Best Day Trading Platforms & Brokers Reviewed for 2024

Why Trust Techopedia
Why Trust Techopedia

Day trading has gained immense popularity in recent years, attracting traders eager to capitalize on short-term market fluctuations.

With so many options available, it is vital to examine the features, reliability, and user-friendliness of different platforms to find the best fit for your trading style and goals.

Whether you’re an experienced day trader or a complete beginner, keep reading as we review the 10 best day trading platforms for fees, safety, markets, leverage, analysis tools, account minimums, and much more.

The 10 Best Day Trading Platforms

Our research suggests that these are the 10 best day trading platforms for 2024:

  1. XTB – XTB is a top-rated day trading platform that offers real stocks and CFDs. Traders can go long or short on over 1,850 stocks, not to mention hundreds of currency pairs, commodities, and indices. XTB’s native trading suite, xStation 5, offers high-level analysis tools that will appeal to seasoned traders.
  2. Plus500 – Plus500 is a popular futures trading platform trusted by over 25 million users worldwide. That’s because it’s reliable, and has low commissions on the platform. Trade 13 forex futures and over 2,800 CFD instruments  like stocks, ETFs, and cryptocurrencies on the Plus500 CFD platform and over 2700 real shares on the Plus500Invest platform; however, they are not available for US traders.
  3. AvaTrade – This day trading platform supports high-leverage markets across forex, stocks, options, commodities, and indices. The minimum deposit is just $100, and multiple trading platforms are supported, including MT4 and MT5. AvaTrade is authorized and regulated in nine jurisdictions, ensuring that users have a safe space to day trade.
  4. Pepperstone – Pepperstone is a multi-asset platform specializing in CFDs. This includes ETFs, stocks, forex, indices, commodities, and some of the best cryptocurrency to buy now.  Casual traders will appreciate the commission-free account, while seasoned pros will have access to institutional-grade spreads. Pepperstone supports cTrader, MT4, and MT5.
  5. Libertex – Depending on the trader’s country of residence, Libertex offers leverage of up to 1:999. This will appeal to day traders on a budget and need to amplify their trading capital. All markets on Libertex can be traded commission-free, and spreads are tight.
  6. IG – This day trading platform supports over 18,000 global markets across CFDs and spread betting. IG is also suitable for US traders wishing to speculate on the forex markets. In this regard, IG offers leverage of up to 1:50 on major pairs and 1:20 on minors and exotics.
  7. Capital.com – This popular trading platform is home to over 500,000 clients. Capital.com supports CFD and spread betting markets across thousands of assets, including stocks, cryptocurrencies, indices, and forex. Leverage is available on all supported assets, and no commissions are charged.
  8. Forex.com – This day trading platform has a superb reputation for safety, including licenses in the US, Canada, Japan, Singapore, and the UK. Traders in the US have access to over 80 forex pairs, plus gold, silver, futures, and options. Non-US clients can trade CFDs across thousands of markets.
  9. Skilling – Skilling offers a user-friendly trading suite that supports forex spreads from 0.1 pips. Other supported markets include stocks, indices, cryptocurrencies, and commodities. Standard accounts are commission-free and require a minimum deposit of just $100.
  10. Admirals – 20 year provider with low spreads, superb customer service, top-rated social reviews, and M4/M5 integration. Offers over 8,000 products with 1:500 leverage and even provides fixed income to customers.

Best Day Trading Platforms Reviewed

We have reviewed the best day trading platforms extensively, leaving no stone unturned. Read on to discover the 10 best brokers for day trading in 2024.

1. XTB – 2,200+ Commission-Free Markets via xStation 5 

XTB is home to a huge range of markets including real stocks and CFDs. This includes indices in the US, UK, and Europe – not to mention hard and soft commodities. XTB also supports digital assets, including some of the best-emerging cryptocurrencies. In addition to forex, XTB also supports stocks and ETFs from various international exchanges.

Previously only supporting CFDs, the broker recently announced that it would be launching shares in the UK, giving customers the opportunity to invest and trade in 15 of the world’s largest stock exchanges.

XTB review

There are two account types to choose from at XTB. Day traders might be more suited for the standard account, as spreads start from 0.5 pips. The swap-free account comes with minimum spreads of 0.7 pips, but overnight funding fees are waivered. Both account types come with leverage of up to 1:500 and commission-free trading.

XTB is also one of the best day trading platforms for seasoned pros. Its native platform, xStation 5, is packed with analysis tools, including technical indicators and custom charting screens. Available on browsers, smartphones, and desktop devices – xStation 5 also provides superior execution speeds. Those wishing to test xStation out can open a free demo account. This comes with $100,000 in virtual funds and can be used for four weeks.

The main drawback of XTB is its lack of passive trading tools. Moreover, there is no support for third-party platforms like MT4 or cTrader. That said, XTB does offer daily market insights and educational guides, enabling day traders to make informed decisions. There is also a high-level economic calendar. This displays upcoming events that are likely to impact the day trading markets

XTB review

To get started with XTB, it takes just minutes to register an account. There is no minimum deposit, and the platform accepts debit/credit cards, bank wires, and Skrill. Most importantly, XTB is a regulated broker, authorized and licensed by the FCA. Moreover, XTB is publicly traded on the Warsaw Stock Exchange.

For more details on this leading day trading platform read our full XTB review.

XTB
Supported Assets  Stocks, ETFs, forex, commodities, indices, cryptocurrencies
Pricing System 0% commission for all supported markets
EUR/USD Spread 0.8 pips
Min. Deposit None
Deposit Fee
2% for Skrill payments. All other methods are fee-free.
Day Trading Tools Customizable charting screens, technical indicators, chart drawing tools, order book data

What we like about XTB

  • One of the best day trading platforms for seasoned pros
  • Two commission-free accounts to choose from
  • No minimum deposit requirement
  • Access high-level trading tools via xStation 5
  • Real stocks and CFDs

77% of retail investor accounts lose money when trading CFDs with this provider.

2. Plus500 – Low Commissions Trading Platform With Over Futures Assets

Plus500 is a popular trading platform regulated and licensed by multiple financial authorities – Cunningham Commodities, LLC d/b/a Plus500, a Futures Commission Merchant registered with the US Commodity Futures Trading Commission and a member of the National Futures Association (NFA ID number 0001398).

There are 13 forex futures to trade, including major pairs like the American dollar and British pound, as well as exotic pairs like the Mexican Peso. Luckily, the Web Trader platform is simple to use as it lists all the assets under a single navigation bar.

Plus500 Site

Feel free to try out Plus500. There’s a demo account that never expires with up to $40,000 in virtual currency. This will help you determine whether the Web Trader platform meets your needs.

If you’re looking to trade on the go, there’s a mobile app available for iOS and Android devices that you can download. The mobile app is similar to the Web Trader platform.

 

Plus500
Supported Assets crypto, agriculture, metals, forex, interest rates, energy, and equity index
Pricing System low commission
EUR/USD Spread no spreads on the futures platform
Min. Deposit $100
Deposit Fee None
Day Trading Tools Advanced charts, news and market insights, alerts, risk management tools, and economic calendar

 

Pros

  • Transparency: no hidden fees and low commissions
  • Market Access: Trade over 13 forex futures and over 50 futures contracts
  • Regulation: Regulated broker with licenses in multiple countries, including the UK and Cyprus
  • Leverage: Depends on the margin
  • User Experience: Intuitive proprietary web-based trading platform and mobile apps

Cons

  • Limited Platforms: No MT4 or MT5 platforms for forex trading

Trading with leverage comes with a high risk and may not be suitable for everyone.

3. AvaTrade – Top-Rated MT4 Broker With Licenses in 9 Jurisdictions       

AvaTrade is one of the best day trading brokers supporting MT4. This popular trading suite comes packed with features, including fast execution times, technical indicators, and support for multiple charting screens. Moreover, via MT4, AvaTrade supports copy trading and real-time signals. AvaTrade also supports MT5 and cTrader. What’s more, AvaTrade even has a proprietary options trading suite that supports multiple strategies, including risk reversals, straddles, and strangles.

AvaTrade review

In terms of supported markets, AvaTrade specializes in CFDs. This includes stocks, currencies, indices, commodities, ETFs, and bonds. Best of all, there are no trading commissions to pay on any supported market. Spreads are usually very competitive, with EUR/USD averaging just 0.9 pips. There are no deposit or withdrawal fees, and the minimum account balance is $100. Finally, AvaTrade is authorized and regulated in nine jurisdictions. This includes licensing bodies in Ireland, Japan, South Africa, Australia, and the UAE.

AvaTrade
Supported Assets  Stocks, forex, commodities, indices, ETFs, bonds, options, cryptocurrencies
Pricing System 0% commission for all supported markets
EUR/USD Spread 0.9 pips
Min. Deposit $100
Deposit Fee
None
Day Trading Tools A huge range of technical indicators and chart drawing tools. Also supports MT4, MT5, and DupliTrade.

What we like about AvaTrade 

  • Supports MT4, MT5, cTrader, and its own native platform
  • Trade leveraged options across multiple strategies
  • No trading commissions to pay

Trading CFDs and FX Options entail risk and could result in the loss of your capital

4. Pepperstone – Multi-Asset Trading Platform Suitable For All Experience Levels       

Pepperstone is a multi-asset trading platform that supports over 1,200 CFD markets. This includes everything from indices and forex to cryptocurrencies, stocks, and commodities. We like that Pepperstone is suitable for all experience levels and budgets. For example, there are no minimum deposit requirements, and traders can choose from a standard or razor account. The latter offers institutional-grade spreads that start from 0 pips.

Pepperstone review

The former offers commission-free trading with minimum spreads of 1 pip. In addition to CFDs, Pepperstone also supports spread betting markets. When it comes to leverage limits, this depends on the trader’s country of residence. For example, traders that fall under the jurisdiction of the FCA or ASIC are capped at 1:30 on major forex pairs. But those under the jurisdiction of the SCB can trade with leverage of 1:200.

Pepperstone
Supported Assets  Stocks, forex, commodities, indices, ETFs, cryptocurrencies
Pricing System $3.50 commission per traded lot on the razor account. 0% commission on the standard account.
EUR/USD Spread From 0 pips (razor account) or 1 pip (standard account)
Min. Deposit None
Deposit Fee
None
Day Trading Tools Only supports third-party trading platforms, including MT4, MT5, cTrader, and TradingView

What we like about Pepperstone

  • One of the best offshore brokers for day trading (SCB license)
  • Spreads from 0 pips on the Razor account ($3.50 commission)
  • Standard accounts offer 0% commission trading

5. Libertex – Inclusive Day Trading Platform Offering Leverage of up to 1:999

Founded in 1997, Libertex is an established day trading platform available in over 120 countries. More than three million traders favor Libertex for its super-competitive pricing structure. Not only are all supported markets commission-free but spreads are competitive. For example, the average spread on EUR/USD is just 0.4 pips, while USD/CHF can be traded at 0.6 pips. But where Libertex really stands out is with its high leverage limits. Depending on the trader’s country of residence, leverage of up to 1:999 is available.

Libertex review

This means a $100 account balance offers trading capital of up to $99,900. That said, Libertex does fall short when it comes to supported markets – with just 250 instruments listed. This includes 50+ stocks and an assortment of currencies, crypto, indices, and commodities. Nonetheless, Libertex is also one of the best day trading platforms supporting MT4 and MT5. Libertex also offers its own native platform, available on web browsers and an iOS/Android app.

Libertex
Supported Assets  Stocks, forex, commodities, indices, ETFs, cryptocurrencies
Pricing System 0% commission for all supported markets
EUR/USD Spread 0.4 pips
Min. Deposit $10
Deposit Fee
Not stated
Day Trading Tools Leverage of up to 1:999, supports MT4 and MT5, negative balance protection, free demo account to trial new day trading strategies

What we like about Libertex 

  • Super-tight spreads of 0.4 pips on EUR/USD
  • Day trade with leverage of up to 1:999
  • Minimum deposit requirement of just $10

74.91% of retail investor accounts lose money when trading CFDs with this provider.

6. IG – US-Friendly Platform for Day Trading Forex With Leverage       

IG is a global trading platform that supports over 18,000 markets. Those from outside the US can choose from CFDs or spread betting. UK traders can also invest in real stocks and funds. US clients, on the other hand, will have access to one of the best online brokers for day trading forex. For instance, there are dozens of currency pairs that can be traded at 0% commission and tight spreads. EUR/USD starts from just 0.8 pips. What’s more, US clients can trade forex with leverage.

IG review

Major pairs require a margin of 2%, so that’s a maximum leverage ratio of 1:50. Most minor and exotic pairs can be traded with leverage of up to 1:20. We also like that IG supports multiple-day trading platforms. This includes MT4, ProRealTime, and its own native suite. The latter includes fully customizable charting screens, alerts, signals, technical indicators, and real-time news. Finally, IG is registered with the Commodity Futures Trading Commission.

IG
Supported Assets  Stocks, forex, commodities, indices, ETFs, bonds, options, futures, IPOs, and funds. US clients only have access to forex.
Pricing System 0% commission for all supported markets apart from stocks. Commission on stocks varies depending on the market.
EUR/USD Spread 0.8 pips
Min. Deposit No minimum on bank wires.  Debit/credit cards require a minimum of $250.
Deposit Fee
1% (Visa) or 0.5% (MasterCard).
Day trading tools Via ProRealTime, over 100+ technical and economic indicators, support for algorithmic trading, unlimited timeframes, and bespoke order types. Also supports MT4.

What we like about IG 

  • Established in 1974 and regulated in multiple jurisdictions
  • US clients can trade forex with leverage of up to 1:50
  • Non-US clients can trade over 18,000 CFD and spread betting markets

7. Capital.com – 0% Commission Day Trading Platform Supporting Leveraged CFDs and Spread Betting        

Capital.com is a popular trading platform used by over 500,000 global clients. Thousands of markets are supported, including indices, forex, commodities, and stocks. Capital.com markets are offered via CFDs and spread betting instruments. Both options support long and short orders, not to mention leverage. That said, leverage is capped at 1:30 on major forex pairs and less on other assets. Nonetheless, Capital.com does not charge trading commissions.

Capital.com review

We found that spreads on EUR/USD start at 0.6 pips, which is very competitive. No deposit or withdrawal fees are charged by this platform. Capital.com offers a wide range of analysis tools. This includes market sentiment, insights, technical indicators, and heat maps. Capital.com also offers one of the best day trading apps. Available on iOS and Android, the Capital.com app supports real and demo trading accounts.

Capital.com
Supported Assets  Stocks, forex, commodities, indices, ETFs, cryptocurrencies
Pricing System 0% commission for all supported markets
EUR/USD Spread From 0.6 pips
Min. Deposit $250 minimum on bank wires. Debit/credit cards and e-wallets require a minimum of $20.
Deposit Fee
None
Day trading tools Technical indicators, advanced charts, market insights, hedging and risk-management tools, and leverage

What we like about Capital.com 

  • More than 3,7000 commission-free markets to choose from
  • No deposit or withdrawal fees
  • Huge range of analysis tools and market insights

8. Forex.com – Heavily Regulated Day Trading Platform With Competitive Fees        

Forex.com is an established day trading platform that supports multi-asset classes. That said, supported markets and leverage limits are dependent on the trader’s location. For example, those in the US can trade over 80 forex pairs, alongside gold, silver, futures, and options. Leverage of up to 1:50 is offered to US clients on major forex pairs. Those from other regions can trade thousands of CFDs. In addition to forex, this includes stocks, indices, cryptocurrencies, and commodities.

Forex.com review

Most traders at Forex.com use the platform’s native trading suite. Available on web browsers and the Forex.com app, this supports customizable dashboards, technical indicators, and drawing tools. As one of the best MT5 brokers out there, Forex.com supports both MT4 and MT5 trading suites. Forex.com is also one of the day trading platforms for low fees. Standard accounts, for example, offer 0% commission on all supported markets. There is also a raw spread account, with major pairs starting at 0 pips.

Forex.com
Supported Assets  Stocks, forex, commodities, indices, futures, options, cryptocurrencies
Pricing System Depends on the account type. Standard accounts offer commission-free trading.
EUR/USD Spread From 0 pips, depending on the account type.
Min. Deposit No minimum on bank wires. Debit/credit cards and Paypal require a minimum of $100.
Deposit Fee
None
Day trading tools Trading suggestions via artificial intelligence, technical indicators, performance analytics, and support for MT4 and MT5.

What we like about Forex.com 

  • US-friendly day trading platform with commission-free accounts
  • Raw spread accounts offer access to 0-pip trading
  • Proprietary trading suite – plus MT4 and MT5

9. Skilling – Super-Tight Forex Spreads of 0.1 Pips on Major Pairs    

Skilling offers a user-friendly trading suite that covers over 900 tradable markets. This includes forex, ETFs, stocks, indices, and some of the best penny cryptocurrencies. We found that Skilling is one of the best day trading platforms for tight spreads. When trading major currency pairs, spreads start from just 0.1 pips. Moreover, standard accounts at Skilling offer zero-commission trading. That said, to get the tightest spreads in the market, a premium account is required.

Skilling review

This requires a minimum deposit of $5,000 and comes with a commission of $35 for every $1 million traded. Standard accounts, on the other hand, require a minimum deposit of just $100. Retail clients are offered leverage of up to 1:30. Traders can choose from Skilling’s native trading suite, MT4, or cTrader. Skilling also supports copy trading.

Skilling
Supported Assets  Stocks, forex, commodities, indices, cryptocurrencies
Pricing System 0% commission on the standard account. $35 commission per $1 million traded on the premium account.
EUR/USD Spread From 0.1 pip on the premium account. From 0.7 pips on the standard account.
Min. Deposit $100 (standard account) or $5,000 (premium account)
Deposit Fee
2.9% for e-wallet payments. All other methods are fee-free.
Day trading tools Technical indicators, leverage, drawing tools, super-fast execution speeds

What we like about Skilling

  • Spreads start from 0.1 pips on the premium account
  • Standard accounts offer commission-free trading and spreads from 0.7 pips
  • Supports a proprietary copy trading platform

71% of the retail investors lose money when trading with this CFD provider. Trading financial products on margin carries a high degree of risk and is not suitable for all investors.

10. Admirals – Low Spread Day Trading Platform Ideal for FX, 8,000 Products on Offer

Admirals is a 20 year provider that was recently rebranded from Admiral Markets. It has a great social reputation, with top reviews on TrustPilot and an excellent customer service team that caters to over 20 different languages.

It’s often difficult for financial enterprises to maintain high ratings on social review sites, but Admirals is one of the rare providers that has managed to do this, due to its high level of customer service which is very responsive and professional.

 There are a number of items that help Admirals to stand out from the competition. Aside from customer service and being something of a brand name it excels at FX trading.

Its FX spreads are lower than other providers and it integrates with MetaTrader 4 and MetaTrader 5, which were designed with FX trading in mind. It further offers MetaTrade Supreme Edition. 

Admirals offers a total of 8,000 products, including some very niche options like Bonds and Islamic trading accounts. And while Admirals mainly caters to moderate to advanced day traders, it has also started to offer beginner-friendly trading features, such as its recently launched Admirals Platform. 

This is a one-stop tool to cater to all investment requirements. The Admirals wallet allows for flexible account management as well as a debit card for spending. Fractional shares have also been recently introduced into the platform, which many retail investors will appreciate. 

To get set up with Admirals, Day traders will need a MetaTrader account, the main options being Trade.MT5 and Zero.MT5. The Invest.MT5 is more suitable to investors as opposed to day traders, having no leverage or hedging functionality, and limited markets without futures or FX. 

Admirals is regulated by 7 industries – UK, Cyprus, Canada, South Africa, Australia, Seychelles, and Jordan. However, it is not accepting applications from the USA, Canada, or Japan at the present time. 

All in all, this is a low-spread provider that excels for FX day traders but has plenty of options for the casual investor, even extending as far as fixed-income products. Customer service is very good and the platform is relatively easy to use. The only major downside is that it’s not available for the US, Canadian, or Japanese markets. 

Admirals
Supported Assets  Stocks, ETFs, Forex, Commodities, Indices, Bonds
Pricing System Low spreads; No hidden fees; 0.1 % of trade value. 
EUR/USD Spread Low Spread
Min. Deposit $25
Deposit Fee None
Day trading tools Real-time news, Market analysis, Technical indicators, Drawing tools, Charts

Pros pros

  • Assets: Over 8,000 assets, including bonds.
  • User Experience: Tailored tools and platforms for various trading levels.
  • Longevity: 20 years of service with a good reputation.
  • Social standing: Good Trustpilot rating and fast customer service response.

Cons cons

  • Availability: Not available to US, Canadian, or Japanese customers.
  • Modern Assets: No crypto products available.

Top Day Trading Brokers Compared

The 10 best day trading platforms for 2024 are summarized in the comparison table below:

Broker Supported Assets Pricing Structure EUR/USD Spread Min. Deposit Deposit Fee Day Trading Tools
XTB Stocks, ETFs, forex, commodities, indices, cryptocurrencies 0% commission for all supported markets 0.8 pips None 2% for Skrill payments. All other methods are fee-free. Customizable charting screens, technical indicators, chart drawing tools, order book data
Plus500 Stocks, ETFs, forex, commodities, indices, options, cryptocurrencies 0% commission for all supported markets 0.8 pips $100 None Real-time charts, trading sentiment, technical indicators, market insights, alerts, watchlists
AvaTrade Stocks, forex, commodities, indices, ETFs, bonds, options, cryptocurrencies 0% commission for all supported markets 0.9 pips $100 None A huge range of technical indicators and chart drawing tools. Also supports MT4, MT5, and DupliTrade.
Libertex Stocks, forex, commodities, indices, ETFs, cryptocurrencies 0% commission for all supported markets 0.4 pips $10 Not stated Leverage of up to 1:999, supports MT4 and MT5, negative balance protection, free demo account to trial new day trading strategies
IG Stocks, forex, commodities, indices, ETFs, bonds, options, futures, IPOs, and funds. US clients only have access to forex. 0% commission for all supported markets apart from stocks. Commission on stocks varies depending on the market. 0.8 pips No minimum on bank wires.  Debit/credit cards require a minimum of $250. 1% (Visa) or 0.5% (MasterCard). Via ProRealTime, over 100+ technical and economic indicators, support for algorithmic trading, unlimited timeframes, and bespoke order types. Also supports MT4.
Capital.com Stocks, forex, commodities, indices, ETFs, cryptocurrencies 0% commission for all supported markets 0.6 pips $250 minimum on bank wires. Debit/credit cards and e-wallets require a minimum of $20. None Technical indicators, advanced charts, market insights, hedging and risk-management tools, and leverage
Pepperstone Stocks, forex, commodities, indices, ETFs, cryptocurrencies $3.50 commission per traded lot on the razor account. 0% commission on the standard account. From 0 pips (razor account) or 1 pip (standard account) None None Only supports third-party trading platforms, including MT4, MT5, cTrader, and TradingView
Forex.com Stocks, forex, commodities, indices, futures, options, cryptocurrencies Depends on the account type. Standard accounts offer commission-free trading. From 0 pips, depending on the account type. No minimum on bank wires. Debit/credit cards and Paypal require a minimum of $100. None Trading suggestions via artificial intelligence, technical indicators, performance analytics, and support for MT4 and MT5.
Skilling Stocks, forex, commodities, indices, cryptocurrencies 0% commission on the standard account. $35 commission per $1 million traded on the premium account. From 0.1 pip on the premium account. From 0.7 pips on the standard account. $100 (standard account) or €5,000 (premium account) 2.9% for e-wallet payments. All other methods are fee-free. Technical indicators, leverage, drawing tools, super-fast execution speeds
Admirals Stocks, forex, commodities, indices, ETFs, bonds $0.02 0.6 pips $25 None A huge range of technical indicators.  Also supports MT4, MT5

How we Select the Best Day Trading Platforms

Here’s an overview of our criteria when ranking the 10 best platforms for day trading in 2024:

  • Licensing – All of the day trading platforms discussed today are licensed. That said, specific regulation varies depending on the platform.
  • Low Commission – Day traders target small margins, so it’s crucial that fees are kept to a minimum. At Plus500 and XTB, all supported markets are commission-free.
  • Spreads – Spreads are equally important when day trading. All of the platforms discussed today offer tight spreads across most supported markets.
  • Payments – We only consider day trading platforms that support convenient payment types, including debit/credit cards, bank wires, and e-wallets. Most of the platforms discussed today support fee-free payments.
  • Trading Platforms – We also spend ample time testing the provider’s trading platform. The likes of Plus500 and XTB have their own proprietary platforms. While AvaTrade and Pepperstone support third-party platforms like MT4 and cTrader.
  • Tools and Analysis – The best trading platforms for day trading provide users with appropriate analysis tools. This usually includes chart drawing tools and technical indicators.
  • Minimum Deposit – Most day trading platforms are suitable for those on a budget.
  • Demo Account – We prefer day trading platforms that offer a free demo account. This enables day traders to practice their preferred strategy risk-free.
  • Mobile App – The best day trading platforms are accessible online and via smartphones.
  • Customer Service – Account queries should be resolved quickly and efficiently, so we also consider customer support. Many day trading platforms offer live chat support around the clock. Some platforms also offer a telephone service.

What is Day Trading?

Day trading is an approach to trading in which traders open and close positions in the span of a single market day. Day traders almost never keep positions open overnight.

The advantage of day trading is that there’s no overnight risk. Day traders can’t lose money because of after-hours or pre-market news like an earnings report.

However, day trading can be a lot of work. Traders need to pay close attention to the market throughout the day and may need to manage multiple open trades at the same time. Day trades are typically fast-moving and can be open for as short as a few minutes.

How Does Day Trading Work?

Day trading is a popular strategy that focuses on short-term price movements. The overarching rule is that day traders never keep a position open past standard market hours. And hence, day trades remain open for hours or minutes. To make money, day traders need to correctly speculate on the future direction of an asset such as cryptos or the best penny stocks.

For example:

  • Suppose EUR/USD is trading at 1.08
  • The day trader believes EUR/USD is undervalued based on their research
  • As such, they enter a buy position on EUR/USD
  • A few hours later, EUR/USD is priced at 1.o9
  • The trader closes the position to lock in their gains

Due to the short time that positions remain open, day traders target very small margins. That said, this strategy entails entering multiple positions each day. Moreover, day traders usually enter positions with leverage. This amplifies both profitable and losing day trades.

Forex and stocks are the most popular assets to day trade. This is because these assets attract huge levels of volume and liquidity. Not to mention spreads are often tight. Other assets popular with day traders include commodities, indices, and even cryptocurrencies.

Crucially, there are hundreds of day trading platforms that support retail client accounts with small account minimums. This means that anyone can day trade from the comfort of their homes.

Day Trading vs Swing Trading

Day trading and swing trading are short-term strategies that require proficiency in technical analysis. Day trading positions will never remain open past standard market hours. While swing trading offers more flexibility, with trades remaining open for several days or weeks.

The key difference between day trading and swing trading is the amount of time positions remain open. For example, we mentioned above that day traders always close their positions before the end of the trading day. While this limits the upside potential, day trading is considered more risk-averse. This is because assets will often only increase or decrease by a small amount each day. As such, day traders limit their losses.

Swing trading does not require traders to close their positions before the markets close. On the contrary, swing traders can enter a position and keep it open for several days or weeks. On the one hand, this offers greater upside potential, considering positions have more time to grow.  But swing traders invite more risk. After all, positions remain open for longer periods, meaning losses can be amplified.

What Assets Can You Day Trade?

There are tens of thousands of day trading markets to choose from, including currencies, stocks, indices, and more. That said, to avoid high volatility, it’s best to stick with liquid markets like major forex pairs (e.g. EUR/USD) and blue-chip stocks.

The specific assets available to day traders can depend on their country of residence.

For example, many day traders opt for CFDs, which track the real-world value of assets in real-time. As CFDs do not represent ownership, they offer access to thousands of global markets. This often includes stocks, cryptocurrencies, indices, ETFs, bonds, and commodities. Moreover, CFDs offer leverage and enable traders to go long or short.

However, CFDs are not legal in the US. As such, US clients will have access to a smaller pool of assets. This often includes real stocks and ETFs, plus options and futures. US clients can also day trade forex.

Benefits of Day Trading

Listed below are the main benefits of adopting a day trading strategy:

  • Limited Losses – Day traders only keep positions open for a few hours at most. This limits the amount of time that losing trades remain in place. As such, day trading is considered more risk-averse than other strategies, such as swing trading.
  • Leverage – Although day traders target small margins, positions are often amplified with leverage. This enables traders on a budget to target higher gains. That said, leverage will also amplify losses, so tread with caution.
  • Markets – Day trading platforms offer access to plenty of markets, from stocks and commodities to forex, indices, and bonds. This enables traders to diversify across many different assets and markets. Moreover, this ensures that day traders always have access to profitable opportunities.
  • Long or Short – Unlike traditional investing, day traders can make money in both rising and falling markets. This is because day traders can go long or short on their chosen asset.
  • Small Account Minimums – Many day trading platforms enable retail clients to get started with a few dollars.

Day Trading Strategies

Now let’s explore some of the best day trading strategies for beginners:

  1. Niche Down: The most successful day traders specialize in a specific market, such as forex or stocks. Some traders go one step further by niching down to specific pairs or equities. Either way, it’s best to focus on a small range of markets when starting off. This will enable beginners to become proficient in their chosen market.
  2. Practice: Before risking any money, first-time day traders should use a demo account. Make sure the demo account mirrors actual market conditions and that it comes pre-loaded with virtual funds.
  3. Learn the Technicals: Technical analysis is the only way to effectively day trade. This is because day traders focus on super-short-term price changes. As such, become proficient in reading charts, deploying indicators, and evaluating trends.
  4. Bankroll Management: Another important strategy is to protect the day trading bankroll. In this regard, most beginners start off with the ‘1% rule’. Put simply, this means never entering a position worth more than 1% of the current account balance.
  5. Consider Copy Day Trading: Those without the time to learn technical analysis might consider copy trading. This tool enables beginners to ‘copy’ the positions of a seasoned day trader.

Is Day Trading Taxed?

Yes, day trading profits are generally taxed – just like any other investment strategy. That said, whether or not tax is applicable will depend on various factors.

For example, if the trader finishes the year at a loss, then no tax will be applied. Moreover, many countries have capital gains allowances. For instance, those in the UK can make up to £6,000 per year without paying capital gains tax. While some countries have no capital gains tax at all.

Do note that day trading platforms do not deduct funds from account balances for tax purposes. Instead, it is the responsibility of the day trader to manage their own tax affairs. In this regard, it’s best to speak with a qualified tax professional.

Best Forex Signals

We mentioned earlier that day traders are highly proficient in technical analysis. This means successful day traders can read and interpret charts, technical indicators, drawing tools, and market sentiment.

That said, those without the necessary technical skills might consider insightful forex signals. These are provided by third parties and offer suggestions on which currencies to buy and sell.

Learn2Trade signals

For example, premium Learn2Trade members receive up to five forex signals every day. These are curated by expert forex traders and inform members of which positions to enter. For example, the signal might suggest going short on GBP/EUR at an entry price of 1.15. The signal will also provide the suggested take-profit and stop-loss orders.

Ultimately, forex signals enable complete beginners to day trade currencies without researching the markets themselves. Instead, Learn2Trade memes simply need to enter the suggested trades at their preferred broker.

Things to Consider Before Day Trading

Here are five considerations to make before day trading online:

  • Day trading can be an emotional rollercoaster, especially for complete beginners. It is important to remember that day trading attracts both winning and losing trades. Never chase losses.
  • The most risk-averse way of day trading online is to implement the 1% rule. In doing so, traders will never lose more than 1% of their available capital.
  • US clients must consider the Pattern Day Trader Rule. This rule requires US investors to have a minimum account balance of $25,000 if more than three positions are executed within five working days.
  • While leverage enables day traders to amplify profitable positions, beginners should tread with caution. After all, leverage will also amplify losing trades.
  • Beginners should initially focus on high-volume markets, such as major forex pairs and stocks. These markets attract a lot of liquidity and day-to-day price movements are usually modest.

Conclusion

Day trading is a short-term strategy that requires knowledge of technical analysis and risk management. Those with the required skills will need to choose a suitable trading platform that offers low fees and plenty of analysis tools.

We found that overall, XTB is the best platform for day trading – especially for beginners. It offers over 1,800 stocks to choose from, and allows users to trade CFDs.

77% of retail investor accounts lose money when trading CFDs with this provider.

References

Related Topics:

FAQs

What platform do most day traders trade on?

Is day trading still profitable?

How does day trading work?

How much do you need for day trading?

How much does a day trader make?

What are examples of day trading?

Kane Pepi
Editor
Kane Pepi
Editor

Kane Pepi is an accomplished financial and cryptocurrency writer who has an extensive portfolio of over 2,000 articles, guides, and market insights. With his expertise in specialized subjects such as asset valuation and analysis, portfolio management, and financial crime prevention, Kane has built a reputation for providing clear explanations of complex financial topics. He holds a Bachelor's Degree in Finance and a Master's Degree in Financial Crime, and is currently pursuing his Doctorate degree, which focuses on investigating the complexities of money laundering in the cryptocurrency and blockchain technology sectors. Kane's wealth of knowledge and experience in the field make…