London is known as the financial capital of the UK and is even one of the biggest financial hubs in the world.
It attracts lots of savvy financial types who know a thing or two about investing, many of whom are into day trading.
But you don’t have to work for one of the big financial institutions to get into day trading in London.
Read on to learn what this activity is and how you can get started in the capital.
What Is Day Trading?
Day trading is where the investor will open and close positions within the same day.
This specific practice is possible across all types of markets but is most prevalent in Forex and stock exchanges.
This type of activity has been made accessible to the masses due to the emergence of specialised platforms and websites. No longer do you need your own broker to get involved.
Although some people consider day trading to be risky, it mitigates some of the risks because when the market closes, all positions have been closed, and no money is left on the table.
Ways to Get Started in London
1. Choosing your niche
Before getting started, you should consider precisely what area you want to get involved in.
Do you want to focus on currencies, commodities, stocks or a combination of assets? It might be best to start simple and choose spread betting or CFD trading, to begin with.
This is when you don’t buy the underlying asset but speculate on how the value of assets will increase or decrease, which has tax advantages too.
Some new day traders choose to get experience in trading with CFDs before moving on to other types of day trades.
2. Sign up to trading platforms
If you are going to start day trading, then you’ll need somewhere to do it.
The good news is that the UK boasts plenty of excellent platforms that support this financial activity with low or zero fees.
Many of these service providers even have headquarters in London and may run events for new day traders.
Make sure you sign up to a platform that best accommodated day trading with low ongoing fees.
3. Attend financial seminars and meetups
London is bustling with knowledgeable investment people, you just need to know where they are.
If you want to get into day trading, then consider events, seminars and meetups for people who wish to discuss investing.
There are engaging talks across the city every month, typically through financial companies, universities, and even online social groups.
Some people feel put off these events because of their inexperience but taking the plunge could cause you to meet some helpful and experienced day trader nearby.