Best Day Trading Platforms in 2023 • Benzinga

Day trading involves having fast reaction times and the discipline to take profits or losses appropriately, no matter whether you choose to trade forex, stocks, cryptocurrencies or commodity futures. A day trader needs a reliable day trading broker with fast order execution.

Your choice of broker and their supported online trading platforms can impact how efficiently you can day trade and perform market analysis. Some brokers are also better suited for specific markets. Read on for a list of Benzinga’s picks for the best day trading brokers.

CenterPoint Securities offers direct access to the markets, level 2 order routing, advanced charting and quality customer service. The platform is perfect for advanced or intermediate traders, momentum traders, high-volume traders and short sellers.

There are built-in scanners you can use to make better decisions, custom alert options and orders are always routed in the most efficient manner possible. You can customize your dashboard, take control of your portfolio and invest at any time of the day or night with CenterPoint.

Interactive Brokers stands out from the pack when it comes to resolute lowest-cost access to a broad global range of products and markets.

The first among online brokers to remove and offer as low as $0 commissions for US stocks & ETFs, Interactive Brokers is also Benzinga’s #1-rated broker for Mutual Funds, Bond, International, Short Trading and more. In addition, IB clients can earn extra income from their fully owned shares via their Stock Yield Enhancement Program, and they enjoy enhanced pricing via IB’s SmartRouting technology.

Plus, Interactive Brokers provides the absolute lowest margin loan rates in the industry. So it’s no wonder that active traders & investors from over 200 countries and territories invest globally in Stocks, Options, Futures, Forex, Bonds, and Funds from a single integrated account at the lowest cost across Interactive Brokers award-winning platforms.

Webull offers both a mobile-based and desktop app that are highly intuitive and perfect for beginning traders. Webull features fundamental and technical analysis tools that include advanced charting, technical indicators and up-to-date information on every asset.

Consumers can trade over 5,000 stocks, exchange-traded funds (ETFs,) stock trading or options trading on Webull’s platforms free of commissions. You can open an account without a deposit and use the paper trading option so that you can practice without putting your money on the line. 

You can even open a margin account where you can short stocks — although you’ll be required to deposit a minimum of $2,000. Plus, Webull offers promotions that will help you build your portfolio and get more from your investing throughout the year.

Magnifi is a marketplace that allows you, as the investor, to use common brokerage tools and AI to make the best decisions for your portfolio. Because you can pull up all the information you need on a given asset, you can easily invest in the assets that will give you the results you deserve and better match your day trading strategy.

Search for the investment options that meet your needs, invest in specific categories or scan for assets in a price range that’s affordable for you.

Best for long-term investors and those who require a bit of client support, you can also learn more about investing from this platform, utilize the AI-powered investing assistant, enjoy commission-free investing, try the mobile app and take advantage of over 15,000 possible investment options. This makes Magnifi a good place to trade for both seasoned and novice traders.

Our pick for promotional offerings is Moomoo, a commission-free mobile trading app available on Apple, Google and Windows devices.

Moomoo is another excellent alternative to Robinhood. It is a great trading platform if you want to dive deep into smart trading. It offers impressive trading tools and opportunities for new and experienced traders, including advanced charting, pre and post-market trading, international trading (Chinese and Hong Kong Markets), research and analysis tools, and most popular of all, free Level 2 quotes.

Moomoo offers Level 2 quotes from NYSE Arcabook, NYSE Open book, and Nasdaq Total View, covering order books from electronic securities exchanges with top 3 trading volumes. In addition, it often has free NYSE Arcabook data promotions, which is super competitive because the industry usually charges fees for it.

It also has the most extended hours for trading compared to the majority of competitors. So you can jump in and out of positions from 4 a.m. to 8 p.m. EST.

When you want to day trade, there’s more than one way to make money on the open market. eToro has a broad-ranging product selection that allows you to invest in diverse assets like crypto, stocks and ETFs. Because this platform allows you to invest in so many different things, you have more flexibility than normal.

Aside from the well-known crypto trading platform, you can also look into stocks and ETFs. The benefits of the platform include:

• Invest in stocks and fractional shares for as little as $10
• Buy into a strong group of cryptocurrencies
• Mix crypto and stock holdings to build a diverse portfolio
• Check out price charts, indicators and technical analysis
• Pay zero commissions

TD Ameritrade lets you trade stocks, options, bonds, mutual funds, ETFs, futures and forex. The broker offers clients free extensive research on several markets and educational resources for novices. 

No minimum deposit is required to open an account, but if you are a day trader based in the U.S. and plan on day trading stocks, you’ll need to fund the account with the $25,000 minimum required by the U.S. Securities and Exchange Commission (SEC).   

TD Ameritrade offers commission-free trades on U.S. stocks, ETFs and mutual funds. Trades over their Interactive Voice Response (IVR) phone system cost $5, and it charges a $25 fee for broker-assisted trades.

Options trades cost $0.65 per contract, while over-the-counter (OTC) trades for stocks not listed on U.S. exchanges cost $6.95 per trade.  

FOREX.com ranks No. 1 as our choice for the best forex broker for U.S.-based traders. Although the forex market is largely unregulated, U.S.-based retail forex brokers like FOREX.com are strictly overseen by the National Futures Association (NFA) and the Commodities Futures Trading Commission (CFTC).

It means that they must limit the leverage on forex trading positions to 50:1 on the major currencies and 20:1 on minor currencies. 

You will need $100 (or 100 of your selected base currency) to open a trading account that lets you day trade over 80 currency pairs.Any client can use FOREX.com’s own Advanced Trading Platform, while clients can also use the popular MetaTrader suite.

NinjaTrader offers an advanced trading platform. NinjaTrader’s brokerage services cater directly to futures traders. It’s the ideal destination for those both active and new, with unlimited free use for advanced charting, market analysis, and simulation trading.

The NinjaTrader platform provides a high-performance backtesting engine which allows users to test and verify futures trading strategies using historical data. A wide range of useful educational materials are available if you’re unfamiliar with its platform and wat to enhance your skills.

Cobra Trading is an excellent broker for short selling because they offer access to margin accounts and direct access routing. Essentially, Cobra lets you jump on opportunities so that you can profit quickly. Cobra has been in business for around 2 decades, but they still offer the boutique service their loyal customers have come to love.

Remember, Cobra opens accounts over $25,000 in all cases.

Benzinga offers up-to-the-minute feeds on the biggest stock market winners and losers. Check out the following current stock movers list if you’re looking for day trading opportunities.

The SEC defines a day trade as a position opened and closed the same day. Pattern day trading is defined as four or more day trades made within five days if the number of day trades is over 6% of the total trades made in the account.  Therefore, if you make a one-day trade each day of the business week, you would be subject to a pattern day trader’s increased minimum capital requirement. 

If you are a pattern day trader and your account falls below the $25,000 minimum, you will get a day trader equity call from your broker and will not be permitted to day trade until the balance is restored. The call must be met with the minimum balance made up by depositing cash or marginable equities (stocks, bonds, etc.) into the account. If the call is not met within five business days of its issuance, the account could be restricted for 90 days. 

If you live outside of the U.S., you would not be subject to these and other U.S. day trading restrictions. If you plan to day trade from a country other than the U.S., you can trade U.S. stocks via an international broker, such as Interactive Brokers. 

Most online forex brokers require you to make a minimum deposit to open up a trading account. However, you will need to fund it adequately to enter into and maintain the positions you want to take. Ideally, plan on having a minimum of $500 in risk capital you can afford to lose before starting to day trade the forex market. 

Keep in mind that you can make more day trades in the forex market, although the inherent volatility of the currency market is typically less than that seen in actively traded stocks. Although you can open an account that does not charge trading commissions, you’ll still probably need to pay away a dealing spread when you trade forex. Therefore, the tighter the dealing spreads your broker offers, the lower your transaction costs. 

Many brokers require a minimum deposit of at least $5,000 to trade commodity futures. Still, a deposit of $10,000 would probably give you more room to meet opening and maintenance margin requirements that can vary among commodity futures contracts. Futures contracts and options on futures contracts also cost approximately $0.75 to $1 per contract to trade, depending on your broker and the exchange they are listed on.  

If based outside of the U.S., plan on having at least $2,000 of risk capital available to fund stock day trading strategies.  Due to SEC regulations, U.S.-based traders need to maintain a hefty $25,000 minimum balance in their account. Many U.S. brokers now offer commission-free brokerage, but if you live outside the U.S. and want to trade in other stock markets, you’ll need to check what brokers in your locale charge per stock transaction.  

Cryptocurrencies are not subject to day trading minimum deposit regulations, so you’re just limited by the amount of risk capital you have available to trade with. Your crypto trading costs will generally depend on the dealing spreads if you use contracts for difference (CFDs) to trade them with, and you can often trade them on margin.  If you do not use CFDs, you might need to pay for a wallet to store your cryptocurrencies in. 

The best type of day trading strategy for you to learn to use will depend mainly on your temperament and risk tolerance. Remember that day trading is not for everyone — it requires patience, attentiveness, discipline and remaining willing to pull the trigger quickly on a trade when a good opportunity presents itself. 

Day trading ideally requires a plan or a strategy, such as using technical analysis indicators or chart interpretation. Relevant news could also give valid trading signals, so it depends largely on your trading style. Part of your trading plan can include education about market analysis and practice trading in a demo account. Learn more about using technical analysis when day trading stocks.

Day trading has many advantages. One of the primary benefits of day trading is that you avoid carrying positions overnight, so you can usually get a good night’s sleep. 

You also have considerable leeway as a day trader regarding how often you want to trade, depending on your temperament and how much time you have available to devote to day trading. 

If you think day trading might suit you, you’ll want to put together enough risk capital to get started. You can also easily open a demo account at a broker to develop a trading strategy and learn how to use their trading platform.