5 things to know about trading financial markets in the UK


There has been rising interest in the financial markets in the UK since the end of the 20th century with a growing appetite for short-term and day trading.

The growth of spread betting and Contract for Difference (CFD) trading into the 21st century has been assisted by increasingly user-friendly trading platforms and apps, alongside a viral growth of information on social media about trading and markets. You only have to look at the many trading brokers who are sponsors of many major, professional football and sports teams to see the impact that trading is having in the UK.

Furthermore, there has been an even bigger surge in interest in trading the financial markets in the UK in 2020! This has been driven by heightened interest which has its roots in the COVID-19 pandemic. But why?

People have had more personal time during national lockdowns, and work from home means greater flexibility around personal time and what you can do in your time (and the company’s time). There has also been a significant increase in financial markets volatility due to the spread of the pandemic and then the recovery from the worst-case scenarios, particularly as hopes of vaccines have risen for 2021. In addition, the cessation of global sporting events meant that sports betting was non-existent for some time, with sports gamblers then turning their attention to the markets.

But if you are starting out in the world of financial markets, what do you need to know? Well, we are here to help! Let’s look at 5 things to know about trading financial markets in the UK.

  1. Trading is risky!
  2. Get an education
  3. Pick the right broker
  4. Psychology is important
  5. Consider options trading


Trading is risky! Watch out, trading is not easy, even if the You Tube “gurus” tell you it is. It takes time to become good at anything, and even though you might get lucky, do not get overconfident. Only risk the amount you can afford to lose and set yourself stop losses, to avoid losing more than you feel comfortable with.

Get an education. It is possible to profit from trading when you don’t know what you are doing, you can get lucky. Many see this luck as a gift, but it can be a curse, as it breeds over confidence and belief that you are a “natural”. However, this will NOT last! As with anything in life, success comes from dedicating time and effort to acquire wisdom and knowledge and that through education. A profitable trader will give time and energy, to acquire the skills needed and appreciates the significance of learning. You can find great articles on trading and education at https://www.fxexplained.co.uk/

Pick the right broker. A craftsman is only as good as his tools and choosing the right broker for you is key to trading success. There are many factors to consider when you try to choose a broker for the first time. You want to look at how well they are regulated, can you trust them? How good is their trading platform and do they have a good offering of mobile trading apps? Do they offer research and education and what are the fees involved? These are all important questions to be asked when you consider which broker you may want to use. Don’t forget, you can try out different brokers by opening up demo accounts with them. You can find out more by checking out the best forex brokers list by fxexplained.

Psychology is important. Any proficient trader will tell you that to succeed in the tough world of trading you must acquire a strong and disciplined mental framework. This will allow you to apply your trading strategy unemotionally, like a machine. If you talk with any successful traders in the industry, they all agree that psychology is important. It takes time to foster the clinical mental attitude of a trader. Ideally, you are looking to remove the distracting emotions from your trading decisions.  One of the best writers on Trading Psychology, Mark Douglas has said: “If you can learn to create a state of mind that is not affected by the market’s behaviour, the struggle will cease to exist”.

Consider options trading. Financial markets for individuals have seen a surge in interest and the provision of options for trading financial markets. Without going into detail, options are derivative instruments that allow you to trade with leverage, but with a defined amount of risk. Although this way of trading can seem simple, it is critical that you invest significant time and effort to be able to fully understand how options and options trading works. You can discover more about options trading on fxexplained.

We hope this guide has helped you along your path into the world of financial markets and trading. Be careful out there and have a great trading day!