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Online Broker Platforms For Scalping Stocks (2020)


Best online brokerage platforms for scalping stocks and ETFs. Cheap, low cost scalping trading broker.



What is Scalping?


Stock market is full of special terms that are confusing to the outsiders. One of them is scalping. So what is scalping? In simple terms, it is a trading strategy of buying an investment and then very quickly selling it for a small profit. Sometimes the trader sells security he just bought within seconds after buying it.

Obviously, the person doing scalping is not an investor. He does not care about fundamentals of the company or ETF he is scalping, or what they do, or what prospects they might have. The goal is simple: to find the most probable way to make quick profit and execute it. The people doing stock/ETF scalping are called day-traders: as the name suggests, they are in and out of their positions within a day. Day traders usually don't hold securities overnight. They could buy security in the beginning of the day and then sell it at the market close. Or they could trade in and out many times during the day.

Since very often the sale after buying comes so fast, the price could only move so much. Sometimes it's a few cents. Sometimes it's just 1 cent. How could one make money on 1 cent move? The answer is easy - volume. If you buy and then sell 20,000 shares for 1 cent difference, you made $200 in profit (minus trading costs).


Best Brokers for Scalping Stocks


Obviously, with scalping the biggest expense the trader incurs is trade commissions. It could eat up trading profits really fast. Especially considering that not every trade is profitable: not only you loose money on the trade, but you also pay commissions.

For this reason it's extremely important for traders to find the best brokers for scalping stocks - free but very reliable.

For $0-commissions one of the best brokerage firm for scalping is WeBull. Yes, it charges no commissions for stocks, ETFs, and options trades (there is no catch) - read full WeBull Review.

Another very popular option is one of the most advanced trading platforms in the world: TD Ameritrade.

Scalping is definitely not for everyone. But if executed properly, with discipline and without emotions, it could be very profitable trading strategy.


Promotions


WeBull: Get FREE stock between $12 and $1400 + $100 in ACAT reimbursement.

TD Ameritrade: Get $0 stock commissions and ACAT fee reimbursement.








TD Ameritrade Scalping Platforms Overview


TD Ameritrade offers scalpers three trading platforms: web browser, thinkorswim, and mobile. thinkorswim is the desktop and laptop platform that scalpers usually use for trading. Let's take a look at it.


thinkorswim


Read detailed thinkorswim platform review under this link.


Trade Architect


After logging into the website, users can immediately launch Trade Architect into a separate window. On this Java-based platform, they will find everything they need to trade: market news, security research, charting tools, and trade buttons. There is also account information, watchlists, and tools to generate trading ideas.





Investors can track market indexes and watch financial news on CNBC or tastytrade. Trade Architect also displays news relevant to a particular security under investigation.

Trade Architect also boasts a handy zoom feature that allows users to easily zoom in or out of the application, giving greater control over the platform.


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Spotlight on similarities


Both platforms can be used to trade stocks, options, ETF's, and complex options. Unfortunately, fixed income and mutual funds cannot be traded on either platform, although quotes are available for mutual funds. Streaming charts and Level II quotes are available on both systems. Conditional orders can be placed on either platform. Live CNBC streaming is also available on both programs. Streaming quotes are also displayed on both platforms.

Both systems are customizable, with a selection of different background colors and the ability to dictate what windows are displayed. The default font on thinkorswim is rather small, although traders can enlarge this font.


How is Trade Architect different from Thinkorswim


The first difference between thinkorswim and Trade Architect that investors will notice is that Trade Architect is browser-based, whereas thinkorswim is a desktop application. Seasoned investors might prefer the desktop-launch, while new investors might find the web site platform simpler.





One advantage that TD Ameritrade has over other brokers is their offering of forex and futures. Thinkorswim offers investors the ability to trade forex, futures, and options on futures, but Trade Architect does not. That's one difference that really stands out, given TD Ameritrade's reputation of offering those financial products. Trade Architect simply has little value for traders who use TD Ameritrade for those products; although Trade Architect does display futures quotes.





Both systems offer technical analysis tools. However, Trade Architect offers only 50 tools, while thinkorswim offers more than 400. A second advantage that thinkorswim has is its paperMoney, a practice account where traders can practice using the platform with no risk of real money. Such a feature is a real benefit to investors who either need to learn the platform or who want to practice trading in general.

One advantage that Trade Architect has over thinkorswim is the availability of third-party research. Research information is displayed on Trade Architect for each stock that is entered on the system. Clicking on a link opens a new window with a research report from TheStreet.com, S&P Capital IQ, or similar analyst. Unfortunately, thinkorswim does not display such security analysis, making the platform weaker as a research tool. The website has the most research information.

In addition to live CNBC streaming, thinkorswim also offers a selection of on-demand CNBC recorded videos. Trade Architect only offers the streaming service.





Thinkorswim offers more customization of its chart than Trade Architect does.


Overall feel


Trade Architect's interface is a little more user friendly and easier to navigate. Thinkorswim's default typeface is smaller, and more information is displayed throughout the platform, making the system a little more difficult to navigate. Thinkorswim has a more sophisticated and professional feel to it and will suite better experienced scalpers. Novice scalping traders would probably have an easier time navigating through Trade Architect.