
Want to jump straight to the best? Most of our users prefer Interactive Brokers for stock trading.
As a day trader, the tools that you use and your brokerage’s fees and tradable assets are almost as important as your trading strategy itself. Thankfully, a number of brokers offer all the tools that you need to day trade successfully. Read on to learn more about what day traders should look for and avoid when searching for the right broker.
The Best Day Trading Brokers
Not sure which brokerages are the best brokers for day trading? Consider beginning your search for the right account with a few quick reviews of some of the most popular day trading brokers.
Interactive Brokers
If this isn’t your first time day trading, you might want to consider opening an account with Interactive Brokers. Interactive Brokers is a solid choice for day traders thanks to its strong, comprehensive platform and wealth of trading tools. Contingent orders are available for nearly every type of situation you might need to use them in, and the broker has recently lowered its account minimum to $0.
Fees for both Lite accounts and Premium accounts are low, and you’ll have access to exceptionally low margin interest rates as well, which you can use to enhance your trading and multiply returns. While Interactive Brokers’ platform can take a little getting used to, its range of market access and in-depth research tools make it ideal for day trading.
Stocks & ETFs
Interactive Brokers is a comprehensive trading platform that gives you access to a massive range of securities at affordable prices. You can buy assets from all around the world from the comfort of your home or office with access to over 135 global markets. Options, futures, forex and fund trading are also available, and most traders won’t pay a commission on any purchase or sale.
IBKR is geared primarily toward experienced traders and investors but now with the availability of free trades with IBKR Lite, casual traders can also acclimate to IBKR’s offerings.
- Access to international markets
- Active traders
- Sophisticated investors
- Detailed mobile app that makes trading simple
- Wide range of available account types and tradeable assets
- IB SmartRouting provides significant price improvement vs. industry
- Fractional trading allows investing regardless of share price
- Industry’s lowest margin rates
- Earn more by lending your fuly-paid shares
- Beginner investors might prefer a broker that offers a bit more hand-holding and educational resources
Webull
If you’re looking for the most affordable way to begin day trading, be sure to check out Webull. Webull is an exceptionally low-cost platform, with $0 commissions on stock, exchange-traded funds (ETFs) and options trading. Webull’s margin rates are also competitive when compared to other platforms that specialize in frequent and active traders.
Webull can also be a strong choice for new day traders, as the platform offers trading ideas and trade courses that you can use to learn more about how to use Webull’s major features effectively as well as the market as a whole. Webull offers a trading simulator that you can use to test out your trading strategy without putting any of your own money at risk.
Intermediate Traders and Investors
Webull, founded in 2017, is a mobile app-based brokerage that features commission-free stock and exchange-traded fund (ETF) trading. It’s regulated by the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA).
Webull offers active traders technical indicators, economic calendars, ratings from research agencies, margin trading and short-selling. Webull’s trading platform is designed for intermediate and experienced traders, although beginning traders can also benefit.
Webull is widely considered one of the best Robinhood alternatives.
- Active traders
- Intermediate traders
- Advanced traders
- No account maintenance fees or software platform fees
- No charges to open and maintain an account
- Intuitive trading platform with technical and fundamental analysis tools
- Does not support trading in mutual funds, bonds or OTC stocks
Fidelity
Fidelity’s platform strikes an ideal balance between functionality and ease-of-use. The trading station is clean and simple enough that beginning traders will be able to easily navigate it and get started investing, while advanced investors will appreciate the platform’s 45 unique market filters that they can use to narrow in on their next investment opportunity.
You log onto your Fidelity account from an Active Trader Pro downloadable desktop trading platform, which includes a blend of pre-set market shortcuts that beginning traders can get started with immediately as well as customization options for more experienced traders. You can even create and track up to 50 orders at once using Fidelity’s powerhouse platform. While margin rates are less competitive than other brokers, Fidelity’s strong platform might make the extra expense worth it.
Stock Research
Fidelity is a comprehensive and responsive brokerage suitable for both new and experienced traders alike. With complete access to the full U.S. stock and options markets, a set of state-of-the-art education and research tools, as well as a wide fee-free fund selection, Fidelity is equally useful for the veteran swing traders to novices opening their first accounts. Mobile traders will be especially happy with Fidelity’s app, which mirrors full capabilities of the platform. Though there isn’t much to criticize about Fidelity, the broker does have a few areas where it can afford to improve. Margin rates are significantly higher than most other brokers, especially for traders borrowing less than $25,000. It also doesn’t offer any access to the futures markets. Despite these minor flaws, Fidelity remains a strong choice for most investors.
- Easy-to-navigate yet functional platform strikes the perfect balance between expert tools and comfort for beginners
- Mobile trading app is fully-optimized and mirrors full functionality of the desktop platform
- Wide range of education and research options make learning more about securities and the market easier and less time-consuming
- Complete range of both independent and managed services available at exceptionally affordable prices
- Offers access to both domestic markets and 25 foreign markets, as well as a wide range of options contracts and over 10,000 mutual funds
- Mobile app that is well-integrated and works just as well as the desktop platform
- Wide selection of education tools and resources available free of charge
- Margin rates higher than many other competing brokerages
- No access to futures trading
- High fees for buying a non-Fidelity mutual fund (with over 3,300 fee-free funds available)
TD Ameritrade
TD Ameritrade is a longstanding broker that has built a reputation for itself over the course of more than four decades. Like many other brokers, TD Ameritrade offers $0 commission trading, which can help day traders keep more of the profits that they realize while executing their trading strategy. TD Ameritrade also offers an impressive library of educational articles and videos that beginners will love.
For more experienced traders, TD Ameritrade’s well-reviewed thinkorswim platform can be a major draw, offering an advanced set of charting and analysis tools to enhance trading. TD Ameritrade also offers one of the largest selections of tradable assets, supporting standard choices like stocks and ETFs alongside cryptocurrencies, forex and futures contracts.
Options Trading
This publicly listed discount broker, which is in existence for over four decades, is service-intensive, offering intuitive and powerful investment tools. Especially, with equity investing, a flat fee is charged, with the firm claiming that it charges no trade minimum, no data fees, and no platform fees. Though it is pricier than many other discount brokers, what tilts the scales in its favor is its well-rounded service offerings and the quality and value it offers its clients.
- Novice investors
- Retirement savers
- Day traders
- World-class trading platforms
- Detailed research reports and Education Center
- Assets ranging from stocks and ETFs to derivatives like futures and options
- Thinkorswim can be overwhelming to inexperienced traders
- Derivatives trading more costly than some competitors
- Expensive margin rates
TradeStation
You may want to consider opening an account with TradeStation if you’re interested in trading a wider range of asset classes. TradeStation allows you to buy and sell everything from futures contracts to ETFs and from mutual funds to options. Commissions on options contracts begin at $0.60, which can help options traders remain competitive in the day-trading market.
TradeStation can also be a strong choice for day traders who trade on the go regularly. TradeStation’s mobile platform mirrors its desktop functionality, allowing you to access the majority of the tools that you’ll find on your computer interface. While TradeStation’s platform can take some trial and error to use effectively, it can be an exceptionally strong choice for frequent and mobile-only traders.
Futures Trading
TradeStation is for advanced traders who need a comprehensive platform. The brokerage offers an impressive range of investable assets as frequent and professional traders appreciate its wide range of analysis tools. TradeStation’s app is also equally effective, offering full platform capabilities.
- Advanced traders
- Options and futures traders
- Active stock traders
- Comprehensive trading platform and professional-grade tools
- Wide range of tradable securities
- Fully-operational mobile app
- Confusing pricing structure to leave new traders with a weak understanding of what they pay
- Cluttered layout to make navigating TradeStation’s platform more difficult than it should be
What is a Day Trader?
A day trader is an active investor who buys and sells assets throughout the day to capitalize on intraday differences in price. The goal of day trading is to purchase an asset at a low price and sell it for more than you purchased it for, taking the difference as profit minus the cost of any commission. Multiple types of day trading exist, but most strategies rely heavily on technical analysis.
What Should Brokers do for Day Traders?
Knowing what to look for in a broker is especially important for day traders because active traders use their platform much more often than casual investors. The following are some of the key features to look for when you compare brokers for day trading.
Easy interface: Day traders rely on quick trade executions and fast order placements. Be sure to choose a platform with a reliable and easy-to-navigate interface when actively trading.
Affordable fees: Account fees and commissions can seriously cut into your profits as a trader. Look for a broker with affordable fees and low or no commissions to keep more of your profits.
Lots of information: Day trading relies on up-to-the-minute information for technical analysis and strategy formulation. Find a broker that offers trading tutorials and a reliable news source to enhance your investing.
A wide array of assets: Do you know which types of assets you want to actively trade? It can be a good idea to write down a list of the assets you’re interested in to be sure that you’re opening an account with a broker that offers you access to all of them.
Quality customer service: If you run into trouble opening or operating your account, the last thing you want is to be left without a responsive customer service team. Before you open an account with a broker, review its customer service options and be sure it offers multiple ways to connect with the team.
What Should Day Traders Avoid?
You should also keep your eyes out for these red flags that may signify that a broker isn’t suitable for day traders.
Nebulous fee structures: If you don’t understand your broker’s fee schedule, you can’t accurately calculate what percentage of your profit you’ll keep. Choose a broker with a straightforward fee schedule that’s easy to understand.
Poor or no customer service: Poor or no customer service options can make your brokerage account functionally useless if you run into a problem. Look for a broker with a well-reviewed customer service team to ensure that you’re able to stay online and trade when you need to.
Bad online reviews: Poor online reviews often indicate a dysfunctional interface or less-than-stellar fee structure. Be sure to check out reviews on third-party sites before you open an account.
Expensive withdrawal or deposit fees: Like high commissions, high withdrawal and deposit fees make a dent in your profits. Know and understand exactly when you’ll be charged before you open an account with a broker.
Getting Started Day Trading
Though day trading might seem fun and exciting, it’s important to remember that there’s a large amount of technical and fundamental analysis that goes into a successful day-trading strategy. After learning more about the market, you may want to open an account with a broker that offers simulated trading or to use a stock market simulator. These simulators allow you to test out your trading strategy without putting any of your own money at risk. If things go well, you can move onto your brokerage platform — and if not, you can easily adjust your strategy to limit your risk.
Frequently Asked Questions
Can you start day trading with $1,000?
Yes, you can start day trading with $1,000 in your account, as most brokers no longer require a high minimum account value to open a brokerage account. However, keep in mind that maintaining an account with less than $25,000 in assets will require you to be aware of pattern day trading limitations.
Can you do three day trades per broker?
Yes, you can open multiple brokerage accounts to access more trades within a single rolling five-day period. While this gives you access to more day trades, it also requires you to fund multiple accounts, which can leave you spreading your cash too thin to see a sizable return.
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