FROM OUR PARTNERS

Best Day Trading Brokers of 2022

Ashley Jackson

If you’re a day trader or looking to start trading, set yourself up for success by selecting a broker that understands your needs. We’ve considered the best brokers based on commissions, account minimums, ease of use, and overall quality.

Trade a wide range of financial assets

$0 - $9.95

Fee Per Trade

$0

Account Minimum

Overview

Ally Invest offers competitive pricing on financial securities and robust research tools to help you make better-informed investment decisions.

What we like

  • Low cost commissions 
  • Wide selection of product offerings 
  • Up to $3,000 cash bonus
  • No minimum deposit required
  • Up to $75 for brokerage transfers

What we don't

  • Crypto not supported
  • Mutual fund fees

Get up to $625 when you open and fund an account

$0

Fee Per Trade

$0

Account Minimum

Overview

J.P. Morgan Self-Directed Investing offers beginners and seasoned investors free trades and a portfolio tool to help build out their asset allocation.

What we like

  • Unlimited trades with $0 commissions
  • No minimum investment
  • Manage investments from a mobile app
  • Portfolio builder tool to help with asset allocation
  • Access to research and insights

What we don't

  • Limited accounts, such as no SEP-IRA
  • No fractional share trading

INVESTMENT AND INSURANCE PRODUCTS ARE: NOT A DEPOSIT • NOT FDIC INSURED • NO BANK GUARANTEE • MAY LOSE VALUE

Copy investments from successful traders

$0

Fee Per Trade

$0

Account Minimum

Overview

eToro is a multi-asset platform that offers both investing in stocks, cryptocurrencies, and trading in CDF assets. It provides an innovative approach to ‘Social Trading,’ also known as ‘Copy Trading.’ Social trading allows users to connect, share their trades, and copy successful traders’ trades for potential gains.

What we like

  • Commission-free real stock trading
  • Offers money and risk management tools
  • A lot of learning materials available
  • Offers a free demo account
  • Copy successful traders investments

What we don't

  • Higher spreads and rollover fees
  • High non-trading fees

Discover new ideas from an active investing community

$0

Fee Per Trade

$0

Account Minimum

Overview

Public provides access to a powerful suite of tools, daily insights from millions of investors, and curated content and news, so all members can have the tools and resources needed to invest with context.

What we like

  • All-in-one investing platform 
  • Wide selection of product offerings 
  • Commission-free
  • Insights from an investing community of millions
  • Invest in any fractional asset
  • Live in-app shows about the markets

What we don't

  • Limited account types
  • No in-person customer support

Margin trading available with premium account

$0 - $9.95

Fee Per Trade

$0

Account Minimum

Overview

Axos Self-Directed Trading provides investors commission-free trades and an all-in-one solution for banking and investments.

What we like

  • Commission free trading on most assets 
  • Easy to use platform
  • Wide selection of product offerings 
  • No minimum deposit required
  • Extended market hours for premium accounts
  • Joint accounts available

What we don't

  • Crypto not supported
  • Premium account required for certain features
  • No in-person customer support

Offers fractional share trading

$0

Fee Per Trade

$0

Account Minimum

Overview

SoFi allows you to trade cryptocurrencies, stocks, and ETFs. It also uses the SIPC protection scheme and offers up to $500,000 in insurance coverage.

What we like

  • Free trading on ETFs and stocks
  • Offers fractional shares
  • A wide variety of cryptocurrencies
  • Free financial advice
  • No account minimum

What we don't

  • Does not offer mutual funds, bonds and options
  • Limited track record

What do day trading brokers do?

A day trading broker helps execute your transactions. For example, day traders typically use stop orders to protect themselves from losses by preventing further losses once the price reaches a certain level. If you buy an asset for $100 and place a stop order at $95, your broker would automatically sell your holdings if the price dropped below $95. This type of order can be helpful because it allows you to control your risk exposure and avoid potential losses that would otherwise be caused by the collapse of a single trade position.

Why use day trading brokers?

Here are some reasons why you should use day trading brokers:

  • Trade more efficiently: A good broker will enable you to trade more efficiently by providing access to real-time data that can be used to make informed decisions about buying or selling securities. Quickly analyzing this data helps traders decide when and what securities they should buy or sell at any given time.
  • Trading tools and information: They provide trading tools and information that can help you make better decisions regarding investing and keep track of your finances. They also have very low fees compared to other brokers because they only charge commissions on the trades themselves, not on traded assets.
  • Trade from home: You can use software like MetaTrader 4 or NinjaTrader to place trades and manage your account when you trade on your own. Brokers make it easy for anyone who wants to trade from home by providing access to their platforms through a simple web interface.
  • Minimal capital: Day trading brokers allow investors to open accounts with less capital. In some cases, some brokers may even enable day traders to open accounts with no money down at all. All they require is access to a computer with an internet connection and some capital in their account so they can place orders in the market.

Are day trading brokers safe?

Reputable day trading brokerage accounts are safe, but day trading is a high-risk activity that requires special skills, knowledge, and experience. The risks associated with day trading are greater than those associated with long-term investments because of the short-term exposure to the market.

Many day traders use margin accounts which allow them to trade with borrowed funds, but they must maintain minimum equity balances in their accounts at all times. If they don’t have enough money in their accounts, they will be required to deposit more funds or sell off some or all of their positions. This can result in large losses if a downturn occurs before the additional funds are deposited or positions are sold off.

What are the fees for day trading brokers?

The fee structure depends on the broker and your trading volume. Some brokers offer low commissions but charge higher fees for services like margin trading and electronic trading tools. These fees can range from 0.1% to 2.5% of each transaction. However, there are brokers that don’t charge any fees but come with more limited features.

What can you invest in through day trading brokers

There are several securities you can invest in through day trading brokers:

  • Stocks: A stock is a type of security that represents ownership in a corporation or financial asset. Stockholders’ equity can be used to determine the value of a company through its stock price. The stock market is also an important part of the economy.
  • ETFs: ETFs, or exchange-traded funds, are baskets of securities that can be traded like stocks and mutual funds. They’re typically based on indexes such as the S&P 500 or Dow Jones Industrial Average but can also include commodities, bonds, or other assets. Like mutual funds, ETFs charge management fees.
  • Options: An option is a contract that gives the buyer the right but not the obligation to purchase or sell an asset at an agreed price on or before the expiration date. Options are used by investors seeking leverage and by traders looking to manage risk while limiting their potential losses and gains over time.
  • Mutual Funds: Mutual fund is a professionally managed investment fund that pools the money from many investors to purchase securities such as stocks, bonds, and other instruments. These funds provide the opportunity for investors to invest in an array of funds by using a single transaction.
  • Futures: Futures are contracts used for trading commodities and financial assets at a predetermined price at a future date. Futures contracts are standardized with specific quantity, quality, delivery date, and location of the asset being traded. It represents a contract between two parties where one party agrees to buy an asset while the other agrees to sell it at a future date at an agreed upon price.

Benefits of investing through day trading brokers

The following are some of the benefits of day trading brokers:

  • More opportunities: When you invest through a broker, you have access to many more investment opportunities than if you were buying stocks directly from the company. You can trade on dozens of exchanges around the world in real-time without having to wait for your order to be filled.
  • Low commissions: Day trading brokers charge much lower commissions because they don’t have to pay for your trades themselves. They simply pass them along to exchanges so that investors can execute their own trades.
  • Liquidity: Another benefit of investing through day trading brokers is that they offer liquidity options for investors, so they can cash out their investments at any time during market hours. This means that if there is an emergency or if you need some extra cash, then you can easily sell off your shares and get some money.

How to choose the best day trading brokers

Many day trading brokers are available, some are free, and others are paid. Here are some things you should look for in a broker:

  • An intuitive layout: The first thing you should look for in a day trading broker is how user friendly is the layout. This can be a challenge because some platforms are designed with advanced traders, so it can be confusing for beginners. Look for an intuitive layout that makes sense for you and is easy to use.
  • Low fees and commissions: Another thing you’ll want to consider is the fees and commissions. Some companies charge more than others, and some don’t charge at all. If you’re just starting out, you may not have much money to invest, so you should consider the commission charges to maintain more potential profit.
  • Full web functionality: If desktop is important to you, then consider the broker can be used on a web platform. This means you can use it on any device and browser without downloading an app or software.
  • Security: Look for a broker that offers top-notch encryption and two-factor authentication (2FA) when logging into accounts online or using mobile devices. The best brokers will even let you lock down certain features so that no one else can access them if they get hold of your phone or tablet.