Best day trading brokers for 2023 • Benzinga

As a day trader, the tools you use, brokerage fees, and tradable assets are almost as important as your trading strategy itself. Fortunately, a number of brokers offer all the tools you need to trade successfully. Read on to learn more about what day traders should look for and avoid when looking for the best trading brokers.

Quick overview: the best day trading brokers

The best day trading brokers

I don’t know which brokerage agencies are the best brokers for day trading? Consider starting your search for the right account with a few quick reviews of some of the most popular day trading brokers.

Interactive brokers

If this is not your first day trading, you may consider opening an account with Interactive Brokers. Interactive Brokers is a solid choice for day traders thanks to its solid, comprehensive platform and wealth of trading tools. Entry orders are available for almost any type of situation you might need to use them in, and the broker recently lowered their account minimum to $0.

Fees for both Lite and Premium accounts are low, and you’ll also have access to exceptionally low margin interest rates, which you can use to enhance your trading and multiply returns. Although Interactive Brokers’ platform may take some getting used to, its range of market access and in-depth research tools make it ideal for day trading.

Webbull

If you are looking for the most affordable way to start day trading, be sure to check out Webull. Webull is an exceptionally inexpensive platform, with $0 commissions on stocks, exchange-traded funds (ETFs), and options trading. Webull’s margin rates are also competitive with other platforms specializing in frequent and active traders.

Webull can also be a good choice for new day traders, as the platform offers trading ideas and trading lessons that you can use to learn more about how to use Webull’s main features effectively as well as the market as a whole. Webull offers a trading simulator that you can use to test your trading strategy without putting your own money at risk.

CenterPoint Securities

CenterPoint Securities is a brokerage that offers outstanding tools for intermediate to advanced traders, high volume traders, momentum traders and short sellers. You can set up your entire portfolio on the platform, or you can move part of it to this space to stay organized.

When you short sell with CenterPoint, you can take advantage of massive short inventory and advanced order routing to get your orders processed as quickly as possible.

Discounts are available for active day traders and the customer service team is very responsive if there is an issue with your account. Try a Pro, Web or Mobile account, use the built-in scanners, custom alerts and short locator tools so you can make smart decisions and stay on top of your wallet as you trade during day sessions throughout of the year.

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Fidelity’s platform strikes an ideal balance between functionality and ease of use. The trading station is clean and simple enough for novice traders to easily navigate and start investing, while advanced investors will appreciate the platform’s 45 unique market filters that they can use to target their next trading opportunity. investment.

You log into your Fidelity account from a downloadable Active Trader Pro desktop trading platform, which includes a mix of predefined market shortcuts that newbie traders can get started with right away as well as customization options for more experienced traders . You can even create and track up to 50 orders at once using Fidelity’s powerful platform. Although the margin rates are less competitive than other brokers, Fidelity’s strong platform might be worth it.

TD Ameritrade

TD Ameritrade is a long-time broker that has built a reputation over more than four decades. Like many other brokers, TD Ameritrade offers a $0 trading commission, which can help day traders retain more of the profits they make when executing their trading strategy. TD Ameritrade also has an impressive library of instructional 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 analytical tools to enhance trading. TD Ameritrade also offers one of the largest selections of tradable assets, supporting standard choices such as stocks and ETFs alongside cryptocurrencies, forex, and futures.

TradeStation

You might want to consider opening an account with TradeStation if you want to trade a wider range of asset classes. TradeStation lets you buy and sell everything from futures to ETFs and mutual funds to options. Commissions on options contracts start at $0.60, which can help options traders stay competitive in the day trading market.

TradeStation can also be a good choice for day traders who regularly trade on the go. TradeStation’s mobile platform mirrors its desktop functionality, giving you access to the majority of tools you’ll find on your desktop interface. Although the TradeStation platform may take some trial and error to use effectively, it can be an exceptionally solid choice for frequent, mobile-only traders.

What is a Day Trader?

A day trader is an active investor who buys and sells assets throughout the day to capitalize on intraday price differences. The objective of day trading is to buy an asset at a low price and sell it back for more than you bought it, taking the difference as profit minus the cost of any commission. Several 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, as active traders use their platform far more often than casual traders. Here are some of the main features to look for when comparing brokers for transactions of the day.

Simple interface: Day traders rely on fast trade executions and quick order placements. Make sure to choose a platform with a reliable and easy to navigate interface when actively trading.

Affordable fees: Account fees and commissions can seriously reduce your profits as a trader. Look for a broker with affordable fees and low or no commissions to keep more of your profits.

A lot of information : Day trading relies on breaking news for technical analysis and strategy formulation. Find a broker that offers trading tutorials and a reliable source of information to improve your investment.

A wide range of advantages: Do you know what types of assets you want to actively trade? It may be a good idea to write down a list of the assets you are interested in to be sure that you open an account with a broker that gives you access to all of them.

Quality customer service: If you’re having trouble opening or managing your account, the last thing you want is to find yourself without a responsive customer service team. Before opening an account with a broker, review their customer service options and make sure they offer multiple ways to connect with the team.

What should day traders avoid?

You should also keep an eye out for these red flags which may mean a broker is not suitable for day traders.

Nebulous pricing structures: If you don’t understand your broker’s fee schedule, you can’t accurately calculate what percentage of your profits you’ll keep. Choose a broker with a simple and easy to understand fee schedule.

Bad or no customer service: Poor or non-existent customer service options can render your brokerage account useless if you run into a problem. Look for a broker with a well-reviewed customer service team to ensure you are able to stay online and trade when you need to.

Bad reviews online: Bad online reviews often point to a dysfunctional interface or a less than stellar fee structure. Be sure to check reviews on third-party sites before opening an account.

Expensive withdrawal or deposit fees: Like high commissions, high withdrawal and deposit fees reduce your profits. Know and understand exactly when you will be charged before opening an account with a broker.

Start Day Trading

Although day trading may seem fun and exciting, it is important to remember that there is a large amount of technical and fundamental analysis that goes into a successful day trading strategy. After learning more about the market, you might want to open an account with a broker that offers simulated trading or use a stock market simulator. These simulators allow you to test your trading strategy without putting your own money at risk. If all goes well, you can switch to your brokerage platform – and if not, you can easily adjust your strategy to limit your risk.

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