Best Automated Trading Platform UK - Full Guide (2024)

There’s been an emergence of many automated trading platforms in the recent past offering the convenience to automate trading strategies and simplify investments.

However, there is no one-size-fits-all option as the best-automated trading platform in the UK, it depends on an individual's specific needs and requirements.

This guide will provide a comprehensive overview of the top automated trading software available in the UK including the pros and cons of using platforms, how much money you need to get started with an automated trading platform, and more.

Top 10 Trading Platforms Reviewed

Here are the best-automated trading platforms in the UK.

eToro - Best Overall Trading Systems

eToro is a highly functional investment platform, famous for its social trading capabilities. It offers an intuitive, functional web and mobile platform that caters to different cadres of investors in over 140 countries.

The copy trading feature is the most significant advantage of eToro, helping users trade with crowd sentiment while copying investment ideas from top traders. The platform is best suited for all levels, especially those interested in retail trading.

Freetrade is an easy to use platform that offers traders a chance to invest commission free. The platform provides over 6000 stocks and ETFs from the UK, US, and European markets. The Freetrade app runs a referral program allowing friends to get free shares worth up to $100.

The app uses a freemium model for its basic account. Retail investor accounts help customers buy fractional US shares. Freetrade protects assets and funds by segregating funds. It’s also a part of the financial services compensation scheme.

Fineco Bank - Best Broker for Live Trading

Fineco Bank is a pioneer bank, publicly listed on the Italian Stock Exchange and offers automated trading software packed with simple and intuitive features catering to beginners and expert traders.

It offers access to 26 global markets, with over 20,000 financial instruments available for trade. Platform experts offer beginner-friendly demos to help potential traders explore the various trading classes and assets.

IG - Best for CFD Trading

IG offers an extensive range of tradeable markets and assets to its customers with a user-friendly platform. It provides various trading tools catering to market research and analysis, especially for trading CFDs. It’s popular with beginners and expert traders.

Saxo Markets - Best for Advanced Trading

Saxo is a multi-asset trading platform that provides access to over 65,000 tradeable instruments. Sophisticated traders prefer the platform for its holistic approach to trading through a comprehensive offering of assets, tools, and direct market access.

The platform integrates with other third-party systems for a customised experience. Saxo is licensed and regulated in 15 jurisdictions.

Trading 212 is a beginner-friendly platform that allows investors to trade as little as £1 with fractional shares. Traders have access to over 12,000 global stocks and ETFs.

The platform serves over 12 million traders and targets investors looking for inexpensive trading options and low fees. Clients' funds are segregated and further protected by the FSCS up to £85,000.

Degiro - Best for Low Fees

Degiro provides an easy-to-use trading platform with access to 50 exchanges globally. The broker serves over two million customers, all enjoying low fees. It’s also listed on SDAX and operates its banking license to ensure assets and fund security.

Hargreaves Lansdown - Best for DIY Investment

Hargreaves Lansdown is an easy-to-use trading platform for private investors. It offers clients an extensive range of investment instruments, having been in operation for the last 40 years. The platform has a solid reputation, serving over 1.6 million customers in the UK while managing over £100 bn in investments.

Interactive Investor- Best for Comprehensive Investment Platform

Interactive Investor is a leading flat-fee investment platform offering a multitude of tradeable assets and subscription services. The platform offers clients a choice of over 150 markets, with the possibility of opting for managed services.

The platform has low commission and margin rates. It provides all levels of traders with a rich selection of tools and research items to help clients in their investment journey.

Capital.com- Best for Investor Training

Capital.com is an easy-to-use CFDs trading platform famed for its wealth of educational material. All ranks of traders can access guides, news, and insights on the innovative web platform. The mobile app is armed with an EQ-patented intelligent system to better the user experience.

What Are Automated Trading Platforms?

Automated trading platform is software programs that automatically execute trades on behalf of a user. The trades are executed based on pre-programmed rules and algorithms that are designed to respond to various market conditions, such as changes in price, volume, and other market indicators.

These platforms can be used to trade a variety of financial instruments, including stocks, currencies, commodities, and derivatives. Automated trading platform is often used by individual traders and investors who are looking to improve their trading performance and efficiency, as well as by institutional traders who use them to execute large-scale, high-volume trades.

Some of the benefits of automated trading platform include increased speed and efficiency, reduced emotion-based decision-making, and the ability to backtest and optimize trading strategies before putting them into use.

Some of the common types of automatic trading include

• Copy trading

• High-frequency trading

• Automated execution trading

• Robotic trading

• Algorithmic trading

Pros & Cons of Using Automated Trading Platforms

Using a combination of automated trading systems and other forms of analysis and market research can prove advantageous to traders. However, these systems still have some drawbacks.

How Much Money Do You Need to Get Started with Automated Trading?

The amount of money needed to get started with trading varies and depends on multiple factors such as the type of automated trading system being used, the cost of the software or platform, and the amount of capital needed to meet minimum account balance requirements for a broker.

Typically, a minimum of several thousand dollars is recommended for a live trading account, but this amount can be lower for a demo or simulation account. It is important to keep in mind that automated trading, like any form of trading, involves risk and there is the possibility of losing money.

It is advisable to thoroughly research and understand the systems, automated trading strategies, and risks involved before investing any money.

We recommend that traders start small and increase their investment as they become more confident. Starting small also allows you to tailor your strategies and hone your trading skills.

Best Free Automated Trading Platform With Zero Commission

Every trader in the financial markets would prefer to have their money go into investing rather than paying commissions. Looking for reputable platforms with low fees and zero commissions are best. However, traders should note that other associated fees may apply.

Is Automated Trading Platform Safe?

The safest trading platforms are those licensed and regulated by the FCA. Additionally, those who subscribe to the Financial Service Compensation Scheme (FSCS) provide an extra layer of insurance. Some platforms have gone a step further by segregating traders' funds and providing them with an insurance scheme.

Most platforms offer insurance for funds and assets in their custody. However, risks such as hacking and scams exist.

How Do I Choose the Automated Trading Platform?

Before opening retail investor accounts and depositing your trading capital on a trading platform, consider the following:

• The fees and commissions applicable to the instruments you wish to trade.

• Review the platform’s security to guarantee your funds are safe.

• Use the demo retail investor accounts with virtual money.

• Check the availability of educational and research material.

• Availability of technical tools

• Ease of use on different devices

• Check the customer support options(Live chat, email, phone).

• Your financial goals

• Research the platform’s reviews and customer service.

What Can You Trade on Automated Trading Platform?

Trading platforms provide direct access to financial markets. Multiple platforms exist to provide access to different needs. Some primarily cater to beginners, while others have built-in complexities and third-party integrations to attract professional traders.

Traders can buy and sell shares, Forex, Cryptocurrencies, ETFs, Bonds, and Derivatives. Some trading apps allow customers to use complex trading instruments, such as trading CFDs.

Stock trading is a popular option in the UK. Some trading apps, such as Free Trade, also allow you to buy stocks from the UK or US stock exchanges.

Some platforms are better at specific niches. For instance, eToro's social trading feature is popular with crypto traders and beginners due to its copy trade functionality. Those who prefer trading CFDs may choose platforms like IG.

Best Trading Platform for Beginners

Beginner-friendly platforms are well-regulated and trustworthy. They also have easy-to-use web/mobile interfaces coupled with extensive educational content.

These three trading platforms possess a multitude of features. However, to benefit beginners, they offer demo accounts for gaining experience and knowledge. They also have low entry barriers. Beginners can stand assured the three platforms are licenced and regulated by the FCA.

Can You Use Automated Trading Platform Everywhere in the World?

Many trading platforms are available for non-UK citizens, depending on individual preferences. Here are some of the best trading platforms in other selected countries.

Can I Use Automated Trading Platforms on All Devices?

This is accessible through various devices, including desktops, tablets, and phones. Most provide a web-based interface that’s accessible through a browser. However, the mobile apps must be downloaded from their respective app stores. It’s essential to check if your device is compatible with the platform you want to use.

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