Day trading is a short-term trading strategy focused on buying and selling financial instruments within the same day. Traders aim to profit from price movements in markets like forex, stocks, and commodities. To succeed, you need a solid strategy, emotional discipline, and access to the right trading platform.
This guide breaks down the top day trading platforms in the UK, how they compare, and what you need to know before getting started.
Capital at risk: Most traders lose money when trading CFDs and other leveraged products. Always consider whether you can afford to take this risk.
Platform | Annual Fee | Trading Fees | Markets | Demo Account | ISA/SIPP Support |
Pepperstone | £0 | From 0.10% (stocks), 0.6 pips (forex) | Forex, CFDs, stocks, ETFs, indices | Yes | No |
eToro | £0 | £0 on real stocks (spread & FX apply) | Stocks, ETFs, CFDs, crypto, forex | Yes ($100,000) | No |
XTB | £0 | £0 (FX fee 0.5%) | Stocks, ETFs, CFDs, forex, commodities | Yes (£100,000) | Yes (ISA) |
CMC Markets | £0 | From 0.7 pips (forex), 0.3 pts (commodities) | Forex, indices, commodities, spread bets | Yes (£10,000) | No |
Interactive Investor | £4.99–£19.99/mo | £3.99 per trade | Stocks, funds, ETFs, trusts, bonds | No | Yes (ISA, SIPP, Junior ISA) |
Hargreaves Lansdown | £0 (Fund & Share) | £11.95–£5.95 per deal | Stocks, funds, ETFs, bonds, trusts | Yes | Yes (ISA, SIPP, Junior ISA) |
AJ Bell | 0.25% (max £3.50/mo) | £5 per deal (£3.50 frequent), £1.50 for funds | Stocks, ETFs, funds, trusts, bonds | Yes | Yes (ISA, SIPP, Lifetime ISA) |
Saxo | 0.12%–0.08% (min £108/yr) | From £3 (UK), $1 (US) | Stocks, ETFs, forex, CFDs, options | Yes | Yes (ISA, SIPP) |
Each of the platforms below is authorised by the Financial Conduct Authority (FCA) and offers tools, execution speeds, and features tailored to active traders.
Pepperstone is a strong choice for active traders who prioritise speed and pricing. The platform offers access to more than 1,200 instruments, including forex, index CFDs, stock CFDs, ETF CFDs, and commodities. Spreads start from 0.6 pips on major forex pairs and 0.10% on UK share CFDs.
You can choose from multiple trading platforms including MetaTrader 4, MetaTrader 5, cTrader, and TradingView. These platforms support advanced strategies like scalping, hedging, and algorithmic trading. Traders also benefit from automation tools like Capitalise AI and social trading through DupliTrade.
Opening an account is free and includes a demo account with virtual funds for practising. Pepperstone is best suited for experienced traders or those ready to progress to more complex strategies. However, it does not offer ISAs or SIPPs, so it’s not designed for long-term investing.
Pepperstone is ideal for traders who want professional-grade tools, fast execution, and access to global markets—all at competitive rates.
eToro is well-suited for new and intermediate traders who want a simplified way to access the markets. It offers over 5,500 tradable assets, including real stocks, ETFs, CFDs, forex, commodities, and cryptocurrencies. One of its standout features is commission-free trading on real stocks.
The platform’s unique appeal lies in its social and copy trading features. You can browse strategies used by top investors and copy their trades with one click. For those looking to diversify easily, eToro also offers curated investment portfolios based on themes like tech, healthcare, and clean energy.
All accounts come with a free $100,000 demo to practise, and the eToro Money app allows UK users to convert GBP to USD without paying currency exchange fees. However, all trading takes place in USD, and a $5 withdrawal fee applies.
eToro is accessible, visually intuitive, and packed with educational tools. It’s a good fit for hands-off investors or traders who want exposure to a wide range of global markets without a steep learning curve.
XTB offers a strong blend of simplicity and advanced functionality. The broker gives access to over 5,800 financial instruments, including UK and global shares, ETFs, forex, indices, and commodities. Real stock and ETF trades are commission-free up to €100,000 per month.
Its proprietary xStation platform is available on mobile, tablet, and desktop, and comes with useful tools like a trading calculator, integrated charts, market sentiment, and risk management features. You can also modify trades directly from the chart interface.
For new investors, XTB supports fractional investing from £50. For advanced users, it provides deep research and analysis tools, along with educational videos, live sessions, and an account manager. A demo account with £100,000 in virtual funds is also included.
XTB is a great option for traders who want professional tools without paying high fees. It strikes a balance between accessibility for beginners and depth for experienced traders.
CMC Markets stands out for its scale and trading tools. It offers access to more than 12,000 instruments, including forex, indices, shares, ETFs, commodities, treasuries, options, and spread bets. It also supports over 300 currency pairs—more than any platform in this guide.
The platform delivers excellent charting features, including 115+ indicators, drawing tools, 70+ chart patterns, and 12 chart types. Traders also benefit from integrated news and analysis from Reuters, plus CMC’s own pattern recognition scanner and economic calendar.
Advanced traders can opt for CMC Alpha, a premium offering that includes reduced spreads, FT subscriptions, and interest on uninvested cash. All accounts come with a free demo loaded with £10,000 in virtual funds.
CMC Markets is a strong fit for active and technical traders who want professional-grade insights and access to a wide variety of global markets.
Interactive Investor operates on a subscription-based model, making it cost-effective for investors with larger portfolios. Monthly plans range from £4.99 to £19.99, and include one free trade per month (excluding the Essentials plan).
The platform gives you access to over 40,000 investments across 17 global exchanges. You can trade UK and international stocks, funds, investment trusts, ETFs, and bonds. It supports both DIY investing and ready-made portfolios called Quick-Start Funds.
Interactive Investor is also one of the few providers that includes SIPPs, ISAs, and Junior ISAs in its product range. Educational content, research tools, and curated investment ideas are available to support decision-making.
This platform is best for investors who trade regularly and want long-term access to a wide variety of markets under a transparent flat-fee model.
Hargreaves Lansdown is the UK’s largest investment platform and offers access to over 15,000 investment options, including shares, ETFs, bonds, funds, and trusts. Its biggest advantage is the depth of market research, data tools, and analyst commentary.
You can choose to build your portfolio manually, use ready-made portfolios, or consult a financial adviser. The platform also offers a Stocks and Shares ISA, Junior ISA, SIPP, and Lifetime ISA.
Trading fees range from £11.95 per deal (dropping to £5.95 for active traders). While it’s not the cheapest option, the research support and user experience make it worth considering for investors focused on long-term growth and detailed analysis.
Hargreaves Lansdown suits those who value expert insight and comprehensive investment tools, even if the platform fees are slightly higher.
AJ Bell is a well-known UK investment platform that offers a wide variety of assets, including stocks, funds, ETFs, trusts, bonds, and warrants. With an annual platform fee of just 0.25% (capped at £3.50 per month), it’s one of the most cost-efficient platforms in the UK.
You can choose between building your own portfolio or selecting from eight pre-made investment ideas, each designed around a specific risk level and investment goal. Trading fees are £5 per deal, dropping to £3.50 for frequent traders. Fund trades cost £1.50.
AJ Bell is well-suited for both beginner and experienced investors, with access to ISAs, SIPPs, and regular investment plans starting from £25 per month. Its strong research tools and fund screeners help you make informed decisions.
This platform is ideal for long-term investors looking for affordability, flexibility, and educational support.
Saxo gives UK investors access to over 71,000 instruments across global markets. You can trade UK and international shares, ETFs, bonds, mutual funds, forex, commodities, futures, options, and CFDs.
The platform caters to both beginners and professionals. You can either build your portfolio manually or choose from managed portfolios designed by Saxo’s investment team. The managed portfolio service costs around 0.95% annually, including fund charges.
Saxo’s two trading platforms—SaxoTraderGO and SaxoTraderPRO—offer sophisticated charting, trade signals, and risk management tools. Fees vary by tier, with Classic users paying 0.08% per trade on UK stocks (minimum £3).
While the minimum annual fee is higher than most (£108), Saxo justifies this with a premium platform experience, high-volume pricing tiers, and unmatched asset coverage. It’s a strong fit for active traders and professionals.
Day trading is the act of buying and selling financial instruments—like stocks, forex, or derivatives—within a single trading day. The aim is to profit from small price movements over short time frames.
Day traders don’t hold positions overnight. By the end of each trading session, they close out every trade and convert everything back to cash. This helps reduce exposure to after-hours market risk.
The most common assets used for day trading are highly liquid ones—publicly traded stocks such as Apple, BP, or HSBC, or fast-moving markets like forex. Some traders also use contracts like options, warrants, or CFDs. These instruments allow for both long and short trades, often with leverage.
In this guide, we focus on trading your own capital—not institutional or proprietary trading done at banks or hedge funds.
Day trading goes beyond buying in the morning and selling before the market closes. To treat it as a serious strategy or career, you’ll need education, a tested plan, and strong mental discipline.
Here’s a step-by-step overview for getting started:
Day trading requires a quick understanding of price action, volatility, and volume. To build this knowledge, you can start with books, videos, and beginner-friendly trading platforms that offer demo accounts.
Many new traders begin by practising with virtual funds. This helps build confidence before risking real money.
Day traders typically use technical analysis, fundamental analysis, or a mix of both.
Choose the method that fits your skillset, time commitment, and temperament.
To trade efficiently, you’ll need access to real-time pricing, fast order execution, and tools for charting and news tracking.
Popular software options include:
Your platform should match your strategy. For example:
UK traders should also ensure their broker is FCA-regulated and offers fair pricing.
Once you’ve chosen a strategy, stick to it. Emotional decision-making is one of the top reasons traders lose money.
It’s important to review your trades regularly, but not in the heat of the moment. Analyse results outside market hours to stay objective.
Day trading requires markets that are liquid and volatile. These are the most popular markets for UK-based day traders:
Stocks and indices are the go-to markets for most day traders. Shares listed on the London Stock Exchange or US exchanges like the NASDAQ are especially popular.
You can trade individual companies like Tesco or Apple, or focus on index movements like the FTSE 100 or S&P 500.
The foreign exchange market is open 24 hours a day (Monday to Friday). Traders buy and sell currency pairs like GBP/USD or EUR/JPY, taking advantage of even small price movements.
Forex is volatile and complex. You’ll need to understand broader economic trends to succeed in currency trading.
Derivatives like options, futures, and CFDs allow traders to speculate on price movements without owning the underlying asset.
These tools often involve leverage, which increases both risk and reward. Because of the complexity, they’re better suited to advanced traders.
There’s no single best strategy. Success depends on choosing an approach that suits your goals and sticking with it. Here are five widely used day trading methods:
This strategy relies on reacting to breaking news—earnings announcements, economic data, or major political developments.
Quick decisions are key. Some traders even try to anticipate news based on scheduled events, like interest rate decisions or product launches.
Swing traders look to profit from short-term price reversals. For example, if a stock dips and then rebounds during the day, a trader might buy the dip and sell the bounce.
This strategy often uses technical indicators like support, resistance, and moving averages.
Momentum traders jump on fast-moving trends, buying stocks as they gain strength or shorting those in decline. The goal is to ride a wave of buying or selling activity before the trend reverses.
It requires sharp focus and quick exits.
This method combines price and volume data to gauge where demand is heading. Tools like the Money Flow Index help traders estimate whether buyers or sellers are in control.
It’s often used to confirm other strategies.
Traders using this strategy look for assets that have strayed far from their average price. The theory is that prices tend to return to their “mean” over time.
This strategy is most effective when paired with historical data and moving averages.
Here’s a glossary of common terms every UK day trader should know:
Day trading isn’t free. Costs can include:
Professional traders may use tools like Bloomberg Terminal, which cost over £21,000 a year. Fortunately, platforms like TradingView offer more affordable alternatives with many of the same features.
Free platforms are also available, but they may offer delayed data or limited access to tools.
What are the best day trading brokers in the UK?
Top options include Pepperstone, eToro, XTB, CMC Markets, Interactive Investor, AJ Bell, and Saxo. Each has unique tools, pricing, and market access.
Is day trading legal in the UK?
Yes. UK residents are free to day trade, provided they use FCA-regulated brokers.
What’s the best platform for beginners?
eToro and XTB are good starting points due to user-friendly interfaces and demo accounts. Interactive Investor and AJ Bell also support beginners with research tools.
What tools do I need?
At a minimum, you’ll need a trading platform with real-time pricing and charting. Advanced traders may use TradingView or Bloomberg.
Can I make money from day trading?
Yes, but it’s difficult. Most beginners lose money. Long-term success depends on discipline, strategy, and market knowledge.
How much do I need to start?
Some platforms let you start with under £100. To trade full-time, you’ll likely need a significantly larger capital base.
Do I pay tax as a day trader?
Yes. UK traders pay income tax or capital gains tax depending on whether they’re considered investors or professionals.
How difficult is day trading?
It’s one of the most challenging ways to invest. It takes time, experience, and ongoing effort to stay profitable.
How many hours a day do traders work?
Some work full-time market hours, others only trade for a few hours based on their strategy.
Why do most traders fail?
The main reason is emotional decision-making. Many traders break their own rules, overtrade, or chase losses.
UK Government & Regulator Links:
Financial Protection & Regulation:
Trusted UK Financial Guidance:
Educational & Academic Sources: