May 11, 2020
Which Day Trading Platform Should You Use for Stocks?
When it comes to day trading, a good platform is key to success. What you want in a platform are good execution times, good customer service, low commissions, and good research tools. I’m going to assume you already know what day trading is, but if you don’t the quick definition is buying and selling stocks within the day. Okay, let’s look at some platforms:
- TD Ameritrade’s ThinkorSwim
This is a very popular program that is great for both beginner and advanced traders! I personally use this platform to day trade (that does not mean you should!) and I have thought that it has done quite well.
Pros:
- zero commissions trading
- good for beginners
- great customer service
- very customizable
- option for paper trading (trading with fake money)
- a mobile app is also available, you’d be surprised how well this works!
- great number of research tools
- no account minimum
- you can trade stocks, options, ETFs, forex (very high selection)
- option for custodial account (for those under 18)
free educational program ← would highly recommend for beginners!
Cons:
- not the best execution times
- huge battery drain (from personal experience)
- need a decent laptop to run this smoothly
- occasional lag
- tricky to get real time quotes
I personally would recommend this for new traders, this is a great software and used by millions! There are many tutorials about this software on YouTube which can also help! The platform may look confusing at first, but you will definitely be able to pick it up quickly.
2. Interactive Brokers
This is another really popular platform for advanced traders! However, do not let that discourage you from trying Interactive Brokers as it is a great platform. I know many who have used this platform and is a huge fan.
Pro:
- no account minimum
- no commission fees
- good execution times
- large investment selection
- lots of tools for research
- there is a mobile app
- newly added custodial account feature (for those under 18)
Cons:
- platform is pretty confusing at the start
- big learning curve
- there are inactivity fees
- customer support is not too good
I would recommend trying this after you have some experience with day trading just because of how confusing the platform first is to new users, but if you really do like interactive brokers, please don’t hesitate to give it a try.
3. Fidelity
Another well known platform that has somewhat died down over the past years but still worth checking out.
Pros:
- zero commission trading
- no account minimum
- execution times are really exceptional
- great customer service
- really good for retirement investors (yes I know that’s not day trading related, but I thought I’d put it out there)
- mobile app is available
- good research tools
Cons:
- cannot trade forex
- cannot trade futures
- fees for options trading
- website is somewhat complicated for new users
Just like Interactive Brokers and ThinkorSwim, Fidelity is a great platform that is worth checking out. I have not used it before, but I definitely will in the future because of their great investment features!
4. Ally Invest
Ally Invest is a lesser known platform but is still worth to check out!
Pros:
- zero commission trading
- great customer service
- mobile app available
- great tools available
- user friendly
Cons:
- missing screeners in mobile app
- you have to update quotes manually
- transaction fees for mutual funds
As you can see, these brokers are all relatively similar in that these are direct competitors and are all great. These are not all the brokers there are and there are many good ones out there too, but these are just a few popular ones I recommend. At the end of the day, you can’t go wrong with any of these, and choose one you feel comfortable with! I hope this helped and keep up that grind!
