Interactive Brokers UK is the best overall broker for UK residents who day trade shares, ETFs, options or futures. Reviewed on ****, it combines low commissions, access to more than 170 global markets, advanced order types, SmartRouting and the Trader Workstation platform.
IG UK is the better choice for spread betting and CFD day trading, especially if you trade the FTSE 100, forex, commodities or global indices. IG offers a simpler UK-focused platform and access to more than 15,000 markets. Leveraged products can produce losses quickly, so the product and account type matter as much as the broker.
Best UK Brokers for Day Trading at a Glance
| Broker | Best for | Main advantage | Main drawback |
|---|---|---|---|
| Interactive Brokers UK | Shares, ETFs, options and futures | Low commissions, wide market access and advanced order tools | Trader Workstation can take time to learn |
| IG UK | Spread betting, CFDs and index trading | Simple UK platform and a wide range of markets | CFD share commissions and spreads may be costly for frequent trades |
| City Index UK | Index and short-term CFD trading | Advertised fixed index spreads and a platform built around short-term trading | Less suitable than Interactive Brokers UK for direct access to global shares |
Why Interactive Brokers UK Is the Best Overall Choice
Interactive Brokers UK is the strongest fit when day trading means buying and selling shares, ETFs, options or futures rather than using spread bets or CFDs.
Its main advantages are:
- Access to stocks, options, futures, currencies, bonds and funds across more than 170 markets.
- Trader Workstation, IBKR Desktop, mobile apps and API access.
- SmartRouting, which searches available venues for execution opportunities.
- No added spreads, account minimums or platform fees on its standard stock trading service.
- Advertised commissions of £3 per trade for typical Western European stock trades. Trades above £6,000 are charged at 0.05% under the relevant pricing structure.
- US stock commissions starting at $0.0005 to $0.0035 per share on tiered pricing, plus applicable exchange and regulatory charges.
The number of trades matters. A trader who completes 20 round trips per month places 40 trades. At that frequency, dealing commissions, foreign exchange costs and execution quality can matter more than having the simplest possible app.
Interactive Brokers UK is less suitable if you want a basic platform or specifically want UK spread betting. Trader Workstation offers more order and risk-control options, but new users may need time to learn its order tickets, market-data settings and account controls.
When Is IG UK Better Than Interactive Brokers?
IG UK is the better fit when your strategy centres on spread betting, CFDs, forex, commodities or indices.
IG may suit you if you mainly trade:
- The FTSE 100 or other global indices
- Forex
- Commodities
- Short-term long and short positions
- UK spread bets
- CFDs rather than shares that you own directly
IG offers spread betting and CFD accounts alongside share dealing. Its UK platform provides access to more than 15,000 markets. IG lists minimum spreads from 1 point on the FTSE 100 and 0.4 points on the S&P 500 in its trading-cost information.
Spread betting is commission-free because the dealing cost is included in the spread. IG also describes the tax advantages commonly associated with UK spread betting. Your tax treatment depends on your circumstances, so confirm it before relying on spread betting for that reason.
IG's CFD charges work differently. The broker charges commission on share CFDs, including a 0.10% commission for many UK FTSE 350 shares with a £10 minimum online charge. Index, forex and commodity CFDs generally use a spread-based pricing model. Spot CFD positions held beyond 10pm UK time can also incur overnight funding.
Closing a position before overnight funding applies can reduce costs for an intraday strategy. It does not remove the spread, commission, slippage or leverage risk.
Is City Index a Good UK Day-Trading Broker?
City Index is an alternative for traders who mainly trade indices and other leveraged markets.
City Index advertises spreads from 0.4 points on the S&P 500, 1 point on the FTSE 100 and 2 points on Wall Street. It also offers access to more than 40 major indices and promotes cash-index CFDs for shorter-term trading.
City Index may suit an index trader who wants to compare clearly displayed spreads and use a focused trading platform. Interactive Brokers UK is the more versatile option if you need direct access to global shares, options, futures and advanced order routing.
What Matters Most When Choosing a Day-Trading Broker?
The main test is the total cost of opening and closing a position, followed by execution quality and risk controls.
1. Total Round-Trip Trading Cost
Calculate the cost of both sides of a trade. Include:
- The bid-ask spread
- Commission on entry and exit
- Foreign exchange conversion
- Market-data charges
- Borrow fees for short positions
- Overnight funding
- Slippage during volatile markets
A low commission does not automatically mean a low total cost. A broker may charge less per trade but apply wider spreads or higher currency-conversion charges.
2. Execution and Order Types
Day traders should check whether the broker supports:
- Market and limit orders
- Stop-loss and stop-limit orders
- Bracket orders
- Guaranteed stops where appropriate
- Real-time market data
- Execution during market openings and news events
- Clear margin and liquidation information
Interactive Brokers UK provides advanced order management through Trader Workstation and SmartRouting. IG provides web, mobile and platform-based trading for spread bets and CFDs. The better platform depends on whether you want exchange-traded products or leveraged OTC markets.
3. Leverage and Risk Controls
For UK retail clients, CFD and spread-betting rules limit leverage to between 30:1 and 2:1, depending on the underlying asset. Retail clients also receive margin close-out and negative-balance protections under the FCA's CFD rules.
Leverage lets a smaller deposit control a larger position. That can increase the speed at which losses occur. For new day traders, position sizing and stop-loss discipline are more important than access to the maximum permitted leverage.
4. Regulation and Compensation
Check the exact legal entity in the FCA Firm Checker before opening an account. The FCA says a firm must have permission for the specific financial service it provides. Using an unauthorised firm can mean losing access to important protections.
FSCS investment protection can cover up to £85,000 per eligible person, per authorised firm, if a failed firm cannot return eligible investments or money. FSCS protection does not cover losses caused by a trade performing badly. The protection available depends on the firm, product and regulated activity.
Final Verdict
If you need one account for shares, ETFs, options and futures, Interactive Brokers UK is the strongest fit.
If you mainly trade UK spread bets, CFDs, forex or indices, IG UK is the stronger specialist choice.
If your focus is short-term index trading, City Index is worth comparing, particularly if its advertised spreads match your expected trading costs.
Before opening an account, compare the current spread, commission, funding, market-data and foreign exchange charges for the products you plan to trade. Day trading is high risk, and the right broker is the one whose costs, protections and platform match that specific strategy.