Best Automated Trading Platforms UK 2023

Looking for your perfect automated trading platform?

I’ve tested, scored, and ranked the best automated trading platforms in the UK.

Whether you’re searching for security, user-friendliness, or extensive trading options, I’ve got you covered.

So, in a nutshell, what are the best automated trading platforms in the UK? The best automated trading platforms in the UK include eToro, IG, and CMC Markets. eToro is known for its social trading features, while IG boasts advanced charting tools. CMC Markets offers a wide range of financial instruments. Traders should assess each platform’s features, fees, and reliability to determine the best fit for their needs.

Top Automated Trading Platforms UK Ranked

Here is a quick list of the best automated trading platforms to use in the UK based on my hands-on analysis:

1. eToro – Overall best automated trading platform for beginners UK
2. IG – Best automated trading platform for selection of over 19,500 instruments
3. CMC Markets – Best automated trading platform for using MetaTrader 4
4. AvaTrade – Best low-cost UK automated trading platform
5. XTB – Best automated CFD trading platform

Best Automated Trading Platforms UK Compared for Traders

Here I’ve compared the platforms based on five key rating criteria you must consider and compare:

Rank	Trading platform	Minimum deposit	S&P 500 CFD spread (average)	Commission	Platform fee	Types of assets
1	eToro	$10	0.8	0%	£0	Stocks, indices, ETFs, currencies, commodities, crypto
2	IG	£250	0.4	Varies	£0	Real stocks & ETFs, exchange-traded securities, CFDs (currency pairs, stock indices, stocks, ETFs, commodities, crypto, bonds, and futures)
3	CMC Markets	£100	0.5	0%	£0	Forex, stocks, commodities, indices
4	AvaTrade	$0	0.6	$0.02 per share	£0	Stocks, indices, ETFs, currencies, commodities, crypto, bonds
5	XTB	£0	0.6	0%	£0	Forex, indices, commodities, stocks, ETFs, CFDs

Best Automated Trading Platform UK Reviews

In 2023, around 2 in 5 Brits (42%) invest and trade, up from 36% in 2021¹.

Choosing the best automated trading platform is crucial for newcomers in the market.

Having worked in the retail investment sector in London over the last four years, I had the opportunity to experience the rise first-hand.

Additionally, in my role working for one of the UK’s leading financial companies, “a trustworthy and respected provider of news, education and market analysis for the everyday investor”, I was able to work with and test some of the biggest trading platforms on the market.

Using my experience in this field, I’ve compiled a list of the best automated trading apps and platforms in the UK based on five key criteria:

1. Minimum deposit
2. S&P 500 CFD spread (average)
3. Commission
4. Platform fee
5. Types of assets

Factors such as safety, usability, trading platforms available, research tools, educational materials, and additional features were also considered.

All the platforms I’ve reviewed below are regulated by the UK’s financial watchdog, the Financial Conduct Authority (FCA) or similar.

1. eToro – Overall best automated trading platform for beginners UK

The overall winner on my list of the best automated trading platforms and what I recommend to beginners is eToro.

It is the perfect platform for hands-off traders and those just starting.

The platform is user-friendly and offers various trading options, including stocks, forex, ETFs, indices, and commodities.

eToro is beginner-friendly, with simple step-by-step guides on how to start trading and a wide range of educational materials.

eToro’s biggest advantage is that it allows you to automate trades.

If you’re not sure how or what to trade, the CopyTrader feature allows you to automatically replicate the trades of successful traders on the platform.

All copy trades on eToro are done by hand, setting it apart from platforms that use both manual and auto methods.

Additionally, the platform offers social trading features, where users can connect with other traders and follow their strategies.

If you’re confused or not sure where to start, the automated trading app facilitates a collaborative environment where users can engage in discussions, share insights, and learn from each other’s experiences.

This community-driven approach adds significant value to the trading journey, providing opportunities for networking and gaining valuable knowledge.

Overall, I recommend eToro as a top-rated auto trading platform if you’re looking for low-cost stock trading, ease of use, and a thriving social trading community where you can learn and copy from professionals.

It’s worth noting that as of 2023, eToro announced that they reached 30 million registered users worldwide².

On top of this, they have an ‘Excellent’ rating on Trustpilot with over 18,000 reviews.

Key rating criteria:

Minimum deposit	S&P 500 CFD spread (average)	Commission	Platform fee	Types of assets
$10	0.8	0%	£0	Stocks, indices, ETFs, currencies, commodities, crypto

Read my complete eToro review.

Pros:

• Commission-free stock trading
• Extensive range of financial assets
• Intuitive automated trading interface
• Features like CopyTrader and social trading are available
• Regulated by top-tier authorities like FCA

Cons:

• Lacks technical analysis features

2. IG – Best automated trading platform for selection of over 19,500 instruments

"68% 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."

IG is a global broker listed on the stock market. They offer a full trading package, high-quality research tools, top education, and many markets to trade in.

It’s one of the best automated trading platforms in the UK for the versatility and selection of assets.

It offers three ways to automate your trades:

• ProRealTime: This platform allows automated trading with no coding needed. It has strategy tools and a detailed backtesting suite. With over 100 indicators, it caters to both new and experienced traders. If you trade four times a month, it’s free.
• MetaTrader4: With MT4 you can create your own trading algorithms, indicators, and orders. Use Expert Advisors (EAs) to find opportunities using set rules. EAs can alert you or open positions automatically.
• API: More technical, but you can create your own trading platform. Code your tactics, use IG’s technology for best results, view current and past market data, study tools, and trader views, and handle watchlists.

One of its greatest advantages is its vast selection of over 19,500 tradable instruments (largely through CFDs and spread bets). Many are available for trading 24 hours a day.

The broker maintains competitive spread charges, starting as low as 0.1 pips.

In terms of non-trading costs, there are deposit and withdrawal fees, while the inactivity fee is favorable, only coming into effect after two years of inactivity.

IG’s mobile app is one of the best in the industry, boasting extensive charting features, including 30 technical indicators, 20 drawing tools, and 16-time frame options across different chart types.

IG provides a wide selection of top-notch research tools, blending their resources with third-party offerings. This encompasses Reuters news, trade signals, IGTV shows, economic calendars, and daily blogs.

They also offer advanced features, such as a customisable screener, a “Recommended News” section personalised to your account, content from DailyFX, and a social network called IG Community for collaborative research and insights sharing.

IG stands out in education, providing various resources like videos, articles, webinars, and DailyFX guides. The IG Academy offers courses based on experience levels, complete with progress tracking and quizzes.

Their IG Community, consisting of 64,000+ members, adds crowd-sourced educational content. In summary, IG’s educational offerings are comprehensive and in my experience leave little room for improvement.

I recommend IG for retail forex and CFD traders seeking a trusted broker with top-notch tools (including auto trading features), research, and access to a wide range of global markets.

Their web trading platform is among the best available, making IG suitable for all types of day traders.

Key rating criteria:

Minimum deposit	S&P 500 CFD spread (average)	Commission	Platform fee	Types of assets
£250	0.4	Varies	£0	Real stocks & ETFs, exchange-traded securities, CFDs (currency pairs, stock indices, stocks, ETFs, commodities, crypto, bonds, and futures)

Read my complete IG Markets review.

Pros:

• Access to more than 19,500 tradeable instruments
• Choice of three diverse trading platforms
• Comprehensive educational and research resources
• No charges for deposits and withdrawals

Cons:

• High stock CFD fees
• Higher initial deposit requirement

3. AvaTrade – Best low-cost UK automated trading platform

For a free automated trading platform, consider Avatrade.

AvaTrade offers commission-free forex and CFD trading, with a small monthly maintenance fee.

AvaTrade is fast, reliable, and user-friendly. It offers an intuitive user interface and a full range of tools to take advantage of automated trading.

AvaTrade provides access to a wide selection of markets, including stocks, forex, indices, commodities, and cryptocurrencies.

It has advanced charting features, an automated trading feature, and advanced risk management tools. You can set up your customised trading strategies and automatically execute trades with the click of a button.

AvaTrade offers three auto trading features, Capitalise.ai, DupliTrade, and ZuluTrade. Each monitors the markets and finds the best entry and exit points.

AvaTrade also offers low spreads, fast execution, and 24-hour customer support.

With its advanced features and user-friendly platform, AvaTrade is an excellent choice for those looking to start their automated trading journey.

Key rating criteria:

Minimum deposit	S&P 500 CFD spread (average)	Commission	Platform fee	Types of assets
£100	0.5	0%	£0	Forex, stocks, commodities, indices

Read my complete AvaTrade review.

Pros:

• Hassle-free account setup
• Zero charges for deposits and withdrawals
• Outstanding research capabilities

Cons:

• Limited selection of available assets

4. CMC Markets – Best automated trading platform for using MetaTrader 4

If you’re looking for an automated trading app with exposure to MetaTrader 4 and over 200 instruments, CMC Markets has got you covered.

It’s one of the top automated trading platforms in the UK and offers a wide variety of features that make it an ideal choice for seasoned traders.

CMC Markets provides a user-friendly mobile app and also supports the popular MetaTrader 4 platform. This platform lets you customise your experience using multiple indicators, overlays, and set up automatic trading.

Overall, the CMC Markets offers an extensive trading experience. Their costs, platforms, user-friendliness, education, mobile apps, research, market variety, and trading tools stand out.

Key rating criteria:

Minimum deposit	S&P 500 CFD spread (average)	Commission	Platform fee	Types of assets
$0	0.6	$0.02 per share	£0	Stocks, indices, ETFs, currencies, commodities, crypto, bonds

Read my complete CMC Markets review.

Pros:

• Extensive product selection
• Ideal for automated forex trading in the UK
• MetaTrader 4 enables complete trade automation
• Top-notch customer support and educational materials
• Zero minimum deposit requirement
• Competitive fees

Cons:

• Expensive spreads for CFDs
• Lacks back-testing

5. XTB – Best Automated CFD Trading Platform

XTB is a well-known broker listed on the Warsaw Stock Exchange and is regulated by several financial authorities globally, including the UK’s Financial Conduct Authority (FCA).

When it comes to trading platforms, XTB provides the xStation 5 software that is compatible with web, desktop, mobile, and tablet devices. The diverse range of over 5,000 assets you can trade on XTB includes stocks, shares, ETFs, indices, commodities, and forex.

You can find the automated trading feature on both xStation 5 and xStation Mobile.

The platform uses robots and automatic trading systems, known as expert advisors, to place orders based on criteria set by experts.

XTB gives tools to help build strategies, understanding the need to watch automated trades closely. They also offer a demo account with fake money to test before fully using it.

The platform is user-friendly and flexible, helping you tweak your strategies as you learn. No upfront deposit is required, but trading fees can be high for budget-conscious traders.

Overall, XTB is a respected multi-asset broker with a vast range of forex and CFDs. Their xStation 5 platform is feature-rich, supported by comprehensive learning resources, and offers.

Key rating criteria:

Minimum deposit	S&P 500 CFD spread (average)	Commission	Platform fee	Types of assets
£0	0.6	0%	£0	Forex, indices, commodities, stocks, ETFs, CFDs

Pros:

• Commission-free stocks and ETFs for investments up to 100k per month
• Free and quick deposit and withdrawal process

Cons:

• Primarily limited to CFDs
• Inactivity fees

How to Choose the Best Automated Trading Platform

Choosing the best automated trading platform that fits your needs involves considering several factors.

Along with the key rating criteria I used to rank the platforms, here’s what to look for and compare:

1. Trading Goals & Strategy: Understand what your goals are and what strategies you plan to use. Different platforms may cater better to different strategies, such as day trading, swing trading, or long-term investing.
2. Market & Asset Types: Ensure that the platform supports the markets and asset types you wish to trade. Some platforms might specialise in forex trading, while others might cater more to cryptocurrency or stock trading.
3. Ease of Use: The platform should be user-friendly and intuitive, especially if you are a beginner.
4. Automated Trading Features: Look at the specific automated trading features offered by the platform. This can include the ability to backtest strategies, program your algorithms, or use pre-built algorithms.
5. Security & Regulation: The platform should have robust security measures in place and be regulated by an established financial authority.
6. Costs: Pay attention to the cost structure, which can include trading fees, data fees, and subscription costs. Some platforms may also have minimum deposit requirements.
7. Customer Support: It’s essential to check that the platform provides reliable customer support that can help you with any issues that arise.
8. Demo Account: A demo or paper trading account can allow you to test out the platform and your strategies without risking real money.
9. Reputation & Reviews: Don’t forget to check out reviews from other users and research the platform’s reputation in the industry.
10. Integration with Brokers: If you have a preferred broker, ensure that the automated trading platform can be integrated with it.

By considering these factors, you can find the best automated trading app and platform that matches your specific needs and circumstances.

I recommend you take advantage of free trials or demo accounts to test out different platforms before making a decision.

What Are Automated Trading Platforms?

Automated trading platforms are computer programs that allow you to set up your trading strategies and execute trades according to these strategies.

These platforms can monitor stocks, futures, options, forex, and cryptocurrency trading.

Automated trading platforms execute trade entries and exits or notify when to do so. They also offer the ability to backtest the strategies to check their effectiveness before implementing them.

These platforms vary in the extent of automation, with some offering more automated features than others. Many trading platforms today offer commission-free trading.

It’s important to be aware of the risks and considerations associated with automated trading. Some of these include mechanical failure, overinvesting, and the need for constant monitoring.

Automated trading is legal in the UK if the online broker is appropriately licensed and regulated.

How Does Automated Trading Work?

Automated trading, also known as algorithmic trading or algo trading, involves the use of computer programs and algorithms to execute trading orders automatically.

Here’s a simplified explanation of how automated trading works:

1. Strategy Development: Traders or developers create trading strategies based on specific criteria, such as technical indicators, market patterns, or fundamental data.
2. Algorithm Implementation: The trading strategy is translated into a computer algorithm, which comprises a set of rules and conditions that determine when and how trades should be executed.
3. Data Analysis: The algorithm analyses real-time market data, including price movements, volume, and other relevant indicators, to identify trading opportunities and generate trade signals³.
4. Trade Execution: When the algorithm identifies a favorable trade opportunity according to the predefined rules, it automatically generates and executes the trade orders without manual intervention.
5. Risk Management: Automated trading systems often include risk management parameters, such as stop-loss orders or position sizing rules, to manage and limit potential losses⁴.
6. Monitoring and Optimisation: Traders continuously monitor the performance of the automated trading system and make necessary adjustments to improve its efficiency and profitability. This may involve backtesting, forward testing, and optimisation of the algorithm.
7. Connectivity: Automated trading systems require a reliable connection to the financial markets to receive real-time data and execute trades. This connection is typically facilitated through online trading platforms or application programming interfaces (APIs).

Be cautious as automated trading does not guarantee profits and carries risks like any other form of trading.

The effectiveness of an automated trading system depends on the quality of the strategy, the accuracy of data analysis, and the proper implementation of risk management techniques.

You should also be aware of potential technical issues, market volatility, and the need for ongoing monitoring and adjustment of the automated trading system.

Here’s a video to help further understand algorithmic trading:

Benefits of Using an Automated Trading Platform in the UK

Automated trading platforms offer a variety of benefits to traders in the UK and around the world.

Here are some key advantages:

• 24/7 Trading: Since markets like forex and cryptocurrencies operate round the clock, automated trading platforms allow you to trade anytime, regardless of your schedule or timezone.
• Eliminate Emotional Trading: Automated trading reduces the impact of emotions in trading decisions. Trading bots stick to the strategy they are programmed to follow, without succumbing to fear or greed.
• Consistency & Speed: Automated trading ensures consistency by trading according to the pre-set rules. Moreover, trading bots can execute trades much faster than humans, which can be crucial in volatile markets.
• Backtesting: Automated platforms often provide the ability to backtest trading strategies against historical data. This can give you insights into the potential effectiveness of a strategy before you risk real money.
• Diversification: Automated trading platforms can manage multiple accounts or strategies at once. This allows for risk diversification, as trades can be spread across different markets and assets.
• Discipline: Bots stick to the plan without deviation, maintaining discipline even in volatile markets.
• Reduced Workload: Once the strategy is set up, the platform executes trades automatically, reducing the amount of time you need to spend monitoring markets and executing trades.

While these benefits are significant, automated trading doesn’t guarantee profits and still requires a good understanding of the financial markets.

It’s also vital to monitor your trading bot’s performance regularly and adjust your strategies as needed.

Disadvantages of Using an Automated Trading Platform in the UK

While automated trading platforms offer several benefits, they also have their own set of drawbacks.

It’s important to keep these in mind when deciding to use such platforms:

• Over-Optimisation: Backtesting strategies against historical data can lead to over-optimisation which can make the strategy seem more accurate than it is. These strategies might not perform well in live trading.
• Mechanical Failures: The theory behind automated trading makes it seem simple: set up the software, program the rules, and watch it trade. In reality, however, automated trading is a sophisticated method of trading, but not infallible. Depending on the platform, a trade order could reside on a computer, not a server. This means that if an internet connection is lost, an order might not be sent to the market.
• Monitoring: Automated trading systems do require monitoring. This is because of the possibility of mechanical failures, such as connectivity issues, power losses, computer crashes, or system quirks that need to be watched for and managed.
• Programming Knowledge Needed: While there are a lot of off-the-shelf solutions, to get the most out of your automated trading, you might need to understand how to code.
• Lack of Control: Because the trading is automated, you don’t have much control over the trades once the system is set in motion. If the system is making poor trades, it could lead to significant losses before you’re able to intervene.
• Dependence on Technology: Automated trading is heavily dependent on the robustness and reliability of the technology and algorithms used. A small glitch can lead to a large loss.

You need to weigh these potential drawbacks against the potential benefits to decide if this style of trading is suitable to your specific situation.

How Do I Start Automated Trading?

Starting to trade on an automated platform involves several steps:

1. Choose a Platform: Research different automated trading platforms to find one that suits your trading style and needs. Look for platforms that offer a wide range of assets to trade, have a good reputation, strong security measures, and good customer support.
2. Open an Account: Once you’ve chosen a platform, you’ll need to open an account. This usually involves providing some personal information and completing a verification process.
3. Fund Your Account: Most platforms require you to deposit a certain amount of money to start trading. This can typically be done through various methods like bank transfers, credit/debit card payments, or even digital currencies.
4. Choose Your Strategy: Before you start trading, you’ll need to decide on a strategy. This could be a pre-built strategy provided by the platform or a custom one that you’ve created or sourced from elsewhere.
5. Configure Your Trading Parameters: Set the parameters of your trades. This could include things like the size of each trade, the assets you want to trade, the risk level you’re comfortable with, and any specific stop-loss or take-profit levels.
6. Test Your Strategy: Many platforms allow you to test your strategy using historical data. This can give you a sense of how well your strategy might perform without risking real money.
7. Monitor Your Trades: Even though the trading is automated, it’s still important to monitor your trades. This can help you spot any issues or opportunities to tweak your strategy for better performance.
8. Start Trading: Once you’re comfortable with your strategy and settings, you can activate the automated trading.

It’s crucial to regularly review and adjust your strategy based on market conditions and your trading performance.

Automated Trading Strategies

Automated trading strategies utilise algorithms to make trading decisions, submit orders, and manage trades without human intervention.

Here are some popular types of automated trading strategies:

Trend Following Strategies: These strategies aim to identify and follow price trends in a particular market. They buy assets when prices are rising and sell when they’re falling. Moving averages and momentum indicators are often used in these strategies⁵.

Mean Reversion Strategies: These strategies assume that prices will always return to their mean or average level over time. When prices deviate significantly from their mean, a trade is initiated to profit from the expected reversion.

Scalping Strategies: These involve making numerous trades throughout the day to exploit small price movements. They typically aim for small, consistent profits and rely on high-frequency trading algorithms.

Arbitrage Strategies: These strategies identify and exploit price differences for the same asset on different markets or exchanges. The strategy involves buying at a lower price on one exchange and selling at a higher price on another.

Breakout Strategies: These strategies focus on when the price moves outside a defined support or resistance level with increased volume. A breakout trader enters a long position after the asset price breaks above resistance or a short position after the asset breaks below support.

News-Based Strategies: These strategies are programmed to act on major news events that can affect markets. Algorithms analyse news headlines to make trading decisions, often in a fraction of a second⁶.

These are just a few examples of automated trading strategies.

The strategy you choose will depend on a variety of factors, including your risk tolerance, investment goals, and the specific market you’re trading in.

It’s key to backtest your strategy using historical data before deploying it in the live market.

Is Automated Trading Profitable?

Whether automated trading is profitable or not can depend on several factors.

These include the quality and effectiveness of the trading algorithm or strategy used, the conditions of the market, and the settings chosen by the trader.

Here are some factors that can contribute to profitability:

1. Strategy: The effectiveness of the trading strategy used in the algorithm is crucial. A strategy that has been well-researched, thoroughly tested, and properly implemented can potentially be profitable.
2. Market Conditions: Some strategies work better under certain market conditions than others. For example, a trend-following strategy might perform well in a market that’s consistently rising or falling, but not as well in a highly volatile or sideways market.
3. Risk Management: Automated trading doesn’t eliminate the need for risk management. Setting proper risk parameters like stop-loss and take-profit points can help protect against large losses.
4. Backtesting: Backtesting an algorithm on historical market data can help traders optimise their strategy and set realistic expectations about its performance.

As I previously said, remember that all trading involves risk and there’s no guarantee of profit. Past performance is not necessarily indicative of future results.

Automated trading systems still experience losses and require monitoring to ensure they’re functioning correctly.

What Is an Automated Trading System?

An Automated Trading System (ATS), also known as algorithmic trading or mechanical trading, is a computer program that creates and submits orders to a market center or exchange.

The program follows a pre-defined set of rules for placing trades, which can include algorithms that guide order timing, price, quantity, or even the final decision to make a trade.

These rules can be based on simple conditions such as moving average crossovers, or complex strategies involving machine learning and artificial intelligence.

An ATS is often used for executing large order volumes quickly and managing multiple investment strategies simultaneously.

This system reduces the chance of human errors and emotional trading decisions, thereby potentially increasing the efficiency and profitability of trading.

What is trading system software?

Trading system software is a tool that allows traders to automate their trading strategies.

It uses pre-programmed algorithms to analyse market trends, generate trade signals, and even execute trades on behalf of the trader.

The algorithms used in the software can evaluate multiple market conditions, including price patterns, economic indicators, and other quantitative data.

These systems aim to increase trading efficiency, speed up the trading process, and eliminate the emotional biases that often affect human trading decisions.

Some popular examples of such software include MetaTrader, NinjaTrader, and TradeStation.

Final Thoughts

Having tested and reviewed the top automated trading platforms in the UK, you should now know which one is best for you.

I’ve considered the features, risks, and other aspects of each platform when reviewing and testing them.

With the right automated trading platform, you can invest your money and stay on track to reaching your financial goals.

Automating a trading process can be a great way to save time and energy, and the platforms available in the UK make it easier than ever.

FAQs

You may also like:

• Best trading platform UK
• Best stock trading app UK
• Best investment app UK
• Best crypto exchange UK
• Best forex trading app UK

Sources:

1. https://www.finder.com/uk/investment-statistics ↩︎
2. https://www.statista.com/statistics/1262787/etoro-registered-users/ ↩︎
3. https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7516984/ ↩︎
4. https://business.purdue.edu/faculty/mcconnell/publications/Capital-Market-Imperfections.pdf ↩︎
5. https://www.cis.upenn.edu/~mkearns/finread/trend.pdf ↩︎
6. https://www.ncbi.nlm.nih.gov/pmc/articles/PMC6196351/ ↩︎