Day trading is a business where you can really only be as good as your tools. Having the right platform to follow the market and make profitable trades, executed properly is important. That is why figuring out the right platform for day trading is so vital when you first start out. This review will help you navigate through all these different brokers to figure out which is right for you.
Interactive Brokers is designed for high volume traders. There is a high level platform for day traders and a high minimum account balance that can turn off casual investors. Trader Workstation is the name of the platform, which has a high reputation for tools and efficiency among day traders. Traders can easily create watchlists and customize alerts, while more advanced tools include a volatility tracker along with advanced tracking.
Beginning traders might not find a perfect home at Interactive Brokers. The interface at Trader Workstation can be completely overwhelming for novices. The company offers IB WebTrader for more intermediate traders. You want a low key broker with a low account minimum and low commissions when you start out as an active trader. Day trading is a very risky business to get into, so you need to be good in order to start. The educational offerings are not all that great.
No matter what level you are in the day trading game, having access to educational videos and content is important. The ways that Interactive Brokers can assist with furthering education as a day trader is not at the level that beginner traders would need.
No matter what online brokerage platform that you choose to use, you want to learn as much as you can about day trading before you begin to really make moves in the market. Day trading is hard and uncomfortable way to make a living. It can take many hours of screen time to learn how to do well. The fundamentals of sticking to the right strategy need to be absorbed before you can really start making complex trades.
It is important to find a day trading education site that can offer serious tutorial in strategy and techniques before you deposit a lot of money into an online broker like Interactive Brokers. The whole business is very complex and the risk profile can be steep for new traders.
For high frequency traders, Interactive Brokers is ideal because of their low commission structure. It is essentially designed for day traders. One dollar is the smallest trade commission possible and it is capped at 0.5% of the total value of the trade. That policy also rolls in regulatory fees. And the higher your volume of trades, the lower your average commision can be.
Traders that focus on options have an incentive to use the platform as well. Contracts are only 70 cents per contract and that rate can go down with a high volume of activity.
This is why many veteran day traders swear by Interactive Brokers’ platform Trader Workstation.