Which Broker You Should Choose For Trading | Amazing Adviser

 


Which brokers should you use to start day  trading? Whether you are trading a small account,  larger account, long biased or short biased,  or trying to avoid PDT restriction, I have  the answers for you in this article.

Contrary to what most people think, the deciding  factor for which broker you should use, should  never be, whether they are commission free. 

You should be choosing a broker that gives  you the most optimized platform, at a reasonable  cost, to trade your own trading style and  strategies, whether it’s buying breakouts,  shorting parabolics, swing trading or options  trading. 

Think of it this way, I don’t want to be  saving $5 in commissions but actually getting  filled with 50 cents slippage.

On even just  100 shares thats losing $50 dollars of potential  profit.s  At the same time, I don't want to be saving  a couple dollars per trade, but never have  any stocks too short available when I see  an amazing low float penny stock being pumped  400% and very extended on the day. 

Broker commissions and fees are just the cost  of doing business. If paying those fees means  you end up with better execution speed, fills,  and a lot more profit.

Then by all means that's  absolutely worth it.  In this video we’ll be going over the brokers  I think are the best for day trading, in these  specific areas. I’ll leave all the time  stamps and discount links below if you want  to check those out.

As always, if you appreciate  the research and time I put into videos like  these, plz rmb to drop a like.  Let’s start with the most basic brokers  for most beginner traders to get started. 

Going long. I personally started with learning  long strategies and that's how I built my  small account that way.

Interactive brokers  is the first broker I got when I started day  trading six years ago.  At first glance, IB is indeed a lot cheaper  than most other brokers out there.

Basically  the cost for buying and selling US listed  stocks is $0.005/ US per share, with a minimum  of $1USD per trade. So for newer traders with  small accounts this is really affordable. 

And their execution and fills are decent as  well.  But keep in mind to trade on IB you will need  to purchase additional market data subscriptions  on their platform Trader workstation tws. 

If you are day trading mostly the US Nasdaq  and NYSE stocks and options like myself , this  is what the subscriptions would look like  and it adds up to about $30 us a month. 

That includes things like Equities and Options  quote for nasdaq exchanges, level ii etc etc. 

But if you trade those true sub dollar penny  stocks, you need to purchase additional OTC  or pink sheets data for I think $10 extra  per month,  As for the ability to short, IB has generally  good short locations for the large cap stocks,  basically anything but a low float runner  on day one.

They do not offer the function  of locating borrows but any short availability  are free of any extra charge.  Interactive brokers is available in US, Canada,  and most international countries.

If you are  in the US, there is the option of IB Lite,  which is free commission trading but I believe  you would only be able to trade on IB Lite  on mobile or web, not on their TWS desktop  platform.  Next lets talk about Fidelity Active Trader  Pro.

I have not not used this broker myself  but I hear from many traders I trade with  every day that they have great execution fills.  And for a broker that’s gone commission  free, thats amazing.  Another thing to note is their customer service  support line.

They pick up the photne with  only one minute wait and this broker has good  short availability for maintreaam large cap  stocks, such as the ROKU and TSLA, at no additional  borrow cost. 

Basically they are around the  same level as interactive brokers. 

But the cons of Fidelity Active trader pro,  is their platform. The reviews from the traders  I know is generally the same. Their platform  functions are outdated and clunky. 

So keep  that in mind. Fidelity is available outside  of US as well so make sure to check their  international website for details. 

For all you traders interested in trading  automation and coding your own making it rain  lamborghini trading bots, you might be interested  in Trade Station. Trade station is another  direct routing broker that offers good executions  for traders.   

Their shorting availability is on par with  Fidelity and IB, where most general large  cap stocks are available to short for free. 

Their platform has this Matrix feature, which  is a more advanced but easy to follow L2 montage.  The matrix offers lightning fast order entries  on all different kinds of orders like bracket,  sell and buy stop orders.   

And like I mentioned earlier, tradestation  platform also allows you to build your own  automated trading strategies.

And if you ever  build a bot that will make it rain lambroghnis,  make sure to call me.  However, their fees are on the higher side  in comparison to all the brokers we mentioned  before, but the direct routing executions  and fills make it worth it.  

Next lets talk about the exciting topic of,  the best brokers for shorting.

When it comes  to shorting these hard to borrow runner stocks  on day one, at a extremely affordable price  the winner has to be Cobra Trading. 

They are a direct access broker that offers  the function of reserving hard to borrow stocks  to short, at a mostly reasonable price.

And  sometimes they even offer their clients free  locates on these stocks. All these runners  recently that everyone wants to short, such  as GNUS, PSTV, APDN.

They were available at  Cobra Trading.  And if you short any of these stocks overnight…  guess what, while other brokers I’m going  to talk about charges 3x or 5x overnight fees…  Cobra trading does not. 0 extra overnight  fees.

You can link your Cobra account with  Das Trader pro, its a platform that offers  the best execution fills, whether you are  longing or shorting. 

Cobra trading is available for US clients  with an account over $30K, and International  clients with accounts over $50K. But sorry,  at the moment they do not service Canadians,  but I have another option for you soon.   

If you are interested in opening an account  with Cobra trading, I have a link for you  to sign up below, and if you mention Humbled  Trader at the time of account opening, you’ll  get 25% off your commissions. That's a pretty  sweet deal. 

The next broker is also amazing for shorting  HTB stocks, and that is Centerpoint Securities.   

They are a little bit more expensive in terms  of short locate fees than Cobra Trading, and  there is also additional 3x overnight fees  if you swing stocks short at Centerpoint. 

However, they do offer amazing customer support  service, direct access trading, and connection  with DAS Trader pro.   

Centerpoint Securities is available for traders  in US, Canada, and many other international  clients with an account over $30K. As for  traders starting out with small accounts less  than 30K, I have more broker options for you after you smash the like button for the YouTube  algorithm.  

Ok lets talk about the top choice for shorting  if you have less than $25K. And that is Trade  Zero. Trade zero is an offshore broker in  the bahamas. 

They have great short locates on these hard  to borrow penny stocks just like Cobra trading  and centerpoint, and you can open an account  with them $2500 minimum. However, their locate  fees are a lot higher. 

Even though they claim to have free commission  trades on limit orders, Trade zero loves to  ding traders for like, wire fees, statement  fees, deposit fees, and everything like that  definitely adds up. Another thing to keep  in mind is their platform Zero pro.

The executions  and fills are extremely clunky and sometimes  it freezes during times of volatility.  

 But TZ is definitely a great options for short  sellers with a small account. Americans can  open an account with Trade zero america, but  you’ll still have the PDT rule restriction  under 25K. 

Canadians and other international  traderes can open account with TradeZero international.  Now what if you want to avoid trading under  PDT restruction.

PDT stands for pattern day  trader rule. basically it limits how many  times you can trade if your account is under  $25,000. Under the PDT rule, the day trader  can only place 3 day trades in a consecutive  5 day period.  

 PDT rule only applies to US traders with US  based brokers, such all the ones we talked  about earlier, IB, Trade STtaion, fidelity,  thinkorswim. Premium brokers like Cobra and  Centerpoint, they don’t even take clients  under PDT. 

But id you are in the US and want to avoid  this restriction, you can open a cash account  with any of the brokers I mentioned earlier,  or open an offshore trading account with CMEG. 

CMEG is one of the few reputable offshore  brokers I know many of my trader friends use.  They are based out of Trinidad and Tobago. 

They take clients from US and many international  clients but not Canadians, again Im sorry.  CMEG offers DAS trader pro connection as well,  but their commission fees and borrow fees  are extremely high.

Their short locate availability  is not as good as Trade zero or Cobra Trading  either. So make sure you look into their details  and fine prints before opening an account  with them. 

If you want to learn more about  other ways to get around PDT, make sure to  check out this video.  Now let's talk through a few more popular  brokers I know many traders use.

Charles schwab  streetsmart edge is one platform I know to  be very popular for options traders. And then  theres also thinkorswim, I love TD thinkorswim’s  charting platform with all the customizations  and flexible grid and free market data. 

But ever since they started with free commission  trading, the platform executions have been  laggy and sometimes the market data even froze  all together.

Which seems to be the problem  with all the brokers that have gone commission  free, such as ETrade, IB lite, and popular  free trading apps such as Webull and robinhood. 

Again I think these free commission trading  platforms are great for beginners to get started  and dipping their toes in with low upfront  cost, or to practice free real time paper  trading.  

But if you want to take trading seriously  as a business down the road after six months  or a year, its very much worth it to switch  to a premium direct access broker.

 The platform  speed, the executions fills, the routing options  and the ability to short hard to borrow stocks  are worth the extra couple dollars of commissions,  that’s just the cost of doing business.  

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