Cheaper commissions come with higher frequency trades or higher trading volume each month.The rules adopt the term “pattern day trader,” which includes any margin customer that day trades (buys then sells or sells short then buys the same security on the same day) four or more times in five business days, provided the number of day trades are more than six percent of the customer’s total trading activity for that same five-day period. Is why brokers offer significantly lower commissions to high-volume traders.ĭepending on a broker, a per-share commission plan usually offers tiered fees, depending on a monthly trading volume or number of trades. Trader can easily exceed hundreds and even thousands of dollars, which can dramatically cut the daily profit and even exceed it. Daily commissions of an active high- volume Commissions are extremely an important factor, especially when it comes to day trading. Many retail brokerages offer flat-fee commissions, and only a few companies designed both for frequent and swing traders offer a flat-rate per-trade plan and a Advanced direct-access trading platform with the fast speed of execution is essential for an active trader. When looking for a brokerage firm for day trading, a commission structure and a robust trading platform are two major factors that active and experienced traders MoreĪbout day-trading margin requirements here.īest online brokerage firms for active traders A pattern day trading is regulated by FINRA.Ī balance of $25,000 must be maintained to be considered as a pattern day trader. Your total trading activity for that same five-day period. Sell short then buy a security on the same day) four or more times in five business days and your day-trading activities are greater than six percent of You will be considered a pattern day trader if you trade (buy and sell a security or When speaking about frequent trading, it often refers to day trading. The first and the second positions, and leaving behind the somewhat pricey TD Ameritrade'sĪmong all brokers for active traders, Lightspeed trading requires the highest initial deposit to open an account. The brokerage was included in the best four Barron's brokers for frequent traders, allowing Interactive Brokers and TradeStation to take
TradeStation is the better choice for those who are However, the platform has little to offer in terms of research.
Fast execution speed is the major advantage of the web-based The brokerage is definitely worth considering.Īctive and sophisticated traders will find Lightspeed trading pricing and multiple trading platforms a great fit. TradeStation requires the lowest initial deposit among the leading direct-access trading platforms. Tools, the sky is the limit at TradeStation." Just consider what Barron's said in its survey this year: "When it comes to trading TradeStation even waives a platform fee if certain trading volume conditions are met. The platform is one of the best in the industry for active traders.ĭay traders get access to numerous powerful scanning & search tools, analysis tools, tools for fast order executions and even advanced real-time risk management tools. The broker offers a fast and highly customizable direct-access trading platform.
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