Traders on Wall Street have high expectations. That’s because having the best trading platform might be the difference between making money and losing it in the markets.
Day traders are professional investors who make money by opening and closing several deals in a single trading day. Trades must be executed quickly and reliably, with cheap fees and customer support available in case of problems.
To aid you in selecting the most suitable online brokers for day trading, we have conducted an in-depth analysis of seven different brokerage platforms.
What Is Day Trading?
In day trading, investors purchase and sell stocks and other assets many times in a single day. Day traders are unconcerned with the direction of the market as a whole. Day traders earn money whenever the stock market is volatile by buying undervalued assets and selling them at higher prices.
To benefit from small, rapid changes in the prices of stocks, bonds, and exchange-traded funds, “day traders” often join and depart the market during a single trading day (ETFs). Rather than leave open positions in the market overnight and expose themselves to potential losses, they usually terminate all deals before the conclusion of the trading day.
Day trading gained popularity during the ’90s dot-com bubble and collapse, and then again during the Covid-19 pandemic.
Top 7 Day Trading Apps
If you’re looking for a reliable platform to conduct day trades online, look for one that provides cutting-edge tools, lightning-fast execution, a wide range of research, affordable prices, and a powerful mobile app. We selected the top seven trading apps for 2023 based on the abovementioned criteria.
1. TD Ameritrade
In the world of mobile trading, TD Ameritrade has you covered with applications for both iOS and Android. You may trade stocks, futures, options, and foreign currency using TD Ameritrade Mobile. TD Ameritrade offers over 300 indicators and technical charts to assist you in monitoring your holdings.
With 24/5 trading, you may buy and sell certain stocks at any time, five days a week. You may diversify into foreign markets and industry-specific stocks.
The TD Ameritrade Mobile App is a highly functional trading app that is available for use on all of your smart devices.
2. Interactive Brokers (IBKR)
For four years, readers have chosen Interactive Brokers as their favorite online broker because of the company’s dedication to investment automation and service. IBKR serves customers in over 200 countries, giving them access to 135 markets and 23 currencies for investment management.
Proprietary trading groups, hedge funds, financial consultants, and brokers may all benefit from IBKR’s robust technology. The company offers a variety of investment products and services, including cheap execution costs, portfolio management software, research services, and more.
Robinhood is a great platform for novice investors since it eliminates the need for commissions when buying and selling stocks. Robinhood’s zero-deposit, commission-free trading is only the beginning. The company also provides a snappy, user-friendly smartphone interface.
Robinhood removes many extraneous features in other brokers, yet its free trading platform is unrivaled. The app’s mobile-native technology ensures that users’ stock purchases and sales are unaffected by the transition from a desktop to a mobile device.
Experienced investors may be turned off by Robinhood’s lack of research and analytical capabilities, while newer investors concerned about trading costs should check it out.
Magnifi, our top pick for long-term investors, is an online marketplace where you can use standard brokerage tools and artificial intelligence to optimize your investment portfolio. Because you can quickly find any information on any asset, you can confidently put your money into the assets that will provide you with the returns you want and are the best fit for your investment plan.
This platform is ideal for long-term investors and those needing client assistance, as it provides access to educational resources, commission-free investments, an AI-powered investing assistant, a mobile app, and more than 15,000 different investment opportunities. Because of this, traders of all skill levels will find Magnifi to be a welcoming environment.
Webull is the top choice for active traders. Webull was established in 2017 as a mobile brokerage app allowing users to trade stocks and ETFs without paying fees.
Webull caters to active traders by providing tools like technical indicators, ratings from research firms, economic calendars, margin trading, and short-selling. While Webull’s trading platform is geared toward more seasoned investors, newer investors might still profit from it.
Several people see Webull as a choice to Robinhood.
This commission-free mobile trading program works on iOS, Android, and Windows, and it’s ideal for novice traders. It’s also worth noting that Moomoo is a fantastic substitute for Robinhood. If you are serious about learning intelligent trading strategies, this platform is where you must be.
This platform provides access to various trading resources, including advanced charting, pre-and post-market trading, research, international trading, analytics tools, and, probably most significantly, free Level 2 quotes.
As of late, even novice traders may benefit from TradeStation’s platform, formerly reserved for expert traders. It’s no longer the case. The TS GO account type on TradeStation provides new traders with advanced features, including stock screeners and learning resources often reserved for more experienced traders.
You may trade stocks, ETFs, and options and use the Quotation, Hot List, and Matrix tools from the convenience of TradeStation’s mobile app, which syncs with your online account.
Things to Look for When Choosing a Day Trading App
If you poll a hundred traders on what they value most in a day trading software, you’ll probably get hundreds of different responses.
Although a website has many desirable features, the three most common are ease of use, low fees/commissions, and functionality.
- Easy Navigation – It doesn’t matter how effectively the software runs or how many excellent options for day trading research it provides if you have difficulty learning how to utilize it. Before committing to an app, it’s a good idea to watch several demos and tutorials on YouTube to make sure the UI appeals to you and the app’s features are easy to use.
- Low Fees – Your stockbroker is a good resource for finding day trading software since you should know their prices and commissions. But if this is your first time trading stocks, you’ll want to choose an app with cheap costs and commissions so you can keep more of your earnings. Professional brokers that make many deals each month are sometimes eligible for substantial discounts from several brokers.
- Functionality – Some brokers drastically restrict an app’s features to get traders to utilize their desktop platforms. Ensure the app has the same capabilities as the desktop version before committing to it.
Final Thoughts on Best Trading App
Although the potential for large profits attracts many traders to day trading, this lucrative opportunity has substantial dangers.
Traders should study the market and learn about order execution before risking real money.
Is multi-platform day trading possible?
Yes. Day traders often utilize many brokerage accounts and trading platforms at once. Having a backup in case of an outage, executing specialized trading methods, or having access to specialized trading tools and research are all reasons traders may utilize more than one trading platform.
How dangerous is it to day trade?
Day trading is high-risk since it includes frequent stock purchases and sales using borrowed money (margin). As in poker, when traders are on a losing run, they tend to take more risks than they should, increasing their losses. Tools designed for day trading, such as a trading log, may reveal your trading habits’ strengths and faults when used consistently.
Is $500 enough to get you started in day trading?
Indeed, however, we consider this to be a poor plan. Trading is risky, and even a seemingly average run of losses might wipe out your cash. Even when the market is regular, you may think you are a lousy trader or that the market is too volatile. Your broker should be able to slow things down for you, regardless. If your account balance is less than $25,000 and you have yet to be approved for margin trading, you will be limited to making four-day transactions each week.
Is it legal to engage in day trading?
Day trading is perfectly acceptable and even encouraged in the United States. If you want to day trade after being labeled a “pattern day trader,” you’ll need a minimum of $25,000. The good news is that you may use a margin of up to 4:1 during the trading day and a margin of up to 2:1 while your positions are active overnight.
0How profitable is day trading?
Day trading for a profit in today’s market is challenging due to the prevalence of hedge funds using complex algorithmic trading strategies. Most day traders are also critically undercapitalized, so they easily fall for social media scams like paid newsletter subscriptions, instructional courses, and chat room memberships. What I have learned through day trading is summarized here.
What is the most reliable platform for day trading?
Based on our research, we found that Interactive Brokers’ suite of trading tools, access to international markets, and adaptable interface make it the ideal platform for day trading. Interactive Brokers Trader Workstation is a powerful desktop workstation with almost limitless functionality. If you’re not an expert trader and want to benefit from a user-friendly interface, TD Ameritrade is a great option too.