Best Online Brokers For Day Trading

Check out these day trading broker options.

Updated: May 28, 2024
Matt Crabtree

Written By

Matt Crabtree

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Day trading is not your average trading gig. It takes a lot of active monitoring and a good understanding of the stock market and trading platforms. Remember that not all platforms allow you to day trade, and there can be substantial risk. 

That being said, some people have been very successful with day trading, and if you’re up for the challenge, it might be a good fit for you. But to do so, you must carefully choose your platform for success.

Day trading typically requires a very active approach, and you will probably have high transaction levels. Look for platforms that support the activity, have reasonable fees, offer a robust trading platform, and provide you with good research tools. 

Look at these best online brokers for day trading to help you get started.

Investing in financial products involves taking risk. Your investments may increase or decrease in value, and losses may exceed the value of your original investment.

1. Plus500★★★★★Learn More
2. XTB★★★★★Learn More
3. Pepperstone★★★★★Learn More
4. TradeStation★★★★★Learn More
5 Interactive Brokers★★★★★Learn More
6. TradeZero★★★★Learn More
7. Fidelity★★★★Learn More

What Is Day Trading?

Day trading is exactly as it sounds.

This action is the art of buying and selling the same security daily. We see the same details if we look at the official definition from FINRA or the SEC regulatory agencies. FINRA says it involves buying and selling in a single day in a margin account. 

The SEC provides the same definition but also defines a pattern day trader. This individual is someone who executes four or more day trades within five business days. It takes a lot of work and focus to be successful at day trading. 

You also will likely not be able to day trade in any brokerage account unless you have excess funds to cover the buys and sells. In most cases, you will need an approved margin account. Accounts are not immediately provided margin, which typically must be requested or applied for. 

This result is because you are trading against money that isn’t technically there when you place the trade, in a sense. Margin covers that within certain limitations. 

Day trading is simply trading actively and quickly, buying and selling shares within one day. Yes, when you are day trading, you will buy some shares at the start of the day and by the time the day is done, you have sold those very same stocks.

What is the point of day trading? Doesn’t it make more sense to hold onto your stocks for longer instead of buying and selling within a few hours? The trick to day trading is making small gains with each transaction. The hope is that your net gains will add up to significant sums at the end of the process.

The 6 Best Online Brokers for Day Trading

Now, let’s check out the full range of the best day trader broker options. Compare the options below to choose the best platform to begin trading.

1. Plus500

80% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

With Plus500, you can complete day trading through its many platforms. You can day trade through its web browsers and the app for iOS or Android.

Some of the handy features of this online broker for day trading include technical indicators and real-time charts. Then, there’s +Insights, a nice additional feature that helps you day trade by gaining insights from other traders who use the platform.

The platform is well suited to day trading because it offers the features most seasoned day traders use. For example, we found that it offers stop orders that you can use when you open several small trades or close profit or loss options to manage your potential losses. Even though markets can be volatile, day traders can easily buy or sell positions and close them within the same day.

Plus500 also lends itself well to day trading with an intuitive interface that facilitates fast responses to market fluctuations.

Since day traders open multiple positions within one day, they must choose from multiple financial instruments and add them to their portfolios. Plus500 offers multiple financial instruments and makes selecting forex, cryptocurrencies and more through CFDs.

We found that the platform has low spreads and competitive trading fees. It doesn’t restrict pattern day trading and allows you to monitor each trade's results. You’ll also notice that market information can help you make informed trades when day trading; Plus500 offers market information to support this action.

2. XTB

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 77% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

XTB is a well-known day trader online broker because it has a wide range of tradable assets. This feature empowers clients to have an exceptional array of assets to trade whatever appeals to them at the time. You have access to more than 2,000 global markets through this online broker.

With XTB, you also don’t have to worry so much about excessive costs that burden your trading practices. This is extremely important, especially with day trading.

Minimizing costs will be a valuable trait for this site so that you can avoid excess costs like high commissions or even wire fees. 

The trading platform here is known as xStation 5. It’s a nice platform, and the company designed it themselves. It’s a top-notch trading platform that offers a lot of powerful information for you to work with. Trade execution is incredibly quick, another important aspect for day traders. 

You will also have access to plenty of support, research, and tools to make informed trades. The interface is easy to use and read if you are familiar with market charts and numbers. You can even see these charts on the trade screen tab if you want to. 

For UK residents looking to day trade through XTB, you can appreciate the ability to have a maximum leverage of up to 30:1. This is almost unheard of, so it gives you a ton of flexibility for your trading. 

If you like to watch the market closely, you can create charts, follow plot patterns, and use the resources here to monitor anything you want. Watch for patterns, utilize the indicators, and set yourself up for success as much as possible. 

You can use XTB from your mobile device, or you can use it from a desktop. The platforms are similar in both places. You can also filter in a variety of payment methods, including e-wallets.

3. Pepperstone

Pepperstone underscores the significant risks involved with leverage, with 75.2% of retail investor accounts losing money. Specialising in forex and CFDs, the broker offers a wide array of assets across global markets, leveraging advanced platforms like MetaTrader 4, MetaTrader 5, and cTrader. These platforms come equipped with comprehensive tools, although they may appear complex to beginners despite educational resources.

Pepperstone is noted for its competitive spreads starting as low as 0.0 pips and is recognised for exceptional customer support and deep liquidity, which ensures efficient trade execution without requotes. The high leverage available can greatly amplify both gains and losses, requiring careful risk management.

Focused primarily on forex and CFD trading, Pepperstone provides opportunities to trade on major pairs such as EUR/USD around the clock, aligning with the 24/5 nature of the forex market. This setup is ideal for traders worldwide, overcoming traditional market access limitations.

For both new and seasoned traders, Pepperstone offers accounts like the Razor Account that feature advanced tools and are tailored to individual trading strategies. While the platform facilitates a dynamic trading environment, the inherent risks of CFD trading and the need for diligent management are notable considerations for potential users.

4. TradeStation

Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options, futures or cryptocurrencies); therefore, you should not invest or risk money that you cannot afford to lose. Online trading is not suitable for all investors.

If you are getting into day trading, you want a lot of information. Information is critical to choosing the right stocks to buy and the correct number of shares to purchase. And, thankfully, TradeStation is great for that.

TradeStation has a lot of information, research, educational tools, and other charting tools that will help you make solid projections and give you good estimates of how your stocks will respond to the day and when you should pull your investment.

One of the best things about TradeStation is that it comes with streaming data that is both accurate and easy to read. The accuracy is very important, but you can rest assured that all the data is right, and you can make an assumption and a move based upon it without worrying about it being wrong. 

TradeStation has gone to great lengths to ensure everything it posts is right and that the data is second-to-none with TradeStation.

Their latest platform, TSgo, comes with no commissions on all US-based trading equities. You can also use the platform for any type of stock, including penny stocks. But remember that you have to pay a small premium for options trades. 

Via TradeStation, you can create, test, tweak, and use multiple strategies, and you can also use their third-party tools that will help you make the trading experience even easier and less stressful.

Day trading is all about having information and moving quickly, and TradeStation knows that. That is why they have done so much to give you plenty of reliable data and tools to stay up-to-date and trade as quickly as you need.

5. Interactive Brokers

Investing in financial products involves taking risk. Your investments may increase or decrease in value, and losses may exceed the value of your original investment.

For years, Interactive Brokers has been one of the most popular online brokers on the market, and it now has a legion of followers.

People rely on Interactive Brokers for several reasons, and each is enough to woo any type of day trader, including those just dipping their toes into this sort of investing.

Interactive Brokers has a customizable platform that comes with hundreds of watchlists and algorithms, and you can add up to 450 columns to your interactive dashboard, giving you a lot of access to so much data at one time.

You can also access up to 120 technical factors regarding charting. That sort of in-depth data will also give you in-depth analysis. This feature means that any day trading move you make will be based on research, data, and formative analysis and information.

The thing that keeps people returning to Interactive Brokers often is that it offers users wonderful and very accurate market scanners. This means that anyone using this broker can stay current with the market. 

You can have up-to-the-minute information about your stocks, meaning you will never be out of the loop or even a few seconds behind the latest information. 

If you’re into automated trading, you have come to the right place with Interactive Brokers.

Automated trading has become increasingly popular over the last few years, and its inclusion at Interactive Brokers is very welcome. With automated trading, you can set up the sort of options that you want, and the system will carry out the trade when the time comes. 

The brokerage has always emphasized keeping their fees low while helping all users carry out their trades quickly. They have followed through with the promise of bringing these things to their expanding customer base.

6. TradeZero

TradeZero has a lot of options for users, but it has been setting many precedents for making new platforms for its customers lately.

One of these new platforms, ZeroFree, is a great way for users to make their day trades. Its premium platform, ZeroPro, is better, but of course, you must pay more, including fees. It also comes with a monthly fee that you have to pay to use it.

TradeZero gives customers level 2 quotes and provides their users with great insight and a lot of information regarding market depth, momentum, liquidity, and more.

TradeZero also labours to make sure that the execution speed of any trade is quick.

This feature is very important because day traders are all about ensuring their trades go through in the shortest time possible. 

Those using TradeZero can access direct routing once their accounts hit a certain amount. Until that point, anyone can use various useful tools to help them make the right choice on the market. You can look into chart patterns, graphing, and more via TradeZero’s tools.

Customers get great margins and leverage rates with TradeZero, and they also get access to a wonderful and robust mobile app and a real-time streaming service that provides up-to-the-minute business news about the market. All of this together means that TradeZero is a one-stop-shop for anyone who wants to pursue a life of being a day trader.

7. Fidelity

Please remember that past performance is not necessarily a guide to future performance, the performance of investments is not guaranteed, and the value of your investments can go down as well as up, so you may get back less than you invest. When investments have particular tax features, these will depend on your personal circumstances and tax rules may change in the future.

Fidelity is a fan-favourite platform when it comes to day trading. This outcome has a lot to do with the promotions to set up a new account and the £0 account minimums and £0 trading fees for certain stocks and ETFs.

They have many options, and they allow day trading on the platform once you are approved.

The downside would be if you need broker assistance before making your trades. While the trade fees are £0 on many things, those broker assistance fees can be fairly expensive.

They have amazing customer service, but customer service cannot usually provide you with trading expertise. 

Their mobile app is one of the best out there. It’s remarkably user-friendly, so you can easily track stocks all day and place your trades. Through the years, Fidelity has come a long way, and they work hard to develop ingenuous features and capabilities for their customers. 

The investment tools you will have available to you are incredible, with simple charts, graphs, and insights to follow. These tools are designed and updated by specialists, so you have the best information at your fingertips. 

One thing to check out here are the margin rates.

Since margin is often needed for day trading, this is something to look at. Fidelity offers the lowest published margin rates, currently just 7%. Margin isn’t always required, but it’s a detail you should keep in mind for increased buying power when needed. 

At Fidelity, you can choose their traditional platform or upgrade to their Active Trader Pro solution. The Active Trader Pro has some additional features and technology that are more suitable for day traders, but it will not be a free account, so that’s something to be aware of.

What Are the Risks of Day Trading? 

Day trading is considered to have a much higher risk than traditional trading.

This outcome is because your potential for loss is much higher throughout the day. You’re making large numbers of trades, and it’s all based on predicting the market. 

You won’t make a big chunk of money on every sale, but rather small profits on every sale that add up. The risk is that you won’t make any money and might lose money instead.

It might be better to allocate a small percentage of your portfolio to day trading while keeping the remaining percentage in a more conservative to moderate strategy. 

What Are the Rules of Day Trading? 

It’s a common misconception that day trading is illegal, but that is not true.

However, it is monitored, and if you are actively day trading, you might find certain restrictions that you have to adhere to. These restrictions apply to pattern day traders, as we defined from the SEC above. 

The requirement is to retain a specified amount of equity within your account, which is $25,000 (£20,000) according to the SEC regulations. Even if you are not a consistent pattern day trader, you will likely remain that way once you are classified as one.

You can work with your brokerage should you cease day trading and need the equity limitations lifted. 

Best Online Brokers for Day Trading: Final Thoughts

Day trading is not for everyone and should be done with caution. However, that doesn’t mean it isn’t possible for some people.

If day trading interests you, these online brokers are conducive to the activity. They have simple platforms, exceptional research, and reliable services to help you succeed. 

Be sure to look at all the details before making a final decision. Choose a platform that will work for your needs and expectations. Always pay close attention to fees, costs, and margin requirements.

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