At Elite Day Traders dba www.fastmoneytrade.com we want to make sure that you are profiting most from your trades. Many people ask us what broker are we using for day trading. Many people use TD Ameritrade for day trading, however, we have found that eTrade is best for shorts or shorting. However, it is entirely up to you who you use as your broker, and we have compiled a list for you to use at your discretion. Below is not a complete list of brokers and you should research which one best fits your portfolio.
eTrade – commissions for equity and options trades are $6.95 with a $0.75 fee per options contract. To qualify for $4.95 commissions for equity and options trades and a $0.50 fee per options contract, you must execute at least 30 equity or options trades per quarter. Broker-assisted trades cost $25. To open an account, a minimum deposit of $500 is required. If you are making more than 30 trades per quarter and are actively day trading you can call them and ask them to reduce their fees, they generally will do it for $3.95 instead of their $6.95 fee. eTrade is a solid choice for investors of all experience levels. https://us.etrade.com/what-we-offer/pricing-and-rates
TD Ameritrade – you pay $6.95 per trade regardless of your account balance or how often you trade. Plus there are no share or market/limit order requirements. We have found they have limitations when doing shorts or shorting and they charge a fee of $13.90 for any ETF that is sold within 30 days of purchase. https://www.tdameritrade.com/pricing.page
Interactive Brokers has shorts but not as many as eTrade they handle international accounts and may be good for day traders not located in the United States. They do have PDT (Pattern Day Trade) rules. They do not charge a stock trade. Their fees are based on where you are located: https://www.interactivebrokers.com/en/index.php?f=1590&p=stocks1
CenterPoint Securities also does shorts, they are based out of San Diego, California. They offer three plans: https://centerpointsecurities.com/pricing/
- Standard Plan – their flagship plan designed for active traders .004 + routing and regulatory fees
- All-In Plan – designed for institutional clients
- Per-Ticket Plan – designed for the lower priced security traders 5.95 + routing and regulatory fees
Lightspeed – are mainly for active brokers (they discourage newer investors and those with little experience) they also have limited mobile trading support and charge a $99 monthly platform fee (waived if certain conditions met). With per share trading, equity trades start at $.0045 per share plus/minus routing fees ($1 minimum). Traders who place larger orders, can opt to pay per trade, starting at $4.50, plus/minus routing fees. Options trades start at $.60 per contract and scale down in cost according to monthly volume. https://www.lightspeed.com/pricing/commission/
Interactive Investor – is a broker for those living in the UK. They have relatively low dealing charges. Two negatives with this company are they have an unexceptional charting platform and substandard customer service. http://www.iii.co.uk/our-services/our-accounts/charges
Trade Zero – is an online brokerage firm located in the Bahamas. They offer free limit order trades, no PDT (Pattern Day Trader Rule), and up to 6:1 leverage depending on your account size. Minimum deposit is $500 for a cash account. https://www.tradezero.co/pricing
Suretrader is a division of Swiss America Securities, Ltd. Based in the Bahamas. They charge $4.95 per trade plus $0.01 per share and for option contracts $4.95 per trade and $0.50 per options contract. They have no pattern day trading rules and they state they are the best brokerage firm for pattern day traders. They do charge an automatic $25 fee for margin calls. Intraday margin is 6:1 margin. Overnight margin is 2:1. They also have odd lots restrictions which means that you cannot buy or short less than 100 shares; this is for stocks below $20 per share. https://www.suretrader.com/
Disclaimer: The information provided in this article is as a service to investors. It is neither a legal interpretation or a statement of policy. If you have questions concerning the meaning or application of a particular law or rule, please consult with an attorney who specializes in securities law. Stop Loss orders and Stop Limit orders may not be available through all brokerage firms. Investors should contact their broker to determine which orders are available for buying and selling stocks, and their broker’s specific policies regarding these types of orders.