- Home
- Stock Trading For Beginners
Written By
Michael MacKenzie
Written By
Michael MacKenzie
Michael is a writer and editor with over a decade in journalism and publishing. His niche lies in editing and fact-checking content in the financial services sector, with a focus on online brokers and trading platforms. Michael previously reported on politics and economics in the Middle East and edits books for established publishers.
» Michael MacKenzie Profile Page
Edited By
James Barra
Edited By
James Barra
James is an investment writer with a background in financial services. He has worked as a management consultant, where he delivered large-scale operational transformational programmes at some of Europe's biggest banks.James authors, edits and fact-checks content for a series of investing websites.
» James Barra Profile Page
Updated
Feb 12, 2024
Want to buy shares or speculate on stock prices but don’t know which brokerage to use? We’ve reviewed, compared and rated the best stock brokers and platforms for day trading stocks.
Top 5 Stock Brokers for Day Trading
Our comprehensive analysis of over 490 brokers, conducted as of February 2024, reveals the following day trading platforms as the top choices for stock traders. Every stock broker listed we evaluated using a real money or test account.
- AvaTrade - AvaTrade offers hundreds of shares on leading exchanges including the NYSE and FTSE. You can take positions on leading tech firms like Tesla, Apple and Microsoft with no restrictions and 24/5 support. There is also an above-average selection of 45+ indices and 60+ ETFs.
- Eightcap - You can trade 500+ US, Australian, and European shares with decent stock market research available in the Labs section. On the downside, fractional shares aren't offered which puts the broker behind top alternatives like ThinkMarkets.
- FXCC - You can trade a dozen major indices, including the Dow Jones, NASDAQ and S&P 500 with competitive spreads at FXCC. However, it’s disappointing that FXCC doesn’t offer any individual stocks - a huge drawback against competitors like CMC Markets, which offers thousands of shares.
- Spreadex - Trade thousands of global equities through spread betting and CFDs. Spreadex is one of the few online brokers to provide trading opportunities on a selection of lower market cap equities traded on exchanges such as the AIM sub-market of the London Stock Exchange.
- Interactive Brokers - IBKR provides access to an unparalleled array of equity products originating from 24 diverse countries, encompassing shares traded on major as well as sub-exchanges. Whether seeking capital appreciation, dividends, or voting rights, you can directly invest in stocks. Alternatively, you can engage in speculative trading on price movements through CFDs, futures and more than 13,000 ETFs.
Best Stock Brokers For Day Trading Comparison
| Broker | Minimum Deposit | Stock Trading App | Stock Fee | Extended Hours | Financial Regulator | Visit |
|---|---|---|---|---|---|---|
| | $100 | iOS & Android | 0.13 | ✘ | ASIC, CySEC, FSCA, ISA, CBol, FSA, FRSA, BVI, ADGM | Visit |
| | $100 | iOS & Android | 0.03 (Apple Inc) | ✘ | FCA, ASIC, CySEC, SCB | Visit |
| | $0 | iOS & Android | NA | ✘ | CySEC | Visit |
| | £0 | iOS & Android | 0.15% | ✔ | FCA | Visit |
| | $0 | iOS & Android | 0.003 | ✔ | FCA, SEC, FINRA, CBI, CIRO, SFC, MAS, MNB | Visit |
| | $5 | iOS, Android & Windows | 0.002 | ✘ | ASIC, CySEC, DFSA, FSC, FSCA | Visit |
| | $1 | iOS and Android + browser based platform | Commissions as low as 0.1% | ✘ | BVI FSC | Visit |
| | $0 | OANDA Trade, MT4 | 12 (Apple Inc) | ✘ | FCA, ASIC, KNF, MAS, CIRO, FFAJ, BVI | Visit |
| | $50 | iOS & Android | 0.57 (Apple) | ✔ | FCA, ASIC, CySEC, FSA, FSRA, MFSA | Visit |
| | $100 | iOS & Android | Variable | ✘ | FCA, CySEC, FSCA, SCB, FSC | Visit |
| | $100 | iOS, Android & Windows | 0.08 | ✘ | FCA, ASIC, CySEC, DFSA, MAS, FSA, FSCA, FMA, EFSA | Visit |
| | $100 | iOS, Android | 4 pips | ✘ | FCA, CySEC, ASIC, FSCA, FSC | Visit |
| | $0 | iOS & Android | Variable | ✘ | FCA, ASIC, DFSA, FMA | Visit |
| | $0 | iOS & Android | 0.02 | ✔ | FCA, ASIC, NFA, CFTC, DFSA, BaFin, MAS, FSCA | Visit |
| | $250 | Android | NA | ✘ | - | Visit |
#1 - AvaTrade
Why We Chose AvaTrade
AvaTrade offers hundreds of shares on leading exchanges including the NYSE and FTSE. You can take positions on leading tech firms like Tesla, Apple and Microsoft with no restrictions and 24/5 support. There is also an above-average selection of 45+ indices and 60+ ETFs.
"AvaTrade offers the full package for short-term traders. There is powerful charting software, reliable execution, transparent fees, and fast account opening with a low minimum deposit."
- DayTrading Review Team
- Demo Account: Yes
- Regulator: ASIC, CySEC, FSCA, ISA, CBol, FSA, FRSA, BVI, ADGM
- Platforms: WebTrader, AvaTradeGO, AvaOptions, MT4, MT5, AlgoTrader, TradingCentral, DupliTrade
- Min. Deposit: $100
- Automation: Yes
- Bonus: None
About AvaTrade
AvaTrade is a leading forex and CFD broker, established in 2006 and regulated across 9 jurisdictions. Over 400,000 users have signed up with the broker which processes over 2 million trades each month. The firm offers multiple trading platforms, including MT4, MT5, and a proprietary WebTrader. 1250+ financial instruments are available for day trading, alongside a comprehensive education center and multilingual customer support.
Pros
- The broker offers reliable 24/5 multilingual customer support with fast response times during testing
- The broker’s unique risk management tool, AvaProtect, protects against losses up to $1 million and is easy to activate in the platform
- WebTrader is well-suited to beginners and features a strong suite of technical analysis tools and market research for day traders
Cons
- There is no ECN account with raw spreads
- A high $2000 minimum investment is required to use DupliTrade, which will be out of reach for many beginners
- It’s a shame that there are no rebate schemes for serious traders looking for additional perks - CMC Markets would be a better choice here
Visit AvaTrade
#2 - Eightcap
Visit
Review
Why We Chose Eightcap
You can trade 500+ US, Australian, and European shares with decent stock market research available in the Labs section. On the downside, fractional shares aren't offered which puts the broker behind top alternatives like ThinkMarkets.
"Eightcap is great for day traders familiar with MT4 and MT5 and looking to trade forex and CFDs in a secure environment. The brand is also a great pick for crypto traders with 100+ derivatives, a sophisticated market scanner, plus Bitcoin and Tether deposits."
- DayTrading Review Team
- Demo Account: Yes
- Regulator: FCA, ASIC, CySEC, SCB
- Platforms: MT4, MT5, TradingView
- Min. Deposit: $100
- Automation: Yes
- Bonus: None
About Eightcap
Eightcap have a global presence and are FCA regulated. They boast low day trading fees and are the highest rated brand by TradingView users - and users can trade directly from TradingView. New traders can also sign up for a live account in just a few minutes with £100.
Pros
- Strong trading education and analysis including forex guides and online webinars
- Raw spreads from 0.0 pips and a low $3.5 commission will appeal to active traders
- Flexible and fee-free payment methods including cryptocurrencies
Cons
- There are only four commodities available, which may disappoint experienced day traders looking to diversify their portfolios
- The demo account can only be extended upon request
- There are several frustrating jurisdictional restrictions - for example, the Crypto Crusher tool is not available for UK or Australian clients
Visit Eightcap
#3 - FXCC
Visit
Review
Why We Chose FXCC
You can trade a dozen major indices, including the Dow Jones, NASDAQ and S&P 500 with competitive spreads at FXCC. However, it’s disappointing that FXCC doesn’t offer any individual stocks - a huge drawback against competitors like CMC Markets, which offers thousands of shares.
"FXCC continues to prove itself an excellent option for forex day traders with an extensive range of 70+ currency pairs, ultra-tight spreads from 0.0 pips during testing, and high leverage up to 1:500 in the ECN XL account. "
- DayTrading Review Team
- Demo Account: Yes
- Regulator: CySEC
- Platforms: MT4
- Min. Deposit: $0
- Automation: Yes
- Bonus: None
About FXCC
FXCC is an established broker that’s been offering low-cost online trading since 2010. Registered in Nevis and regulated by the CySEC, it stands out for its ECN trading conditions, no minimum deposit and smooth account opening that takes less than 5 minutes.
Pros
- There are no restrictions on short-term trading strategies like day trading and scalping
- There are no deposit fees except industry-standard mining charges on cryptos, which is advantageous for active traders
- The free education section, including the 'Traders Corner' blog, offers a large selection of materials that will serve all experience levels
Cons
- Although MetaTrader 4 continues to shine for technical analysis, the subpar design dampens the trading experience, especially compared to modern alternatives like TradingView
- While the range of currency pairs exceeds most alternatives, the selection of additional assets is narrow, and notably, there are no stocks
- FXCC’s single platform offering is a major drawback compared to many alternatives, notably AvaTrade which provides 5 platforms to suit different trader preferences
Visit FXCC
#4 - Spreadex
Visit
Review
Why We Chose Spreadex
Trade thousands of global equities through spread betting and CFDs. Spreadex is one of the few online brokers to provide trading opportunities on a selection of lower market cap equities traded on exchanges such as the AIM sub-market of the London Stock Exchange.
"Spreadex will appeal to UK day traders who are interested in both spread betting on financial markets and placing traditional bets on sports events. Fees are low on short trades and profits are tax-free on spread bets. There's also a powerful proprietary charting platform, plus £0 minimum deposit required to get started. "
- DayTrading Review Team
- Demo Account: No
- Regulator: FCA
- Platforms: Spreadex Platform, TradingView
- Min. Deposit: £0
- Automation: Yes
- Bonus: None
About Spreadex
Spreadex is an FCA-regulated broker that offers spread betting opportunities on an impressive 10,000+ CFD instruments including 60 forex pairs. Traders can also take short-term positions on sporting events. The brand has been around for over 20 years and has won multiple awards.
Pros
- Traders have the opportunity to bet on sports events from their brokerage account
- The broker offers an easy-to-use proprietary charting platform and mobile app
- A rare broker that provides access to lower market cap stocks traded on the AIM
Cons
- There's no support for expert advisors or other trading bots
- The lack of a demo account will frustrate prospective clients who want to test Spreadex's services
- The proprietary terminal lacks comprehensive charting features of platforms like MT4 and MT5
Visit Spreadex
#5 - Interactive Brokers
Visit
Review
Why We Chose Interactive Brokers
IBKR provides access to an unparalleled array of equity products originating from 24 diverse countries, encompassing shares traded on major as well as sub-exchanges. Whether seeking capital appreciation, dividends, or voting rights, you can directly invest in stocks. Alternatively, you can engage in speculative trading on price movements through CFDs, futures and more than 13,000 ETFs.
"Interactive Brokers is one of the best brokers for advanced day traders, providing powerful charting platforms, real-time data, and customizable layouts. Its superb pricing and advanced order options also make it highly attractive for day traders, while its diverse range of equities is still among the best in the industry."
- DayTrading Review Team
- Demo Account: Yes
- Regulator: FCA, SEC, FINRA, CBI, CIRO, SFC, MAS, MNB
- Platforms: Trader Workstation (TWS), Desktop, GlobalTrader, Mobile, Client Portal, AlgoTrader, OmniTrader, eSignal, TradingCentral
- Min. Deposit: $0
- Automation: Yes
- Bonus: None
About Interactive Brokers
Interactive Brokers (IBKR) is a premier brokerage for experienced traders, providing access to 150 markets in 33 countries, along with a suite of comprehensive investment services. With over 40 years of experience, this Nasdaq-listed firm adheres to stringent regulations by the SEC, FCA, CIRO, and SFC, amongst others, and is one of the most trusted brokers for trading around the globe.
Pros
- IBKR continues to deliver unmatched access to global stocks with tens of thousands of equities available from 100+ market centres in 24 countries.
- The TWS platform has clearly been built for intermediate and advanced traders and comes with over 100 order types and a reliable real-time market data feed that rarely goes offline.
- IBKR is one of the most respected and trusted brokerages and is regulated by top-tier authorities, so you can have confidence in the integrity and security of your trading account.
Cons
- IBKR provides a wide range of research tools, but their distribution across trading platforms and the web-based 'Account Management' page lacks consistency, leading to a confusing user experience.
- You can only have one active session per account, so you can’t have your desktop program and mobile app running simultaneously, making for a sometimes frustrating trading experience.
- TWS’s learning curve is steep, and beginners may find it challenging to navigate the platform and understand all the features. Plus500's web platform is much better suited to new traders.
Visit Interactive Brokers
We exhaustively evaluated each stock broker, assigning them an overall rating that served as the basis for our platform rankings. This rating is a culmination of:
- Quantitative metrics: We scrutinized over 200 data points across 8 core categories, carefully documented by our experts.
- Qualitative insights: Our extensive testing process yielded valuable observations that further informed our evaluation.
Below are the key considerations that shaped our stock broker ratings. We recommend you take these factors into account when choosing an online stock broker.
Regulation and Trust
We prioritized online stock brokers that are authorized by trusted financial regulators like the US Securities & Exchange Commission (SEC), UK Financial Conduct Authority (FCA), and Australian Securities & Investments Commission (ASIC).
That’s because top-tier regulators ensure stock brokerages provide measures that can help protect your capital from business failure. The UK’s Financial Services Compensation Scheme (FSCS), for example, protects investments up to £85,000.
Leading regulators also enforce restrictions on leveraged stock trading for retail investors, typically set at 1:5. Leveraged trading is particularly common among short-term traders and it’s regulated to curb potential losses, offering protection in case the stock markets move against you.
- Plus500 maintains its position as one of the most heavily regulated stock brokers (via CFDs) we’ve tested with real money, earning our trust with 7 licenses and a listing on the London Stock Exchange.
Stock Trading Fees
We chose brokers that offer low stock trading and non-trading fees, taking into account commissions on popular shares, margin fees, plus any deposit/withdrawal and inactivity charges.
Picking a brokerage account with low trading fees is especially important if you are day trading stocks, as a large volume of transaction fees can cut into profit margins.
- XTB continues to stand out for its low stock trading fees after introducing zero commissions on shares and charging a competitive 0.5% conversion fee. It’s also one of a limited number of stock brokers we’ve tested to offer high interest on uninvested cash (up to 4.9%).
Stock Market Access
We favored brokers with access to a wide range of stock exchanges, providing short-term trading opportunities across a selection of markets and industries.
Importantly, stock market trading is centralized, meaning that shares in most large companies are sold through national exchanges, such as the New York Stock Exchange (NYSE), National Association of Securities Dealers Automated Quotations (NASDAQ), and London Stock Exchange (LSE).
Companies will not be listed on all exchanges, therefore, you should look for a broker with a global reach, especially if you want to build a diverse portfolio.
Also, some brokers specialize in buying and selling company shares directly, while others only allow you to speculate on stocks as the underlying assets using products like CFDs. These derivatives can be an excellent option for day traders looking for leveraged vehicles to profit from shorter-term price movements.
- Year after year, we’ve been impressed with CMC Markets, which offers an almost unrivalled suite of 10,000+ shares including major stocks in technology, banking, finance, plus consumer and retail sectors.
Stock Trading Platforms and Apps
We selected brokers with excellent stock trading platforms and apps that have clearly been designed with ease of use in mind for beginner traders, alongside helpful stock screeners and sophisticated analysis tools for advanced investors.
That’s because a user-friendly platform ensures smooth navigation, timely execution of trades, and provides valuable tools and insights to inform stock trading decisions.
- eToro’s stock trading platform and app stood out during testing for its simple interface that will appeal to new traders. It also provides intuitive charting and in-built indicators that will serve day traders, as well as integrated research and news feeds, trading calendars and expert commentary.
What Is A Stock Broker?
An online stock broker allows you to purchase company stocks and shares, or trade related derivatives like CFDs, via a website, desktop platform or mobile app, using just the internet.
These brokers will have connections to the stock market and will purchase the stock on your behalf. Trades can be executed at the click of a button, in real-time via their online platforms.
How Do Stock Brokers Make Money?
Stock brokers make money through several avenues. Often you will pay a commission, which is a flat fee per transaction. That said, we’re increasingly seeing online stock brokers, such as XTB, move to commission-free models.
In these instances, stock brokers may make money through a markup on the spread, which is the difference between the price a buyer is willing to pay (bid) and the price a seller is willing to accept (ask) for a particular stock, representing the transaction cost and liquidity in the market.
Some stock brokers are also market makers meaning they create liquidity by taking the other side of your trade. Sometimes, brokers can make money this way if a stock trader makes a loss.
💡
Tip: Advanced traders should consider a firm like Interactive Brokers. Their IBKRO Pro plan provides access to the IB SmartRoutingSM system which offers excellent execution by looking for the best available prices on stocks.
How Do I Start Trading Stocks?
The first step is to open an account with a stock brokerage.
You will find a wide assortment of online stock brokers and trading platforms available online, but choosing the best one for you depends on the stocks you want to trade, your trading strategy and your personal preferences.
You will then need to deposit the minimum amount, which typically ranges from $0 to $500.We’ve learned that depositing more upfront can often provide access to better quality stock trading tools and market research.
After that, you can log into the stock trading platform or app to find opportunities and place trades.
If you are new to stock trading, I recommend starting with a demo account. They simulate real-life market conditions, but any orders placed are with ‘paper money’. This means you can explore a platform and practice day trading stocks before risking real money.
Michael MacKenzie
Author
FAQ
Are Online Stock Brokers Safe?
The best way to stay safe is to choose a trustworthy stock broker. The most reliable sign of a trustworthy stock broker is authorization from one or more respected regulators, such as the SEC in the US, the ASIC in Australia, the FCA in the UK, or the CySEC in Europe.
We regularly verify the licenses of our recommended stock brokers on the respective regulator’s database to ensure they are authorized by the financial bodies they claim to be.
Our team is also comprised of industry experts who keep abreast of major security incidents and unfair trading practices – marking such stock brokerages down where appropriate. This was the case with Robinhood when its trading practices were found to be harmful to retail investors.
Which Is The Best Stock Broker For Beginners?
Pepperstone, XTB and eToro are our top picks for beginner day traders. They all have minimum deposits of <$10, free demo accounts so you can practice stock trading, and useful educational materials that we’ve explored ourselves.
Both XTB and eToro also offer fractional shares, lowering the entry barrier on high-value stocks.
Which Is The Best Stock Broker For Advanced Traders?
Interactive Brokers, IG and City Index are our top picks for advanced day traders. They offer a huge range of stocks with professional-grade platforms for market analysis, excellent research and reliable execution.
