Selecting the optimal day trading services can significantly impact the success of your trading endeavors. It's essential to opt for brokers that provide robust platforms equipped with powerful tools, extensive market research, educational resources, and cost-effective solutions. Additionally, reliable day trading firms should maintain strong regulatory oversight and deliver excellent order execution quality.
Day trading involves the buying and selling of shares of stock within the same trading day before the market closes. To enhance your profit potential, it's crucial to select the best day trading platform that offers low costs. This is particularly important because day traders place a significantly higher number of orders compared to the average investor. Given the intensity of day trading, it's essential to choose a broker that provides excellent day trading tools. Additionally, your chosen Day Trading Strategy plays a pivotal role in your success.
We've conducted a comprehensive comparison of day trading companies, considering various data points, to compile a list of the best online brokers for day traders.
Best Day Trading Brokers 2023
Our evaluation of online brokers for day trading is based on a range of factors, including day trading fees & commissions, security, regulatory compliance, tradable assets, and more. Below, you'll find our selection of the top day trading service brokers in 2023:
- eToro – Best Overall Day Trading Platform
- Plus500 – Best CFD Day Trading Site
- AvaTrade – Best Forex Trading Broker
- IQ Option – – Best Platform for Professional Options Day Trading
- Interactive Brokers –Best Online Day Trading Platform for Execution
- XTB
- XM
- Ninja Trader
- Tradestation Global
- eOption
- Charles Schwab
- TD Ameritrade
- E*Trade
- Tradespoon
- Fidelity
- Lightspeed
- Tastyworks
eToro
eToro stands out as one of the premier day trading platforms globally, boasting a vast and diverse user community. This online broker is held to high regulatory standards, ensuring a secure trading environment across a wide spectrum of tradable assets.
Traders who choose eToro gain access to a top-notch day trading application known for its performance and reliability, along with an extensive array of markets and innovative features. Among these features is the widely popular copy trading function, allowing users to replicate the strategies of successful traders. Notably, eToro offers a significant advantage with its 0% commission fees on stock trades, leading to substantial long-term cost savings for traders.
| PROS | CONS |
|---|---|
| Offers a diverse range of markets | Some fees are relatively high |
| No commission fees on day-trading stocks | Research and analytics reports could be improved |
| Features Copy Trading | |
| Provides a Demo Account |
CFDs are complex
instruments and come with a high risk of losing money rapidly due to
leverage. 68% of retail investor accounts lose money when
trading CFDs with this provider. You should consider
whether you understand how CFDs work, and whether you can afford to take the
high risk of losing your money. Your capital is at risk. Other fees apply.
For more information, visit etoro.com/trading/fees.
eToro USA LLC does
not offer CFDs, only real Crypto assets available.
Plus500
Plus500 is widely regarded as one of the top choices for day trading. As a commission-free broker, Plus500 provides access to a wide range of assets, including forex, cryptocurrencies, stocks, options, ETFs, commodities, and indices.
Their day trading platform is user-friendly and ensures speedy and dependable order executions
| PROS | CONS |
|---|---|
| ✓ Leverage available | ✗ Limited to CFDs |
| ✓ 0% commission | ✗ Research tools could be enhanced |
| ✓ Tight Spreads | |
| ✓ Demo Account |
86% of retail investor accounts lose money when trading CFDs with this provider.
AvaTrade
AvaTrade is a prominent choice in the realm of day trading. They provide a selection of three distinct trading platforms: AvaTrade Go, AvaTrade Options, and AvaTrade Social. Their offerings encompass CFD trading in bonds, indices, stocks, forex, cryptocurrencies, and more. AvaTrade also excels in providing high-quality market research tools and top-tier educational resources for stock trading.
Here's a revised table outlining the pros and cons of AvaTrade:
| PROS | CONS |
|---|---|
| Three different trading options | AvaTrade is a CFD-only trading platform |
| Superior research tools | |
| Quality support network | |
| Easy account opening and start |
IQ Option
IQ Option is a reputable choice and deserves consideration among the top day trading platforms, enjoying trust and recognition worldwide. It provides day trading opportunities in forex, stocks, cryptocurrencies, ETFs, and digital options. The availability of multiple deposit and withdrawal options is a significant advantage for active day traders.
Starting on this platform is straightforward, with a low account minimum requirement of $10. Additionally, IQ Option is regulated, enhancing the safety of your trading activities.
| PROS | CONS |
|---|---|
| Exclusive trading of digital options | More suitable for day traders outside the EU |
| Wide range of withdrawal and deposit options | |
| User-friendly and straightforward setup | |
| Diverse investment opportunities for day traders |
Interactive Brokers
Interactive Brokers is a favored platform among day traders due to its competitive per-share pricing and attractive margin rates. This globally trusted brokerage is renowned for its commission-free day trading options, including ETFs and stocks, and is held in high regard for its top-tier regulatory compliance. It stands out as one of the premier destinations for day traders, offering not only low margin rates but also a diverse array of order types to enhance trading strategies.
Among its offerings, Interactive Brokers provides the Trader Workstation (TWS), recognized as their premier desktop trading platform. TWS enjoys popularity among hedge funds and institutional traders, owing to its tailored design for active traders. It empowers users with remarkable flexibility and robust capabilities, making it a top choice for those seeking a sophisticated trading experience.
| PROS | CONS |
|---|---|
| TWS can excel as the ultimate trading website for highly active traders. | Inactive day traders may incur elevated fees when using TWS. |
| It offers a diverse array of investment opportunities. | |
| A substantial selection of mutual funds is accessible without transaction fees. | |
| Users benefit from valuable research tools. |
XTB
Users benefit from valuable research tools.
| PROS | CONS |
|---|---|
| Extremely competitive forex fees. | Higher fees for Stock CFDs. |
| Free and convenient withdrawals and deposits. | Limited availability in terms of market offerings. |
| Exceptionally user-friendly platform, making it an excellent choice for beginner day traders. |
XM
XM is often lauded by traders as an outstanding brokerage for day trading, encompassing forex and CFDs across stocks, stock indices, oil, and gold on both MT4 and MT5 platforms. Notably, day traders are drawn to XM due to its favorable terms, particularly its low withdrawal fees for stock CFDs.
The platform is exceptionally user-friendly, making it an ideal choice for novice day traders. It stands out as one of the best day trading websites for beginners. Opening a day trade account with XM is a straightforward process, accommodating even those with limited experience. Additionally, XM offers valuable supplementary features such as educational webinars and a free demo day trading account, catering to the needs of new traders.
| PROS | CONS |
|---|---|
| Cost-effective withdrawal fees. | Primarily focused on CFDs and forex trading. |
| Outstanding array of educational tools for day traders. | |
| Swift and user-friendly platform, ideal for inexperienced day traders. |
NinjaTrader
NinjaTrader stands out as a top choice for futures and forex day trading accounts. This platform, with its paper trading feature, provides a robust set of tools, charts, and resources, making it an excellent choice even for inexperienced day traders looking to enhance their profitability.
The advantage of NinjaTrader is that day traders can familiarize themselves with it for free before transitioning to live trading. This is particularly valuable for beginners who are unsure where to start their day trading journey. The platform is user-friendly, boasts low fees, but it's important to note that it lacks a mobile app. Therefore, NinjaTrader is best suited for day trading on your computer, making it a strong contender for the best day trading website.
| PROS | CONS |
|---|---|
| Exceptionally low fees for futures trading. | No mobile app available for trading on the go. |
| Abundant tools and research resources for day traders. | Limited to paper trading in futures and forex. |
| Ability to connect to external day trade brokerage accounts. |
TradeStation Global
TradeStation Global earns its position as one of the top online day trading platforms due to its competitive fee structure and extensive array of trading products. This platform offers active day traders access to a diverse selection of markets via numerous stock exchange options.
However, TradeStation Global is most suitable for experienced day traders. It offers a wide range of options for various trading strategies and maintains low fees for stocks and ETFs. Nonetheless, it's essential to note that the account minimum requirement is relatively high at $1,000, and the account opening process can be challenging. Consequently, it may not be the ideal choice for novice day traders.
| PROS | CONS |
|---|---|
| Offers a diverse range of investment opportunities. | Requires a high account minimum. |
| Features low fees. | - May not be the best choice for inexperienced day traders. |
| Provides excellent customer service. | Primarily designed for efficient use by experienced traders. |
eOption
When seeking user-friendly platforms suitable for novice day traders, eOption emerges as an excellent choice. It offers an uncomplicated platform, a straightforward account opening process, and reasonable fees and commissions. As the name implies, eOption specializes in options trading, so it's essential to ensure this aligns with your trading strategy.
For those desiring added financial security, eOption can serve as a reliable option, providing a form of hedging with reduced financial dependence. This makes it a compelling choice for those looking for a more secure day trading platform.
| PROS | CONS |
|---|---|
| Offers high percentage returns. | Requires a minimum account balance of $500. |
| Provides a user-friendly mobile app. | Incurs high non-trading fees. |
| Offers good customer support. | |
| Likely the best solution for stock day trading with options. |
Charles Schwab
Charles Schwab stands out as a top choice for day trading enthusiasts. Notably, their user-friendly mobile app simplifies the trading experience. Moreover, this brokerage provides access to three platforms with no minimum requirements or fees.
YTraders can take advantage of commission-free day trading for stocks, ETFs, and options, making it a cost-effective option. Charles Schwab also offers an extensive selection of funds and provides valuable research tools. It's an excellent choice for those looking to engage in day trading on a tight budget.
| PROS | CONS |
|---|---|
| Commission-free trading. | Low default cash sweep rate. |
| Offers a wide selection of investment options. | |
| Plenty of research tools. | |
| User-friendly mobile app. |
TD Ameritrade
TD Ameritrade presents a versatile solution suitable for a wide range of investors, whether you're pursuing swing trading, day trading, or any other strategy. This brokerage offers a comprehensive array of investment options, including common stocks, preferred stocks, exchange-traded funds, futures contracts, margin lending, fixed-income investments, and more. With its low fees and commissions, TD Ameritrade emerges as an ideal choice for those seeking an affordable platform for day trading.
| PROS | CONS |
|---|---|
| No account minimum requirement. | Limited to serving US residents. |
| Commission-free trading. | |
| Outstanding customer support available. | |
| VVersatile, suitable for various trading strategies, including swing trading and day trading. |
e*Trade
e*Trade is a strong contender for one of the finest brokerage accounts tailored for day trading, primarily due to its user-friendly platform. This brokerage excels in providing comprehensive guidance and tools that facilitate a seamless setup for novice investors.
With e*Trade, you can access a diverse array of products, including common stocks suitable for day trading, preferred stocks, futures contracts, exchange-traded funds, options, mutual funds, and fixed-income investments. This extensive product range caters to a wide spectrum of trading preferences and strategies.
| PROS | CONS |
|---|---|
| Free trading for ETFs and stocks. | Limited withdrawal and deposit options. |
| Offers a wide variety of investments, suitable for swing trading, day trading, and more. | Restricted to trading in US markets. |
| Provides excellent resources for beginners. | |
| Simple and straightforward to begin using. |
Tradespoon
Tradespoon is dedicated to offering an exceptionally user-friendly platform designed to cater to all types of traders, whether you prefer swing trading or day trading. The platform is highly versatile, allowing you to choose your preferred trading style. It boasts impressive analysis tools that provide swift price forecasts, which can prove invaluable.
Tradespoon's forecasting capabilities extend to Bitcoin, Forex, and futures, enhancing its appeal for a broad spectrum of traders. Additionally, it provides an extensive array of tools that are beneficial for day trading and various other trading strategies.
| PROS | CONS |
|---|---|
| Superior analytics tools available. | No mobile app; day trading only on a computer. |
| User-friendly website suitable for swing trading and day trading. | Higher subscription prices. |
| 7-day free trial | |
| Various subscription plans available |
Fidelity
Fidelity is esteemed as a top choice for day trading among many traders. This brokerage provides an extensive range of trading options, including stocks, options, ETFs, mutual funds, and more. Notably, Fidelity offers commission-free trades and the convenience of fractional share trading.
For those seeking an enhanced trading experience, Fidelity offers Active Trader Pro. This platform delivers powerful tools, real-time insights, and valuable visual snapshots to effectively monitor your investments, making it an attractive option for active traders.
| PROS | CONS |
|---|---|
| Active Trader Pro is ideal for day trading programs. | Potentially tricky for inexperienced users due to platform complexity. |
| Features low fees and commissions. | |
| Offers a diverse range of investment options. | |
| Includes valuable decision-making technology. |
Lightspeed
Lightspeed is a cost-effective solution tailor-made for active traders, particularly those engaged in high-velocity stocks and options trading. While it may not be the most suitable option for individuals lacking significant day trading experience, it offers numerous advantages.
With a substantial $10,000 account minimum requirement and zero commissions, Lightspeed caters to active day traders seeking the benefits of superior technology and lightning-fast execution speeds.
| PROS | CONS |
|---|---|
| Tailored for dedicated and frequent traders. | Requires particularly high account minimums. |
| Offers order routing capabilities. | Not suitable for beginners due to its complexity. |
| Likely the fastest trading platform available. | |
| Provides excellent customer service. |
Tastyworks
Tastyworks is an attractive option for active traders due to its competitive rates and low commissions. This versatile brokerage accommodates a wide range of trading strategies, making it a suitable choice for margin trading, day trading, or swing trading, depending on your preferred approach. Tastyworks also offers valuable research tools and information, further enhancing its appeal for traders.
| PROS | CONS |
|---|---|
| User-friendly platform for easy entry. | Investment portfolio options could be more competitive compared to other professional trading platforms. |
| Low fees make trading cost-effective. | Limited withdrawal and deposit options may restrict flexibility. |
| Offers valuable research tools and information. |
Exploring the Concept of Day Trading
Day trading refers to the practice of investors actively engaging in buying and selling within the financial markets throughout a single trading day. In this approach, all transactions are completed by the close of the trading day. For instance, a day trader may purchase a stock at the beginning of the trading day and sell the same shares before the market's closing bell.
The underlying concept here is to commence the day with no active positions and engage in rapid trading throughout the trading session. Day traders conduct a substantially higher number of trades compared to traditional investors. This strategy is not geared towards long-term investments but rather centers on swift responses to daily market movements. It necessitates a platform that caters to this style of fast and active trading.
Where Can I Day Trade Stocks?
Online brokers provide direct trading platforms for users. These platforms offer a diverse range of assets, including stocks, forex, cryptocurrencies, commodities, and more. With the assistance of a day trading company, you can gain direct access to the market with real-time pricing.
These platforms offer a unified interface where you can initiate, conclude, and manage all of your trades. The best platforms should possess distinctive features, including low fees, support for active trading, and access to the right markets.
How to Select Day Trading Platforms?
Day trading may not be straightforward, and a critical factor contributing to your success is choosing the right broker. Given the multitude of brokers and mobile apps available, this selection process can be quite challenging. Below, we've outlined some essential considerations for choosing a broker:
Fees & Commissions:
Frequent trading entails numerous transactions, and if the associated fees are high, it can lead to significant financial losses. Prioritize evaluating the fees and commissions offered by the platform before making your decision. This should align with your investment strategy to ensure it is cost-effective.
Where Can You Day Trade With Your Preferred Strategy?
Different brokers provide distinct portfolio options. Ensure that you select the trading group that aligns with your specific focus area, allowing you to trade in the market segment you intend to target.
Investment Options:
Various investment options are available, including stocks, ETFs, equities, cryptocurrencies, options, and more. It's important to note that some platforms offer a limited selection of investment options, so exercise caution when selecting your trading app.
Regulation
A secure day trading platform should be thoroughly regulated. Regulatory oversight ensures that brokers operate in a safe, secure, and transparent manner. All the brokers mentioned in our day trading reviews are properly regulated.
Platform Types, Tools, Functionality, and User-Friendliness:
Each trading platform operates uniquely. Some platforms provide mobile apps with intuitive navigation, while others present a wealth of intricate information. Different platforms also offer distinct tools and functionalities to streamline trading. Ensure that your chosen platform offers the right level of functionality and tools to align with your requirements. A well-known platform in this regard is the MetaTrader 4 Trading Platform.
Mobile Trading:
Selecting a broker with an easy-to-use mobile trading app is crucial. This enables you to monitor your portfolio on the go and make necessary adjustments from anywhere you are.
Available Order Types:
Basic order types include market orders, trailing stops, and limit orders. It's important to select a broker that offers the specific order types aligned with your trading strategy.
Account Types:
Consider the type of account you can establish and which brokers accommodate your day trading strategy. Assess whether you identify as an active trader or a long-term investor, as these factors are crucial when determining the most suitable platform.
Real-Time Data Availability:
Access to real-time data is imperative. A reliable platform should provide real-time pricing and reports to facilitate accurate and swift decision-making. This data encompasses quotes, news updates, real-time execution, slippage, and more.
Leverage:
Leverage involves opening positions that exceed your available capital. If leverage is integral to your strategy, ensure that your chosen platform offers the appropriate level of support.
Margin Rates:
Margin rates refer to the interest brokers charge when you purchase certain financial assets and hold them overnight, extending beyond a single business day. Prior to signing up, review your broker's margin rates, and consider the various types of margins available, including real-time margins and rates.
This is something to look out for when finding the right broker. Also, consider the different types of margins. You get real-time margins, rates, and so on.
Account Minimums:
The minimum amount required to open an account can significantly impact your platform selection. Account minimums can vary from $0 to $25,000 or more. Ensure that the account minimum aligns with your budget and financial preferences.
Available Research Tools:
Possessing robust research tools is essential for effective market analysis, particularly for active traders. These tools empower traders to make more informed investment decisions, a crucial aspect of day trading. Research tools encompass technical analysis, volume data, historical data, fundamental data, news feeds, and more.
Education:
Top-tier brokers offer comprehensive educational resources, ensuring traders have access to a variety of tutorials, webinars, and other learning materials. Notably, Avatrade stands out as an excellent choice in this regard.
Customer Service:
A strong customer service network is a vital component of any reputable platform. It plays a pivotal role in ensuring a positive user experience by addressing queries and concerns effectively.
Order Execution
Swift order execution is paramount to fulfilling buy and sell orders at the correct market prices. Leading brokers prioritize fast order execution, enhancing trading efficiency.
Popular Platforms for Day Traders:
The choice of a day trading platform varies based on personal preferences and trading strategies. Recommendations include Interactive Brokers, eToro, Plus500, AvaTrade, among others mentioned above.
Regulation of Day Trading Platforms:
Day trading platforms are subject to regulation by various authorities, typically depending on the country where the broker is based or operates. Major regulators include FCA, ASIC, CySEC, BaFin, SEC, CFTC, SMA, Finanstilsynet, and others.
Types of Brokers:
There are four primary broker categories: forex brokers, stockbrokers, discount brokers, and full-service brokers. The selection should align with your investment methods and strategy.
Market Hours:
Day trading occurs between the opening of the London markets at 08:00 GMT and the closing of the US markets at 22:00 GMT, with the busiest trading time falling between 1 pm – 4 pm GMT during market overlap.
Day Trading Taxation:
Taxation varies depending on the tax system in your jurisdiction. For instance, in the UK, CFDs and forex are categorized as "speculative" and do not incur capital gains taxes, but this may differ in other locations. Traders conducting day trading as a profession are typically subject to taxation.
Day Trading FAQs:
Why Do Most Traders Fail?
Many traders fail due to a lack of knowledge and inadequate risk management.
Is Day Trading Legal?
Yes, day trading is entirely legal, provided you use an accredited and properly regulated broker.
What is The PDT Rule (Pattern Day Trader)?
Pattern day trading involves executing at least four-day trades over five business days using a margin account. A pattern day trader must constitute more than 6% of their margin with these trades.
Can You Start Day Trading With Less Than $25k?
The ability to start day trading with less than $25,000 depends on your jurisdiction. While FINRA mandates this limit in the USA, different brokers may enforce varying account minimums.
Is Day Trading Risky?
Yes, day trading is inherently risky, characterized by high volatility and potential for significant gains and losses. Traders must be well-prepared for the associated risks
