If you want to trade intra-day on stocks, indices, commodities, forex or cryptocurrency, you need to be using one of the best day trading platforms in America, like Interactive Brokers or Plus500.
When speculators day trade it means their positions are flat by the end of the day, which mitigates the risk of running positions overnight. There are a few advantages to this, firstly, you can get better margin rates, (usually half exchange SPAN margin rates) and also profit from very short-term price movements.
However, there are also some significant disadvantages to day trading, firstly, if you choose a broker with high costs it will eat into your profit margins and secondly, predicting market movements in the short term is incredibly difficult, as most day traders rely on technical analysis.
Best Day Trading Platforms In America
The best day trading platforms in the US offer access to on-exchange DMA futures trading with standardised contract specifications and margin requirements. The CME has also recently announced plans to introduce single stock futures, which means that US traders will no longer need to rely on equity margin trading.
| Name | Logo | Futures Commission | Minimum deposit | GMG Rating | Customer Reviews | CTA | Feature | Expand |
|---|---|---|---|---|---|---|---|---|
 | Futures Commission $0.25 to $0.89 | Minimum deposit $2,000 | GMG Rating | Customer Reviews | Account Types:
| Interactive Brokers US Forex Trading Review: Seriously advanced trader tools for professionals Account: Interactive Brokers US Forex Trading Description: Interactive Brokers has been offering forex trading services in the US since their inception in 1978. As a pioneer in the industry, Interactive Brokers has established itself as a reputable and reliable broker for forex trading, offering competitive spreads, advanced trading platforms, and a wide range of currency pairs to trade. Over the years, Interactive Brokers has continued to enhance its forex trading offerings, incorporating advanced technology and features to meet the evolving needs of traders. Can you trade forex with Interactive Brokers in the US? Yes, you can trade currency futures with direct market access and currency options on the Interactive Brokers trading platforms. Interactive Brokers is a great forex broker for those who want to trade on exchange currency contracts rather than spot FX. Through IBKRs FXTrader you get interbank quality FX spreads, the ability to trade spot alongside on-exchange futures and over 20 forex order types like trailing stops to lock in profits if a position is going your way, OCO and scaled execution for large orders. IBKR US Address: Interactive Brokers LLC, One Pickwick Plaza, Greenwich, CT 06830, United
Pros
Cons
Overall4.8 | ||
 | Futures Commission $0.49 to $0.89 | Minimum deposit $100 | GMG Rating | Customer Reviews | Visit Platform Trading in futures involves the risk of loss. | Account Types:
| Plus500 US Futures Trading Review: DMA access to US futures Account: Plus500 US Futures Trading Description: In 2023, Plus500 launched its online trading platform in the US. Through the platform, those in the US can trade futures on a range of instruments including equity indexes, crypto-assets, currencies (forex), and commodities. Is Plus500 a good futures broker? Yes, Plus500 is an online trading company that operates in over 50 countries worldwide and in the US, its platform allows you to trade futures on a range of assets. Plus500 also offers a range of features designed to help traders capitalize on opportunities in the markets including charting tools and real-time news feeds. There is a demo account for those looking to learn how to trade futures before committing real money, but one downside is that there are some platforms that offer more futures markets than Plus500. Pros
Cons
Overall4.5 |
When is the best time to day trade stocks in the US?
Generally, at the market open and around the market close, as that is when liquidity and volatility are highest. However, this is also the riskiest.
The U.S. market runs on Eastern Time. Pre-market trading begins at 4:00am and runs until the regular session opens at 9:30am. The main session runs from 9:30am to 4:00pm, and after-hours trading continues until 8:00pm.
Do you need $25,000 to day trade in the US?
One unique feature of day trading in America is the Pattern Day Trader (PDT) rule. If you make four or more day trades within five business days using a margin account, you are classed as a pattern day trader. Once this happens, you must maintain a minimum account balance of $25,000. If your balance falls below this level, your broker can restrict your ability to day trade.
However, the CME has recently announced plans to introduce single stock futures trading, which will reduce the amount of funds on accounts required inline with futures trading. US futures brokers like Interactive Brokers let you trade futures with around $2,000 on account.
Is day trading legal in America?
Day trading has grown rapidly in the U.S. thanks to commission-free trading, easy-to-use mobile apps, high market liquidity and widespread access to leverage. The rise of retail trading communities and the boom in options trading have also fuelled its popularity.
Day trading is completely legal and heavily regulated in the United States. However, it is considered high risk and requires discipline, experience and strong risk management. Many beginners are attracted by the potential for quick profits, but the reality is that consistent success is difficult to achieve.
Richard is the founder of the Good Money Guide (formerly Good Broker Guide), one of the original investment comparison sites established in 2015. With a career spanning two decades as a broker, he brings extensive expertise and knowledge to the financial landscape.
Having worked as a broker at Investors Intelligence and a multi-asset derivatives broker at MF Global (Man Financial), Richard has acquired substantial experience in the industry. His career began as a private client stockbroker at Walker Crips and Phillip Securities (now King and Shaxson), following internships on the NYMEX oil trading floor in New York and London IPE in 2001 and 2000.
Richard’s contributions and expertise have been recognized by respected publications such as The Sunday Times, BusinessInsider, Yahoo Finance, BusinessNews.org.uk, Master Investor, Wealth Briefing, iNews, and The FT, among many others.
Under Richard’s leadership, the Good Money Guide has evolved into a valuable destination for comprehensive information and expert guidance, specialising in trading, investment, and currency exchange. His commitment to delivering high-quality insights has solidified the Good Money Guide’s standing as a well-respected resource for both customers and industry colleagues.
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