The Best Software for Day Trading
Day trading, or buying and selling stocks in a single day or 24 hour period, can be a different way to make some extra money or even work on your own. It is risky, but if you have the right tools, it can be incredibly rewarding, too. One of the primary tools you need to become a profitable day trader is the right software. Day trading software is usually provided by brokerage firms, and it helps make the day trading process smoother and more efficient. A strategic investor will get the right tools for their day trading goals.
- One of the best day trading software options is TD Ameritrade. This is a great desktop program, and it offers plenty of resources for the novice day trader, including virtual trading, and still provides the reliability an experienced day trader wants. The service, while helpful, can be a little pricey. TD Ameritrade charges more than most software per trade in commission, but many people think the fee is worth it to avoid being required an account limit or incurring an annual feel. TD Ameritrade also will not charge an inactivity fee if you decide to take a break.
- Another great option for day trading software is TradeStation. Much like TD Ameritrade above, TradeStation is a good option for both novice and veteran day traders. The once complicated system received a facelift and now has easy to understand options for people just learning the process. Unlike TD Ameritrade, TradeStation does not charge a commission on each trade. They also offer a wide variety of options to trade. Tech-savvy traders can even use the TradeStation code to create their own in-software apps and share them with other users.
- E-Trade is another useful software program to consider. It was popularized early on in the 2000s due to its "So easy a baby can do it" advertisements. That doesn't make the software itself a joke, though. E-Trade was created to be an online program, and it performs beautifully on both desktops and mobile phones. They also have steep fees per trade, but there is no minimum account balance, depending on the E-Trade platform you decide to utilize. There are perks for traders who keep large amounts in their accounts, so keep that in mind when considering software.
- The last great contender on this list is Interactive Brokers. This software is not really designed for novice traders but is made more seasoned day traders. Interactive Brokers does require an account minimum, unlike most of the other software providers listed here. This is another reason the software is not novice-friendly. There is also a fee for inactivity, although the commission charged for each trade is much smaller than most firms, often ending up in the 0.005% per trade amount range. Higher volume traders earn even more perks and discounts, so consider this software if you trade often.
Whichever software you choose, remember to research each option for fees, required minimum balance, and the resources the software provides.