Webull
TD Ameritrade rating

Best Broker For Swing Trading. Top Swing Trader Platform in 2020


Top brokerage firm for swing trading stocks and ETFs. Online broker with best platform for swing trader.



What is Swing Trading?


Swing trading is typically defined as holding a position for a period of at least one day but for a maximum of 10-14 days. This position can be held in stocks or option contracts. Swing trading can possibly net smaller gains than traditional long-term investing in the short term but over an extended period of time if those small gains are compounded it can turn into a substantial return on investment.


Who is Swing Trading For?


Swing trading is for investors who have a higher risk tolerance than conservative long-term buy and hold investors but do not want the increased risk involved with day trading. Swing traders do not have to sit in front of their trading platform all day like day traders but still have to keep an eye on their positions consistently unlike long-term investors. Swing trading is best for someone whose confidence will not be altered by having to cut losses quickly and wants to implement a considerably aggressive investing strategy.


Advantages of Swing Trading With Webull


If you’re looking for a place to swing trade (defined as entering and exiting a trade within a 2-week period), Webull has resources designed just for you. These provisions include:


Software


Webull offers a computer platform (available both as a desktop program and a browser system) with full-screen charting and 9 technical indicators and 10 drawing tools. The software also incorporates no less than 8 chart styles, so you can choose whatever scheme you like best.

If you want to trade using charts, Webull’s platform provides right-click trading. Other choices in the drop-down menu include adding a note, creating an alert, adding a stock to a watchlist, and creating an advanced order.


Webull swing trading


Advanced orders at Webull include OCO, OTO, and OTOCO. These advanced orders are easy to submit using a discrete window.

Besides its computer platform, Webull also has a mobile app that has many of the same tools the computer platform has. In particular, we think the following 2 resources would be especially helpful for swing traders:

1. Simulated trading. Available on both the mobile app and computer platform, this resource is a great way to practice trading without putting real money on the line.


WeBull Review: Charting


2. Order ticket with stop-loss and take-profit orders. When entering an order at Webull, you can simultaneously submit take-profit and stop-loss orders, which are effective ways to exit a trade at a specified price. Other brokerage firms, like WellsTrade and Vanguard, don’t offer this type of order ticket.


WeBull Charts


Margin and Shorting Information


A major advantage Webull offers swing traders that other brokers don’t is margin information on every stock profile. Just enter a ticker symbol on either the mobile or computer platform and you’ll get a security profile with margin information.

On the computer platform, this information will be contained in an icon with a dollar sign. Just hover over it with the cursor and a pop-up window will be displayed with margin details such as available leverage and the cost to borrow funds.

An icon with a down arrow means the stock can be shorted. Hovering over it displays maintenance requirements and the cost to borrow the stock.

On the mobile app, you have to tap on these icons rather than hover over them with a cursor.


Webull Promotion


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Options Trading


Besides stocks and ETFs, Webull offers trading in option contracts. With short life spans, these assets are another good target for swing traders. Selling cash-secured puts and covered calls is possible at Level 1. Long calls and puts can be traded with Level 2 privileges.

Although spreads aren’t available right now, Webull plans to launch multi-leg trading sometime in 2020.


Cheapest options trading


Extended-Hours Trading


If you need to place a trade outside of regular market hours, Webull has you covered. The broker’s early-morning session begins at 4 am. After the market closes, Webull stays open until 8 pm. There is no additional charge for trading during these times.


Upcoming Cryptocurrency Trading


Webull is soon to roll out cryptocurrency trading. Digital currencies trade 24 hours a day, 7 days a week. Webull will offer Ethereum, Bitcoin, Bitcoin Cash, and Litecoin. These can be swing traded without significant regulatory restrictions.


Unbeatable Commission Schedule


Swing trading involves many purchases and sales. As a result, commissions become very important with this type of trading. But Webull clients have nothing to worry about because the brokerage house offers $0 trades on all products. This great pricing schedule even includes zero per-contract option fees.


Swing Trading Is Possible in an IRA


Webull now offers Individual Retirement Accounts. The great advantage of these accounts is that they are tax-deferred (tax-free in the case of the Roth account), which means short-term capital gains don’t have a higher tax rate as they usually do.

In a regular brokerage account, for example, gains from short-term trades are taxed at your marginal tax rate, which is typically a higher rate than America’s long-term capital gains rate. Short-term capital gains can be deferred or avoided altogether in an IRA.


Open Webull Account


Get 4 FREE stocks valued up to $1,600 + $100 in ACAT reimbursement.

Open WeBull Account