Day trading is the term for frequently buying and selling stock positions after holding them for short periods. You can day trade on pretty much any broker's platform. But what is the best day trading platform for you? Here, we'll explore how to choose the best day trading platform, and what you should know before deciding to give day trading a try.
Day trading: A note of caution
Day trading carries risk of permanent financial loss. We strongly recommend first reviewing The Motley Fool's investing philosophy before considering day trading. The Motley Fool (The Ascent's parent brand) was founded with a long-term mindset of buy-and-hold investing; that means we believe long-term investing is critical to growing your wealth.
We created this page knowing that everyone's investing journey will look a little different, but wanted to note the risks of day trading for anyone who might be unaware. If you choose to engage in day trading, please do so with caution and an understanding of the financial dangers involved.
3 Featured Picks From Our Best Day Trading Platforms
There are a lot of options to compare, even on this page. It can be overwhelming! If you're looking for a place to start, here are some day trading platforms our experts recommend and why they like them:
- Robinhood: Great low-cost day trading platform
- E*TRADE: Standout option for stocks and options traders
- Tastytrade: Fantastic broker for futures investors
Our 5 Best Day Trading Platforms
Broker/Advisor | Best For | Commissions | Next Steps | |
---|---|---|---|---|
Robinhood Rating image, 4.5 out of 5 stars. 4.5/5Our ratings are based on a 5 star scale.5 stars equals Best.4 stars equals Excellent.3 stars equals Good.2 stars equals Fair.1 star equals Poor.We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs. | Rating image, 4.5 out of 5 stars. 4.5/5Our ratings are based on a 5 star scale.5 stars equals Best.4 stars equals Excellent.3 stars equals Good.2 stars equals Fair.1 star equals Poor.We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs. | Best For: Low fees | Commission: $0 for stocks, ETFs, and options; up to $6.99 monthly for Robinhood Gold | Open Account for Robinhood |
E*TRADE Rating image, 4.5 out of 5 stars. 4.5/5Our ratings are based on a 5 star scale.5 stars equals Best.4 stars equals Excellent.3 stars equals Good.2 stars equals Fair.1 star equals Poor.We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs. | Rating image, 4.5 out of 5 stars. 4.5/5Our ratings are based on a 5 star scale.5 stars equals Best.4 stars equals Excellent.3 stars equals Good.2 stars equals Fair.1 star equals Poor.We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs. | Best For: Stocks and options traders | Commission: Commission-free; other fees apply | Open Account for E*TRADE |
Tastytrade Rating image, 4.0 out of 5 stars. 4.0/5Our ratings are based on a 5 star scale.5 stars equals Best.4 stars equals Excellent.3 stars equals Good.2 stars equals Fair.1 star equals Poor.We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs. | Rating image, 4.0 out of 5 stars. 4.0/5Our ratings are based on a 5 star scale.5 stars equals Best.4 stars equals Excellent.3 stars equals Good.2 stars equals Fair.1 star equals Poor.We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs. | Best For: Options and futures investors | Commission: $0 for stocks, $1 per option contract (opening trades only), 1% per crypto purchase and sale | Open Account for Tastytrade |
Webull Rating image, 4.5 out of 5 stars. 4.5/5Our ratings are based on a 5 star scale.5 stars equals Best.4 stars equals Excellent.3 stars equals Good.2 stars equals Fair.1 star equals Poor.We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs. | Rating image, 4.5 out of 5 stars. 4.5/5Our ratings are based on a 5 star scale.5 stars equals Best.4 stars equals Excellent.3 stars equals Good.2 stars equals Fair.1 star equals Poor.We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs. | Best For: Mobile investing | Commission: $0 per trade | Open Account for Webull |
Interactive Brokers Rating image, 4.5 out of 5 stars. 4.5/5Our ratings are based on a 5 star scale.5 stars equals Best.4 stars equals Excellent.3 stars equals Good.2 stars equals Fair.1 star equals Poor.We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs. | Rating image, 4.5 out of 5 stars. 4.5/5Our ratings are based on a 5 star scale.5 stars equals Best.4 stars equals Excellent.3 stars equals Good.2 stars equals Fair.1 star equals Poor.We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs. | Best For: Active brokers | Commission: As low as $0 stock trades | Open Account for Interactive Brokers |
A note from our Head of Product Ratings, Robin Hartill, CFP®
When we researched online brokers to create this list of brokerages, some of the things we looked for were low costs, a variety of account types, and great customer service ratings. Everyone's investing journey is different, but I've found these three factors are important for anyone to have a great investing experience.
How do I choose a day trading platform?
Choose a day-trading platform with the features you need at competitive prices:
- Options traders should look for platforms with low options trading fees. Our best options trading platforms offer contract fees as low as $0.
- Future traders should look for platforms with low futures trading fees. Our best futures trading platforms offer low per-contract fees.
- Margin traders should look for platforms that offer low margin rates. Margin rates vary significantly by broker.
- Mobile traders should look for platforms easy to use on your phone. There are plenty of good stock trading apps to pick from.
- All traders should look for platforms that offer you "play money." Many platforms let you experiment with fake money before making trades.
In a nutshell, the best way to choose the best day trading platform is to decide what features and tools are most important to you. You can day trade with any online broker, but some will meet your needs better than others.
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Editor's Note: TD Ameritrade is transitioning to Charles Schwab
TD Ameritrade has been acquired by Charles Schwab, and the company expects all accounts to be transitioned by the end of 2024. We've removed TD Ameritrade from our best-of lists to align with this development. Here at The Ascent, you can trust that we're constantly evaluating our top broker picks to bring you current recommendations.
Reviews of the best day trading platforms
For low fees: Robinhood
Open Account for Robinhood
OnRobinhood'sSecure Website.
Ratings Methodology
Our Rating:
Rating image, 4.5 out of 5 stars.
4.5/5Our ratings are based on a 5 star scale.5 stars equals Best.4 stars equals Excellent.3 stars equals Good.2 stars equals Fair.1 star equals Poor.We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs. = Best
= Excellent
= Good
= Fair
= Poor
Bottom Line
As one of the few places to trade options commission free, Robinhood deserves a spot on the list. It also offers fractional share investing, cryptocurrencies, and an easy-to-use trading app. Customers who subscribe to Robinhood Gold also get access to extremely low-rate margin trading.
Read Full Review
Fees:
$0 for stocks, ETFs, and options; up to $6.99 monthly for Robinhood Gold
Account Minimum:
$0
Open Account for Robinhood
OnRobinhood'sSecure Website.
Pros
- $0 stock and crypto trades
- $0 options fees
- Easy to use
- Gold perks
Cons
- GameStop fiasco
- Low frills
Why we recommend Robinhood for day trading
Robinhood is famous for its low commission fees. It charges $0 to buy or sell stocks, including fractional shares, and it's one of the rare brokers that charges $0 options fees. Robinhood charges $0 crypto commissions, and Robinhood Gold subscribers get low margin rates.
Some traders are skeptical because Robinhood has had PR issues in the past, such as the GameStop incident. Others might dislike that Robinhood lacks some advanced trading features.
Robinhood charges you $0 commissions to trade stocks, cryptocurrencies, or options. It's worth noting that Robinhood offers a no-frills interface on mobile and desktop platforms. Finally, Robinhood Gold subscribers get low margin rates and Level II market data for an additional monthly fee for Robinhood Gold.
Read our full review of Robinhood.
For stocks and options traders: E*TRADE
Open Account for E*TRADE
OnE*TRADE'sSecure Website.
Ratings Methodology
Our Rating:
Rating image, 4.5 out of 5 stars.
4.5/5Our ratings are based on a 5 star scale.5 stars equals Best.4 stars equals Excellent.3 stars equals Good.2 stars equals Fair.1 star equals Poor.We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs. = Best
= Excellent
= Good
= Fair
= Poor
Bottom Line
The Power E*TRADE platform is one of the highest rated, and both the standard E*TRADE and Power E*TRADE platforms are available in mobile app form as well. High-volume traders get a discount on options commissions.
Read Full Review
Fees:
Commission-free; other fees apply
Account Minimum:
$0
Special OfferOpen a new eligible E*TRADE brokerage account, fund your account within 60 days of opening, and earn a cash bonus of up to $1,000, depending on the size of your deposit. Offer good for one use per customer, on a single account.
Open and fund and get up to $1,000
Open Account for E*TRADE
OnE*TRADE'sSecure Website.
Pros
- $0 stock and ETF trades
- High-volume discounts
- Strong trading platform
Cons
- High margin rates
Why we recommend E*TRADE for day trading
E*TRADE combines commission-free stock and ETF trading with a highly rated trading platform. It even offers physical branches you can visit for in-person assistance. E*TRADE does charge fees for options trading, and its margin fees could be more competitive.
E*TRADE charges you $0 commissions to trade stocks or ETFs. Plus, high-volume options traders get discounts, and there's a sweet deal for these traders in the free Power E*TRADE platform.
Read our full review of E*TRADE.
For options and futures investors: Tastytrade
Open Account for Tastytrade
OnTastytrade'sSecure Website.
Ratings Methodology
2024 Award Winner
Our Rating:
Rating image, 4.0 out of 5 stars.
4.0/5Our ratings are based on a 5 star scale.5 stars equals Best.4 stars equals Excellent.3 stars equals Good.2 stars equals Fair.1 star equals Poor.We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs. = Best
= Excellent
= Good
= Fair
= Poor
Bottom Line
Tastyworks allows for stock trading, but it is the most options-focused trading platform, with technology that focuses on it. Plus, Tastyworks has a unique commission structure that makes trading options more cost-effective than most rivals, especially for high-volume traders.
Read Full Review
Fees:
$0 for stocks, $1 per option contract (opening trades only), 1% per crypto purchase and sale
Account Minimum:
$0
Open Account for Tastytrade
OnTastytrade'sSecure Website.
Pros
- Low fees
- Capped fees
- Futures trading
- Advanced tools
Cons
- High margin rates
- Not beginner-friendly
Why we recommend Tastytrade for day trading
Tastytrade is the only broker here that prioritizes its options trading platform. Its unique commissions structure is more affordable than alternatives, especially for high-volume traders. Its feature-packed platform makes it not-so-beginner-friendly, and margin rates are so-so.
Tastytrade only charges $0 for stocks, $1 per option contract (opening trades only), and 1% per crypto purchase and sale. Plus, Tastytrade caps its commissions at $10 per leg, so if you buy 100 contracts of a certain call option, your commission will only be $10. Finally, Tastytrade offers futures trading at competitive prices, and its complex trading tools are user-friendly.
Read our full review of Tastytrade.
For mobile investing: Webull
Open Account for Webull
OnWebull'sSecure Website.
Ratings Methodology
Our Rating:
Rating image, 4.5 out of 5 stars.
4.5/5Our ratings are based on a 5 star scale.5 stars equals Best.4 stars equals Excellent.3 stars equals Good.2 stars equals Fair.1 star equals Poor.We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs. = Best
= Excellent
= Good
= Fair
= Poor
Bottom Line
No commissions on options, and a more feature-packed trading platform than Robinhood has. Webull also offers very competitive margin rates and doesn't require a subscription to access this feature.
Read Full Review
Fees:
$0 per trade
Account Minimum:
$0
Open Account for Webull
OnWebull'sSecure Website.
Pros
- $0 stock and ETF trades
- $0 options fees
- Feature-rich
- Low margin rates
Cons
- Busy interface
- No crypto
Why we recommend Webull for day trading
Webull offers one of the best mobile apps out there, and it's packed with features. It charges $0 to trade stocks (including fractional shares), ETFs, and options. The platform offers competitive margin rates. The Webull app doesn't offer crypto trading, and it's a bit more complicated to use than other mobile trading platforms.
Webull charges you $0 commissions to trade stocks, ETFs, and options. Webull also offers more advanced charting and complex trades than mobile competitors, and its margin rates are some of the most competitive out there -- you don't need a subscription to get the best rates.
Read our full review of Webull.
For active traders: Interactive Brokers
Open Account for Interactive Brokers
OnInteractive Brokers'Secure Website.
Ratings Methodology
2024 Award Winner
Our Rating:
Rating image, 4.5 out of 5 stars.
4.5/5Our ratings are based on a 5 star scale.5 stars equals Best.4 stars equals Excellent.3 stars equals Good.2 stars equals Fair.1 star equals Poor.We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs. = Best
= Excellent
= Good
= Fair
= Poor
Bottom Line
The Trader WorkStation platform is a powerful one for frequent traders. Day traders generally use lots of leverage (margin), and Interactive Brokers has some of the lowest margin rates in the business. It also offers international trading capabilities, which is somewhat rare.
Read Full Review
Fees:
As low as $0 stock trades
Account Minimum:
$0
Open Account for Interactive Brokers
OnInteractive Brokers'Secure Website.
Pros
- Low margin rates
- Strong trading platform
- International trading
- Paper trading
Cons
- Complicated fees
- Not beginner-friendly
Why we recommend Interactive Brokers for day trading
Interactive Brokers is known for its powerful Trader Workstation platform and low margin rates. It even lets you trade internationally, a rare feature.
According to its website, IBKR's margin rates are up to 49% lower than the industry. Trader Workstation is a powerful free desktop trading platform equipped with advanced trading tools, research, and extreme customizability. Interactive Brokers's GlobalTrader app lets you access more than 90 worldwide stock exchanges and trade options in more than 30 market centers, and the platform even lets you practice with fake money.
Read our full review of Interactive Brokers.
TIP
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How to open a day trading account?
Opening a day-trading account is simple:
- Begin opening an account. You typically start the process by navigating to the website of your chosen day trading platform and clicking "Open Account."
- Enter your necessary personal information. This may include your address, contact info, and Social Security number.
- Fund your brokerage account. If you are flagged as a pattern day trader, you will need to maintain at least $25,000 worth of equity in your account.
How to open a day trading account is the same process as opening a standard brokerage account. You typically don't open special "day trading accounts."
How to day trade
Day traders try to identify patterns or trends to profit from short-term movements in a stock. For example, you might identify a pattern in Apple's stock chart and predict the share price will rise. You'll buy shares of Apple and aim to sell it a short time later at a higher price. Active day traders attempt to earn profits on trades like this several times in a day.
LEARN MORE: How does day trading differ from investing?
What investments can day traders make money from?
Day traders can make money from buying stocks and options and selling them for a profit. However, this is a risky investment strategy. How much money you can make (or lose) depends upon volatility, how familiar you are with what you're trading, and other factors.
The more actively you trade, the more trading fees matter. $0.65 per options contract sounds small, but 100 contracts costs you $65. Small fees add up quickly.
Likewise, the more margin you use, the more interest rates matter. If you borrow $10,000 for one year at an 8% rate, you'd owe $800 in interest fees, regardless of your earnings -- or lack thereof. Fees and rates strongly affect how much money you can make day trading.
How much money do I need to start day trading?
The short answer is that it depends how active you want to be in the stock market, and how long you plan to hold stocks. If you simply want to buy and sell stocks every so often, there's no set-in-stone minimum.
It's important to know about the "pattern day trader" rule and how it could affect you. By FINRA's definition, a day trade occurs when you buy and sell the same stock in a margin account on the same day. (If your account doesn't have margin privileges, day trading is typically not possible.)
According to FINRA's rules, you'll be flagged as a pattern day trader if you complete four or more day trades in a rolling five-business-day period. Once you do this, you'll typically be considered a pattern day trader, even if you don't continue to meet the definition over time -- part of the rule says a broker can identify you as a pattern day trader if there's a reasonable belief you'll engage in day trading.
If you are identified as a pattern day trader, you will need to maintain at least $25,000 of equity in your account. You don't necessarily need to use it all to day trade. For example, if you hold long-term investments, it counts toward the total. But it must be in your account if you plan to day trade. There are other limitations that apply to pattern day traders, but this is how it applies to the capital requirements.
What are the risks of day trading?
Day trading can be extremely risky. As regulatory agency FINRA says, "Day trading generally is not appropriate for someone of limited resources, limited investment or trading experience and low risk tolerance. A day trader should be prepared to lose all of the funds used for day trading."
Simply put, stocks can be extremely volatile over short periods of time, and it can be painfully difficult, if not impossible, to predict their movements. There's no such thing as a 100% reliable day trading strategy, or anything close to it.
The majority of day traders lose money. The odds of making money day trading is low, thanks to the bid-ask spreads of stocks. The price you can readily sell a stock for is typically lower than the price you can buy it for at any given time. Usually, the difference between the two is just pennies, but when you're trading in and out of positions all day, it can cost you quite a bit.
Day trading can be especially risky if you're using margin or options to trade, or if you trade by placing short sale transactions, since these can make your account especially volatile. In some cases where trades go wrong, it's possible to lose more money than you invest.
LEARN MORE: What is stock market volatility?
What is day trading?
The term day trading is often used to refer to any investor who frequently buys and sells stocks, but the true definition is someone who regularly buys and sells the same stocks during the same trading day.
Regulatory agency FINRA formally defines a day trader as someone who buys and sells the same stock during the same trading day at least four times within a five-business-day period. This is known as a pattern day trader.
Additional resources
- Investing money for beginners
- Is a buy and hold investing strategy right for you?
- Can you buy a stock and sell it in the same day?
- How to invest in stocks
- Long-term investment strategies
- How to open a brokerage account
Article sources
Our brokerage rating methodology
At The Motley Fool Ascent, brokerages are rated on a scale of one to five stars. We primarily focus on fees, available assets, and user experience; however, we also take into account features like research, education, tax-loss harvesting, and customer service. Our highest-rated brokerages generally include low fees, a diverse range of assets and account types, and useful platform features.
See our full methodology here: Ratings Methodology
FAQs
Yes, day trading is legal. But if you day trade frequently, defined as four or more round-trip day trades in a five-business-day period, you'll need to comply with a $25,000 minimum capital requirement and adhere to certain margin rules.
In simple terms, stocks and options can be volatile and unpredictable. There is no such thing as a day trading system that accurately predicts stock movements 100% of the time. It's possible to lose money very quickly if trades don't go your way, especially if you're using margin, trading options, or are selling stocks short.
There are a ton of studies and reports about day trading results, and the conclusions vary dramatically. But most of them agree on two things. First, most day traders lose money. Second, some make money, and a select few make a lot of it. So, the short answer is yes, you can make money day trading, but it isn't easy money by any definition of the word.
It depends. If you simply want the ability to buy and sell stocks in order to make a profit, there's no set in stone minimum. On the other hand, if you plan to frequently trade in and out of positions, you may get flagged as a pattern day trader, which has a $25,000 minimum capital requirement. And of course, if your goal is for day trading to become your primary source of income, you'll need sufficient capital that could reasonably produce enough trading profits to meet your income needs.
Brokerages we evaluated for consideration on this page: Acorns, Ally Invest, Axos Self-Directed Trading, Betterment, Cash App Investing, Charles Schwab, Delphia, Domain Money, Ellevest, Empower, eToro Brokerage, E*TRADE Core Portfolios, E*TRADE, Fidelity, Fidelity Cash Management, Fidelity Go®, Firstrade, FOREX.com, Interactive Brokers, J.P. Morgan Self-Directed Investing, M1 Finance, Magnifi, Marcus Invest, Merrill Edge® Self-Directed, Moomoo, NinjaTrader, Personal Capital, Plynk, Prosperi Academy, Public, Robinhood, Rocket Dollar, Schwab Intelligent Portfolios, SoFi Active Investing, SoFi Automated Investing, Stash, Stockpile, Tastytrade, Titan, Tornado App, TradeStation, Tradier, Vanguard, Vanguard Digital Advisor®, Wealthfront, Webull, Zacks Trade.