Day Trading Brokers

Written by Michael Federico
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Day traders buy stocks fast and often sell even faster. They try to make a living by making several trades (sometimes a dozen) in one day. This allows them to make money quickly, but it can also end up costing them. Fees and commissions can pile up with frequent trades. This is especially true if a day trader is dealing with large numbers of shares.

In order to stem the costs and hold onto more of the money they make, many day traders have sought out low-cost online trading services. Most online services are relatively inexpensive to begin with. However, there are sites that truly cater to extremely active traders. They have low fees all around, and they will often charge for a number of transactions as opposed to charging for each. For instance, a day trader might be able to make five trades for a set price.

What Do Online Brokers Have to Offer?

An online broker can offer a day trader the freedom he wants. If an investor with an investment firm, it is often difficult to make the kinds of fast, multiple trades that day traders thrive on. Using an online broker allows the individual to make all of his own trading decisions and he can trade directly to the exchange, so there is no time wasted.

Day traders can do research online. They can also delve into areas of trading that go beyond simple stock purchases and sales. Many day traders have made careers out of working from their homes and trading online, but this is not going to work for everyone. There is a lot of risk involved for highly active traders, and money can be lost just as quickly as it can be made.

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