Day trading is a kind of stock trading in which you purchase and sell assets frequently. Day traders are unconcerned about whether the general market is rising or falling. A day trader can profit from the stock market’s volatility by buying assets while they are at a low price and selling them when the price rises.
Many day traders appreciate the flexibility that comes with their job, but being confined to a computer for lengthy periods may be frustrating. With the proliferation of smartphones, a slew of day trading applications has emerged to aid in the execution of on-the-go transactions from the world’s leading brokers.
What Are the Prerequisites for Day Trading?
Capital – To acquire your first set of stocks, you’ll need money in your bank account. Even while most brokers with low account minimums enable traders to start buying and selling assets with as little as $250, you’ll need more money to make substantial gains after commissions are factored in.
Most expert day traders recommend that novice users start with a $1,000 deposit to evaluate their trading technique; if they are successful, they may easily add more later. The SEC’s pattern day trading regulation applies to new day traders, who are limited to three round-trip trades every 5 days if their account balance is less than $25,000 after various days. Once you’ve used up your weekly limit of three round-trip trades, your broker must suspend your trading rights until the following 5-day period begins or you make a deposit to bring your account up to $25,000 in value. Because low-level day traders’ accounts are restricted, the pattern day trading rule dictates that they be very careful about what they purchase and sell.
A Live Quotes Source – Day traders, unlike long-term investors, purchase and sell stocks often. Some traders will buy and sell a stock in under 15 minutes. To determine when to purchase and sell, day traders require a trustworthy source of real-time stock market quotations. Check out our roundup of the top free online stock market quotations and save the ones that interest you.
Realistic Aspiration – If a day trading school or website promises that stock trading will make you thousands of dollars overnight or that you can become wealthy by following “easy methods,” they are most likely trying to sell you anything. It takes time to become a successful stock trader. Many skilled traders admit that it took them over six months to start seeing consistent returns, in addition to many hours of practice on a dummy account. Have realistic expectations for how much money you’ll make, and don’t be afraid to make errors; they’re a necessary part of the learning process.
What to Look for When Choosing a Day Trading App
You’ll probably get hundreds of different replies if you ask 100 traders about their favorite feature in a day trading software. An easy interface, cheap fees/commissions, and complete online capability are the three most common.
Intuitive Layout – The finest day trading program in the world is meaningless if you can’t figure out how to use it, no matter how effectively it works or how many amazing research tools it provides. Before you buy an app, watch YouTube app tutorials and demonstrations to make sure you like the way it looks and operates.
Low Commissions and Fees – Your stockbroker would most likely direct you to a day trading software, and you should already be aware of the costs and commission schedule. If this is your first time trading stocks, you’ll want to choose with an app provider that charges cheap costs and commissions so you can optimize your earnings.
Full Web Functionality- Some brokers restrict the capabilities of an app, urging traders to utilize their desktop counterparts instead. Before you buy an app, check sure it has all of the same features and functionality as the desktop version.
The Most Effective Day Trading Apps
Best for Mobile Apps: TD Ameritrade
For enhanced day trading, TD Ameritrade provides iPhone and Android applications. You can trade stocks, options, futures, and currency using TD Ameritrade Mobile. You can keep track of your positions using a variety of tools and features, including over 300 technical charts and indicators. You can trade some assets 24 hours a day, 5 days a week with 24/5 trading. You may broaden your investment options to include foreign markets and specific industries.
TDAmeritrade also has the TD Ameritrade Mobile Program, which is a sophisticated mobile trading app that works on all our smart devices. You can keep track of your investments, trade stocks, ETFs, and options view integrated charts, create price alerts, access watchlists, and obtain third-party research.
Best for Execution: E*TRADE
E*TRADE is one of the most well-known internet trading pioneers in the world. E*TRADE is also widely regarded as one of the first firms to bring day trading off of Wall Street and into the hands of ordinary people. You can invest in ETFs, mutual funds, and options using E*TRADE’s award-winning Mobile app. Transfer Money, check deposits, and Bill Pay are all options for managing cash.
The Power E*TRADE app from E*TRADE is designed with simple tools and capabilities. A single trade ticket can be used to make trades in stocks, ETFs, options, and futures. With real-time streaming quotations, news, earnings, dividends, and more, you may study interactive charts, technical analyses, and market movements.
Best for Beginners: Robinhood
Traders may use Robinhood to purchase and sell stocks without paying a fee. Robinhood not only provides no-fee trading and a $0 minimum deposit, but it also has a user-friendly smartphone interface that is both responsive and intuitive.
Although Robinhood eliminates most of the extras that come with other brokers, the app’s free trading platform is unrivaled. With only a few clicks, users can purchase and sell stocks, and the app’s mobile-native architecture ensures that nothing is lost in translation from the website to the phone or tablet. New users can even earn a free share of a big corporation, albeit the exact amount they receive is determined by the firm.
The lack of resources and analysis capabilities in Robinhood may turn off more experienced stock traders, but for beginning traders concerned about costs and commissions, the app’s simplicity and easy-to-use structure are a must-see.
Best for Active Traders: Webull
Webull, a mobile app-based brokerage launched in 2017, offers commission-free stock and exchange-traded fund (ETF) trading. The Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) oversee it (FINRA).
Webull provides technical indicators, economic calendars, research agency ratings, margin trading, and short-selling to active traders. Webull’s trading platform is geared for intermediate and advanced traders, however, newcomers can profit as well.
Best for Novice Traders: Moomoo
Moomoo is a commission-free mobile trading program that works on Apple, Android, and Windows phones and tablets. Moomoo is another excellent Robinhood option. If you want to become serious about smart trading, this is an excellent trading platform to use. Advanced charting, pre-and post-market trading, international trading, research and analysis tools, and, most importantly, free Level 2 quotations are among the trading tools and possibilities available to both novice and experienced traders.
Best for Advanced Traders: TradeStation
Previously, TradeStation’s platform was reserved for professional traders who need a highly sophisticated platform. Not any longer. The TS GO account option from TradeStation provides beginning traders with professional-grade stock screeners as well as numerous instructional and development tools.
The TradeStation mobile app syncs with your online account, allowing you to trade stocks, options, and ETFs, as well as use the Hot List, Quote, and Matrix features.
Best for Algo Traders: Zen Trading Strategies
Zen Trading Strategies was created by a group of quantitative algorithmic traders or traders that execute trades using an algorithm built with their own specific buy and sell triggers. It provides pre-tested and ready-to-use techniques for day trading and other types of investment so that even novice investors may get started right away.
You may utilize the strategies as-is, alter them to meet your needs better, or create entirely customized strategies based on your chosen indicators. This is a wonderful alternative for those who want to automate their day trading so they can sit back and relax while an algorithm takes care of the legwork.
You may also use the TradingView mobile app to employ the techniques and indicators because they’re all designed to work with TradingView’s charts. That app is dependable and completely synchronized with your desktop dashboard, allowing you to see all of your charts, along with your Zen Trading Strategies, no matter where you are—even if you’re using the free edition of the platform.