The Best Automated UK Trading Platforms: Review & Tips [2024 Updated]
Trading is risky and you might lose part, or all, of your capital invested. The information provided is for informational and educational purposes only and does not represent any type of financial advice and/or investment recommendation.
Automated trading is where computer algorithms execute buy or sell orders in financial markets, based on predefined rules and conditions. It removes human emotions, improves execution speed and allows for testing strategies on historical data, enabling traders to trade more efficiently and consistently.
What are the Best UK Automated Trading Platforms?
Before parting with your money, it is essential to conduct research to find the best platform that suits your trading needs.
To get you started, here are some of the best automated trading platforms in the UK.
1. Plus500
Advantages
Regulated by the Financial Conduct Authority
Over 2,500 significant financial instruments
Negative balance protection
24/7 customer support
Disadvantages
Not currently available to US clients
No API integrations
CFDs only
No social copy trading
Plus500 is recognized as a versatile and user-friendly trading platform, particularly for trading Contracts for Difference (CFDs) on a variety of assets like shares, options, commodities, forex, ETFs, and indices. It offers competitive spreads and leverage, but does not allow adjustments to leverage levels, which is an important consideration for risk management.
The platform is particularly noted for its proprietary WebTrader platform, which is well-designed and easy to use. It offers efficient search functions, various order types, including trailing stop and guaranteed stop, and comprehensive charting with over 100 technical indicators. However, it does not support automated trading and lacks options for customization. Plus500 does not offer MetaTrader 4, which might be a drawback for traders seeking advanced functionality and customization.
For customer support, Plus500 provides excellent service through live chat and WhatsApp, although it lacks phone support. The account opening process is digital and seamless with a minimum deposit of £100 for debit/credit cards and electronic wallets (raised to £500 for bank transfers). A professional account is available by application, requiring certain criteria to be met.
In terms of educational resources, Plus500 offers a demo account, Trading Academy, and various educational materials, but it might not be as comprehensive as some other platforms. The safety and security of the platform are robust, regulated by several top-tier authorities, and client funds are kept in segregated accounts.
When it comes to fees, Plus500 does not charge commissions but earns from spreads. Other charges include guaranteed stop order fees, currency conversion fees, overnight funding, and an inactivity fee after 3 months of account dormancy. The platform supports various deposit and withdrawal methods, including credit/debit cards, PayPal, and bank transfers, with the first five withdrawals each month being free.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 80% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
2. eToro
Advantages
Regulated by the FCA and covered by the Financial Services Compensation Scheme(FSCS)
Offers a variety of financial instruments to trade
Is incredibly user-friendly and easy to set up
Easy-to-use automated trading tools
Educational resources
Disadvantages
Limited technical analysis tools
Inactivity fee of £10 per month
eToro is primarily known as a social trading platform that allows users to follow and copy experienced traders.
It is incredibly popular with beginners because of its commission-free trading and usability.
While fees are low, the minimum initial deposit is £200. As a beginner trader, this might be too high.
74% of retail investor accounts lose money when trading CFDs with this provider. Don’t invest in unless you’re prepared to lose all the money you invest.
3. Pepperstone
Advantages
Offers MetaTrader and cTrader - both facilitate automated trading
Excellent research and analysis tools
Incredibly easy to open an account
Excellent customer service
FCA regulated
Social copy trading is also available
Low forex fees
Disadvantages
Limited selection of financial instruments
Educational resources are not as good as competitors
Pepperstone is perhaps the best automated UK Forex trading platform.
It is known for providing trading services to clients globally and offers automated trading through popular third-party platforms like MetaTrader 4 (MT4) and MetaTrader 5 (MT5).
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75.6% 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.
4. AvaTrade
Advantages
Different accounts for automated trading
£100 minimum deposit making it accessible for beginners
Excellent research and educational tools
Great customer service
Easy account set-up
Disadvantages
£50 per quarter inactivity fee after three months of no activity
Limited financial instrument offering (Forex, CFD and crypto)
AvaTrade is one of the best automated trading platforms for beginners in the UK because of its intuitive interface and catalogue of educational materials.
The DupliTrade automated platform also facilitates copy trading. This means that even traders with little experience can maximise their profits.
For those with a bit more confidence, the ZuluTrade platform allows for some of the best auto trading.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
5. XTB
Advantages
Offers one of the lowest forex spread fees
24-hour customer support
Quick and easy account opening
FCA regulated
Impressive xStation platform that supports automated trading
Disadvantages
Fee of €10 per month after 12 months of no activity
Doesn’t offer MT4
Withdrawal fees for some amount
Limited product offering
XTB is a global forex and CFD broker that offers automated trading through its proprietary platform, xStation.
It is the best automated trading platform for beginners in the UK.
There is no minimum deposit, making it accessible to beginners on a budget.
XTB also provides excellent educational materials and a demo account for you to test your strategy before using real money.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
6. ActivTrades
Advantages
Won over 45 awards including Most Trusted Global FX Broker 2022 by International Investor Magazine
High-quality daily market analysis tools
Low trading fees
Tight spreads
Easy account opening
Disadvantages
Small variety of products
£10 per month inactivity fee
Currency conversion fee
The customer service could be better
ActivTrades offers a variety of trading platforms, including MT4 and MT5.
Traders can use these platforms for automated trading by employing expert advisors (EAs) or custom scripts.
Having been founded in 2001 and regulated by the FCA, ActivTrades is a reliable trading platform and suitable for beginners.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70% of retail investor accounts lose money when trading CFDs with this provider.
You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
7. Vantage FX
Advantages
Quick and easy account opening
No inactivity or trading fees
Unlimited demo account
Excellent educational tools
Disadvantages
Customer service is not as good as competitors
Limited product portfolio – only forex, CFD and crypto
Most trading tools are only available for accounts with a $1,000 minimum balance
Australia-based Vantage FX is a forex and CFD broker that offers automated trading through platforms like MT4 and MT5. These platforms allow traders to use EAs and implement algorithmic strategies.
What makes Vantage FX so popular for beginners is its low trading fees, zero commission and $50 minimum deposit.
The platform also offers excellent education materials and a demo account.
What Is Automated Trading?
Automated trading is a method of executing trades using computer algorithms.
It involves the use of pre-programmed instructions to automatically place trades based on certain predefined criteria, without the need for direct human intervention.
Automated trading is also referred to as algorithmic trading or black-box trading.
The primary objective of a UK automated trading platform is to execute trades at optimal prices and speeds, taking advantage of opportunities that might be missed by manual traders.
Automated trading involves various types of strategies, such as:
Trend-following
Mean reversion
Statistical arbitrage
Market-making
and many others
Each strategy aims to take advantage of different market conditions and patterns.
How Does Automated Trading Work?
An automated trading platform works by:
1. Algorithm Development
Traders or developers create algorithms using programming languages to define the trading strategy.
These algorithms are designed to analyse market data, such as price movements, volume and other relevant indicators to identify potential trading opportunities.
2. Automated Execution
Once the algorithm is developed, it is integrated into a trading platform or system.
The algorithm continuously monitors the markets and automatically executes trades when specific conditions are met, adhering to the rules defined in the algorithm.
Advantages of Automated Trading For Beginners
The benefits of automated trading for beginners include:
Speed and Efficiency
Automated trading platforms execute trades much faster than manual trading.
Algorithms can instantly analyse market data and execute orders without delay. This enables traders to take advantage of fleeting opportunities and avoid price slippage.
Elimination of Emotional Bias
Automated trading removes human emotions from the decision-making process.
Fear and greed often lead to impulsive and irrational trading decisions, which can result in losses.
Algorithms strictly follow predefined rules, reducing the impact of emotional biases.
Consistency
The best automated UK trading platforms follow a set of rules consistently. This ensures trades are executed based on predetermined criteria.
This level of consistency can be challenging for human traders to achieve, especially during times of market volatility or fatigue.
Backtesting and Optimisation
Traders can backtest their strategies on historical market data to evaluate their performance before risking real capital. This allows them to fine-tune and optimise their algorithms for better results.
24/7 Trading
Automated systems monitor the markets and execute trades 24-hours a day, even when the trader is not actively present.
This ability to trade around the clock is particularly advantageous in global markets that operate in different time zones.
Improved Order Entry and Execution – Automated systems can place orders at the best available prices and can split large orders into smaller ones to avoid excessive market impact.
Risk Management – The best automated trading platforms often include risk management features such as stop-loss and take-profit orders. This helps traders protect their capital and limit potential losses.
Removal of Manual Errors – Manual trading can be prone to errors, such as entering incorrect order parameters. Automated systems eliminate these human errors, leading to more accurate and efficient trading.
Access to Complex Strategies – Automated trading allows the implementation of complex trading strategies that may be difficult to execute manually. Algorithmic systems can handle intricate calculations and market analysis in real time.
Reduced Time Commitment – A UK automated trading platform reduces the need for constant monitoring of the markets. Once the algorithm is set up and tested, it can operate independently with minimal intervention.
While automated trading offers numerous benefits, it's essential to remember that it also comes with its own set of risks.
Proper risk management, continuous monitoring, and periodic performance evaluations are crucial to successful automated trading.
How to Choose a Good Trading Platform
Choosing the best platform for automated trading is crucial for success.
Here are some factors to consider when selecting a platform:
Reliability and Stability – Ensure that the platform is reliable and stable, with minimal downtime. Look for a platform with a reputable track record and positive user reviews.
Execution Speed – Speed is critical in automated trading. The platform should offer low latency and fast order execution to take advantage of market opportunities swiftly.
Programming Languages and APIs – Check if the platform supports programming languages and APIs that you are comfortable using. Popular choices include Python, C++ and Java. The availability of APIs allows you to create and execute your custom trading algorithms.
Backtesting Capabilities – A good platform should provide robust backtesting tools to test and optimise your trading strategies using historical data. Backtesting helps you evaluate the performance of your algorithm before deploying it in live markets.
Real-Time Market Data – Access to real-time market data is essential for making informed trading decisions. Ensure the automated forex trading platform provides reliable and up-to-date data feeds.
Asset Coverage – Verify that the platform supports the financial instruments you wish to trade, such as stocks, forex, cryptocurrencies, futures or options.
Risk Management Features – Look for risk management tools that allow you to set stop-loss, take-profit, and position-sizing parameters. These features help control potential losses and manage risk effectively.
Security – Security is essential when dealing with financial transactions and strategies. Ensure the platform uses robust security measures to protect your data and funds.
Customer Support – Consider the quality of customer support provided by the platform. In case of technical issues or questions, reliable and responsive support can be invaluable.
Costs and Fees – Evaluate the pricing structure of the platform. Some platforms may charge subscription fees, while others may take a commission on trades. Be aware of all costs involved.
User Interface – A user-friendly and intuitive interface can make automated trading for beginners more accessible and efficient.
Community and Resources – Some platforms have active user communities, forums and educational resources that can be helpful in learning and improving your algorithmic trading skills.
Frequently Asked Questions
What is automated trading?
Automated trading is where computer algorithms execute buy or sell orders in financial markets, based on predefined rules and conditions.
It removes human emotions, improves execution speed and allows for testing strategies on historical data, enabling traders to trade more efficiently and consistently.
What is the best automated crypto trading platform in the UK?
The best automated crypto trading platform in the UK will depend on your requirements, goals and budget. However, some of the top-rated are eToro, PepperStone and AvaTrade.
What is the best automated trading platform in the UK?
The best-automated trading platform in the UK will depend on your goals, needs and budget. However, some of the top-rated are eToro, PepperStone, FP Markets, XTB, ActivTrades and AvaTrade.
How does automated trading work?
Automated trading involves using computer algorithms to execute trades. The algorithms analyse market data, identify trading opportunities, and execute orders without human intervention.
It enables faster and emotion-free trading, backtesting strategies, and allows for continuous monitoring of markets for various trading instruments.
How to set up automated trading?
To set up automated trading, you need to choose a suitable trading platform with automated capabilities like MT4 or MT5 and develop or obtain a trading strategy in a programming language (MQL4/5 for MetaTrader).
You will then backtest the strategy on historical data, and deploy it on the chosen platform.
How much of trading is automated?
It is said that around 60% of trades in Europe are automated with that figure set to rise as technology develops and platforms become more accessible.
What is the best automated UK trading platform for beginners?
The best automated trading platforms for beginners in the UK include eToro, PepperStone, FP Markets, XTB, ActivTrades and AvaTrade.
Can I use an automated trading platform as a beginner in the UK?
Yes, beginners in the UK can use automated trading platforms. Many platforms, like MT4 and 5, are user-friendly and suitable for beginners.
Automated trading allows you to follow predefined strategies and removes the need for in-depth market knowledge.
However, understanding the basics of trading and risk management is essential before using automated systems to ensure informed decision-making and protect your capital.
Do I need programming knowledge to use an automated trading platform?
While some automated trading platforms may require programming knowledge to develop custom strategies, many platforms offer user-friendly interfaces and pre-built strategies called Expert
Advisors that can be used without coding.
Beginners can utilise these tools, but programming knowledge can be advantageous for advanced customization and strategy development.
Are automated trading platforms regulated in the UK?
Yes, automated trading platforms operating in the UK are typically regulated by financial authorities such as the FCA. Those that are not, should be avoided unless they have another Tier-1 regulator.
How do I choose the right automated trading platform for my needs?
To choose the right automated trading platform, consider factors such as your trading goals, preferred assets, ease of use, automation tools, regulatory compliance, fees and customer support.
Look for platforms with a user-friendly interface, asset coverage and support for your preferred trading strategies.
Can I customise trading strategies on automated trading platforms?
Yes, many automated trading platforms allow users to customise trading strategies. Traders can either use pre-built strategies or create their own by programming specific rules and conditions.
Final Thoughts
Before committing to an automated trading platform in the UK, consider starting with a demo or trial account to test its features and compatibility with your trading strategies.
Take your time to research and compare different platforms to find the one that best suits your trading needs and preferences.
Remember that choosing the right platform is a crucial step towards becoming a successful automated trader.