Day Trading Brokers – Tips on Choosing One
With the rise of online trading, traders are engaging in day trading and trying to make small regular profits and for this they need a day trading broker. If you want to choose one use the simple tips below.
The most important criteria in choosing a day trading broker is the cost of doing business. You should choose the lowest transaction cost you can. If you trade regularly then transaction fees mount up and impact your profit and loss.
If you want a day trading broker, you want them to transact orders only and don’t want advice. Many brokers will offer you signals and alerts and advice – don’t fall for it. If brokers could make money they would be traders and not brokers.
If you want to be successful in trading then you need to do it on your own – only you can give yourself success.
You need to be comfortable with the platform the broker uses and ensure that it’s reliable and you have 24 hour support. In most cases, a broker will let you test drive the trading platform and you can see how you get on with it with a demo trading account before risking real money.
Size and Security
Look for well capitalized brokers that have been in business for a few years, are stable and look at regulation and protection of your money.
Bigger is better when you are using a broker on an execution only basis.
You want a broker that has been known for reliability over the years and you can easily check this by looking on the web.
You should always search the brokers name and check any good and bad press they have. In many instances you will surprised at what you find.
Look at how quickly you can fund your account and how quickly you can withdraw.
You should also look to see if the broker accepts online payments, safely and securely.
When choosing a day trading broker (or any broker for that matter), check the above points and keep in mind that your major cost is your transaction fee and this should be as low as possible.
If you want to day trade and want a day trading broker that can give you the best service, the above are common sense tips that will help you find one.