UK Day Trading

mcharlton

Junior member
24 0
Just a quick question for anyone...

I know if you make more than a certain amount of trades a day/week in the US you are classed as a day trader and need to have at least $25k in your account to trade...

Is this true for the UK?

Are there any Limits/Laws that need to be taken into account when day trading?

Thanks in advance...
 

sidinuk

Established member
624 5
If you try to day trade UK shares you need to be aware of the law that states that the government will take pretty much any profit you might hope to make by charging you 0.5% of every trade for stamp duty. Couple that with wide spreads and high commission costs and daytrading UK shares is pretty much a non-starter.
 

growltiger

Member
91 0
sidinuk said:
If you try to day trade UK shares you need to be aware of the law that states that the government will take pretty much any profit you might hope to make by charging you 0.5% of every trade for stamp duty. Couple that with wide spreads and high commission costs and daytrading UK shares is pretty much a non-starter.

Alternatively, you can apply Sidinuk's arithmetic to trading CFDs. There you have no stamp, and leverage of maybe 10 times (broker dependent). So if you get it right you just have to cover the commissions, cost of trading platform, datafeeds etc. But it remains surprisingly easy to pick 70 or 80 per cent winning trades consistently over long periods while still doing no better than break even after costs.
 

Naz

Experienced member
1,391 24
The alternative is being a US pattern day trader,paying no stamp duty ,little or no spread,the ability to capture any spread,trading stocks that move and playing indices the same way if one wish's.
Having total control at any instant on the trade.Seeing what is truly going on using level 2.Trading a market that leads and is not a follower.

If the $25k is a problem then using CFD's is a handy alternative.There are many positives here.Smaller account size to start with, from about £3,000.OCO orders with some brokers to manage your trade. 10/1 margin with some brokers.The ability to short some hot stocks that some US brokers put on the hard to borrow list.Short on a down tick.Trade as many times as you wish when you want and not be subjected ro any US pattern day trader rules.

There are Nasdaq stocks out there that move every day.Scanners can help you find them.A day's money can be made in the first hour of trading.I keep out of the mid day doldrums and take a break.However the morning run or afternoon run which last about 2 1/2 hours each can individually give a day's money.

This is just my opinion.However one should ask the question why do so many UK traders who trade for a living trade the US markets?
 
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