The success or failure of day trading also depends on hiring the right broker. Not only are the fees to be paid, but there are also other important criteria. The following checklist should help investors choose a reliable day trading broker.
The Internet has lots of offers, which mostly look very appealing at first glance. Check the broker’s conditions exactly and compare the details of each. Ignoring this simple step could cost you thousands.
How long has the brokerage firm been in business?
The answer to this question shows people how much experience the broker has with his or her order systems and how problem-solving can be handled in the event of an error. The experience of the traders on the phone also plays an important role if an investor must give an order by telephone or has to clarify a problem with an order.
Is the company regulated?
In any case, people should only hire a reputable broker, which is at least supervised by government entities. With US brokers, the SEC tackles these types of regulations. Starting with a professional Forex broker is a smart move, so start off by asking what is needed to open an account with real money. Investors could also inquire about a non-binding demo account.
Which trading software should be used?
A stable, fast and mature trading software is indispensable for professional day trading. Important is a fast order entry, additional functions such as order book inspection and absolute stability. A software crash during a trade can cost an investor a lot of money!
A day trader with a very mature platform is, for example, should be chosen over a trader who has a newer platform that hasn’t been tested fully. A web browser based trading platform should not be used to professionally day trade. Choose a platform that is very widespread, very stable, easy to use and can expand through many free or paid items.
What are the trading hours?
Almost all brokers for US stocks allow trading starting at 09:00 EST. At this time, various ECNs are available. Most companies allow trading until 04:30 EST. Take a look at these Markus Heitkoetter videos for more details.