When you buy a stock and then sell it before the market closes, you're making a day trade. Keeping expenses low is just as crucial to day traders as making money by buying and selling (or shorting and covering).
Having made over 2,500 trades, I can tell you that having a dependable day trading platform equipped with the trading tools you need is essential. Here's what a day trading platformis all about.
To trade electronically, you must utilize a computer software application called an electronic internet trading platform. Direct-access brokers are distinct from trading platforms. Trading these two as one, on the other hand, is something I see rather often. Your order is sent to the exchange and placed there via the trading platform, allowing the direct-access brokers to clear it for you. Direct-access brokers often provide their customers with access to their own custom trading platform.
To put it simply, there is a wide range in the quality, charting capabilities as well as speed and performance of the program. Many brokers charge a monthly cost for their platform, but if you generate enough commissions for the broker, they may eliminate that price. Trader Workstation (TWS) is a trading platform offered by Interactive Brokers, however DAS Trader may also be used. Lightspeed Trading, the company's proprietary trading platform, is also available. In-house TD Ameritrade software is known as thinkorswim (pronounced The DAS Trader platform is used by CenterPoint Securities.
Here are some of the well-known direct-access broker for day-trading:
- Broker Trading Platform PDT Restriction Based In Interactive Brokers TWS or DAS Pro Yes USA
- DAS Pro Yes USA
- Lightspeed Lightspeed Trader Yes USA
- TD Ameritrade thinkorswim Yes USA
- cottrade ScottradeELITE Yes USA
- E*TRADE OptionsHouse Yes USA
- Alliance Trader DAS Pro No Jamaica
- CMEG DAS Pro No Trinidad and Tobago
- SureTrader DAS Pro No Bahamas
TWS, the proprietary trading platform offered by Interactive Brokers, is not suitable for day trading. It is one of four NASDAQ Platinum Partner order entry systems that provide the most efficient execution and market functionality for online traders. DAS Trader Because DAS Trader isn't a broker, traders may connect their IB trading accounts to it instead. DAS will submit their orders to NASDAQ data centers, and Interactive Brokers will fill their orders as their clearing company.
A person typing on a keyboard with two monitors
Day traders must be able to execute their trades quickly to be successful. You must be able to swiftly switch between different transactions. In order to execute transactions as quickly as possible, your broker must employ a platform or software that has Hotkeys.
We have no idea how many times a quick rise in the stock price resulted in a $1,000 profit for a trader. It's important to be able to make money rapidly when the stock price rises. Fumbling with your orders is the last thing you want to do. As a result, we strongly suggest both a reputable broker and an order execution platform that is known for its lightning-fast speeds.