Best brokerage for day traders

Best Brokers For Day Traders


We believe that a successful day trader needs three brokerage accounts. First account should be with very low per-share plan to make small size trades of up to 1,000 shares. Second account should have low flat-rate plan for making larger trades (1,000 shares or more) that would be too expensive with the per-share plan. The third account will provide the best trading, research and charting tools which are usually found in more expensive brokerage firms.

Below we list our 2014 best brokerages for day-trading: TradeStation for low per-share trades, OptionsHouse for cheap flat-rate trades, and TD Ameritrade for fantastic set of trading and research tools. It takes 10-15 minutes to open day-trading account at OptionsHouse ($1,000 minimum opening deposit) or TD Ameritrade ($0 minimum opening deposit), and about 10 days at TradeStation ($5,000 minimum opening deposit). If you want to daytrade, all firms require at least $25,000 account balance.


4-star brokerage firm rating

Optionshouse Review

Optionshouse

InvestmentsCommissions
Stocks and ETFs $4.75
Stocks and ETFs broker assisted $4.75
Options
Plan 1. Up to five contracts for $5; each additional contract $1
Plan 2. $8.50 + 0.15/contract (great if trading over 10 contracts)
Spreads
Plan 1. Up to 10 contracts for $10; each additional contract $1
Plan 2. $12.50 + 0.15/contract
Mutual funds $9.95
U.S. Treasury bonds and listed corporate bondsOrders are accepted by phone

Investments stocks, options, mutual funds, bonds, ETFs
Optionshouse minimum deposit to open account $1,000 for cash account, $2,000 for margin account
FeesOptionshouse fees
Optionshouse login, Optionshouse promotions


With only $4.75 flat-rate stock commission and first up to 5 contracts for $5 and each additional contract $1 (OR $8.50 plus 0.15 per contract) in options commission, OptionsHouse is one of the best brokers for day traders and active investors looking for flat rate commission account to make larger trades that will be too expensive with per-share plan (see below).

Optionshouse offers lots of trading tools: Risk Viewer, Stock Screener, The Trade Generator, streaming charts and news, volatility charts, Spread Investigators and much more. All of them are customizable, fast and easy to use.

Volatility Charts - track changes in both implied and historic volatility to help you analyze volatility trends. This is huge for options traders as these charts help tell you if the option has a high or low premium attached to it. We love using this tool to find good options candidates to sell naked puts and calls on and keep the cash. The current, 52 week high and 52 week low of each volatility measurement is also given which is really helpful data to have.

The Probability Calculator - enables you to enter price targets for a given symbol and find the probability of an underlying symbol reaching these targets on a future date. One of the most important things in options trading is to make sure you’re right 70-80% of the time. This tool really takes the guess work out of it.

Risk Viewer - using proprietary algorithms, the Risk Viewer can help you better understand and estimate the potential risk in your portfolio.

Trade Generator - the proprietary technology in the Trade Generator scours the market for options trades and finds new trade ideas that match up with your inputs and sentiment. This is like having a personal assistant that hands you trade ideas that fit your strategy, only it’s free.

The firm's iPhone, iPad, Android and Kindle Fire Apps allow customers to access and manage their account in real time, regardless of where they are. The company revamped its browser-based platform, which now provides almost as much versatility and customization as a stand-alone application. Additionally, OptionsHouse offers virtual accounts in which people can trade and practice strategies before they use their real money.

Full Optionshouse Review

Optionshouse Review

Optionshouse Promotion Code

Get 150 commission-free trades at OptionsHouse.



3-star brokerage firm rating

TradeStation review 2014

TradeStation

InvestmentsCommissions
Stocks and ETFs flat-rate plan 1 to 9 trades/month - $9.99/trade; 10 to 29 - $7.99/trade; 30 - 99 - $6.99/trade; 100 - 199 - $5.99/trade; 200 or more - $4.99/trade
Stocks and ETFs per-share plan first 500 shares $0.01 per share, $0.006 per share thereafter, $1 minimum per trade
Options $1 per contract with no ticket charge, or $4.99 per trade + $0.20 per contract
Futures 25¢ - $1.20 per side, per contract + exchange, regulatory & overnight fees
Mutual funds $14.95
Bonds $14.95 + $5 per bond
OTCBB $9.99 (100,000 share position maximum)
Pink Sheet Stocks $9.99 (100,000 share position maximum)

Investments stocks, options, mutual funds, bonds, futures, T-Bills, OTCBB, Pink Sheet Stocks, Forex, ETFs
Tradestation minimum deposit to open account $5,000 for non-daytraders, futures and forex accounts, $5,500 for futures and forex IRA accounts, and $30,000 for daytraders
FeesTradestation fees
Tradestation promotions


TradeStation offers one of the lowest commissions among discount online brokers: it charges just $0.01 per share for the first 500 shares, $0.006 per share thereafter, with $1 minimum per trade. With that rate all stock trades of up to 100 shares will cost you just $1!

Unfortunately, there is a serious disadvantage with this broker: $99.95 fee will be charged to use their trading platform if customer did not trade at least 5,000 shares in previous month. With this fee it does not make sense to open account at the firm unless you can meet this requirement.

In 2013 TradeStation was rated Best for Frequent Traders by Barron's magazine. We rated the firm Best for Futures Traders in 2014. Right now for a limited time the company offers 90 days of free trading promotion, which gives you an opportunity to try them commission-free for 3 months (promotion link below).

Full TradeStation Review

TradeStation Review

TradeStation Promotion Code

Commission Free Trades. Up to $500 in commission rebates. Free tools. Get started today.



4-star brokerage firm rating

TDAmeritrade review

TD Ameritrade

InvestmentsCommissions
Stocks and ETFs $9.99
Stocks and ETFs broker assisted $49.99
Stocks and ETFs interactive voice response (IVR) telephone system $34.99
Options $9.99 + $0.75 per contract
No-load mutual funds $49.99
Treasuries at auction $25
All other bonds and CMOs, CDs on a net yield basis
Futures $2.25 per contract (plus exchange & regulatory fees)
Forex Non-commission currency pairs trade in increments of 10,000 units (and do not contain a "#" symbol suffix). There are no additional fees or charges.

Investments stocks, mutual funds, options, ETFs, bonds, CDs, UITs, futures, and forex
TD Ameritrade\TDA minimum deposit to open account $0 for cash account, $2,000 for margin account
FeesTD Ameritrade fees
TD Ameritrade login, TD Ameritrade promotions and TD Ameritrade referral


TD Ameritrade commissions are high - $9.99 per trade. But they are negotiable for active traders. What we really like is Thinkorswim trading software, that allows trading stocks, options, forex and futures from the same platform. This software is the best in the industry and a must-try for any day-trader.

TD Ameritrade is rated one of the top brokers for active traders by major investment magazines for the last few years.

Full TD Ameritrade Review

TD Ameritrade Review

TD Ameritrade Promotion Code

Trade free for 60 days + get up to $600.
This article was updated on 3/25/2014.



Please share us with your friends




Related articles

Online broker promotions:
Copyright ©2009-2014 Brokerage-Review.com. All rights reserved.
The stock brokerage firm you select is solely responsible for its services to you, the user. Brokerage-Review.com shall not be liable for any damages or costs of any type arising out of or in any way connected with your use of a brokerage house's services. Brokerage-Review.com has partner relationships with other companies. As a partner, we often provide reviews of products and services based on our personal opinions. We are not compensated for positive reviews. While we strive to make sure that the information we present here is true and accurate upon publication, the rates and offers that we share with you may change without notice, so please visit the sites we reference for more up to date information.