Using Platforms and Brokers for Day Trading
Published December 30, 2021.
With the stock and forex markets becoming more accessible than ever, traders and investors have come up with ways to earn money passively and actively. One of these activities is called “day trading,” where a trader buys and sells an asset within a couple of hours rather than holding the asset long-term.
Of course, day trading is not new, as it has been an activity many traders have done since the inception of the stock market. However, with the vast range of internet trading platforms, it has become easier than ever to day trade, but similarly more terrifying with the rising speculation regarding the security and reliability of all the different platforms.
This is why choosing a reliable trading platform is essential, and we’ll elaborate on how to do so below.
What Is Day Trading?
Day trading (also known as intraday trading) is the activity of buying and selling an asset within a single trading day - usually within a couple of hours. By itself, day trading doesn’t differ too much from any other type of trading, except that the buying and selling of assets are strictly limited to a couple of hours.
Of course, day trading has its pros and cons compared to other market approaches. Firstly, it has often proven to be a more profitable yet riskier approach when compared to other forms of trading. Unlike long-term trading or investing, day trading requires significantly more time, research, and energy.
You also have to adhere to the pattern day trader (PDT) rule that determines what criteria you must meet to be eligible for day trading.
Should You Use a Stockbroker for Day Trading?
Many day traders stick to stockbrokers for their day-to-day purchasing and selling of assets. Although most day trades are performed on forex assets, choosing a solid stock broker will give you the option to buy and sell other instruments, like shares, precious metals, indices, treasuries, and even agricultural products. So, it’s safe to assume that a stockbroker is a solid choice.
Are There Preferred Sites to Day Trade From?
Even though there is no definitive "best site for day trading," sticking to reliable brokers will always do the trick. You’ll rarely hear a trader of any level that has a complaint from a reliable trading brokerage like Fortrade, AvaTrade, or easyMarkets. As long as you stick to a safe and well-established platform, you’ll have no issues trading.
What Is a Trading Platform?
Nowadays, the two terms - “trading platform” and “stockbroker” get used interchangeably, although there is a small difference. A stockbroker is an intermediary who lists the companies and assets where you can buy from.
On the other hand, the trading platform is the place (nowadays a website or app) where you can purchase or sell the asset you own. The reliable brokers we, at Broker Reviews, have listed on our website have their own trading platforms, so there’s no need for you to research and distinguish between a trading platform and a broker.
How Is Safety Ensured at a Trading Platform?
With the rising number of trading platforms, there has also been a rise of scams among beginners traders and professionals alike. As such, many question themselves on where to day trade and how to make the right choice. To make sure that your funds, as well as personal and financial information, are safe when trading, you should stick to some of the reliable platforms we’ve listed here on our website.
Reliable trading platforms have been proven to be reliable by relevant licensing bodies like the Cyprus Securities and Exchange Commission (CySEC) or the Australian Securities and Investments Commission (ASIC). If you’re new to trading, stick to the top social trading platforms for beginners, and you’ll never go wrong.
Platform Advice for Beginner and Intermediate Traders
Regardless of your experience level, the things you should look for in a trading platform remain more or less the same. However, there are a few things beginners should look into before investing their cash in a platform. This means checking out at least one trading platform review and figuring out all the details.
For starters, going with a platform that has a well-designed and intuitive user interface will save a newbie a lot of trouble; it’s also probably the best place to day trade at. Feeling lost in navigating the website, in addition to being overwhelmed by a whole new world, will make every beginner frightened. Sticking to some of our choices for the best online brokers will also go a long way.
Once you’ve gotten the hang of the stock market’s terms and feel comfortable with the charts in front of you, you can consider yourself an intermediate trader. Thus, you can slightly change up the strict criteria you had as a beginner to broaden your horizon when looking at day trading brokers.
For example, intermediate traders usually don’t have to stick to a trading platform with educational material. If you’ve gotten the hang of the stock and forex markets, all that’s left is for you to develop your own tactics and strategies. Consider sticking to a trading platform where there’s a vast abundance of trading instruments, including currency pairs, stocks, cryptos, indices, and more.
We’re well aware that many things come to mind when you think of the term 'day trading,' especially as a beginner. The entire world of buying and selling assets on the market may appear daunting at first sight if it’s not something you’ve dabbled with in the past, and a good trading platform is the first step in the right direction.
However, reliable online trading platforms are important to intermediate and advanced traders as well. The best brokerages for day trading will have everything you’re looking for, including a vast selection of trading instruments and convenient market analysis tools.