Between 54-87% of retail CFD accounts lose money. Based on 69 brokers who display this data.
Between 54-87% of retail CFD accounts lose money. Based on 69 brokers who display this data. *Availability subject to regulation.
Until recently, day trading had been an exclusive form of trading only available to large financial institutions and professional speculators. However, electronic and margin trading has since lowered the necessary financial requirements and opened up the doors to day trading to almost anybody with an internet connection.
With day trading, one of the primary concerns should always revolve around the online broker itself. It is paramount to always use a trustworthy and reputable broker that is regulated by a respected authority such as the Financial Conduct Authority in the UK and CySEC in Cyprus. As a general rule, brokers who are regulated by a trusted regulatory body will clearly state this fact on their website.
On top of being a regulated broker, there are some fundamental factors that need to be taken into account when finding the best day trading broker:
The levels of customer support offered by the broker can a useful barometer of the reliability of their website and services. Is there only a static “[email protected]” contact email available or are there options such as telephone contacts and a live chat widget? Those platforms that offer multiple avenues of customer care can often be seen as being a more practical choice.
Day trading is an extremely fast-paced system. Therefore, not only should the broker’s platform be constantly updated, but the trader also needs to be able to enjoy an extremely streamlined service. All values should be clearly displayed and the “buy” and “sell” options should always be present. The trader’s account balance and current profits need to be clear and every position needs to be quickly accessible. This can normally be determined by opting for a demo account (see below) before the trader begins day trading for real.
Also known as demo accounts, these are excellent ways for the user to understand the functionality of the site. While most of the larger day trading brokers will provide demo accounts as an option, it is wise to note that not all features (such as advanced analytical tools) may be available to trial.
Due to the fluid nature of day trading, many users will opt for automated trades as opposed to manually following many disparate positions. In other words, once a certain level is reached (or the resistance is crossed), the position will automatically be opened or closed. These levels can be preset by the trader and both novices and professionals alike use this tool frequently.
One of the best ways to hone one’s skills is to appreciate past performance. Day trading brokers should be able to supply longitudinal data as a standard feature, with the best using charts and graphs as well as mere text. The trader can then select the time period that they wish to analyse, with most traders able to provide the ability to see back at least as far as one year of trading.
When determining how capital can be deposited or withdrawn from the trading account, some of the most trusted payment methods include PayPal, TransferWise, credit cards and direct deposits. As all of these (and others) will employ SSL encryption, the trader’s personal details should remain secure. It is also wise to be aware of the withdrawal fees that will be taken by the broker. These will differ from broker to broker and comparing these charges will enable the potential day trader to better manage their potential profits and losses.
Even novice traders should have access to a large number of indices. While major ones such as the Dow Jones, the FTSE and the NASDAQ should all be present, others including the CAC 40, the FTSE 250, the FTSE All-Share and even the OTC markets are considered important to view. This will enable the trader to diversify their portfolio in order to manage their aggregate risk.
Not everyone will have ten thousand pounds to invest in order to open a VIP trading account. Thankfully, reputable providers will normally offer a number of different accounts. These can range from a basic platform to a “silver”, “gold” or platinum” status. While these names sound impressive, it is critical to ascertain which benefits each level can offer. For example, automated trades are likely to be possible with every account, but only upper-level positions may be able to enjoy the free use of analytical tools.
While each of these features needs to be considered alongside all of the others, there is no one single metric which can determine how reputable and reliable a day trading broker will be.
Other variables such as how long the site has been in operation, as well as its recent financial performance, should be taken into account, as well as the level of protection offered by the local regulator.
Forex.com scored best in our review of the top brokers for day trading, which takes into account 120+ factors across eight categories. Here are some areas where Forex.com scored highly in:
Forex.com offers one way to tradeForex. If you wanted to trade BITCOIN
The two most important categories in our rating system are the cost of trading and the broker’s trust score. To calculate a broker’s trust score, we take into account a range of factors, including their regulation history, years in business, liquidity provider etc.
Forex.com have a AAA trust score. This is largely down to them being regulated by Financial Conduct Authority, segregating client funds, being segregating client funds, being established for over 19
|Regulated by||Financial Conduct Authority|
|Uses tier 1 banks|
|Segregates client funds|
Want to see how Forex.com? We’ve compared their spreads, features, and key information below.
|GBP/USD Spread||0.9||DAX Spread||250.0|
|FTSE 100 Spread||150.0|
|Ripple spreads from||N/A|
|Dash spreads from||N/A|
|Litecoin spreads from||N/A|
|Bitcoin spreads from||N/A|
|Ethereum spreads from||N/A|
|Platform||MT4, Web Trader, NinjaTrader, Tablet & Mobile apps|
|Base currency options||USD, GBP, EUR|
|Funding options||Bank transfer, Cheque, DebitCard,|