Day trading has been an old system commonly practiced by professional investors and firms. The shift towards an online trading platform has enabled many casual investors to also dabble in stocks easily. Many of them are novices such as home-makers, students. However, you still need an AvaTrade Review trading broker for your stock transactions.
It is called so as all the buying and selling of the financial instruments happens within the same day. These could be stocks, currencies and commodity futures. Of these, stocks are the ones which are most traded on a daily basis. The moot idea behind engaging in active trading is to earn the best possible value on the stock by watching its movement closely by the hour.
Here are certain aspects which can aid your search for a decent day trade broker. The main element is timing. This is because time literally means money in this business. Even a few seconds can make a huge difference to your overall profit, especially if the amount of stock being traded is large. So go for a trading broker who is known to provide expeditious service. In technical terms, pick a broker whose trade execution is swift. For the uninitiated, there is a time lag between the moment you place the order and the transaction taking place. This time lag should be effectively less for you to make a gain.
Linked with the time element is also the issue of customer service. This is true for any field but more so in case of day trading. Your day trading broker should be fully accessible to you at all times during the trading hours. This could be either through the Internet or through the phone. In case you go in for an online broker, it makes sense to go over the feedback given by other customers. This will give you a fair idea of what to expect at the outset. There is no dearth of online day trading brokers these days so make your pick wisely. Start with small amounts and proceed cautiously.
The other thing you should look at is the aspect of commissions. This has to be paid not only when you buy stock but also when you sell it. Here you can go for a discount broker. A discount broker charges low commissions because he/she will only carry out the transaction for you. There is also another angle to consider here. It is about quick trading in stocks. Paradoxically, this means that your trading activity will be high which will eat into your profit pie. This can be mitigated by going for a day trading broker who offers some amount of free trades if you maintain a certain minimum balance with them or trade frequently with them.
It may not always be the case that the same broker will be proficient in both day trading of stocks and options. So, if you want to go in for day trading options, select a day trading broker that has specialized tools for options trading. All these factors can facilitate your goal of making money in the stock-market through day trading.