If you are thinking about day trading, you have to pick the right brokerage platform. You will not be able to day trade unless you have a broker. Your broker acts as a conduit between you and the market. When you execute a trade, the broker will place it for you. You need to find a broker that is inexpensive, fast, and secure. What do you need to know about finding a broker?
What Is a Broker?
In order for you to buy and sell stocks, you need to have access to one of the major stock exchanges. Common examples include the NASDAQ and the New York Stock Exchange. In order to trade on these exchanges, you have to belong to a member firm. Unless you have a membership yourself, you need to go through a broker who has been licensed by the Financial Industry Regulatory Authority (FINRA). Even though you can purchase shares in stocks directly from the company that issues them, it is always easier to go through a broker.
In the past, it was incredibly expensive to get access to a broker. It with something reserved only for high-net-worth individuals. Now, thanks to advances in technology and the rise of the internet, you can work with a brokerage firm online. Which one should you choose? If you are thinking about day trading, there are several top examples you should note.
WeBull is a mobile application that features commission-free stock and ETF trading. It is closely regulated by FINRA and the SEC. In addition, you will also have access to the ratings from research agencies, short selling, economic calendars, and margin trading. It also uses an intuitive trading platform that comes complete with fundamental and technical analytics. If you are planning to be an active day trader, this is a strong choice. In addition, you do not have to worry about paying maintenance or software platform fees in order to maintain your account.
TD Ameritrade is another strong brokerage firm you should consider using. You have access to web, mobile, and downloadable platforms, which you can tailor to meet your specific requirements. Whether you are trying to get started for the first time or are an experienced trader, TD Ameritrade could be for you. You also have access to numerous investment vehicles including foreign exchange, ETFs, non-proprietary mutual funds, and numerous options. Importantly, you may have to pay a commission of $6.95 to buy shares in OTC stocks. You need to have a minimum deposit of $2,000 in cash or stocks to get started.
You might also be taking a closer look at E*Trade Pro. If you are planning on exploring other areas, such as cryptocurrency, you may want to take a closer look at this platform. In addition to $0 commissions on options, you also have access to virtual trading and lower margin rates. Furthermore, the platform is intuitive. With a short learning curve, it will not take a lot for you to get started. Finally, you will also have access to automated technical analysis and screening tools, allowing you to make the best decisions in the blink of an eye. Take a closer look at the features of E*Trade Pro and see if this is right for you.
You want to make sure that every dollar you spend the day trading actually goes toward your trade. Therefore, you should try to limit any commissions you have to pay when you are trading stocks. That is exactly where TradeZero can be helpful. In addition to accessing a wide variety of leverage options, TradeZero also offers a wide variety of 0 commission trading software is. These include:
- ZeroPro, which is perfect for day traders
- ZeroWeb, which is perfect for online traders
- ZeroMobile, allowing you to trade while on the go
If you are looking for trading software you can use without having to pay a commission, this is the ideal choice.
Find the Right Broker for Your Day Trading Style
These are just a few of the top brokers you may want to use if you are thinking about day trading. You need to find the right broker to meet your needs because this will influence not only how much money you can make but also how much information you have access to. Finally, before you start day trading, you should also check out a few guides and articles to make sure you know what you are looking for when you get started.