Tips on How to Choose the Best Day Trading Platform + Tools for You

What’s the best day trading software? There are so many to choose from…

In this post, I’ll go over some of the best day trading platforms available. I’ll also give you some tips on what to look for in a potential broker, and point you to some great tools to use in day trading.

It’s important to build a solid foundation before making that first trade. Learn as much as you can about day trading, software, and brokers.

Let’s get started!

What’s the Best Day Trading Platform, and Why Do You Need to Use One?

Choosing a day trading platform is a big decision. You want the right day trading platform and tools while you’re building your trading skills.

But first … What is day trading? And how can a beginner get started? 

What Is Day Trading?

Day trading is a short-term trading strategy that involves opening and closing a position within a single trading day. Sometimes a day trade will continue into the next session … but this isn’t usually the case. 

What Do You Need to Start Day Trading?

In theory, all you need is a brokerage account, a computer, and a Wi-Fi connection. 

In reality, you need tools — like a day trading platform — and you need to learn the process. 

When you’re ready to start scanning for the stocks that fit your style, check out StocksToTrade. I think it has some of the best trading tools available. Beautiful charts, scanners, indicators, and more make the trading day easier. Check it out — start your 14-day trial for just $7 today!

What Are the Risks of Day Trading?

All trading comes with potential risks. Day trading usually involves trading more volatile stocks. They have greater potential to make bigger moves … and those moves can be up or down. That means more risk.

Volatile stocks are risky. Especially in 2021, when chat rooms can be a factor…

That’s why for a day trader, it’s absolutely necessary to have a trading plan. Traders need to learn risk management, and to know when to take profits and when to cut losses. 

How Do I Learn How to Day Trade?

Even if you’re using the best day trading software out there, it means nothing unless you take the time to study and learn how to trade. 

I recommend starting with paper trading. That’s simulated trading that allows you to trade without risking your money. StocksToTrade has a great paper trading platform, by the way.

If you’d like to speed up the learning process, you can join the SteadyTrade Team, my mentorship program. It’s a chance to be a part of a community where everyone’s working to become a smarter trader. I go live several times a day to answer questions. Join today!

Best Day Trading Platform Tools

Data

Data software provides traders with critical information on stocks, futures, currencies, and markets. This information includes price research and price tracking from stock exchanges.

Traders use data software to help determine if potential trades fit their setups.

Charting

Charting helps traders with technical analysis and stock tracking over a given period. Traders use charts to view a stock’s history and determine patterns.

Almost all pro traders use charting software to chart prices. That’s how they find stocks that fit their setup and set good entries/exits based on their risk tolerance.

Trade Execution

After a trader analyzes a stock and decides to trade it, it’s time to hit that “buy” button!

Trade execution software, also known as an electronic trading platform, allows traders to place buy or sell orders. The software completes the transactions using funds from the trader’s brokerage account. 

Note: Not every broker is suited for every trader. You need to find a broker that best fits your trading goals and needs. Read on…

3 Best Day Trading Platforms That Allow Day Trading

Interactive Brokers

If you’re interested in trading on margin and shorting stocks, Interactive Brokers might be for you. But if you have a smaller account, you may need to look elsewhere. They require a $10,000 minimum deposit to start trading.

E-Trade

E-Trade is a broker with international access. That means you can trade from anywhere in the world. Commission fees are $6.95 per trade (at the time of this writing). They also allow for trading OTC pink sheets stocks. E-Trade is known for its easy-to-use technology.

Robinhood

I’ll be honest … Robinhood is not my go-to platform for trading. But I’m glad it’s inspiring new traders to get into the market. It’s helping young people build skills for their future. With no commission fees and a fun, interactive design, Robinhood appeals to new traders. It’s easy to understand why they enjoy starting with Robinhood before moving onto more robust platforms. 

And depending on which broker you choose, you can integrate your broker with StocksToTrade and make trades through the platform. Remember, a 14-day trial is just $7!

What Kind of Account Do I Need to Day Trade?

Before you determine which is the best day trading software for you, you need a broker that best fits your needs. Then you need to decide what kind of trading you’ll be doing. 

If it’s position trading, day trading, or swing trading, then a simple cash account will probably do.

Traders who like shorting stocks need to open a margin account. This involves borrowing from a broker to bet on a stock that you think will go lower.

Shorting is a much riskier way of trading, and I don’t recommend it for newer traders — especially in this volatile market. I say go long before you try to short. Start with the basics and keep it simple.

How to Use Top Day Trading Software

Watchlists

A watchlist is a tool traders use to keep an eye on stocks they may be interested in at some point. Almost every pro trader has a watchlist and uses it every day. It allows them to keep an eye on emerging stocks, hot sectors, and potential trade ideas.

Scanners

A stock scanner is a piece of software that can quickly sort through a vast universe of stocks, looking for specific criteria. A scanner is a great tool for traders to find potential stocks to trade that best fit their trading setups. It’s how you can find the biggest percent gainers with high volume and a low float … Or whatever you might be looking for.

Indicators

There are so many different indicators, technical and fundamental, to use when looking for stocks to trade. Fundamental analysis evaluates factors such as a company’s earnings, sales, and management. Technical analysis looks at a stock’s charts, price, and trading volume.

Daily Alerts

Most day trading platforms offer stock price alerts. I think StocksToTrade’s Oracle Alerts and Small Cap Rockets alerts are up there with the best. 

Oracle Alerts is an artificial intelligence and big data algorithm that scans all the markets every day to find the hottest potential picks. But that’s not all … Our team breaks down this watchlist to pick the top stock and send you an Oracle Daily Direction Alert with analysis. It can be a great tool for any trader who’s learning. 

(Whether you use an algorithm or not, there are never guarantees in the market. For best results, use algorithmic trading as part of your overall strategy — don’t rely on it entirely. Always do your due diligence. Remember that all trading is risky.)

What to Look for When Choosing a Broker for Day Trading

Quality Customer Support

Let’s say it’s a volatile day and you’re in the middle of a trade and all of a sudden …  your internet crashes. You’re stunned. Are you now stuck in this trade? 

You want to make sure right away that you’re completely out of the trade. So you call your brokerage, but the line’s busy and there’s a 15-minute wait. In that time, maybe the market’s hit your order and your trade opportunity has disappeared. 

As a trader, you want to avoid this kind of situation. That’s why you need a brokerage with good customer service. And not just for when something goes wrong — you want to make sure they’re available any time you need them.

Affordable Commission Rates and Fees

Don’t forget to factor in any fees and commission rates you’ll pay with a broker. If you don’t, they could add up, fast!

New day traders often make the mistake of thinking commissions are a small percentage of their trading volume, and they don’t matter much. This is a terrible mindset to have!

Trading is a business. Smart traders will run the numbers on how much they’ll pay to run their trading strategy before picking a broker.

Safety of Your Funds

Think of choosing a broker like picking a bank to keep your money in.

Some offshore stockbrokers try to entice traders by offering zero-commission trading rates or other perks. But these brokers may not be well regulated, so there can be more risk. 

I’ve heard plenty of horror stories about brokerages closing up on a day’s notice. When that happens, clients get screwed…

Don’t fall into that trap! Make sure you use a reputable broker.

Is it Safe to Use Day Trading Platforms?

Do your research and make sure you find a reputable broker with the best day trading platform for your individual needs. Using a platform with a trusted name is a must. There are way too many fly-by-night trading platforms out there…

StocksToTrade was built by traders, for traders. It’s no secret that it’s my go-to trading platform!

Which Platform Is Best for Day Trading?

There are so many different trading platforms out there, and there’s no perfect solution for every trader. You have to go with what’s best for YOUR individual trading needs.

Each day trading platform has its own unique design and features. Traders need to choose the platform that works best for them. For example, the best penny stock trading platform might not be the best choice for long-term traders…

Don’t follow the crowd — choose the best day trading platform for your needs. 

Frequently Asked Questions About Best Day Trading Platforms

Do You Need a Broker to Day Trade?

Every trader needs to have a trading account set up with a brokerage. While the best day trading platforms will help you find stocks to trade, determine the best setups, and give you market insight, your brokerage will execute those trades using the funds in your account. 

What Are the Best Days to Day Trade?

In today’s market? Every day! There’s so much opportunity out there, it’s crazy! That’s why it’s more important than ever to have the best day trading platform you can find. And be ready to adapt to a shifting market. The best traders learn to trade through anything.

They also keep up with the latest news that can move stocks. How? StocksToTrade’s Breaking News Chat add-on feature. Two market pros alert members to the news that can really move stocks. Get a 14-day trial of StocksToTrade with Breaking News Chat for $17!

What Trading Software Do Professionals Use?

Professional traders use the trading software that they think best suits their trading needs and strategies. There’s no single best day trading software for all traders. Do your research to determine which platform or software might be best for your trading needs. I’m biased and LOVE StocksToTrade. Find your best platform with plenty of due diligence.

Which Timeframe Is Best For Day Trading?

I talk about this all the time on my Pre-Market Prep sessions — I go live every trading day at 8:30 a.m. Eastern. I think new day traders should avoid trading at market open and wait until after 9:45 a.m. … or trade after 2 p.m. That allows time for better breakout patterns to develop. Plus, the “pumpers” are usually gone by then.

How Much Money Do I Need to Day Trade?

When it comes to day trading, you don’t need to have a large account. In fact, starting with a small account is common. How small depends on your circumstances and your broker’s requirements.

Can You Day Trade Without $25K?

Yes. It’s a common misconception that you need a $25,000 account to start day trading. Less than that will mean you’re under the PDT. And some larger brokers require that amount as a minimum to trade on margin. But I don’t recommend that newer traders trade on margin and many traders start with much smaller accounts.

How Do I Become A Day Trader With $100?

If $100 is all you’re willing or able to risk, you may want to wait until you have more capital saved. Starting with $100 just isn’t enough to properly trade and grow your account. Start with paper trading, build your skills, and wait until you’re ready.

The Bottom Line About Day Trading Software

Finding the best day trading software is a big step for every trader. There are many things to look out for, so it’s important to take the time and do the research.

And remember, no single day trading software platform is right for everyone. Every trader has different needs. It’s all about what works for you.

Finally, if you’re just starting as a day trader and you’re still deciding which software to use,  check out StocksToTrade for 14 days — it’s just $7.

Which do you think is the best day trading platform? Leave a comment below!

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