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Day trading can be risky but rewarding, and when you’re first getting into this “hobby” it can be overwhelming to find that there are tons of apps providing a trading platform for day traders. How do you choose the best one? We’ve reviewed the best of the best day trading apps to help you pick the best one for your needs.
What Is Day Trading?
Day trading involves quickly buying and selling investments (trading during the day). It involves many risks and therefore the possibility of many rewards. The goal of day trading is buying an investment, watching it rise, and selling it to make a profit before the stock market closes for the day.
Benefits & Drawbacks of Day Trading
As we mentioned before, day trading can be quite risky. Many use borrowed money to put in quick trades, so it might cause you to go into debt. You also might lose money on your investments and wind up with less than you started the day with. This type of investment is more like gambling than investing since it’s so short-term.
Top 7 Best Day Trading Platforms In Canada 2024
Top 7 Best Day Trading Platforms In Canada February 2024
eToro also has an account minimum of only $10, and they offer relevant educational resources for the pattern day trader or the occasional day trader. We have noticed through their reviews that the support to their global customers isn’t always reliable and available.
Along with this awesome feature, Interactive Brokers has a desktop platform as well as mobile, and they have several tiers of pricing and features available. Their free version provides a lot of insight into day trading and the risks or benefits of investments you’re considering, but some customers have complained that they notice some research features cost extra.
ActiveTraderPro is Fidelity’s day trading platform, and it includes real-time news updates pertinent to your investments, after-market day trading, and cloud-based day trading software. For those new to making day trades, their services might just be the best option. We will note that some users reported frequent bugs and less than-optimal aftermarket options trades.
On top of this sign-on deal, we love that E-Trade gives insight into each investment you’d like to make, and they have comparable low trading costs. Their day trading app is great for beginner and experienced traders alike, but some customers say that their services can be slow.
In addition to simulations, TradeStation also boasts several different trading platforms and a program designed specifically for trading futures. On the other hand, customers aren’t always happy with the support they receive from TradeStation.
On top of this incredible information available in their platform for day trading, Ameritrade has a mobile, web, and desktop platform available. They also offer the option to simulate trades to see if they might indeed be a good idea (no guarantee, you might lose money regardless).
On top of the analytics, Schwab has stock screening information, robo advisors, great customer service, and a top-notch probability calculator to help you make the most informed day trade. It’s one of the best online brokers, to begin with, and as a broker for day trading, we love Charles Schwab.
How To Choose The Best Brokers for Day Trading
Online brokers are all the rage right now since it’s now possible to put in a trade and have it done on the same trading day from your couch. The best brokers at this point are household names, and they’ve come to be trusted by their customers over the years. A good online broker should have registration with major financial institutions like the SEC (Securities and Exchange Commission). They should also provide customer support for their customers involved in active trading. We’ve also found that the best trading platforms have transparency and helpful trading tools available to their users.
In the end, day traders lose money at some point or another. There is risk in making a day trade, and you should proceed with caution. However, it can be quite lucrative. Some day traders learn how to read the market and capitalize on low prices to make their investments count. It is helpful to think of day trading as an art to learn, and as risky as gambling. If you’re just getting started with investing, we don’t recommend starting day trading. But if you’ve had your hand in investments for a while now, you might want to try this form of investing.
If you want to get into day trading, having a great trader workstation platform can make all the difference in your success. Consider these 7 options and weigh them before deciding which trading platform you should go with.
Frequently Asked Questions (FAQs)
ETFs are like mutual funds in that they might include many different investments. Sometimes, they represent a certain sector or commodity.
Penny stocks are typically stocks that cost under $5 to invest in.
Trading with a margin account means that you have borrowed money for trading.
Short selling is selling an investment that you don’t actually own, hoping to be able to buy it at a lower price than you sold it in the near future.
In our experience, any of these 7-day trading brokers offer applications that stand out above the rest.
Volatility is just the movement of different stocks. So a more volatile stock would have more movement, and less assumed predictability and stability.
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