Day trading refers to rapidly buying and selling securities throughout the trading day in an attempt to capture gains from very short-term movements in the market. For active traders who seek to maximize intraday swings in stock prices, having the right brokerage is crucial.
When deciding on the best brokerage for your day trading needs, there are several key factors to consider:
- Commissions and Fees
- Trading Platforms and Tools
- Customer Service and Support
- Research and Resources
- Account Types and Minimums
- Execution Speed and Reliability
- Margin Rates
In this comprehensive guide, we’ll explore the features and offerings of the top 7 online brokerages for day traders in 2024. Our rankings are based on detailed reviews and research into commission structures, trading platforms, product offerings, and all the vital elements needed for successful active trading.
Overview of the Top 7 Best Stock Brokers for Day Trading in 2024
- Interactive Brokers
- TradeStation
- TD Ameritrade
- Fidelity
- E*TRADE
- Charles Schwab
- Webull
Read on for an in-depth analysis of each broker as well as additional guidance on getting started with day trading.
READ ALSO: 10 Stocks Primed for Day Trading Profits in 2024
1. Interactive Brokers – Best Overall for Active Traders
Interactive Brokers (IBKR) stands out as the best overall brokerage for day traders in 2024. With extremely low per-trade commissions, sophisticated trading platforms, access to global markets, and a wide array of tradable securities, IBKR checks all the boxes for active traders.
Key features that make Interactive Brokers ideal for day trading include:
- Ultra-low commissions as low as $0.0035 per share (min. $1 per trade)
- Powerful trading platforms with customizable options
- Advanced order types, algos, and routing strategies
- Integrated charting, analytics, trading tools, and real-time data
- Access to stocks, options, futures, forex, and bonds across global exchanges
- Discounted margin rates based on trading activity
The flagship trading platform from IBKR, Trader Workstation (TWS), provides professional-grade functionality complete with charting and analysis, custom alerts, paper trading capabilities, and automation through the Algorithmic Trading interface. For traders seeking an alternative to TWS, the IBot trading app offers robust mobile capabilities.
With competitive margin rates ranging from 0.75% to 3.92% based on monthly trading volume, along with volume discounts on commissions, Interactive Brokers offers favorable pricing aimed at active investors. Add in the ability to trade on over 135 global markets across asset classes 24/5, and it’s easy to see why IBKR is our choice for the best overall day trading brokerage.
Pros
- Ultra-low stock, options and futures commissions with volume discounts
- Advanced trading platforms with extensive customization
- Margin rates range from 0.75% to 3.92% based on monthly trading activity
- Trade 24/5 across global markets and asset classes
Cons
- Higher minimums for margin and options trading privileges
- Platforms can be complex for brand new traders
2. TradeStation – The Best Trading Platform Technology
For traders focused on utilizing advanced platforms, tools, and technology, TradeStation takes the top spot. As an electronic trading platform provider catering to active traders for decades, TradeStation offers unparalleled trading software to execute intricate strategies across stocks, options, futures, and crypto.
Standout features of TradeStation for day traders consist of:
- Commission-free stock and ETF trades
- Best-in-class web-based and desktop platforms
- Sophisticated trading and analysis tools
- EasyLanguage for coding custom trading strategies
- Competitive margin rates from 3.33%
The flagship TradeStation desktop platform delivers professional-grade charting, strategy backtesting, automated trading systems via EasyLanguage coding, and ultra-fast order execution powered by advanced technology.
The web-based TradeStation Web Trading platform also provides robust functionality for trading and analysis across device types. Whether building algorithmic strategies or visually analyzing charts on the fly, TradeStation empowers traders through technology.
With $0 stock and ETF trades alongside competitive margin rates, TradeStation offers traders premium trading tools and platforms without premium pricing. For technology-focused traders seeking advanced functionality, TradeStation is a top choice for day trading in 2024.
Pros
- Cutting-edge trading platforms and tools
- EasyLanguage for custom trading algorithms
- $0 stock and ETF trades
- Margin rates from 3.33%
Cons
- Limited branch locations
- Requires separate mobile app
3. TD Ameritrade – Best for Beginner Traders
Offering an excellent blend of education, platforms, tools, and pricing aimed at new investors, TD Ameritrade edges out competitors as the best for beginner day traders.
Key advantages of using TD Ameritrade for day trading consist of:
- $0 commission stocks, ETFs and options trades
- Intuitive web-based Thinkorswim trading platform
- Extensive learning resources and videos
- PaperMoney virtual trading simulator
- Research, screeners, charts, and analysis tools
With 24/7 customer support and resources like live webinars, videos, tutorials, and in-person events at local branch offices, TD Ameritrade goes the extra mile to help develop trading skills. Beginner traders can utilize PaperMoney, the virtual trading simulator, to practice strategies at no risk.
The powerful yet user-friendly Thinkorswim web experience offers purpose-built active trader platforms packed with tools, charting, analysis, screeners, and more to trade efficiently across devices. For new day traders seeking an optimal blend of technology, education, and service to get started, TD Ameritrade leads the pack.
Pros
- $0 stock, ETF and options trade commissions
- Accessible active trading platforms
- Trading simulator and abundant learning resources
- Local branch assistance and events
Cons
- Margin rates above competitors
- Limited international trading options
4. Fidelity – Best Research and Insights
Boasting extensive proprietary research and integrated third-party content, Fidelity takes the top spot for actionable insights and market perspectives tailored to active trading.
Key perks at Fidelity for day traders looking to enhance their research capabilities:
- $0 commissions for stock and option trades
- Robust Active Trader Pro desktop platform
- Technical, fundamental and quantitative analysis tools
- Integrated real-time news and research
- Expert market commentary and trading ideas
- Discounted margin rates from 8.325%
By seamlessly blending trading technology with data and insights across Fidelity platforms, traders can streamline research workflows to augment real-time decisions. Active Trader Pro provides customizable, trading-centric dashboards alongside virtual trading capabilities, charting tools, and screeners.
Pre-built scanning criteria can identify options trading opportunities or oversold stocks, while integrated Briefing.com commentary and real-time headlines keep traders abreast of relevant news. With premium market insights packaged alongside $0 equity and options trades, Fidelity empowers informed day trading suitable for beginners and experts alike.
Pros
- $0 stock and options trade commissions
- Integrated trading platforms and premium research
- Custom screeners for trade ideas
- Discounted margin rates up to 8.325%
Cons
- Advanced platforms can have steep learning curve
- Limited futures, forex and crypto offerings
5. E*TRADE – Best for Options Trading
As a pioneer in the online brokerage space catering to active traders, ETRADE shines for options trading, in particular with the Power ETRADE platform. Integrated tools for options analysis alongside discounted commissions make E*TRADE a go-to destination for derivatives trading.
Notable benefits of using E*TRADE for options-focused day traders include:
- $0 stock and ETF trade commissions
- Reduced $0.50 options contract fee
- Robust options analysis capabilities
- Options Strategy Builder tool
- Live Stream charting and news feed
- Margin rates from 9.25%
The Power ETRADE desktop and web trading platforms enable options traders to evaluate strategies across volatility, risk metrics, profit and loss modeling, and more with tools like Options Strategy Builder, Power Options, and Option Chain. Charting on Power ETRADE facilitates visual option analysis with studies tailored to derivatives.
With $0 equity commissions, reduced $0.50 options contract fees after 30 trades per quarter, and strong functionality aimed at options traders, ETRADE empowers traders to maximize opportunities with derivatives. Add in competitive margin rates, and ETRADE becomes a leading fit for day traders active in the options market.
Pros
- Discounted $0.50 contract options trades
- Robust options trading platforms and tools
- Integrated options and analytics capabilities
- $0 stock and ETF commissions
- Margin rates from 9.25%
Cons
- Higher margin rates for lower balances
- Separate mobile app experience
6. Charles Schwab – Best for Low Costs and Account Minimums
Charles Schwab combines $0 commissions across stocks, options, and ETFs with no account minimums, making it the most accessible brokerage for low costs and account minimums crucial to day traders.
Key advantages of Charles Schwab for active traders on a budget cover:
- $0 stock, ETF and options trade commissions
- No account minimums
- StreetSmart desktop and mobile trading platforms
- Integrated trading, research and analysis tools
- Ongoing education content for guidance
- Competitive margin rates from 10.825%
Both the StreetSmart Edge desktop platform and StreetSmart mobile apps provide robust charting capabilities with 100+ technical indicators, customizable workflows and layouts, simulated trading abilities, and integrated Schwab research and trading tools.
With $0 equity and options commissions alongside account minimums and maintaining requirements waived, Charles Schwab presents the lowest barriers to entry for account funding. Top it off with quality trading platforms, investment research, and educational guidance for developing skills, and Charles Schwab brings premium offerings to any budget.
Pros
- $0 stock, ETF and options commissions
- No minimum balances or deposits
- Capable desktop and mobile platforms
- Integrated trading, research and education
- Margin rates from 10.825%
Cons
- Advanced platforms have learning curves
- Limited futures, forex and crypto offerings
7. Webull – Best for Mobile Day Trading
Webull stands above other brokers for those focused exclusively on day trading stocks from their mobile devices. With a highly capable web-based platform alongside full-featured iOS and Android apps equipped with agile active trader functionality, Webull provides mobile-first convenience.
Integral components make Webull ideal for mobile day traders:
- $0 stock and ETF commissions
- Intuitive, agile mobile app experience
- Level 2 market data, real-time charts and analytics
- Pre/post-market trading is available
- Paper trading capabilities
- Generous deposit bonuses
While still accessible to new traders, Webull goes beyond other mobile trading apps with Level 2 quotes, customizable charts, research data, analyst ratings, and more built-in to efficiently execute and analyze trades on the go. Useful trading features like brackets and trailing stops complement traditional market, limit, and stop orders to manage positions effectively.
With $0 equity commissions matched with reliable mobile performance tailored to intraday trading, Webull allows traders to capitalize on real-time information and pivoting market conditions no matter where they are.
Pros
- Streamlined mobile trading functionality
- $0 stock and ETF trade commissions
- Level 2 quotes and real-time analytics
- Pre/post-market trading access
- Generous sign-up bonuses
Cons
- Web platforms are less developed than desktop
- Limited offerings beyond stocks and ETFs
Day Trading Brokerage Comparison
When it comes to day trading, it’s important to choose a brokerage that aligns with your trading style and goals. Here is an overview of key factors to consider when comparing day trading brokerages:
Commissions and Fees – Many brokerages like Webull, Robinhood, and Schwab offer $0 stock and ETF trades. But you’ll want to look out for any other fees, like options, account minimums, or data fees, which can quickly add up with high volume day trading.
Trading Platforms – An intuitive and fast trading platform with customizable charts, screening tools, and trading automation is ideal for active trading. TradeStation and Thinkorswim stand out in this regard.
Market Access – You’ll want access to your preferred markets, like stocks, futures, forex, and crypto. Brokers like Etrade and Interactive Brokers offer access to global markets.
Research and Tools – Robust charting with indicators, screening fundamentals, news feeds, and earnings data can help inform your intraday trading decisions. Fidelity and TradeStation have excellent proprietary resources.
Mobile Trading – If trading on-the-go is important, make sure to choose an app-based broker like Robinhood, Etrade, or Webull optimized for mobile use.
Overall, the best brokerage for your day trading needs depends on your specific strategy, capital, markets of interest, and trading style. Checking pricing, platform demos, and reviews can help determine which broker aligns closest to your priorities as an active trader. Analyzing the pros and cons accordingly is key to finding the right fit.
Day Trading FAQs
Get answers to some of the most commonly asked questions about day trading brokerages and accounts.
What is the minimum I need to day trade stocks?
The minimum requirement for day trading stocks in a margin account is $25,000 equity across all positions, according to the Pattern Day Trader Rule by FINRA. Without this minimum, traders are limited to 3 day trades over five consecutive business days before incurring penalties.
This rule applies to stocks, ETFs, and stock options settled in cash. With a $25,000 minimum balance through a margin account, there are no restrictions on the number of day trades.
What platforms are best for day trading?
The best trading platforms for day traders offer low latency connectivity to markets, advanced charting capabilities, real-time quotes and news, custom screening tools, integrated trading across devices, paper trading abilities, and risk management functionality through advanced order types like brackets and trailing stops.
Leading multi-asset brokerage platforms that meet these needs include Interactive Brokers Trader Workstation (TWS), the TradeStation desktop platform, Thinkorswim from TD Ameritrade, and the Power ETRADE platform.
How do I choose the right broker for day trading?
Finding the optimal day trading broker involves evaluating commission schedules and fees, trading platforms, product offerings, speed of order executions, margin rates, customer service quality, ease of account funding and withdrawals, research/tools and tool availability, and overall technology reliability.
Prioritizing your specific needs around these categories will determine which provider delivers the ideal experience to maximize your trading performance. Analyze pricing models at multiple brokers to minimize fees based on projected trade volumes and style.
What is the best day trading platform?
For professional traders, the Interactive Brokers Trader Workstation (IBKR TWS) platform stands out as the best platform for day trading overall thanks to ultra-low latency connectivity, an abundance of technical indicators, integrated charts and analysis, algorithms, and order automation alongside risk management tools.
TradeStation also excels with a desktop platform full of customizable charting, strategy testing abilities, EasyLanguage coding, and streaming market data connectivity, which are crucial to active intraday traders.
How do I start day trading with little money?
The $25,000 minimum balance required for unlimited day trades limits its feasibility for small account sizes. However, traders with less than $25,000 can engage in occasional day trades. Options include:
- Trade stocks/ETFs with settled cash (T+2); practice trade strategies risk-free with paper trading
- Focus strategies on swing trading over 2+ days; use spread bets (CFDs) with tighter margins
The Pattern Day Trader Rule restricting accounts under $25,000 to just 3 intraday round trips over 5 consecutive days allows some flexibility for small accounts to dip their toes into day trading on stocks and ETFs while avoiding penalties.
To Recap
Finding the right online stock broker tailored to your specific day trading requirements can empower you to maximize opportunities through leveraging technology, insights, and pricing to your advantage. With reduced and even $0 equity and options commissions becoming standard, focusing on the tools, platforms, and research available represents the next stage in leveling up as an active trader.
Through our rigorous assessment across essential categories like trading costs, platforms, margin pricing, product availability, and more, Interactive Brokers led the pack this year as the best overall broker for day traders based on the sophistication of offerings packed into impressively low pricing aimed at high volume traders.
Yet quality alternatives like TradeStation, TD Ameritrade, E*TRADE, Charles Schwab, and Webull all offer distinct strengths in key areas, from trading technology to derivatives tools to expert market guidance that you can match to your top priorities as a day trader.
Ultimately, identifying the brokerage that aligns with your strategy, markets of interest, account size, technology needs, and risk preferences will empower you to take
In another related article, The Hottest Stocks to Day Trade in 2024 Based on Volume and Volatility
