Best Trading Guide in the UK: A Comprehensive Overview

If you will encounter trading platforms – also and especially in the field of finance you need to know the basics first. As a prospective stock market trader, you will quickly come into contact with English technical terms. Trading – is one such stock exchange-specific Anglicism.There are also other meanings of the word, this corresponds to the meaning of trade. In finance, the term stands for the trading of various financial instruments such as shares, funds, currencies or commodities on different trading platforms. But derivatives such as options and contracts for difference (CFDs) can also be traded. Trader in this context refers to the trading person who buys and sells a financial product.The purchase of assets can take place both via a stock exchange and over-the-counter (OTC). The stock exchange is to be understood as a kind of marketplace that is open within the framework of certain opening hours. Usually, trading takes place on weekdays between 8 a.m. and 8 p.m., for example. Off-exchange trading, on the other hand, can also take place on weekends, as no intermediaries (exchange traders) are required here. Buyers and sellers of securities trade directly with each other on trading platforms.

What Is Trading and How Can It Help?

In principle, online trading is a voluntary exchange of goods or services between two parties. Voluntary because a transaction only takes place if both parties have a vested interest in executing a trade.

In the financial market, the term trade refers to the purchase or sale of financial products in which the intention to make a profit is the driving force. Trades take place via a financial service provider (online broker or trading platforms). This broker handles the execution of a trade on behalf of the trader. Let’s take a view at some of positive sides of popular types of trading.

Advantages of Trading with FX Futures

The great advantage of trading with FX futures is, among other things, the transparency of regulated and centralised exchanges, which means that the same competitive conditions prevail for all market participants. All trading platforms trades are placed on the exchange immediately after execution. In this context, a wealth of timing and sales information is available at all times and is complete to boot.

Again, all advantages at a glance:

  • Centralised and regulated trading, which enables a high level of transparency
  • Price transparency due to the high trading volume
  • Cost efficiency due to low transaction costs
  • Possibilities for copy trading

Advantages of International Trade

International trade is profitable for all countries in the world. It brings about a better international division of labour, specialisation and a greater variety of products in the individual countries and ensures the supply of raw materials. Especially countries like the UK without their natural raw materials are dependent on the supply of foreign raw materials. In addition, exchange with other states can stimulate innovation in states and thus make new technical achievements possible. This type of trading is also possible with trading platforms, which makes it accessible for everyone.

Advantages of CFD Trading

One of the biggest advantages, as already briefly mentioned, is the possibility to speculate on best trading platform on both rising and falling prices:

  1. When trading CFDs, it is common to use leverage to maximise profits. Depending on your previous experience in CFD trading and the location of the selected CFD broker, levers are available starting from 1:2 up to 1:500, sometimes even higher. 
  2. The higher the leverage, the lower the amount of equity you need to invest in the trade. No existing requirements and restrictions for day trading
  3. Comparing the trading of CFDs with conventional trading, you have no requirements in trading in terms of minimum capital or restrictions on the number of trades.

Best Trading Platforms in the UK

Choosing the best online broker is not always easy. For traders from the UK, there are already countless opportunities to register and invest online. The beginner quickly loses his overview and can often select offers that are not necessarily good. It is often the case that the broker with the most eye-catching advertising offers the worst fee structure.

Beginners or even advanced investors should therefore beware of “loud screaming” trading platforms. In my comparison, you will find the best options for traders from the UK to invest online with a good partner. All 3 brokers presented here are safe and legal, you can be sure that your money is safe there. However, there are small differences in the offer and the fees. Learn more in our comparison!

Capital.com

Capital.com

The online broker Capital.com provides one-click trading and over 3,700 available markets. The broker has specialised in trading CFDs. In particular, the charting options are a unique selling point for the broker. This is because the integration of TradingView charting into its trading platform revolutionised. Below we share our Capital.com experience and look at the broker in detail.

The FinTech company Capital com SV Investments has won several awards and is one of the most popular CFD trading platforms. How convinced investors are of the broker can be seen in the numbers. In total, over 5 million customer accounts are registered. The trading volume amounts to over 530 billion euros. Last, but not least, it is trading at the push of a button that convinces traders. 

To do justice to these figures, Capital.com relies on an international team consisting of over 800 employees, who are working for the best trading platform. The broker has branches in London (Great Britain), Vilnius (Lithuania), Limassol (Cyprus), Mahe (Seychelles) and Gibraltar. Further branches are located in Poland, Australia, Bulgaria, Singapore and Ukraine. Thus, the broker is represented worldwide. The broker has experience, especially in the financial sector. The goal is to develop a financial system that offers traders access to the stock exchanges quickly and easily. Digital democracy is a keyword that can be associated with the broker.

How suitable is Capital.com as a best trading platform? Capital.com’s offer impresses with over 400 tradable crypto CFDs and a total of 3300+ financial instruments available. On top of that, the online broker is regulated several times and the trading experiences are also largely positive. However, there are also disadvantages for the UK traders with this provider. We look at opportunities and risks in the overview:

ADVANTAGES

DISADVANTAGES

  • Regulated and secure
  • Easy to use trading platform
  • Ideal for short-term trades as CFDs
  • Enormous choice of crypto CFDs on this trading platform UK
  • Free practice account integrated into the platform
  • Low starting capital possible
  • Numerous indicators, charts and analysis options
  • Only suitable for short-term trading

XTB

XTB

X Trade Brokers was founded in 2002 in Poland – Warsaw and is still a good address for best trading platform experience and CFD traders. The company quickly grew due to high demand and offices were opened all over Europe. Currently, XTB is represented in over 12 countries. A branch is also located in the UK. This is a joint stock company, which is traded on the Polish stock exchange. In 2016, the company dared to take this step and recorded a 4% share gain directly on the first day.

At this trading broker, you can trade over 5,400 different assets and 6 asset classes, including crypto CFDs, on a universal trading platform. In addition, XTB binds users in the long term with very good customer service through support, webinars and training. Extensive training helps even beginners in finance, cryptocurrencies and CFD trading to find their way into the markets.

Trading with XTB is intuitive and easy. More than 5,400 assets are available for trading as forex and CFDs, allowing you to build a diversified portfolio. With the help of the xStation 5 app and web version, analyses can be carried out regardless of location and trading can be started directly. This best trading platform XTB is also a good choice for beginners in trading. See the advantages and disadvantages here:

ADVANTAGES

DISADVANTAGES

  • Regulated and safe
  • No commissions on stocks and ETFs
  • Multi-asset broker
  • Variable adjustable levers on this trading platform UK
  • Free practice account
  • No minimum deposit
  • xStation trading platform for all-in-one trading
  • Negative balance protection
  • No crypto coins
  • Demo account only free of charge for 30 days
  • No combination options with other trading platforms

GBE Brokers

GBE Brokers

The online broker GBE Brokers specialises in the financial instruments CFDs and Forex and convinces with an offer regulated in the UK. Excellent support is also available to traders. Trading takes place via the popular MetaTrader 4 and MetaTrader 5 trading platforms from MetaQuotes.

GBE Brokers Ltd. has been an international broker for trading Forex and CFDs since 2013. The head office of the company is located at Limassol, Cyprus. The company is registered with the company number HE324205. There is also a branch office in the UK.

Directly from Hamburg, best trading platform customers are served and can enjoy support via phone, email or chat. GBE Brokers promises smooth Forex & trading CFD on the financial markets at a very fast execution with high liquidity. The broker itself is connected to the largest liquidity providers, which avoids slippage. Especially for traders with large accounts and positions, GBE Brokers offers good conditions.

GBE Brokers’ experience shows that registering with the best trading platform is associated with low risk. Although the minimum deposit is between 500 and 1000 euros, depending on the account type, traders receive assistance from competent and competent support and subsequently trade with a provider regulated in the UK and Europe. In particular, the high liquidity is to be emphasised. Which advantages and disadvantages are associated with trading, you can see in the overview table:

ADVANTAGES

DISADVANTAGES

  • Regulated and secure
  • Trading via MetaTrader 4 and MetaTrader 5
  • High liquidity
  • Free practice account and copy trading
  • Ultra-fast order execution
  • xStation trading platform for all-in-one trading
  • Negative balance protection
  • Only a few crypto assets for trading
  • No independent trading platform
  • High minimum deposit

Is Online Trading Legal in the UK

Every participant in trading naturally wants to make profits using some best trading platform. In the enthusiasm, the associated, for example, Forex taxes are not perceived or simply ignored. Taxes must be paid on profits in trading. The following paragraph explains the legal part of trading and which taxes are due and how they have to be paid. In principle, trading taxes are not avoidable, but you can gain advantages in paying them – by carefully choosing a broker.

Regulation and taxes by an official financial regulator are essential for serious online trading. The broker thus creates trust between him and the customer. Among other things, European brokers must have an official regulation to offer certain financial products. If such a licence is missing, one can assume a possibly dubious business. Before investing, the provider should be checked for regulation.

Taxes Regulations

If you are specifically looking for trading platforms in the UK, you will not find anything. Nevertheless, taxes are payable on income from currency trading. Taxpayers have to pay withholding tax on all capital gains, which is levied as a withholding tax at the profit disbursing office. 

The last sentence is of no small importance for foreign exchange traders in the UK because it makes their assessment by tax return as superfluous as the will to pay tax. Proceeds from forex trading raise some questions in this context:

First, the good news: 25% flat rate tax must be paid on profits from trading. Since January, no solidarity surcharge is levied on normal earners. Church tax is at the discretion of the taxpayer, even for your best trading platform. Believers pay a little, atheists avoid the tax altogether.

Regulations of Authorities

Let’s take a view on regulations of 3 best brokers described above:

How to Choose the Right Trading Platform

Before starting the trading platforms comparison, you should consider the question of what is important to you personally. That is, which offer should be presented by the online broker? In addition, it is also about the question of whether the online broker can be used free of charge or if you are willing to pay money to get access to the market. That of course already relatively quickly in the course of the online broker comparison becomes clear that here services of course cost money, may be no secret at this point. But some very many online brokers pursue an attractive fee model – and you should also convince yourself of this before you open an account. 

By the way, if you compare the trading platform UK and in the end, you are unsure which provider has performed best in the course of the online broker comparison, you can also take a look at the testimonials that can be found on the Internet. Because a comparison of online brokers may ensure that in the end, you have two or three favourites on your list and then corresponding testimonials help further that you get the certainty of which provider should become the number one.

Therefore, it is important that one also conducts an online trading platform comparison. Because of course, different platforms ultimately advertise to have the best offer. But only if you do an online broker comparison, that is, if you look at the various services and also take a look at the costs, will you be able to find the best online broker for you in the end.

The Online Brokers in Comparison - What to Look Out For?

All those who just want to do an online broker comparison to find the best provider for themselves, are well advised to look at the following points.

First of all, it is about the seriousness: Only if the online trading platform has a licence, the online broker should be included in the comparison – if there are doubts about the seriousness, it is not worth considering the provider in the course of the broker comparison.

New investors will also look in the direction of savings plans and copy trading possibilities. In the course of the broker comparison, it may therefore also be advisable to pay attention to whether savings plans are provided by the provider – and whether these score with fair conditions.

Also interesting for beginners: the demo account. The online trading platform comparison will show that not every broker offers a free demo account – so if you first want to try out a few strategies without risk, you are well advised to only include those online brokers in the comparison that also offer a demo account.

The importance of Demo Account

“Risk occurs when investors don’t know what they are doing.” – Warren Buffett is considered one of the most successful traders in the world and he should know. A forex trading demo account is recommendable for every trader, but especially for beginners. It offers optimal conditions for risk-free trading entry and supports the understanding of markets and Co. But not every trading demo account brings the desired effect.

Especially at the beginning of a trading career, trading conditions are often a book with seven seals. Spreads, pips, trends, trading costs, volatility and co. – the overview of how the market of a financial product works is often missing on the UK trading platform.

The trading demo account offers a unique opportunity to gain trading experience without losses. Traders can calmly familiarise themselves with all the market events, opportunities and risks.

Conclusion

Online trading is possible in different ways, which is mainly defined by the trading style. The trading styles scalping, day trading, swing trading or position trading differ mainly in terms of the length of the holding period of the assets. Momentum trading, on the other hand, is based on market trends.

Trades generally incur costs, which can vary greatly from asset to asset. Also, the lively competition among brokers ensures that a detailed cost overview is difficult. Anyone who has decided to trade on the UK trading platform a specific financial instrument should therefore check the fees on the website of his broker. This aspect is important because trading fees reduce the return on investment. No matter if you are a hobby trader or a professional trader – we wish you good luck with your personal trading!

F.A.Q.

An online trading platform is an online software that facilitates buying and selling financial instruments, such as stocks, bonds, and cryptocurrencies. It provides real-time market data, trading tools, and a user-friendly interface for investors to execute trades. Traders can monitor their investments, access charts, and execute orders through the platform. With advanced features like technical analysis tools, customizable dashboards, and news feeds, trading platforms empower users to make informed decisions and manage their investment portfolios efficiently.

To open an online trading account, you typically need to choose a brokerage firm, provide personal information, and complete the application process. Once approved, you’ll need to fund the account with the minimum required deposit, which varies among brokers. After funding, you gain access to the trading platform and can start buying and selling securities. The process may involve verifying your identity and agreeing to the broker’s terms and conditions. It’s essential to research different brokers, compare their offerings, and consider factors like fees, customer service, and available assets before selecting the one that best suits your investment needs.

The minimum deposit to open a trading account varies depending on the trading platforms. It can range from as low as $0 with some commission-free brokers to a few thousand dollars with full-service brokers. Consider your budget and trading goals to determine the right amount to start with. Keep in mind that you’ll also need to have sufficient funds to cover the cost of the investments you want to make, as well as any fees or commissions associated with trading. Additionally, some brokers may require higher initial deposits for specialised accounts or access to specific features. It’s essential to review the account requirements of different brokers and choose one that aligns with your financial situation and trading objectives.

The type of online trading account you should choose depends on your experience level, risk tolerance, and investment goals. There are primarily three types of trading accounts: cash accounts, margin accounts, and retirement accounts. Cash accounts are suitable for beginners, as they allow you to trade using only the funds you have deposited. With this type of account, you can’t borrow money from the broker to make trades, which may limit your trading capacity. Margin accounts, on the other hand, are designed for more experienced traders who want to leverage their positions by borrowing funds from the broker. While margin accounts offer the potential for higher returns, they also come with increased risk and strict regulations. Retirement accounts, such as Individual Retirement Accounts (IRAs), offer tax advantages for long-term investing and are suitable for individuals planning for their future financial security.

The fees associated with trading can vary significantly among brokers, and it’s essential to understand these costs before opening an account. Some UK trading platform common fees include commission charges on trades, account maintenance fees, and fees for transferring funds. Traditionally, brokers charged a commission for each trade executed on their platform. However, with the rise of commission-free brokers, many have eliminated this fee, allowing investors to trade without incurring additional charges. Instead, some brokers may earn revenue through other means, such as payment for order flow or charging for additional services. Additionally, certain types of trades, such as CFD trading, options and mutual funds, may have specific fees associated with them. It’s crucial to read the broker’s fee schedule carefully and ask about any potential hidden costs to make an informed decision about the overall expenses you may incur when using their services.