Rather than purchasing and holding onto a stock or sitting on an option for weeks or months, day traders take trading to the short term by buying and selling stocks within the same day. As with any investment venture, the higher the risk, the higher the potential payoff. Day trading is high risk and sometimes offers high payoffs, which is also what attracts many to it. We recommend you understand the risks and requirements involved with day trading before entering the day-trading game.

Along we strict day traders, we considered platforms preferable for active traders those who may hold positions overnight and those who trade more than a handful of times a month. We have included mostly online stock trading services and a few desktop platforms to our lineup. The most popular names in online stocks trading, such as OptionsHouse. TradeKing and optionsXpress. offer platforms ideal for day traders. For more information on day trading, have a look at our articles on day trading software .

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Day Trading Software: What to Look For

When you trade on a regular basis, fees and commissions add up, so for many traders, cost is the most important consideration. The platform and tools a service includes are also integral, as day traders require advanced and in-depth analysis of stocks and the market. The level of mobile access you desire is also important to consider as not all mobile apps provide the same features and functions. If you’re new to the market or day trading in particular, also consider the educational resources and support offered.

Margin accounts are commonly used for day trading where you borrow money from your broker to trade securities. For pattern day traders those who order four or more trades in a rolling five-day period the Financial Industry Regulatory Authority requires a balance of $25,000 or more in your margin account at all times. Your broker charges interest on the loaned amount, and rates decrease as your balance increases. Interest rates vary from service to service, including the way in which they determine their rates. Rates are always subject to change.

Investments Offered

All services we reviewed deal with typical investment vehicles. You’re guaranteed to be able to trade stocks and options. Nearly every service offers trades with ETFs, bonds and mutual funds, but some do not, so if you’re interested in those investments, be sure your broker offers them. Most services we reviewed do not deal with high-risk investments, including forex and futures, and many do not deal with international markets.