Best Online Trading Platforms for Day Trading: April 2024
The best trading platforms offer advanced features, fast execution, a large selection of research, low costs and a robust mobile app for day trading on the go.
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If you’re a day trader (or an aspiring day trader), you may already have a good idea of what you want in an online trading platform: Most active traders prioritize low costs, no trading commissions, free premium research, innovative strategy tools and comprehensive trading features. (Not a day trader yet? Learn the basics with our guide to how day trading works.)
But what you may not know is how the various online trading and day trading platforms stack up when it comes to meeting those needs. Below, we’ve narrowed down the options to select the best online trading platforms, so you can choose one for your day trading based on your priorities.
Summary of the best trading platforms:
How we test online trading platforms
The star ratings below represent the broker's overall score. Our reviewers — who are writers and editors on NerdWallet’s content team — send detailed questionnaires to every broker, digging into details about their platforms and capabilities. We ask questions about execution quality, the number and quality of third-party research providers and whether the broker takes payment for order flow. (PFOF involves routing orders to certain market makers — this can drive down trading costs, but it can also negatively affect execution prices for traders.)
Then we hands-on test every trading platform to understand the capabilities and features as a user. We fund accounts, place trades and test the platform's analysis and research tools. This allows us to report on every aspect of the user experience.
Both the trading platform capabilities offered and the actual user experience of trading on the platform are factored into our analysis. This means a broker can offer an advanced day trading platform, but if it is clunky to use or the process of opening an account is unnecessarily arduous, that will be reflected in their score.
If you’re a day trader (or an aspiring day trader), you may already have a good idea of what you want in an online trading platform: Most active traders prioritize low costs, no trading commissions, free premium research, innovative strategy tools and comprehensive trading features. (Not a day trader yet? Learn the basics with our guide to how day trading works.)
But what you may not know is how the various online trading and day trading platforms stack up when it comes to meeting those needs. Below, we’ve narrowed down the options to select the best online trading platforms, so you can choose one for your day trading based on your priorities.
Summary of the best trading platforms:
How we test online trading platforms
The star ratings below represent the broker's overall score. Our reviewers — who are writers and editors on NerdWallet’s content team — send detailed questionnaires to every broker, digging into details about their platforms and capabilities. We ask questions about execution quality, the number and quality of third-party research providers and whether the broker takes payment for order flow. (PFOF involves routing orders to certain market makers — this can drive down trading costs, but it can also negatively affect execution prices for traders.)
Then we hands-on test every trading platform to understand the capabilities and features as a user. We fund accounts, place trades and test the platform's analysis and research tools. This allows us to report on every aspect of the user experience.
Both the trading platform capabilities offered and the actual user experience of trading on the platform are factored into our analysis. This means a broker can offer an advanced day trading platform, but if it is clunky to use or the process of opening an account is unnecessarily arduous, that will be reflected in their score.
Best Online Trading Platforms for Day Trading: April 2024
Broker | NerdWallet rating | Fees | Account minimum | Promotion | Learn more |
---|---|---|---|---|---|
Interactive Brokers IBKR Pro Learn more on Interactive Brokers' website | $0.005 per share; as low as $0.0005 with volume discounts | $0 | Exclusive! US resident opens a new IBKR Pro individual or joint account receives 0.25% rate reduction on margin loans. Tiers apply. | Learn more on Interactive Brokers' website | |
Charles Schwab Learn more on Charles Schwab's website | $0 per online equity trade | $0 | None no promotion available at this time | Learn more on Charles Schwab's website | |
Webull Learn more on Webull's website | $0 per trade | $0 | Get up to 75 free fractional shares (valued up to $3,000) when you open and fund an account with Webull. | Learn more on Webull's website | |
Fidelity Learn more on Fidelity's website | $0 per trade for online U.S. stocks and ETFs | $0 | None no promotion available at this time | Learn more on Fidelity's website | |
E*TRADE Learn more on E*TRADE's website | $0 per trade. Other fees apply. | $0 | Get up to $1,000 when you open and fund an E*TRADE account | Learn more on E*TRADE's website |
$0.005
per share; as low as $0.0005 with volume discounts
$0
Exclusive!
US resident opens a new IBKR Pro individual or joint account receives 0.25% rate reduction on margin loans. Tiers apply.
Pros
Per-share pricing.
Volume discounts.
Large investment selection.
Extensive tools for active traders.
Powerful trading platform.
NerdWallet users who sign up for IBKR Pro get a 0.25% discount on the first $100,000 of a margin loan.
Cons
Complex pricing on some investments.
Why We Like It
Both IBKR Lite and IBKR Pro traders have access to Interactive Brokers’ Desktop Trader Workstation. This platform is fast and includes both standard features, such as real-time monitoring, alerts, watchlists and a customizable account dashboard, and more unique features as well. The options strategy lab lets you submit multileg options orders and compare up to five options strategies at one time.
Interactive Brokers also offers a volatility lab, advanced charting, heat maps of sector and stock symbol performance, paper trading and a mutual fund replicator, which helps users identify ETFs that replicate the performance of a selected mutual fund with lower fees.
$0
per online equity trade
$0
None
no promotion available at this time
Pros
Four trading platforms with no minimum or fees.
Above-average mobile app.
Extensive research.
Large fund selection.
Commission-free stock, options and ETF trades.
Cons
Low interest rate on uninvested cash.
Why We Like It
In addition to the basic trading capabilities on the website, Schwab offers several robust trading platforms, all of which are free and available to all trading services clients.
Its premier offering is StreetSmart Edge, a customizable platform available with downloadable software or accessible via cloud-based technology online. It also has a suite of programs called StreetSmart Central for options trading. Finally, the broker offers mobile trading, available on either the Schwab or StreetSmart Mobile apps.
StreetSmart Edge is designed for efficiency, with simple navigation and customization. There are several advanced features, including charting tools, the ability to trade multiple securities in the same order window (and with a variety of order types) and tools to monitor your market exposure. The customizable features of this platform are notable, including the Balance Bar, which gives you a quick overview of your account and buying power, along with the ability to create and edit multiple trading layouts.
$0
per trade
$0
Get up to 75 free fractional shares (valued up to $3,000)
when you open and fund an account with Webull.
Pros
Low costs.
Easy-to-use platform.
Advanced tools.
Access to cryptocurrency.
High interest rate on uninvested cash.
High order execution quality.
Cons
No mutual funds.
Thin educational support.
Why We Like It
Webull will appeal to the mobile-first generation of casual investors with its slick interface for desktop and mobile apps, but the brokerage also delivers an impressive array of tools for active traders. However, its relatively weak educational content may leave true beginners in the lurch, and it lacks access to a few common asset classes.
$0
per trade for online U.S. stocks and ETFs
$0
None
no promotion available at this time
Pros
Commission-free stock, ETF and options trades.
Large selection of research providers.
Strong customer service.
Expense-ratio-free index funds.
Highly rated mobile app.
High interest rate on uninvested cash.
Cons
Relatively high broker-assisted trade fee.
Why We Like It
Fidelity has two trading platforms, Fidelity.com and Active Trader Pro. Fidelity offers advanced screeners using research and strategy-testing tools based on 10 years of historical data.
The upper-tier platform includes both a downloadable desktop version and a web alternative, which investors can toggle between seamlessly. The platform includes intuitive shortcuts, pre-built market, technical and options filters, advanced options tools and a multitrade ticket that can store orders for later and place up to 50 orders at a time.
$0
per trade
$500
Qualify for up to $5,000
when you open and fund a new TradeStation account. Offer Code: NERDAFJO.
Pros
High-quality trading platforms.
Comprehensive research.
Advanced tools.
Active trader community.
Cons
No transaction-fee-free mutual funds.
Plans and pricing can be confusing.
Low interest rate on uninvested cash.
Why We Like It
TradeStation offers direct-market access, automatic trade execution and tools for customers to design, test, monitor and automate their custom trading strategies for stocks, options and futures. TradeStation Simulator allows users to test out new investing strategies before putting any money on the line.
Options investors will appreciate free access to the OptionStation Pro platform. With its preview mode, mobile-app users can create custom watch lists, and view charts and trends without opening an account.
$0
per trade
$0
Up to $1,000
in free stock for users who sign up via mobile app
Pros
Commission-free stock, ETF and options trades.
Fractional shares available.
Free financial counseling.
IPO access.
No account minimum.
Cons
Low interest rate on uninvested cash.
Why We Like It
SoFi Active Investing's $0 trading commission, fractional shares and $1 account minimum are attractive to new investors. More advanced investors will appreciate the company's wide mutual fund selection and IPO access.
$0.01
per share
$2,500
None
no promotion available at this time
Pros
Ample research offerings.
Robust trading platform.
Access to international exchanges.
Cons
Trails competitors on commissions.
High account minimum.
Low interest rate on uninvested cash.
Why We Like It
Zacks offers three free trading platforms. The downloadable Zacks Trade Pro lets you customize the layout to suit your needs, offers custom charting, more than 120 technical indicators and an Options Strategy Lab to help you assess potential options trades.
The web-based Zacks Trader offers interactive charts, streaming market data and other tools.
$0
$0
None
no promotion available at this time
Pros
Rebates for trading options.
Impressive selection of alternative assets.
Easy-to-use signup and trading interface.
Cons
No mutual funds.
No margin trading or futures trading.
Lack of tools (e.g. customizable screeners) and account types (e.g. IRAs).
Want to compare more options? Here are our other top picks:
What platform is best for day trading?
All of the trading platforms on this list impressed our editorial team of testers enough to be featured here — but the three that scored the highest for their trading platforms, order execution, user experience and access were Fidelity, Interactive Brokers and Charles Schwab. (Charles Schwab recently took on TD Ameritrade's widely respected thinkorswim platform following its acquisition of that broker.)
Does that mean they are the best for you? That depends on your specific needs and priorities. But these platforms, and the others on this list, will help you narrow down your search.
What should you look for in a trading platform?
A few things are nonnegotiable in trading platforms for day trading: First, you need low or no commissions. You might’ve gathered by now that day traders place a lot of trades. Pay close attention to a broker or day-trading platform’s fees and commissions. Many brokers will offer no commissions or volume pricing.
Then research and strategy tools are key. Day traders use data to make decisions: You want not only the latest market data, but you also need a trading platform that lets you quickly create charts, identify price trends and analyze potential trade opportunities.
Finally, prioritize speed. Time is literally money with day trading, so you want a broker and online trading system that is reliable and offers the fastest order execution. Many platforms will publish information about their execution speeds and how they route orders; we've included these details in our analysis and ratings as well.
Another feature we’d recommend is a broker or trading platform that offers paper, or virtual, trading, so you can practice with simulated trades before the real thing.
What's the best trading platform for beginner or new investors?
We have a separate list of best brokers for beginners, which includes our analysis of not just the brokerage firm's trading platform, but also how well they score on other factors that appeal to beginners, such as educational resources about how to use those platform. But you'll notice there is some overlap between the two lists — that's because we heavily test how user-friendly a trading platform is, so most of the brokers on this list are also approachable choices for new investors, too.
What is pattern day trading?
Pattern day trader is a designation under FINRA rules that is defined as someone who day trades four or more times within 5 business days. Those day trades must also account for more than 6% of the trader's total trades within the same period. Your brokerage can help you determine if you're a pattern day trader. If you are, you're subject to additional regulations, including the requirement to have at least $25,000 in equity in your margin account.
What stocks are good for day trading?
No one can predict individual stock performance to answer this question accurately, but there are a few things that make a stock at least a good candidate for a day trader to consider. Generally, those are stocks that are highly liquid, with large trade volume; relatively volatile, so you can buy low and sell high; and known to you (an understanding of the stock’s price history, and how it reacts to various events — earnings reports, economic shifts — is key). Here’s some detailed guidance on how to research stocks.
You can use your online broker or trading platform’s stock screener to look for stocks that seem ripe for day trading. We also have a list of the best stocks right now, based on performance.
What is trading platform margin?
Margin is essentially a loan from your broker. When you open a brokerage account, you’ll be asked if you want a cash account or a margin account.
A margin account allows you to place trades on borrowed money. Often called leverage, trading on margin can magnify your gains — and, in the worst-case scenario, your losses. To read more about margin, how to use it and the risks involved, read our guide to margin trading.
How much money do you need to use these trading platforms?
This is a loaded question. The trading platforms on our list don't have minimum account requirements, but as noted above, you're required to maintain a minimum of $25,000 in equity to engage in pattern day trading. That equity can be in cash and eligible securities. That’s the minimum amount you need to maintain in your account; on top of that, you also need the money you’ll use to day trade.
But just as important is setting a limit for how much money you dedicate to day trading. Those dipping into this kind of active trading may want to risk only a small portion of their account balance — 5% to 10% of your investable assets, at most.
Is it risky to use a trading platform?
Using a trading platform isn't risky — many investors invest through trading platforms. But day trading can be risky. In short: You could lose money, potentially lots of it. Day trading is exactly what it sounds like: Buying and selling — trading — a stock, or many stocks, inside of a day. It’s all about making predictions and timing the market, with the goal of making a small profit on each trade. In an ideal world, those small profits add up to a big return.
But research has shown that only 1% of day traders consistently earn money; many, many lose it. It’s essentially a full-time job, because you need to constantly be watching — and timing — the market, waiting for your next move. It isn’t for beginner, or casual, investors.
To limit the risks, you can keep the majority of your investment portfolio in long-term, diversified investments like low-cost index funds, and day trade with a small portion.
Last updated on April 25, 2024
Methodology
NerdWallet’s comprehensive review process evaluates and ranks the largest U.S. brokers and robo-advisors. Our aim is to provide an independent assessment of providers to help arm you with information to make sound, informed judgements on which ones will best meet your needs. We adhere to strict guidelines for editorial integrity.
We collect data directly from providers through detailed questionnaires, and conduct first-hand testing and observation through provider demonstrations. The questionnaire answers, combined with demonstrations, interviews of personnel at the providers and our specialists’ hands-on research, fuel our proprietary assessment process that scores each provider’s performance across more than 20 factors. The final output produces star ratings from poor (one star) to excellent (five stars). For more details about the categories considered when rating providers and our processes, read our full broker ratings methodology and our full robo-advisor ratings methodology.
To recap our selections...