Author:
Alexander Foster
Last Updated:
25/11/2022
Table of Content
- Who should make use of this UK social trading comparison?
- Is social trading legal in the UK?
- Top 5 steps for a secure & fair social trading experience in the UK
- This is how our experts test social trading brokers in the UK
- Checklist: This is how you find YOUR perfect UK social trading broker!
- What else can you trade online in the UK?
- Conclusion: A great time for UK social tradingÂ
- Social Investing in the UK FAQ
Who should make use of this UK social trading comparison?
Well, first things first, this article is focused on those looking for the best online social trading in the UK. Of course, there are always a great deal of similarities in trading across many parts of the world. Social trading USA, for instance, has the same core concepts, principles and risks as it does elsewhere. However, there are global distinctions in terms of safety and legality, which is why we recommend this look into the best online trading platform options and social investing in the UK to those from that jurisdiction.
Beyond that, our aim is to help anyone looking for the best social trading platform in the UK for them. Everything here is written with the aim that anyone – regardless of their experience of online social trading in the UK – can get started investing.
Remember, the idea behind copy trading in the UK, and everywhere else for that matter, is to allow new inexperienced investors to get involved by observing and mirroring the behaviour of successful traders. You shouldn’t need to be an expert to utilise a trading platform in the UK, and you don’t need to be an expert to utilise this comparison.
Do note too, that if you happen to be looking for something else – such as the best social trading in Malaysia, just as an example – there’s plenty more to check out here at TradersBest.
Is social trading legal in the UK?
Before you look at what any social trading list in the UK has to offer, you must first check the legality of what you’re doing. Luckily, assuming you’re using a respected and safe social trading platform in the UK, this couldn’t be simpler.
In terms of the general legality of social investing in the UK, you can rest assured it’s entirely legal.
However, you do need to understand who regulates social trading in the UK and how that is defined by the relevant authorities to know precisely what form of trading is legal.
Social trading in the UK is regulated by the Financial Conduct Authority (FCA). What is considered copy trading in the UK or social trading allows investors to copy the trades of another investor. This can be done both through observation or automated. Mirror trading is very similar but can focus more on strategy.
However, that doesn’t necessarily mean every copy trading platform in the UK is legitimate. It means that any and all legitimate social trading platform in the UK must be regulated and authorised by the FCA to be considered legitimate.
Top 5 steps for a secure & fair social trading experience in the UK
The great thing about utilising a copy trading platform is that it intentionally makes trading as simple as possible. When you back that up with quality regulation, you have a situation where social or copy investments really are made simple and safe for anyone to use.
However, that doesn’t mean that certain precautions don’t need to be taken to ensure a safe trading experience, as well as ensuring you’re getting the best social trading platform in the UK for you. Here’s five key steps to create a fair copy trading in the UK experience:
This is how our experts test social trading brokers in the UK
Here at TradersBest, we pride ourselves on helping people find their ideal social trading platform in the UK. But what exactly goes into our analysis of these platforms? Here’s five key criteria our experts abide by when testing brokers:
Useability
Copy trading in the UK should always be about making investments accessible to everyone. We always test for useability in any kind of review, but this is especially important for social trading.
Trading platforms
Alongside a focus on useability, there’s our general tests regarding the functionality of the site/platform. The depth of the features, the quality of the site design, whether it’s available on mobile and whether everything works as it should on a technical level are all considered.
Account types
Having a broad variety of account types is another matter of accessibility. The more kinds of accounts aimed at different types of investors – from expert to newcomers, small investments to large, UK social trading to social investing in Australia – the more people can enjoy that platform.
Payment options
In order to invest easily, you’ll need as broad a variety of safe payment methods as possible. Useability is vitally important here too.
Customer support
No matter how good a platform is, no matter how well explained, sometimes things go wrong or further advice is needed. That’s why a quality customer service team is vital to our recommendations.
Check out our top-rated Social Trading in UK:
All investments involve risks, including the possible loss of capital.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 73% 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.
Checklist: This is how you find YOUR perfect UK social trading broker!
Discovering the right platform for you, despite all its intricacies, is essentially a two-part process. First, you need to find out which trading platforms are worth your consideration. That’s what this page and our reviews are all about helping you with.
After that though, you need to decide, amongst the best options out there, which is right for you. At this point, it becomes about personal needs and preferences, and that can be tricky.
With that in mind, here’s a few simple questions you can ask yourself to help find the right broker for you:
- Do I prefer high or low risk investments?
- How technically capable am I of using a detailed trading platform?Â
- To what extent would I like my investments to be automated?
- Do I prefer to use desktop or mobile platforms?Â
- What level of investment am I financially comfortable with?Â
What else can you trade online in the UK?
In order to make the most out of any kind of trading platform, you’ll need to know the type of things you can invest in. Here’s five examples available in the UK:
Stocks
The most well-known method of investment is also one of the simplest. Investing in the stock markets is as simple as buying shares in a company through a trading platform or broker, and seeing profits if the value of that company increases. While straightforward in concept, being able to predict the success of businesses and industries is no doubt a talent.
Cryptocurrency
These forms of digital currency don’t just make headlines: they make investment opportunities too. They’re not regulated by any government and utilise cryptography to secure transactions. Bitcoin is the most famous cryptocurrency, and its rise and falls have made it one of the most profitable and volatile investment opportunities out there.
Forex
This is similar to cryptocurrency trading in the sense that you’re attempting to predict the rise and fall of the value of various currencies. In this instance though, you’re trading one currency against another. It’s generally considered the most liquid asset market in the world.
CFDs
One of the most complicated but interesting forms of investment, CFD refers to ‘contract for differences’. It means the buyer must pay the seller the difference between the current value of an asset and its value come the time of a contract. Only the difference in price between entry and exit time dictates the value of the contract. Interestingly, the CFD investor never actually owns the asset in question. They’re not legal in some countries like the USA, but are available in the UK.
ETF
An exchange-traded fund is a pooled investment security which can be purchased and sold on the stock market. It can be individual or diverse. They can contain all kinds of stocks, bonds and commodities.
Conclusion: A great time for UK social tradingÂ
Social investing in the UK really has never been easier. There’s an awesome selection of trading platforms out there suitable for everyone. We hope that our look at social trading platforms in the UK has helped reassure you of the quality out there and provide you with some tools to both find the right option for you and to make the most out of them. If you want to learn more about specific platforms, be sure to check out any of our reviews for the most comprehensive analysis of social trading platforms.
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