of chart patterns.

Pros & Cons of Day Trading

Day trading, like any investment strategy, comes with its own set of pros and cons.

Here’s a brief overview of each:

Pros of Day Trading:

1. Potential for High Returns: Day trading can offer substantial profits. Some successful day traders make more money in a single day than some investors make in a year.
2. Liquidity & Volatility: Day trading often focuses on markets with high liquidity and volatility, which can present many trading opportunities.
3. Direct Control: As a day trader, you have complete control over your trades. You can decide when, what, and how much to trade based on your strategy and risk tolerance.
4. No Overnight Risk: Since day trading involves opening and closing trades within the same day, you’re not exposed to overnight risk from adverse events that could impact the market while it’s closed.

Cons of Day Trading:

1. High Risk: Day trading involves significant risks. Rapid market fluctuations can lead to substantial losses within a short time. It’s not uncommon for day traders to lose more than they initially invested.
2. Requires Time & Effort: Day trading is not a passive form of investing. It requires a significant time commitment as you need to monitor the markets closely throughout the day. It also requires constant learning and refining of strategies.
3. Stressful: The fast pace of day trading, combined with the potential for significant losses, can make it a very stressful endeavour.
4. High Costs: Day trading can involve high transaction costs, as you’re making multiple trades each day. These can eat into your profits over time.
5. Requires Technical Knowledge: Successful day trading requires a deep understanding of the markets and the ability to perform technical analysis. Beginners may find the learning curve steep.

While day trading can be lucrative, it’s also high-risk and high-stress.

It requires knowledge, time, and discipline. As such, it’s not suitable for everyone.

Day Trading UK Tax

In the UK, profits from day trading are generally subject to taxation under either Capital Gains Tax (CGT) or Income Tax, depending on whether you’re classified as an investor or a trader.

It’s crucial to understand that the tax implications vary depending on the circ*mstances, and you should always consult with a tax advisor to understand your individual obligations.

1. Capital Gains Tax: If you’re classified as an investor, which means you trade infrequently and hold stocks for longer periods, your profits will typically be subject to Capital Gains Tax. You are allowed to earn up to a specific amount in capital gains each tax year (the “annual exempt amount”) before you have to pay CGT. The rates for CGT can vary, but they’re usually less than the rates for Income Tax.
2. Income Tax: If you’re classified as a trader, which means you trade regularly to profit from short-term price fluctuations (as day traders do), your profits could be subject to Income Tax. This is treated like income from any other job, and the rates can be higher than for CGT. However, being classified as a trader is relatively rare, as the HMRC’s criteria for this are quite strict.
3. Spread Betting: An exception to these rules is spread betting, which is a form of derivative trading. Profits from spread betting are generally not subject to any tax in the UK, as it’s considered gambling rather than trading. However, you should note that tax laws can change, and the specifics can vary based on individual circ*mstances.

These are general guidelines, and the specifics can vary based on individual circ*mstances. Always consult with a tax professional to understand your tax obligations.

Final Thoughts

Selecting the right day trading broker in the UK is an essential step towards a successful trading career. Your choice of broker should align with your trading style, financial goals, and market interests.

In this article, I have discussed some of the top brokers each offering unique features, competitive pricing, and robust tools to optimise your day trading.

While AvaTrade excels in forex and CFDs trading, Pepperstone offers notably low spreads, and IG stands out with its extensive spread betting markets. eToro is the best day trading broker for beginners.

Always remember, though, that day trading is a high-risk endeavor and requires a thorough understanding of markets and strategies.

In the end, the best broker for you is one that fits your individual needs and trading aspirations.

FAQs

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Sources:

1. https://www.finder.com/uk/investment-statistics ↩︎
2. https://www.statista.com/statistics/1262787/etoro-registered-users/ ↩︎
3. https://legacy.farmdoc.illinois.edu/nccc134/conf_1999/pdf/confp16-99.pdf ↩︎
4. https://www3.nd.edu/~zda/AIA.pdf ↩︎
5. https://www.investor.gov/additional-resources/spotlight/directors-take/thinking-day-trading-know-risks ↩︎