Day trading FAQs
What do I need to start day trading?
The first thing you’ll need to start day trading is a thorough trading plan and strategy. Once these are in place, you will need to open an account and deposit your funds – it is important to have an adequate amount of funds to cover the margin requirements of any positions you open.
If you aren’t ready to trade on live markets, you can always open a demo account to practise day trading with £10,000 in virtual funds.
What software do I need to day trade?
You won’t need any specialist software to start day trading. Once you’ve opened your IG account, you’ll have access to our award-winning trading platform, which enables you to trade via your web browser, mobile phone or tablet.
If you are looking for more advanced software, you can access tools like ProRealTime and MetaTrader 4.
Can I make money day trading?
Yes, day traders can make money by taking small and frequent profits. How much they can profit varies drastically depending on their strategy, available capital and risk management plan.
However, there is a lot of risk involved in day trading, which is why we emphasise the need to educate yourself before you start trading financial markets. If you want to know more about day trading and other trading styles, visit IG Academy.
How much money do you need to start day trading?
With IG, you’ll need to fund your account by a minimum of £250 to start trading.
Other than that, the cost of day trading will very much depend on which markets you choose to trade and the market conditions, as well as your personal circumstances and attitude to risk.
What are the costs and taxes associated with day trading?
The costs and taxes associated with day trading vary depending on which product you use and which market you decide to trade. If you are day trading shares using CFDs, you will be charged commission, while every other market is charged via the spread, including all spread betting markets. Learn more about our costs and charges.
In terms of tax, spread bets are completely tax free. Although CFDs are subject to capital gains tax, you can offset your losses against any gains.1
Is day trading legal in the UK?
Yes, day trading is legal in the UK. Although it is still important to make sure you are trading with a regulated provider.