We live in a volatile time where the world is dealing with a global crisis. The uncertainty is taking a toll on the financial markets. It is our goal to help investors make informed decisions. Our mission is to show you how and where to invest.
The volatility in the markets is forcing some investors to switch tactics. More and more people are looking into the possibility of day trading.
Day trading is the opening and closing of a position in the same trading session. This style of trading gained popularity in the 1990s. For effective day trading, you need to find the right platform. The ideal broker should provide you with speed, reliability, and low costs.
Which brokers offer the best platforms for day trading? Here are some of the best day trading platforms in 2020:
1. Interactive Brokers
- Account Minimum: $0
- Fees: $0.005 per share for the Pro platform or 1% of the trade value, $0 for IBKR Lite
There are many things to like about interactive Brokers. The firm allows its customers to trade in a wide array of assets that span 125 markets in 31 countries. Interactive Brokers also provide a wealth of analysis tools that help you find trading opportunities.
While the rest of the industry has moved to zero charges, Interactive Brokers has been reluctant. The broker used to have the lowest charges in the market. Today, Interactive Brokers is one of the few brokers that still charge fees. Cost is the only factor that allows Fidelity to challenge the title of the “Best Day Trading Platform.”
The Traders Work Station (TWS) is Interactive Brokers’ ideal platform for day trading. TWS is well-rounded and excellent across the board. This platform is one of the most customizable trading platforms in the industry. It may come with a steep learning curve, but once you figure it out, the limit is the sky.
In terms of range and flexibility of charting tools, Interactive Brokers tie with TD Ameritrade. Both brokers have platforms that allow you to trade directly from the charts. Interactive broker outshines TD Ameritrade on overall strength. Interactive Brokers offers more charts because of their extensive asset pool.
Another thing that makes Interactive Brokers so attractive to day traders is that they offer the lowest margin interest rates in the market.
|Interactive Brokers have the widest range of assets||The broker still charges nominal fees|
|TWS is the strongest platform for day trading||TWS has a steep learning curve|
|Interactive Brokers is one of the few brokers that allow fractional share trading.||Traders can only stream date on one device at a time|
- Account minimum: $0
- Fees: $0 for ETF/Stock trades, $0 plus $0.65/contract for options trade.
Fidelity is the best low-cost trading platform in the market. Having considered this factor, Fidelity comes as a close runner up to Interactive Brokers and slightly ahead of TD Ameritrade. Apart from costs, Fidelity is attractive to day traders because of their Active Trader Pro Platform.
Fidelity’s pricing strategy adds real value to day traders. The firm charges no fees on ETFs, Stocks, and OTCBB (penny stock) trades. Many brokers match Fidelity in the price category, but they can’t compare it in terms of customization and trading technology. Fidelity also has an edge over its competitors in order execution.
Pros vs. Cons
- Low costs
- Excellent research resources and screeners
- Active Trader Pro is a strong platform for day trading
- Fidelity lacks in futures, futures options, and cryptocurrency trading.
- For more research tools and resources, you may have to use Fidelity’s web platform to compliment Active Trader Pro.
1. TD Ameritrade
TD Ameritrade’s Thinkorswim is an exceptional desktop trading platform that comes with an impressive array of tools. TD Ameritrade shines in their demo account offerings and trading technology. You can also perform real-time stock scans, chart sharing, and workspace layouts.
TradeStation shines in the technology sector. The brokers’ desktop trading platform is one of the best around. The platform is highly customizable and advanced. With TradeStation’s proprietary coding language, users can code and develop their own apps.
How Do You Choose a Day Trading Platform?
Choosing the right platform requires that you understand what it means to day trade. A day trader opens and closes positions in a single day. To increase the chances and magnitude of profits, a day trader may open many trades simultaneously. To facilitate this trading strategy, you need enough capital. Something to the tune of $25,000.
You also need to ask yourself about the importance of low costs and trading tools to your strategy. Low costs could mean inferior technology and fewer tools. Choosing the right platform for day trading is about finding the firm that will over you speed, reliability, and low costs.
It may be hard to find a firm that offers the best of each category. At Expert on International, we recommend Interactive Brokers as the best platform for day trading. The broker offers the best in trading technology and reliability. Interactive Brokers may not have the best prices, but they are strong overall.
Are you a day trader looking for a platform? Try out Interactive Brokers.