Winners Summary
Best for day traders - Interactive Brokers
| Company |
Minimum Deposit |
Stock Trades |
Options (Per Contract) |
 Interactive Brokers
|
$0.00 |
$0.00 |
$0.65 |
Interactive Brokers (IBKR) is the top platform for day traders, primarily due to its low margin rates and cost-effective fee structure, which are critical for high-frequency trading strategies. IBKR’s Pro account offers some of the lowest margin rates in the industry, starting at 5.83% for USD, and the rates decrease further as account balances increase. This is a huge benefit for day traders who regularly leverage their positions and need to minimize costs on borrowed funds. IBKR’s tiered commission structure also provides flexibility for traders with varying levels of activity, and with no added fees for advanced order types, traders can keep costs low without sacrificing functionality.
Advanced trading tools: The advanced trading tools available within Interactive Brokers’ Trader Workstation (TWS) make it ideal for day trading. TWS includes real-time monitoring, customizable charting, and advanced order types like bracket and conditional orders, allowing traders to execute trades with precision and speed. I found tools like the Risk Navigator and Market Scanner especially useful for identifying opportunities and managing risk in fast-moving markets. TWS also integrates algo trading, which lets day traders automate and streamline complex strategies, reducing the time needed for manual order placement. These professional-grade tools enable traders to respond to market movements instantly, a must-have capability for successful day trading.
Order execution: IBKR also excels in order execution, offering its proprietary SMART routing technology that automatically searches for the best prices across exchanges to achieve optimal execution. With no payment for order flow in its Pro account, IBKR can prioritize best-price execution over profits, which is crucial for day traders who rely on accurate, rapid trade fills to capitalize on small price movements. The platform’s reliability and speed, coupled with its cost-saving advantages, make Interactive Brokers the best choice for day traders looking for a powerful, affordable, and execution-focused trading experience.
Visit my full Interactive Brokers review to discover more about all of its features and pricing.
IBKR Trader Workstation (TWS) gallery
IBKR mobile app gallery
Best desktop platform for day trading - Charles Schwab
| Company |
Minimum Deposit |
Stock Trades |
Options (Per Contract) |
 Charles Schwab
|
$0.00 |
$0.00 |
$0.65 |
Charles Schwab's thinkorswim desktop platform stands out as one of the best choices for day traders, thanks to its powerful charting and customization features that cater to active, fast-paced trading. With thinkorswim’s robust charting tools, day traders gain access to hundreds of technical indicators, drawing tools, and custom chart layouts, allowing you to adapt each chart to your trading strategy in real-time. I found that switching between multiple charts was smooth and glitch-free, even with heavy data streams, which is essential for seizing short-term opportunities.
Advanced order types and execution: In addition to its charting, Schwab’s platform excels in offering advanced order types and quick order execution that day traders rely on to stay competitive. thinkorswim supports a range of advanced order options, including conditional orders and bracket orders that automate take-profit and stop-loss points. This setup lets me act on trading signals with speed and accuracy, a critical advantage when timing is everything. The platform’s one-click order entry and customizable trade tickets keep trades streamlined and intuitive, making it easy to stay focused in high-pressure market environments.
Real-time data and news: Another area that Charles Schwab excels in for day traders is its suite of real-time data and news feeds that help keep you in sync with market movements. thinkorswim provides live CNBC streaming, economic news updates, and real-time price alerts, all within a single workspace. Schwab also offers paper trading, so you can test day trading strategies without risking capital — a great feature for those refining their approach. With its advanced tools, intuitive layout, and support for rapid trading, Schwab’s thinkorswim desktop platform is a top choice for day traders who demand precision and reliability.
Explore more about its offering and the award-winning thinkorswim platform at my comprehensive review of Charles Schwab.
Charles Schwab desktop and web gallery
Charles Schwab mobile app gallery
Best for day trading options - tastytrade
| Company |
Minimum Deposit |
Stock Trades |
Options (Per Contract) |
 tastytrade
|
$0.00 |
$0.00 |
$0.50 info |
tastytrade is my top pick for day trading options because of its blazing-fast platform and design built for efficiency. As a day trader, speed is crucial, and tastytrade delivers with quick order entry, instant analytics, and an intuitive layout that keeps me focused on the trade. Unlike other platforms that need multiple screens, tastytrade works seamlessly on a single laptop, making it ideal for those who value mobility without sacrificing performance. Its interface isn’t just sleek; it’s purpose-built for making quick decisions — a must for the high-stakes world of day trading.
Pricing: Pricing is a primary reason that tastytrade is great for day trading, especially in options. With some of the lowest options commissions available, tastytrade charges just $1 per contract to open, capping at $10 per leg. This low-cost structure is a game-changer for day traders like me, who make frequent trades and need to keep costs under control to protect profits. Compared to other brokers like Schwab and Fidelity, tastytrade’s pricing lets day traders maximize returns without worrying about high commission fees eating into gains, which makes it a standout choice for high-volume traders.
Education and research: tastytrade’s educational and analytical resources also make it exceptional for day traders looking to refine their strategies. Through tastylive, its affiliated media channel, tastytrade offers ongoing market commentary, live trading insights, and strategy sessions that keep me in sync with the market. The informal, relatable style of tastylive feels like having direct access to seasoned mentors who offer fresh perspectives daily. For day traders who want to keep sharpening their edge, tastytrade combines low-cost trading, powerful analytics, and a steady stream of expert guidance, making it the best choice for active options trading.
Check out my full review of tastytrade for a deeper dive into its platform and tools.
tastytrade desktop gallery
tastytrade mobile app gallery
Best for automated trading - TradeStation
| Company |
Minimum Deposit |
Stock Trades |
Options (Per Contract) |
 TradeStation
|
$0.00 |
$0.00 |
$0.60 |
TradeStation is a powerhouse for automated trading, combining robust technical capabilities with a uniquely programmable platform. One of the key reasons TradeStation excels in this area is its proprietary language, EasyLanguage, which lets traders design, test, and deploy custom trading strategies with ease. EasyLanguage makes the learning curve more approachable than traditional coding languages, allowing active traders to automate their strategies in a way that few other brokers offer. When I first used it two decades ago when I was learning how to analyze charts, TradeStation’s automation potential was impressive, and it has only grown since then, with extensive community support and documentation to help traders fine-tune their automated systems.
Backtesting: Another distinct feature of TradeStation is its backtesting and analysis toolkit, which is ideal for traders focused on strategy refinement. The platform offers 30 years of historical data, enabling traders to rigorously test their strategies across various market conditions before risking real capital. Tools like the Walk-Forward Optimizer and TradeStation’s Radar Screen take this further, allowing traders to monitor real-time market data and test their ideas in a simulated environment. The in-depth backtesting helps traders understand the nuances of their strategies, making it an ideal choice for those who value precision and long-term profitability.
Advanced tools: While TradeStation’s desktop platform may not boast the sleekest interface, it’s highly customizable and packed with advanced tools, such as Matrix (ladder) trading and Radar Screen watchlists, that serious day traders need. The platform’s real-time data, customizable order types, and support for direct-market routing make it a perfect fit for fast-paced trading environments. Admittedly, new users might face a steeper learning curve, but for experienced day traders, TradeStation’s desktop platform is worth the effort. It’s a comprehensive tool that delivers the speed and control that frequent traders rely on, placing it firmly among the best brokers for day trading.
Read more about the full offering at my complete review of TradeStation.
TradeStation gallery
TradeStation mobile app gallery
Day trading platforms comparison
Popular day trading platform tools include ladder trading, Level 2 quotes, trading hotkeys, direct market routing, stock alerts, streaming time and sales, customizable watch lists, and backtesting, among many others.
It’s important to have the right tools, but the overall “feel” of a broker’s platform is just as critical. Day traders live and die according to their workflows. We spent hours on platforms creating custom watchlists, marking up charts, and executing trades. Some platforms were a joy to use while others felt like a chore.
Here's a trading platform comparison table of common tools and features. For a full comparison of 150+ features, use our comparison tool.
And here's a trading platform comparison table of common fees. To compare all brokerage fees, use our comparison tool.
FAQs
What is day trading?
Day trading is a strategy in which a trader opens and closes trading positions within a single trading day. The goal is to end each trading session with a net profit after costs. Day traders primarily trade during the opening 60 minutes (9:30-10:30 a.m. Eastern) and closing 30 minutes (3:30-4 p.m. Eastern) of each market session, which is when price volatility is highest.
How do I start day trading?
- Knowledge is as important as capital. Start reading. Watch the financial news and read investment books.
- Practice day trading using virtual money, also known as paper trading.
- Use our broker comparison tool to find the best broker for you.
- Open a margin account with the selected broker.
- You must deposit and maintain at least $25,000 in equity to avoid “pattern day trader” restrictions.
- Look for stocks that you think have favorable upside to downside risk ratios.
- Trade. Consider only putting a maximum of 5% of your capital in one stock.
- Keep a trading journal.
- Exit trades when they fail to perform as expected or when they hit their target prices.
- It’s unrealistic to expect all of your trades will be profitable. Focus instead on improving your win-loss ratio.
What is a pattern day trader?
Once you engage in four day trades within five business days, you will be labeled a “pattern day trader.” The broker may also classify you as a pattern day trader if it has good reason to believe you will frequently day trade. Pattern day traders must maintain $25,000 in equity to day trade. If they do not maintain that level of equity, their accounts will be restricted from exiting positions intraday. Pattern day traders may also be permitted a higher degree of leverage than other margin investors.
What is margin?
Margin is a form of leverage. Margin accounts let traders use their portfolios as collateral for loans, which they can use to buy more investments. Buying on margin increases both potential upside and downside and the client will be charged interest on the money borrowed. Here’s a hypothetical example of how margin works:
- Jesse has $100,000 of Nvidia stock in his account. If that stock goes up by 15% after a year, his account will be worth $115,000.
- Instead, Jesse borrows $50,000 at a 7% annual interest rate from his broker to buy more Nvidia stock. He will have $150,000 in NVDA, but his equity will stay the same at $100,000 ($150,000 in stock minus the $50,000 loan).
- If NVDA stock goes up by 15% over that year, his account will be worth $119,000 ($172,500 minus the $50,000 loan and $3,500 interest).
- If the stock goes down by 15% after a year, his account will be worth $74,000 ($127,500 minus the $50,000 loan and $3,500 interest).
There are regulations and broker policies related to the use of margin. Before borrowing, clients should make sure they understand the rules thoroughly.
Can you day trade on multiple platforms?
Yes. It’s common for day traders to have multiple brokerage accounts and use several trading platforms simultaneously. A trader might prefer the chart analysis tools of one broker but prefer to trade options at another. It’s also a good idea to have a backup account open and at the ready in case a preferred broker suffers a data glitch or crash.
What are the risks of day trading?
Because day trading involves actively buying and selling stocks throughout the day using margin (borrowed capital), it is inherently risky. Like poker, losing streaks can lead traders to take undisciplined risks, magnifying losses. Some day trading software — for example, a trading journal — can help identify your strengths and weaknesses, provided you’re diligent in entering your trades. For more on that strategy, see our guide to best trading journals.
Is day trading still profitable?
Yes, day trading is still profitable, but the real question should be “for whom?” Generally speaking, day trading should only be done by highly disciplined, knowledgeable, experienced, and well capitalized investors, and to get that experience, novices have to make their rookie mistakes and find a personal trading style. There is, however, one clear group of winners, and that’s brokerage firms. Brokers love active traders because they pay more fees and rack up margin interest and payments for order flow.
Is day trading illegal?
In the U.S., day trading is legal. To day trade, once you’re classified as a "pattern day trader," you must have at least a $25,000 minimum account equity to day trade. On the positive side, you gain access to 4:1 intraday margin and 2:1 margin overnight.
Is day trading worth it?
In today's market, hedge funds running sophisticated algorithms make it very difficult to day trade profitably. Most day traders are also severely undercapitalized and get suckered into paying for expensive chat room memberships, educational courses, and newsletter subscriptions on social media. Here's a breakdown of what our founder, Blain Reinkensmeyer, learned from day trading.
query_stats Trading vs. investing
While these terms are often used interchangeably, there are some important differences to know that can help you clarify your overall investment goals. See our article Trading vs. Investing: What You Should Know.
What is the fastest trading platform?
The fastest trading platform will be found among TradeStation, tastytrade, Charles Schwab's thinkorswim, Interactive Brokers' Trader Workstation (TWS), and Webull because they are desktop-based. With a desktop trading platform, the base code runs locally on your computer, maximizing speed. That said, web-based trading platforms built with modern code can match desktop platforms in overall speed. Software aside, like esports, the most common bottleneck for any trading platform is the internet connection.
Our testing
Why you should trust us
Sam Levine, CFA, CMT, formerly a lead writer for StockBrokers.com, has over 30 years of investing experience and actively trades stocks, ETFs, options, futures, and options on futures. He's held roles as a portfolio manager, financial consultant, investment strategist and journalist. He holds the Chartered Financial Analyst (CFA) and the Chartered Market Technician (CMT) designations and served on the board of directors of the CMT Association.
Blain Reinkensmeyer, co-founder of StockBrokers.com, has been investing and trading for over 25 years. After having placed over 2,000 trades in his late teens and early 20s, he became one of the first in digital media to review online brokerages. Today, Blain is widely respected as a leading expert on finance and investing, specifically the U.S. online brokerage industry. Blain has been quoted in The New York Times, The Wall Street Journal, Forbes, and Fast Company, among others. Blain created the original scoring rubrics for StockBrokers.com and oversees all testing and rating methodologies.
How we tested
- We used our own brokerage accounts for testing.
- We collected multiple data points for each broker.
- We tested each online broker's website and mobile app, where applicable.
- We maintained strict editorial independence; brokers cannot pay for inclusion or a higher rating.
Our research team meticulously collected data on features with particular importance to those saving for retirement, such as trading costs, management fees, availability of fee-free funds, ease of website and app use, and retirement planning tools and resources.
At StockBrokers.com, our reviewers use a variety of computing devices to evaluate platforms and tools. Our reviews and data collection were conducted using the following devices: iPhone SE running iOS 17.5.1, MacBook Pro M1 with 8 GB RAM running the current MacOS, and a Dell Vostro 5402 laptop i5 with 8 GB RAM running Windows 11 Pro.
Each broker was evaluated and scored in seven key categories: retirement account types, IRA fees, self-directed investment options, managed investment options, retirement planning tools, rollover experience, and ease of use.
Fidelity
Merrill Edge
E*TRADE
TradeStation
Interactive Brokers
Charles Schwab
tastytrade
eToro
