When we consider ways to gamble money, our thoughts tend to lean towards slot machines, poker tables, and sports betting. These being the most popular gambling pastimes means that there are different ways to get help and support if you find yourself gambling too much, or getting into trouble. However, there are many types of financial trading that people feel should be regulated in the same way – with day trading top of the list for many.

What is Day Trading?

Most of us are familiar with stocks and shares and the buying/selling of these in order to make a profit. Day trading is similar to this except it involves buying and selling them within the same day and sometimes even quicker. It relies on big investments with small changes making all the difference and people having the ability to sell their stocks quickly, at the right time. In the past, the type of trading is something that seemed only accessible to the very wealthy who could attend the prestigious building in London where these trades took place. However, the internet has opened this up to the masses. People looking for so-called ‘side-hustles’ and influencers talking openly about all sorts of financial trading options because are starting to become more familiar with day trading and it is this that is helping its popularity to increase.

The Regulation of Day Trading

As it stands at the moment, there are very few regulations surrounding Day Trading and how it can be carried out. In fact, in many ways, there are no regulations at all – with traders not even having to pay tax. Most types of trading (for example Forex trading) are subject to things like capital gains tax and so lots of people feel as though day trading should be taxable in the same way.

Day trading doesn’t just happen in the UK. In other countries, there are rules surrounding how many trades you can make. This means that often if you make more than 3 trades (for example) in a day then your account is flagged and restrictions are placed on your account until you reach a point where you are out of the limitations. There are no rules similar to this in the UK. Betting websites often have to put restrictions on how many bets can be placed in a day or how much a person can spend in a day and there are many that feel the gambling nature of day trading means that it should be treated in the same way.

Should There Be Regulations Put in Place?

Day trading has grown in popularity in recent times, but due to the lack of protection for addicts and government regulation similar to what is seen with the best slot sites, there is a huge risk involved and this is where people feel something should be put in place.

There are many arguments surrounding the need for regulation, but the fact that day trading has an element of excitement to it is one of the biggest. To those in favor of regulations, they argue that the fast nature aspect of day trading means that it is a lot like gambling. Instead of it being about well-researched, long-term financial investments it’s about a quick turnaround on something that should arguably be taken more seriously. People feel as though regulations are put in place, specifically surrounding the help and support available to those that are not trading in a way that is responsible. The lack of regulation surrounding day trading means that there is a lack of support surrounding it currently, meaning that it isn’t really recognized as something that people can be addicted to or get themselves into trouble with – but actually, it really can and the right support can make all the difference.

What Regulations Could Be Put in Place?

The UK has an accepting nature of gambling as a pastime, but that doesn’t mean it comes without regulation and rules. In fact, many would argue that the rules put in place by organizations such as the UK Gambling Commission help to make gambling in the UK the enjoyable hobby that it is. Regulations around how much can be bet on a day trade and even how often you can day trade could well be put into place if regulations are decided up. Of course, there are agreements that these restrictions could affect the success rate of day trading however, for those in favor of regulations being put into place the good most definitely outweighs the bad.

The Popularity of Day Trading

Not only has day trading become more well-known and accessible over recent years, but we’ve become a nation of side-hustles. Social media influencers have introduced the concept of side-hustles to many – where they can use small, non-time-consuming ways to make extra money. This can be via referral links, cashback websites, market research, and in some cases, financial investments.

With people more open to alternative ways to make money and the news that Cryptocurrency has taken a tumble people are starting to explore other avenues. Day trading can seem tempting as it is something that can make you money on the same day; but of course, it can also lose you money at the same time. You only have to read news stories surrounding day trading to know that there are plenty of people that have lost large chunks of money dabbling in this type of trading.

Will Regulations Be Brought In?

Currently, there are no official talks surrounding day trading and regulations – but then when you consider that Cryptocurrency is also unregulated that may not be a surprise to many. For a majority, day trading is something that they can afford to take a risk on. It is those that are tempted in by the thought of quick money-making that stand to lose the most and it is this that would benefit from regulations. As to whether these will ever be put properly into place, we’ll have to wait and see!

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