Traders utilize the best tools for day trading to swap more than $5 trillion in the currency market daily. Every day, hundreds of billions of dollars are traded in commodities and equities.
Even for sell-side analysts, software engineers, and other middlemen, this makes the financial market one of the most lucrative industries in the world.
Evercore, for example, charges tens of thousands of dollars for research articles. Bloomberg, for example, charges $20,000 per month per user to access information.
Brokerage businesses such as Charles Schwab charge clients exorbitant commissions to deal.
Industries have been disrupted in the recent past. For example, Tesla Motors, which produces high-quality electric vehicles, has revolutionized the automotive business, just as Uber has.
Because of the development of increasingly accessible technology, technological improvements have allowed many more players to enter marketplaces. Even if it isn’t free.
The free best tools for day trading listed below will assist you in making better financial decisions and becoming a better trader.
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What is Day Trading?
The phrase “day trader” is widely used to describe an investor who buys and sells stocks frequently, but the proper definition is someone who buys and sells the same stocks on the same trading day regularly.
The financial regulatory body FINRA defines A day trader as someone who buys and sells the same stock at least four times during the same trading day within a five-business-day period. A pattern day trader is someone who does this.
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How Does Day Trading Work?
Day traders seek to profit from Short-term stock movements by identifying patterns or trends.
They’ll buy Apple stock to sell it at a greater price a short time later. Active day traders try to profit from trades like this many times during the day.
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How to Choose the Best Tools for Day Trading
In a word, deciding what features and best tools for day trading are most important to you is the best method to find the finest day trading platform.
Any online broker will allow you to day trade, but not all will be the best broker for you.
If you want to trade options, for example, you should look for a platform that charges cheap commissions (you can learn more by checking out our best options trading platforms).
If you plan to use margin frequently, the margin rates you’ll pay on a certain stock trading platform are important to consider.
To trade while on the go, be sure your broker has a reliable stock trading app.
In any event, make certain that the day trading platform has the tools and capabilities you require.
Fortunately, most of them feature a “play money” mode that allows investors to try out the trading software without risking their own money.
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What are the risks involved In using the best tools for day trading?
Using the best tools for trading is a high-risk activity. A day trader should expect to lose all of his or her money if he or she engages in day trading.”
Simply put, stocks can be incredibly volatile over short periods, and predicting their movements can be difficult, if not impossible.
There is no such thing as a 100 percent or even close to 100 percent reliable day trading technique.
Furthermore, due to stock bid-ask spreads, the chances are just not in your favor while day trading.
Simply said, the price at which you can easily sell a stock is usually lower than the price at which you can gain it.
The difference between the two is usually only a few cents, but when you’re trading in and out of positions all day, you’d be amazed how much of a disadvantage this produces.
Day trading is especially dangerous if you trade on margin or with options, or if you trade with short sales, as these can make your account extremely volatile.
It’s possible to lose more money than you invest in some circumstances if trades go awry.
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How much is needed for the best tools for day trading?
In a nutshell, it depends on how active you want to be in the stock market and how long you expect to own equities.
There is no defined minimum if you just wish to purchase and sell stocks now and then.
However, you should know the “pattern day trader” rule and how it may impact you.
A day trade occurs when you buy and sell the same stock in a margin account on the same day, according to FINRA’s definition. (Note: Day trading is normally not possible if your account does not have margin capabilities.)
If you make four or more day transactions in a rolling five-business-day period, you’ll be tagged as a pattern day trader, according to FINRA guidelines.
And once you’ve done so, you’ll almost certainly be labeled a pattern day trader, even if you don’t continue to meet the criteria.
A broker can label you a pattern day trader if there’s a reasonable belief you’ll engage in day trading, according to the rule.
Here’s why you should know this. If you are classified as a pattern day trader, you must maintain a minimum of $25,000 in your account.
You don’t have to use it all in your day-to-day trading. It counts toward the total if you have long-term investments, for example.
However, if you plan to day trade, it must be in your account. Other restrictions apply to pattern day traders, but this is how the capital requirements are applied.
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Overview of Best Tools for Day Trading in 2024
Below are the best tools for day trading in 2024:
- TD AmeriTrade
- Webull
- E*Trade
- PlayStation
- Acorns
- Interactive Brokers
- Ninja Trader
- Forex. Com
- Robinhood
- Moomoo
10 Best Tools for Day Trading in 2024
Want to know more about the best tools for day trading? Below are the best tools for day trading you can find anywhere in 2024:
#1. TD Ameritrade
- Cost per trade: $0 for stocks and ETFs
- Account minimum: $0
- Best for Intermediate to advanced investors
TD Ameritrade is one of the best tools for day trading. It offers many investor-focused mobile apps, including the thinkorswim app.
This program allows users to trade stocks, options, foreign currency, and futures, among other things.
You may build charts, track trends, and simulate more complex trading possibilities based on your risk tolerance, goals, and overall investing strategy, among other features.
TD Ameritrade also provides a wealth of educational tools and resources to help you broaden and improve your knowledge of investing.
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#2. Webull
- Cost per trade: $0 for stocks, Stocks, and ETFs
- Account minimum: $0
- Best for New investors looking to learn
Webull is a commission-free and minimum-free brokerage business with a user-friendly mobile app.
The brokerage’s apps are jam-packed with useful information on a variety of assets and markets, including IPOs, dividends, popular ETFs and industries, Forex, and much more.
You can investigate all the above information and make investment decisions based on your findings right away.
While you can trade almost any form of security with this app, including stocks, options, and ETFs, Webull will soon add bitcoin trading.
I highly recommend it as one of the best tools for day trading out there.
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#3. E*Trade
- Cost per trade: $0 for stocks, ETFs, and options; $0.65 for options contracts and $1.50 for futures contracts
- Account minimum: $0
- Best for: Beginner to intermediate stock and options traders
E*TRADE is another brokerage giant, with a streamlined and user-friendly day trading interface. Stocks, exchange-traded funds (ETFs), futures, and options are all available to investors.
The software has a built-in risk assessment tool to assist you to estimate the potential risk factor connected with particular trade methods, and the pricing is very inexpensive.
For options traders searching for some of the lowest commissions on the market, this is a good alternative.
As an extra plus, if you need help completing a trade, E*TRADE Options Specialists are always available. It is one of the best tools for day trading.
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#4. Acorns
- Cost per trade: $3 or $5 per month, depending on your plan choice
- Account minimum: $5
- Best for: Beginners with very little to invest
The Acorns investing software is designed for individuals who are just getting started with their portfolio and have limited funds.
This app invests your spare change for you automatically for a flat monthly cost ranging from $3 to $5 depending on the account type you choose.
“Personal” and “Family” are the names of Acorns’ two plans. A brokerage account, a pre-tax IRA, a bank account, a debit card, financial guidance, and more are included with the Personal plan.
The Family plan expands your options even further, as it includes all the above plus an investment account for your children’s future.
You’ll link your Acorns account to your bank account once you’ve created one. After that, the Acorns app examines your spending.
It’s a simple technique to increase the value of your investments over time by investing modest sums of money. However, the sole disadvantage is that investment possibilities are confined to ETFs.
If you’re looking for a stock trading app, you’ll have to look at another day trading software on this list.
Still in doubt if it is among the best tools for day trading? Click the link below to get started!
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#5. TradeStation
- Cost per trade: $0 for stocks, ETFs, options, and futures; $0.60 per option contract and an additional $1.50 per futures contract
- Account minimum: $0 for the TS GO package, or $2,000 for the TS SELECT package
- Best for Advanced Investors
TradeStation is aimed toward two categories of investors: full-time traders who make a living from trading and part-time traders trying to diversify their portfolios.
Trades can be made in stocks, futures, ETFs, mutual funds, and bonds, as well as for cryptocurrencies, using the TradeStation app.
This program is for the more seasoned investor who requires in-depth analytical tools as well as real-time market monitoring.
TradeStation offers two different brokerage packages: TS GO and TS SELECT.
The TS GO package is the more basic of the two, while the TS SELECT package enables surcharge-free trading through the TradeStation Desktop solely.
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#6. Interactive Brokers
- Cost per trade: depending on trade volume and package
- Account minimum: $10,000 deposit required for the first eight months
- Best for Consistent traders
The Interactive Brokers mobile app has one of the most comprehensive feature sets of any app on this list.
Customers will have access to a vast array of potential investments, with market breakdowns unique to each form of asset.
Users will invest in stocks, bonds, options, futures, currencies, ETFs, mutual funds, hedge funds, and EFPs.
Besides transferring money between bank accounts, Interactive Brokers’ mobile check deposit service allows users to deposit money directly from checks.
So, if you’re trying to trade frequently and early, there are few better options than this app.
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#7. Forex. Com
- Cost per trade: 0.2 variable spread + $5 commission per $100k.
- Account minimum: $100,000 for the highest-tier account
- Best for High-end FOREX traders
Trading foreign currency is a different technique from trading stocks or exchange-traded funds (ETFs).
Though it comes with a larger risk, it also comes with a higher reward.
Mobile FOREX trading is available at Forex.com through normal, commission-free, or high-volume trade accounts.
Mobile trading gives you access to TradingView’s advanced charts, as well as the ability to quickly verify margin needs before completing a transaction.
You may also create custom watch lists and set alerts to ensure that you don’t miss any market changes that could affect your FOREX portfolio.
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#8. Robinhood
- Cost per trade: $0 for basic and crypto accounts; $5 for Gold account
- Account minimum: $0
- Best for: Beginner to intermediate investors
Day trading is made as simple as possible with the Robinhood investment app.
There is no account minimum to invest, and there are no trading or commission fees when trading stocks, ETFs, options, or even cryptocurrencies.
Customers’ transactions may not always be performed at the best price because of the company’s pay-for-order-flow contracts with market makers.
The UI of Robinhood’s mobile app is clean and simple to use. It’s also made with the beginner investor in mind.
You can quickly assess the performance of your portfolio and track your investment progress over time.
A free account could be a terrific way to get your feet wet in the stock market.
You can upgrade to a Robinhood Gold account if you want to broaden your investment options to include margin trading and after-market trades.
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#9. Ninja Trader
- Cost per trade: $0 for basic and crypto accounts; $5 for Gold account
- Account minimum: $0
- Best for: Beginner to intermediate investors
provides retail investors with some of the best charting, back-testing, and automation tools available.
This platform is difficult to surpass for more sophisticated traders seeking full chart customization and the opportunity to leverage thousands of indicators.
Backtesting and simulation tools are also included in the same platform, allowing you to continue developing your approach in the same place you trade.
Day traders can use unique trading methods in nearly any market they choose because they have access to stocks, currencies, futures, options, and contracts for differences (CFDs).
The absence of educational resources is the most significant disadvantage.
Beginners may become disoriented by the platform and find it difficult to use the full range of features available.
#10. Moomoo
Moomoo is one of the best tools for day trading, offering high-quality executions, extended hours, and high-volume order possibilities.
Commission-free trading, $0 options contracts, and a variety of market analysis tools are all available on the site.
In the same interface where you do your real trading, you may use over 50 indicators, access level 2 market data, and get the latest news on all your holdings.
The best part is that you can get all of this for free when you register an account.
However, it lacks back-testing and automated tools, which may make some traders feel unsatisfied.
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Conclusion
These are not the only best tools for day trading applications available, but they are among the best tools for day trading for 2024.
When choosing any of the best tools for day trading software to use, think about the big picture.
Examine the trading fees and account minimums, as well as the breadth of investment alternatives, available help, and the app’s usability and technical features.
Keep an eye out for apps with demo versions, which allow you to test out the features before investing in the platform.
Also, to make the process easier, consider using a brokerage comparison tool. Investing money can be as simple as installing an app, yet it can significantly improve your financial situation.
We hope this article has provided you with the best tools for day trading in 2024.
Frequently Asked Questions
You must pay taxes on any securities sales you make during the year. The IRS distinguishes between investors and traders, making it difficult to calculate the tax bill. Whether you qualify as a “trader” rather than an investor depends on how much you trade, how often you trade, and how much time you dedicate to it.
Day trading is permissible. However, if you day trade regularly, which is defined as four or more round-trip day trades in a five-business-day period, you must meet a $25,000 minimum capital requirement and follow specific margin regulations.
Stocks and options, to put it simply, can be volatile and unpredictable. There is no such thing as a day trading technique that is 100 percent accurate in predicting stock moves. If trades don’t go your way, you might lose a lot of money rapidly, especially if you’re using margin, trading options, or selling stocks short.
There are many types of research and publications on the results of day trading, and the conclusions vary. However, they all agree on two points.
No. Just a few best tools for day trading are enough for you to make cool cash.
References
- Tradersunion. com—Best Trading Software and Tools in 2024
- Nerdwallet. com—11 Best Trading Platforms for Day Trading of June 2024
- Stockbrokers.com
- Benzinga. com—Best Day Trading Software for Beginner to Advanced Traders in 2024
- Featured Image source
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