Best Day Trading Platforms & Brokers Reviewed for 2023

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 12 best day trading platforms for fees, safety, markets, leverage, analysis tools, account minimums, and much more.

Best Day Trading Platforms Reviewed

We have reviewed the best day trading platforms extensively, leaving no stone unturned. Read on to discover the 12 best brokers for day trading in 2023.

1. eToro – Overall Best Day Trading Platform in 2023

eToro is the best day trading platform for day traders. Launched in 2007, the eToro platform is simple to use, even for those without any prior experience. What’s more, first-time customers are only required to deposit $10 to activate their account. eToro even offers a free demo account that comes with $100,000 in virtual funds. This enables complete beginners to day trade in live market conditions but without depositing or risking any money.

In terms of supported markets, eToro offers access to thousands of day trading instruments. This includes dozens of commodities, including oil, natural gas, gold, silver, and platinum. Soft commodities are also supported, including wheat, corn, and sugar. eToro is also one of the best day trading platforms for forex. Over 50 currency pairs are supported across the majors, minors, and exotics. eToro also supports indices across multiple markets, such as the Dow Jones, NASDAQ 100, and FTSE 100.

eToro will also appeal to those looking to day trade equities. The platform supports over 3,000 stocks and ETFs across nearly 20 international exchanges. This includes stocks in the US, Hong Kong, UK, France, Germany, Saudi Arabia, Canada, and more. Additionally, eToro is one of the best crypto exchanges. The platform offers day trading markets across over 90 cryptocurrencies, including some of the best altcoins.

An important note to keep in mind regarding day trading on this platform is that eToro follows the regulations and rules set by the SEC and FINRA and therefore limits any activity that could lead to pattern day trading. This means that when a trader makes his or her third day trade, the eToro app will send an instant notification alerting that the limit has been reached for that 5-day timeframe.

When it comes to fees, USD deposits and withdrawals are fee-free. However, those depositing in another currency will be charged 0.5%. There are no day trading commissions to pay when buying and selling stocks and ETFs. All contracts-for-differences (CFD) markets can be traded on a spread-only basis. For instance, EUR/USD can be traded with a spread of 1 pip. Cryptocurrency positions are charged at 1% per slide.

There are also overnight financing fees to be wary of. That said, this will not apply to day traders that close their positions before the funding cut-off point, 17:00 EST. We also found that eToro is the best day trading platform for passive investment tools. For example, its copy trading feature offers access to thousands of expert day traders.

eToro users can choose a trader to copy, and all future positions will be replicated automatically. Put simply, this enables complete beginners to actively day trade without needing to do any of the legwork. The minimum copy trading investment is a reasonable $200.

In terms of payments, eToro accepts Visa, Maestro, MasterCard, and bank wires. It also supports e-wallets, including Paypal, WebMoney, Skrill, and Neteller. We also like that the KYC process at eToro is fast and simple. In most cases, new customers will have their KYC documents verified in under a minute. Do note that eToro charges $5 on withdrawals. However, this fee is waivered for day traders in the US.

Finally, eToro is also one of the best day trading platforms for safety. More than 30 million global clients use eToro for its strong regulatory framework. It holds licenses with four regulatory bodies, including FINRA, FCA, ASIC, and CySEC.

What we like about eToro

• Overall best day trading platform for beginners
• Great for beginners – get started with just $10
• Day trade currencies, stocks, indices, commodities, and more
• Regulated by multiple tier-one bodies
• Low trading fees and competitive spreads
• Copy the positions of an experienced day trader

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

2. 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.

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

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.

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

80% of retail investor accounts lose money when trading CFDs with this provider.

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.

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.

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. Trade Nation – A User-Friendly Trading Platform With Tight and Low-Cost Fixed Spreads

Trade Nation, established in 2014, is a promising day trading platform quickly becoming traders’ preferred choice. Its commitment to transparency sets this platform apart, which often seems uncommon in today’s markets.

Unlike other platforms that may raise costs during peak trading hours, Trade Nation’s fixed-cost spreads start low and remain low, providing traders with a reliable, cost-effective experience.

Moreover, it offers diverse market access. Whether indices, forex, or commodities, traders can access over 1,000 global markets through a single account, ensuring that new opportunities are never missed. Also, the leverage trading offered by the platform opens new avenues for maximizing profits

Security is also a prime concern for Trade Nation, and they have taken concrete steps to ensure client funds’ safety. It segregates client funds in renowned banks like Barclays.

Moreover, it is regulated by respected agencies like the UK’s Financial Conduct Authority (FCA) and the Australian Securities and Investments Commission (ASIC).  Another significant feature of Trade Nation is its intuitive and customizable trading platforms, such as TN Trader.

Accommodating both beginner and experienced traders, these platforms are designed to ensure ease of use without compromising on features. The availability of MT4 also adds to the flexibility in trading styles.

Finally, the customer success team’s presence, ready to help 24/5 (Monday-Friday), adds a human touch to an otherwise tech-dominated experience. It reassures traders that assistance is just a chat or call away.

Trade Nation combines transparent cost structures, diverse market access, robust security measures, and user-friendly platforms to offer a seamless trading experience.

67.3% of retail investor accounts lose money when trading CFDs with this provider.

5. 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. 

74% of retail investor accounts lose money when trading spread bets and CFDs with this provider.

6. 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.

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.

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

7. 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.

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.

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

Trading in financial instruments is a risky activity and can bring not only profits but also losses

8. Plus500 – Trade Leveraged CFDs Without Paying Any Commissions 

Moving on, we found that Plus500 is one of the best day trading platforms to trade CFDs. It supports thousands of CFD markets across multiple asset classes. This includes cryptocurrencies, forex, indices, bonds, stocks, commodities, and ETFs. Traders can go long or short on all supported markets. What’s more, Plus500 offers leverage, but specific limits will depend on the trader’s location. For example, those in the UK, Europe, and Australia are capped at 1:30 on major forex pairs.

But those in other regions can access much higher limits. Another feature of Plus500 is that it offers zero-commission trading on all supported markets. The platform also offers fee-free deposits and withdrawals, not to mention competitive spreads. For example, EUR/USD can be traded with a spread of 0.8 pips. That said, spreads do fluctuate depending on market conditions.

Plus500 enables users to day trade across its proprietary platform, available via web browsers and an iOS/Android app. This comes with technical indicators, custom order types, and real-time charts. While there is no copy trading feature, Plus500 supports educational guides, market insights, and an economic calendar. It also offers a free demo account facility. This enables traders to speculate on leveraged CFDs without risking any funds.

We also like Plus500 for its generous bonuses. For example, those depositing at least $200 with the promo code ‘Welcome’ will receive an $80 bonus. But do note that terms and conditions apply and the bonus funds must be wagered before a withdrawal can be made. Nonetheless, Plus500 also supports real-time alerts, keeping traders updated with core market movements. Alerts can be customized on any supported asset, including price changes and market sentiment.

To get started with Plus500, a minimum deposit of $100 is required. The platform accepts Visa, MasterCard, Skrill, PayPal, and bank wires. Crucially, Plus500 is a regulated CFD platform with licenses in multiple jurisdictions. Moreover, Plus500 is listed on the London Stock Exchange and is a constituent of the FTSE 250.

What we like about Plus500

• Heavily regulated CFD trading platform
• No fees on deposits or withdrawals
• No trading commissions on any supported market
• Trade thousands of assets with leverage
• Plenty of educational and analysis tools

9. 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.

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.

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

10. 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.

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.

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

11. 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.

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.

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

12. 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.

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. That said, the number of available traders is much lower when compared to eToro.

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

Top Day Trading Brokers Compared

The 12 best day trading platforms for 2023 are summarized in the comparison table below:

How we Select the Best Day Trading Platforms

Here’s an overview of our criteria when ranking the 12 best platforms for day trading in 2023:

• Licensing – All of the day trading platforms discussed today are licensed. That said, specific regulation varies depending on the platform. eToro is regulated by FINRA (US), ASIC (Australia), FCA (UK), and CySEC (Cyprus).
• 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 eToro, 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. We also like eToro’s copy trading tool, which supports passive trading.
• Minimum Deposit – Most day trading platforms are suitable for those on a budget. At eToro and Libertex, for example, the minimum first-time deposit is just $10.
• 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. eToro, for instance, offers a top-rated mobile app for iOS and Android. This ensures traders can enter or exit positions while away from their desktop devices.
• 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 traders remain open for hours or minutes. To make money, day traders need to correctly speculate on the future direction of an asset.

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

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?

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. eToro, for example, requires a minimum deposit of just $10. Moreover, the minimum trade size on eToro is also $10.

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. eToro offers a free demo account that never expires and can be replenished at any time.
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. Thousands of verified traders are registered with eToro for this purpose. The minimum investment per trader is just $200. Ultimately, the eToro copy trading tool enables users to day trade passively.

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.

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.

How to Start Day Trading

Now let’s explore how to start day trading with eToro.

This regulated day trading platform requires a minimum deposit and trade size of just $10. Moreover, eToro offers a free demo account, enabling beginners to practice trade in risk-free conditions.

Step 1: Open an eToro Account

First, open an account with eToro. This takes just minutes and requires some basic personal details.

This includes the user’s name, nationality, email address, and cell phone number.

Step 2: Upload KYC Documents 

Next, complete the KYC process. This requires a government-issued ID and proof of address.

A full list of supported documents is displayed depending on the country of residence.

Step 3: Deposit Funds 

The minimum deposit at eToro is just $10 for US and UK clients. Other nationalities will need to deposit $50 or more.

From the drop-down list, choose the preferred payment method. eToro accepts debit/credit cards, e-wallets, bank wires, and local payment methods.

USD payments are fee-free. Other currencies incur an FX fee of 0.5%.

Note: Looking to practice day trading before depositing funds? If so, skip the deposit process and switch to a ‘Virtual Portfolio’.

Step 4: Choose a Day Trading Market 

Now that the account has been funded, it’s time to enter a day trading position. But first, be sure to research the markets before risking any money.

eToro offers real-time pricing charts, technical indicators, drawing tools, and fundamental research. Simply click on an asset to view these metrics.

When a potential trade has been identified, click on the ‘Trade’ button next to the asset. This will populate an order box.

Step 5: Place a Day Trading Order 

The final step is to instruct eToro on the preferred day trading position. For example, the amount of money to risk and whether a long or short position is being entered.

In the example above, we short-selling EUR/GBP. This means we believe the price of the asset will decline.

eToro also supports leverage. Those wishing to trade with leverage should choose their preferred ratio.

Finally, click on the ‘Open Trade’ button to place the day trading order.

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, eToro is the best platform for day trading – especially for beginners. It offers a free demo account and a user-friendly dashboard, not to mention small account minimums of just $10.

eToro also offers a copy trading tool, enabling newbies to passively day trade the markets. Most importantly, eToro is a regulated platform that supports thousands of assets, including forex, stocks, commodities, and cryptocurrencies.

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

References

• https://www.etoro.com/en-us/customer-service/help/1679375392/what-is-pattern-day-trading/#:~:text=At%20eToro%2C%20we%20adhere%20to,for%20that%205%2Dday%20period.
• https://www.etoro.com/customer-service/help/343575/what-are-overnight-fees/
• https://brokercheck.finra.org/firm/summary/298361
• https://register.fca.org.uk/s/search?q=583263&type=Companies
• https://asic.gov.au/
• https://www.cysec.gov.cy/en-GB/entities/investment-firms/cypriot/37683/
• https://www.londonstockexchange.com/stock/PLUS/plus500-ltd/trade-recap
• https://www.marketwatch.com/investing/stock/xtb?countrycode=pl
• https://www.metatrader4.com/en
• https://www.cftc.gov/
• https://www.scb.gov.bs/
• https://ctrader.com/
• https://www.bloomberg.com/quote/EURUSD:CUR
• https://money.usnews.com/investing/stock-market-news/slideshows/best-blue-chip-stocks-to-buy-this-year
• https://nomadcapitalist.com/finance/offshore/top-9-expat-friendly-countries-with-no-capital-gains-taxes/
• https://www.bloomberg.com/quote/GBPEUR:CUR
• https://www.finra.org/investors/investing/investment-products/stocks/day-trading#:~:text=Who%20Is%20a%20Pattern%20Day,same%20five%20business%20day%20period.

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