Best Brokers for Active Online Day Trading 2013

If you are an active trader / day trader, and are looking for an option for you to open a brokerage account, you would probably be looking for a stable platform with fast execution and cheapest commission rates.

Read the editorial and user reviews of the most popular day trading brokerages above, which will give you a complete analysis of their day trading software features, commissions and fees, and their user feedback. Comparebroker’s research team went through various day trading brokerage platforms and have selected following brokers for your consideration:

What is Day Trading?

Day trading is the buying and selling of different financial instruments, such as stocks, options, currencies with buying and selling on the same day. The goal of online day trading is to execute a lot of trades, and make profit from the difference between the buying price and the selling price.
Before the dawn of Internet, Day trading was only available to big financial institutions, because only they had access to the exchanges and market data. Although, it involves high risk, some traders do day trading for a living.

How is Day Trading Done?

There are several different styles of day trading, suited to different day trader personalities. The styles range from short term trading such as scalping where positions are only held for a few seconds or minutes, to longer term swing and position trading where a position may be held throughout the trading day.

FREE Trading for 60 days + Get up to $600
12% chose this
  • 126 retail outlets across US
  • Excellent in-house and 3rd party research
  • Powerful, easy-to-use trading tools
  • #1 Broker for Novices and Long Term Investing - Barron's 2013
  • Stocks Trading Fee: $9.99
  • Options Trading Base Fee: $9.99
  • Per Contract Options Fee: $0.75
  • Minimum Balance: $2500.00
  • More Info...
Trade free for 60 days + get up to $600
4% chose this
  • Trading Technology Rated #1 by Barrons.
  • No additional commission on stocks under $2, large-size orders and extended hours trading
  • Best trading platform in the industry
  • Free virtual trading
  • Exclusive access to CNBC Plus directly within thinkDesktop
  • Stocks Trading Fee: $9.99
  • Options Trading Base Fee: $9.99
  • Per Contract Options Fee: $0.75
  • Minimum Balance: $2000.00
  • More Info...
Receive up to $150 in transfer fees when you switch to TradeKing
15% chose this
  • Best Customer Service: "SmartMoney's Annual Broker Survey
  • Broker Assisted Trade at no additional cost
  • #1 online discount broker by SmartMoney Magazine
  • Free real-time quotes
  • Stocks Trading Fee: $4.95
  • Options Trading Base Fee: $4.95
  • Per Contract Options Fee: $0.65
  • Minimum Balance: $0.00
  • More Info...
100 Commission Free Trades - Available to ALL new accounts
14% chose this
  • Free virtual trading
  • Refer to a friend and win $150 or 30 free trades
  • Cheapest Stock Trading Commission
  • No up charge for Broker-Assisted Trading
  • Ranked 6 overall By Barron's 2013
  • Orders are accepted by phone
  • Stocks Trading Fee: $3.95
  • Options Trading Base Fee: $8.50
  • Per Contract Options Fee: $0.15
  • Minimum Balance: $1000
  • More Info...
Exceptional Online Stock Broker with local branch offices
10% chose this
  • Over 500 physical offices for customer service
  • Easy transfer of an account from any other broker to Scottrade
  • Great emphasis on in-Person online education
  • Excellent Mobile Trading and Account Access
  • Stocks Trading Fee: $7.00
  • Options Trading Base Fee: $7.00
  • Per Contract Options Fee: $1.25
  • Minimum Balance: $500.00
  • More Info...

How to Choose a Day Trading Brokerage?


Day trading brokerages are different from traditional investment brokerages, because the former offer services specifically designed for day trading.

While choosing a broker, you must look for two things:

  1. Execution Time of Trading Platform: For a day trading, profits can change in seconds. Choose the broker with the best day trading platform. A Day Trading Software is an essential necessity for day traders who have to rely more on technical analysis rather than market news. Some of the best day trading software are esignal, ninjatrader, multicharts, and Madscan.
  2. Commissions: As you shall be executing a number of trades per day, therefore, commissions is one other area where you should dig in. Don't choose a broker with high commissions. Being said #2, I would advise to go with broker with a broker even though it has high commissions.

Day Trading Rules

If the frequency of your day trades is four or more times in five business days, you will be marked as a "Pattern Day Trader". In that case, you’ll be required to maintain $25,000 equity in your brokerage account at all times. If account balance falls below $25,000, a day trading minimum equity call will be issued and you have to deposit additional funds.

Best Day Trading Broker

TD Ameritrade stands out as the best day trading broker, because of its excellent trading platform, not very high commissions, and award winning customer service.

Popular Brokerage Offers

14% chose this

Get a $100 cash rebate to cover any transfer fees

 

14% chose this

Get a $25 cash rebate to cover the fees for your wire transfer to OptionsHouse.

 

4% chose this

Get 60 days of FREE trading + Get up to $600 Cash Reward

 

12% chose this

Get 60 days of FREE trading + Get up to $600 Cash Reward

 

Top