Aspiring day traders must have the right brokerage tools at their disposal to improve their chances of turning a profit. Some of these tools include advanced charting, access to margin for leverage, technical analysis and real-time market data.
“Day traders need a brokerage (that) offers ultralow latency and real-time market data,” says Richard Gardner, CEO at Modulus.
To narrow down the best brokerage for data traders in 2024, we ranked nearly 20 firms based on several weighted factors in the following categories: range of offerings, features, trading costs, account minimums and fees, margin interest rate, customer service, and security.
Best brokers for day trading
- Interactive Brokers.
- E*TRADE from Morgan Stanley.
- Fidelity.
- Webull.
- Robinhood.
- TradeStation.
Interactive Brokers
Blueprint Rating
Stock commissions fee
$0.00
Level II quotes
Yes
Margin interest rate under $10,000
6.83%
What you should know
Interactive Brokers (IBKR) is a well-regarded brokerage platform particularly suited for day traders. It boasts robust trading tools and features such as Trader Workstation (TWS), which provides professional-grade charting and analytics. If you’re new to day trading, IBKR’s Lite subscription offers commission-free stock trades, fixed pricing for options and futures, tiered pricing for currencies and bonds, and complimentary real-time streaming data.
If you’re a professional day trader looking for better pricing on nonstock securities, you might opt for the Pro subscription, which offers tiered pricing based on volume. Overall, IBKR offers access to not only over 135 global markets but also more than 100 order types, including bracket, conditional and trailing stop orders, enabling day traders to manage risk and automate their strategies more effectively.
Pros and cons
Pros
- Large array of order types with direct market access and access to over 135 global markets.
- Competitive margin interest rate of 6.83%
- Wide range of offerings, including stocks, bonds, ETFs, options, forex and futures.
Cons
- No 24/7 customer service support.
- No in-house research reports.
- TWS can be complicated for beginner day traders to learn.
E*TRADE from Morgan Stanley
Blueprint Rating
Stock commissions fee
$0.00
Level II quotes
Yes
Margin interest rate under $10,000
13.20%
What you should know
E*TRADE is a popular brokerage platform for beginners thanks to its intuitive web–based platform and mobile apps. But if you require more sophisticated tools for day trading, you can leverage its Power E*TRADE platform, which offers advanced charting, real-time market data and a variety of customizable technical indicators. Notable features include an earnings move analyzer, a paper trading simulator and a technical pattern recognition algorithm.
The advanced platform offers a mobile app and allows for advanced order types, such as conditional orders and trailing stops, which are critical for proper risk management.
In terms of fees, E*TRADE charges no commissions for stocks, bonds or options. But options are assessed a $0.65 fee per contract, which can be reduced to $0.50 for customers who place at least 30 trades per quarter.
Pros and cons
Pros
- The Power E*TRADE platform offers strong functionality in terms of order types and trading tools.
- Zero-commission stock, ETF and options trades, with per-contract fee for options that can be discounted based on sufficient volume.
- 24/7 customer service available via phone, email or live chat support.
Cons
- Higher margin interest rate of 13.20% for balances under $10,000.
- No forex trading or international stocks.
- No online courses.
Fidelity
Blueprint Rating
Stock commissions fee
$0.00
Level II quotes
Yes
Margin interest rate under $10,000
12.58%
What you should know
While best known for its no-load, low-fee suite of in-house mutual funds and retail investor-friendly platforms, Fidelity has a lot to offer day traders as well. Active Trader Pro, its proprietary desktop platform, acts as Fidelity’s competitor to IBKR’s TWS and E-Trade’s Power E-Trade, offering similar advanced charting, real-time market data and technical analysis capabilities.
Users will appreciate Active Trader Pro’s real-time customizable analytics and alerts. The platform’s Trade Armor helps define exit/entry strategies and visualize risk/reward trade-offs. There’s also an all-in-one, customizable daily dashboard with real-time news, earnings announcements and economic events.
Active Trader Pro also features after-hours trading capabilities, the ability to create and save up to 50 orders, multileg options trades, streaming quotes, and an idea generator with more than 45 market filters. Outside Active Trader Pro, Fidelity offers the usual zero-commission stock, options and ETF trades, with no account minimums.
Pros and cons
Pros
- The Active Trader Pro platform offers strong functionality in terms of order types and trading tools and can be heavily personalized.
- Zero-commissions stock, ETF and options trades, with no account minimums, transfer fees or wire fees.
- Strong value-added features like a comprehensive suite of educational and research resources, along with 24/7 customer service support.
Cons
- A high 12.58% margin interest rate for accounts under $10,000.
- No forex trading.
- No futures trading.
Best for DIY investors
Webull
Blueprint Rating
Stock commissions fee
$0.00
Level II quotes
Yes
Margin interest rate under $10,000
9.49%
What you should know
Day traders may find Webull’s customizable desktop platform more suitable for their needs. The platform is available for various operating systems, including Mac, Windows and Linux. The desktop platform is intended to be a fully customizable trading terminal, with the usual advanced charting, real-time alerts, screeners and technical signals and a full assortment of order types, including bracket and trailing stop orders.
If you’re a new registrant, you’ll also receive a one-month subscription to Level II quotes provided by Nasdaq TotalView. This type of tool is critical for seeing the full depth of orders on the market for a particular security.
Pros and cons
Pros
- Desktop trading platform is highly customizable.
- No account minimums and free ACH deposits and withdrawals.
- Competitive 9.49% margin interest rate on accounts less than $10,000.
Cons
- No bonds, forex, futures or international stocks.
- No online educational courses or in-house or third-party research.
- Customer service does not offer live chat support.
Best for crypto trading
Robinhood
Blueprint Rating
Stock commissions fee
$0.00
Level II quotes
Yes
Margin interest rate under $10,000
11.75%
What you should know
Many beginner investors got their start on Robinhood thanks to the brokerage’s intuitive and attractively laid-out mobile application. With the expansion of a web-based platform in 2017 and the launch of Robinhood Gold, beginner day traders can easily make the transition.
Robinhood Gold offers day traders a variety of beneficial features, including professional third-party research from Morningstar, Level II market data from Nasdaq, a low margin interest rate of 7.75%, bigger instant deposits and a 4.65% interest rate on uninvested cash balances. If you’re looking to try day trading, Robinhood offers Gold free for the first 30 days, after which a $5 monthly fee applies. Another benefit? Robinhood’s existing zero-commission trades for stocks, ETFs and options, along with a per-contract fee of $0.00 for options trades.
Pros and cons
Pros
- Simple, intuitive and attractive user interfaces for desktop and mobile apps.
- Low monthly fee for Gold that provides features such as Level II quotes.
- Zero-commission trades for stocks, ETFs and options.
Cons
- Desktop platform and mobile app lack advanced charting and analytics.
- No bonds, forex, futures or international stocks.
- No in-house research.
TradeStation
Blueprint Rating
Stock commissions fee
$0.00
Level II quotes
Yes
Margin interest rate under $10,000
12.50%
What you should know
If you’re an advanced trader, you’ll appreciate TradeStation’s advanced software TradeStation 10. This desktop platform is tailored to active traders, providing an adaptable interface equipped with top-tier charting tools, real-time market data and a vast range of technical indicators. Notable tools include RadarScreen, which can rank up to 1,000 securities in real-time based on customizable technical and fundamental signals.
There’s also OptionStation Pro, which visualizes the intricacies of options chains and multileg strategies with probability and risk estimates, along with a paper trading simulator. Finally, TradeStation’s EasyLanguage programming capabilities enable you to develop custom trading algorithms using English-like statements, which can help automate your strategies.
Pros and cons
Pros
- Highly versatile and customizable desktop platform that offers strong functionality.
- Full range of offerings, from stocks to cryptocurrencies.
- No account minimums.
Cons
- No 24/7 customer service support.
- Charges inactivity fees.
- Charges a $125 account transfer fee.
Compare the best brokers for day trading
| BROKER | COMMISSION-FREE STOCK TRADING | LEVEL II QUOTES | MARGIN INTEREST RATE UNDER $10,000 |
|---|---|---|---|
Interactive Brokers | ✔ | ✔ | 6.83% |
E*TRADE from Morgan Stanley | ✔ | ✔ | 13.20% |
Fidelity | ✔ | ✔ | 12.58% |
Webull | ✔ | ✔ | 9.49% |
Robinhood | ✔ | ✔ | 11.75% |
TradeStation | ✔ | ✔ | 12.50% |
Methodology
We reviewed and researched some of the largest online brokerages available in the U.S. to rank the best ones available on the market today.
For our rankings, we sent a digital survey consisting of more than 70 queries to each company we reviewed. Our researchers verified the survey data and confirmed any missing data points by contacting each company directly and via online research.
Among the brokerages considered, the seven that made our list excelled in areas across the 10 major categories (with weightings): range of offerings, trading costs, account minimums and fees, features, advisory services, insurance, customer service, education/research, security, margin interest rate and cash interest, and portfolio analysis.
- Within each major category, we considered several subcategories, combining them to give an overall score for that category, which we then weighted to calculate an overall ranking of the exchanges.
- Data points were scored on a 0.00 – 1.00 scale. The top raw score was 0.82, which curved to a 5-star rating as the highest possible score.
For scoring the range of offerings, we looked at whether the brokerage offered the following: stocks, bonds, mutual funds, exchange-traded funds, options, forex trading, futures, international stocks, fractional shares, cryptocurrency and over-the-counter (OTC) stocks.
Trading costs, such as commissions, were scored on a comparative scale. The following variables were scored for trading costs:
- Stock commission.
- ETF commission.
- Options commission (discounts for options trading).
- Futures commission (fee to open/close).
- OTC stock fee (minimum balance required).
- Broker-assisted commission.
For the account minimums and fees category, the following variables were assessed:
- New account bonus.
- Free ACH deposits and withdrawals.
- Inactivity fee.
- Account closure fee.
- Transfer account fee.
- Domestic wire fee.
- International wire fee.
- Deposit with a bank card.
The insurance category reviewed whether the brokerage has Federal Deposit Insurance Corp. and Securities Investor Protection Corp. protections, additional asset protections, and additional insurance.
Why other brokers didn’t make the cut
Because the needs of day traders tend to be unique and extensive, not all of the brokerage platforms we surveyed met the cutoff score for inclusion in this set of rankings.
The scoring methodology placed a heavy emphasis on features. The best brokerages for day traders featured above typically had robust, well-developed desktop-based platforms with strong functionality and technical capabilities, including advanced trading tools, customizable interfaces or comprehensive charting. Other features like a paper trading simulator, strategy backtesting and automation are also critical for day traders.
Trading costs also received a high emphasis in our scoring criteria. Given the high volumes day traders often execute, keeping fees low is paramount for success. Brokers who charged zero commissions for stocks, ETFs and options and low fees for futures and other assets therefore scored higher in our rankings.
Finally, other standard brokerage features like a firm’s range of offerings in terms of tradable securities, customer service and margin interest rates played smaller, albeit still notable, roles in the rankings. These are general quality-of-life features that are neither specific nor critical for day traders but can significantly enhance their experience if implemented correctly.
Methodology
We reviewed and researched some of the largest online brokerages available in the U.S. to rank the best ones available on the market today.
For our rankings, we sent a digital survey consisting of more than 70 queries to each company we reviewed. Our researchers verified the survey data and confirmed any missing data points by contacting each company directly and via online research.
Among the brokerages considered, the seven that made our list excelled in areas across the 10 major categories (with weightings): range of offerings, trading costs, account minimums and fees, features, advisory services, insurance, customer service, education/research, security, margin interest rate and cash interest, and portfolio analysis.
- Within each major category, we considered several subcategories, combining them to give an overall score for that category, which we then weighted to calculate an overall ranking of the exchanges.
- Data points were scored on a 0.00 – 1.00 scale. The top raw score was 0.82, which curved to a 5-star rating as the highest possible score.
For scoring the range of offerings, we looked at whether the brokerage offered the following: stocks, bonds, mutual funds, exchange-traded funds, options, forex trading, futures, international stocks, fractional shares, cryptocurrency and over-the-counter (OTC) stocks.
Trading costs, such as commissions, were scored on a comparative scale. The following variables were scored for trading costs:
- Stock commission.
- ETF commission.
- Options commission (discounts for options trading).
- Futures commission (fee to open/close).
- OTC stock fee (minimum balance required).
- Broker-assisted commission.
For the account minimums and fees category, the following variables were assessed:
- New account bonus.
- Free ACH deposits and withdrawals.
- Inactivity fee.
- Account closure fee.
- Transfer account fee.
- Domestic wire fee.
- International wire fee.
- Deposit with a bank card.
The insurance category reviewed whether the brokerage has Federal Deposit Insurance Corp. and Securities Investor Protection Corp. protections, additional asset protections, and additional insurance.
Why other brokers didn’t make the cut
Because the needs of day traders tend to be unique and extensive, not all of the brokerage platforms we surveyed met the cutoff score for inclusion in this set of rankings.
The scoring methodology placed a heavy emphasis on features. The best brokerages for day traders featured above typically had robust, well-developed desktop-based platforms with strong functionality and technical capabilities, including advanced trading tools, customizable interfaces or comprehensive charting. Other features like a paper trading simulator, strategy backtesting and automation are also critical for day traders.
Trading costs also received a high emphasis in our scoring criteria. Given the high volumes day traders often execute, keeping fees low is paramount for success. Brokers who charged zero commissions for stocks, ETFs and options and low fees for futures and other assets therefore scored higher in our rankings.
Finally, other standard brokerage features like a firm’s range of offerings in terms of tradable securities, customer service and margin interest rates played smaller, albeit still notable, roles in the rankings. These are general quality-of-life features that are neither specific nor critical for day traders but can significantly enhance their experience if implemented correctly.
Final verdict
According to our methodology, the best brokerage platform for day traders in 2023 is IBKR.
The firm has long excelled at catering to the needs of retail investors, professional investors and those in between with its sophisticated and powerful desktop platform. TWS offers a variety of features, including Risk Navigator, Model Navigator and Options Analytics. All three provide powerful tools for day traders looking to put strategies into play while managing risk and sizing positions effectively.
IBKR’s direct market access and wide range of orders greatly benefit traders looking for the best possible order execution. The platform’s real-time monitoring capabilities allow day traders to easily stay on top of their watchlists, alerts, profit and loss, trade activity, and margin requirements.
This, in addition to access to a massive range of global markets and tradable securities and coupled with attractive fee structures with tiered discounts based on volume, makes IBKR a strong contender for day traders.
And if you’re planning to use a brokerage for a purpose other than day trading, here are other lists you may want to review and consider:
- Best online brokers
- Best online brokers for beginners
- Best brokers for penny stocks
Frequently asked questions (FAQs)
While investors can purchase stocks directly from issuing companies using a direct stock purchase plan via a transfer agent, day trading requires a broker due to the high volume and frequency of transactions.
The broker is a necessary intermediary between you and the markets when executing trades at the best price. In addition, brokers often provide the tools and data day traders rely on.
There isn’t a required amount of money to buy and sell stocks within a single trading day, but there are requirements to meet if you plan to make a living doing it.
The Financial Industry Regulatory Authority (FINRA) and your broker may classify you as a “pattern day trader” if you place four or more day trades within a five-business-day period and the number of day trades is more than 6% of your total trading activity for that same five-day period. Pattern day traders must maintain a minimum equity of $25,000 in their margin account at all times before trading.
