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Best Day Trading Brokers for Beginners- Buying Stocks, Short Selling, Small Account Trading & more - YouTube
Channel: Humbled Trader
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which brokers should you use to start
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day trading whether you're trading a
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small account
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large account going loan biased or short
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biased
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or trying to avoid the pdt restriction
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i have the answers for you in this video
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contrary to what most people think the
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deciding factor for which day trading
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broker you should be using
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should never be whether they are
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commission free you should be choosing a
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broker that gives you the most
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optimized platform at a reasonable cost
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to trade your own trading style and
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strategies
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whether that's buying breakouts shorting
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parabolics
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swing trading or options trading think
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of it this way
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i don't want to be saving five dollars
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in commissions
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but actually getting filled with 50
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cents slippage
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and even just 100 shares that's losing
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50 dollars
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of potential profits at the same time i
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don't want to be saving a couple of
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dollars per trade
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but never have any stocks or shorts
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available
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when i see an amazing low float penny
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stock
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being pumped 400 percent and very
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extended
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on the day broker commissions and fees
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adjust the cost of doing business
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if paying those fees means you end up
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with better execution fills
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and speed and a lot more profit then by
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all means
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that's absolutely worth it in this video
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we'll be going over the brokers i think
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are the best for day trading in these
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specific
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areas i'll leave all the time stamps and
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discount links
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below if you want to check them out as
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always if you appreciate
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the research and time i put into videos
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like these
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please remember to drop a like at the
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bottom of the video
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let's start with the most basic brokers
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for most beginner traders to get started
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going long i personally started with
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learning
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loan strategies and that's how i built
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my small account
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with interactive brokers ib which is
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short for interactive brokers
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it's the first broker i got when i
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started day trading
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six years ago so interactive brokers is
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known for their discount
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commission fees basically the cost of
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buying and selling
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us listed stocks is 0.005
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dollars per share with a minimum of a
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dollar
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u.s per share so for newer traders with
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small accounts
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this is very affordable and from my past
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experience
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interactive brokers fails and the speed
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is pretty decent
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as well but keep in mind to trade on
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interactive brokers
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you will need to purchase additional
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market data subscriptions
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for their platform trader workstation
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tws
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if you are day trading mostly on the us
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nasdaq and nysc stocks
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and options like myself this is what the
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subscriptions would look like
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and it adds up to about 20 to 30 dollars
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per month
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so those packages include things like
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equities
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options quotes for nasdaq exchanges
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level 1 level 2 etc
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but if you trade those true sub dollar
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penny stocks
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you will need to purchase additional otc
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or pink sheets data for i think about
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ten dollars or fifteen dollars a month
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in terms of the ability to short iab has
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generally
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good short locates for the large cap
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stocks
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but they would not have anything
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available on the hard to borrow stocks
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such as the small cap runners on day one
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and sometimes on day two
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so that's something to keep in mind of
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on top of that
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they also do not offer traders the
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function to reserve
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shares to short for later on so you have
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to use a short
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locate right away but the good news is
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for any of the stocks that they do have
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available to short
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they come at no extra cost interactive
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brokers
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is available in the us canada and most
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international countries if you're in the
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us
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there's also the option of ib lite which
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is their version of free commission
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trading but i believe
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if you are on the ib lite plan you would
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only be able to trade a mobile or the
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web
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platform not on the tws trader
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workstation
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desktop if you open an account with
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interactive brokers
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there's also the option of linking your
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broker account
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with dash trader pro which is a much
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better
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and much more optimized trading platform
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in my opinion
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now let's talk about fidelity active
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trader pro
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i have not used this broker myself but i
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hear from many traders i trade with
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every single day that they have great
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execution fills
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and for a broker that's gone commission
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free now like everyone
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else that's amazing what a lot of
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traders love about fidelity
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is their customer service their support
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line is known for picking up the phone
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within one minute wait
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and this broker has pretty good short
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availability for the mainstream
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large cap stocks such as the roku and
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tesla
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and no additional borrowed cost
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basically in terms of shorting
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they're around the same level as
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interactive brokers
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but the downside to trading on fidelity
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active trader pro is their platform
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the reviews from traders i know are
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generally the same
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their platform functions are really
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outdated and clunky
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so keep that in mind if you decide to
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trade with them fidelity is
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available for u.s canada and many other
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international countries as well
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so make sure to check out their
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international website
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for more details now for all the traders
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interested in trading automation
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and coding you might be interested in
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tradestation
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tradestation is another direct routing
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broker
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that offers good executions for traders
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the shorting availability is on par with
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fidelity and
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interactive brokers where most of the
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large cap stocks are available to short
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for free tradestation platform offers a
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very unique
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matrix feature which is a more advanced
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but easy to follow level 2 montage this
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feature
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offers lightning fast order entries on
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all kinds of orders to trade with
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such as bracket orders sell stop orders
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and buy stock orders
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and like i mentioned earlier
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tradestation platform
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also allows you to build your own
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automated trading strategies
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so if you ever build a bot that'll make
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it rain lamborghinis
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make sure to call me now let's talk
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about the exciting topic
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of the best brokers for shorting so when
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it comes to shorting these
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hard to borrow low flow stocks at an
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extremely
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affordable price the winner has to be
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cobra trading cobra trading is a premium
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direct access broker that offers the
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function
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of reserving hard to borrow stocks to
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short
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at a mostly reasonable price and
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sometimes they even offer their clients
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free locates on these stocks all these
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small cap runners that
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ran 200 percent or 400 on the day
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that everyone wants to short they were
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available at cobra trading
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and sometimes you might want to short
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these stocks overnight like i do
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and guess what while a lot of other
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brokers they charge
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three times or five times overnight fees
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cobra trading does not you can link your
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cobra account
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with fast trader pro as well it's a
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platform that offers the best execution
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fields
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whether you're going long or going short
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if you are in the us
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the accounts minimum to open is 30 000
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and for the international clients the
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minimum will be
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fifty thousand dollars but sorry at the
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moment
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they do not service the canadians but i
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will have another option for you later
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on
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so hold on tight if you are interested
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in opening an
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account with cobra trading i have a link
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for you to sign up below
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and if you mention humboldt trader at
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the time of account opening
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you'll get 25 of your commissions
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that's a pretty sweet deal the next
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broker
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is also amazing for shorting hard to
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borrow stocks
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and that is center point securities they
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are a little bit more expensive in terms
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of short to locate fees
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than cobra trading and there's also the
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additional
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three times overnight fees if you swing
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the stock
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short however they do offer amazing
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customer support service
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direct access trading and connection
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with dash trader pro center point
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securities
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is available for traders in the us
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canada
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and many other international countries
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with an account
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over 30 000 now for the traders starting
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out
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with a smaller account less than thirty
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thousand dollars
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i have more broker options for you after
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you smash the like button
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for the youtube algorithm okay let's
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talk about the top
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choice for shorting if you have less
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than thirty thousand dollars
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and that is trade zero this is an
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offshore broker
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in the bahamas trade zero is known for
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having an extensive
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short locate on these hard to borrow
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penny stocks
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just like cobra trading and center point
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and you can open an account with them
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with 2 500 minimum however
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that's at an extra cost of course their
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locate fees on these hard to borrow
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stocks
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are usually a lot higher than other
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brokers i know
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and even though they claim to have free
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commission trades on limited orders
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trade zero they love to think traders
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for like these small things like
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wire fees statement fees and deposit
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fees
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and everything small like that they just
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kind of add up
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eventually another thing to keep in mind
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is the platform
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xero pro the executions and the fields
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are extremely clunky sometimes
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and it freezes during times of
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volatility
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so make sure to consider both the pros
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and the cons
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when trading with this broker but trade
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0 is definitely a great option for short
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sellers
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with a smaller account american traders
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can open an account
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with trade zero america but you still
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have the pdt rule restriction
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under 25 000 canadians and other
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international traders can open an
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account with trade zero
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international now what if you want to
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avoid trading under pdt
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restriction pdt stands for pattern day
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trader rule
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basically it limits how many times you
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can trade
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if your account is under 25 000
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under the pdt restriction the day trader
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can only place
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three day trades in a consecutive five
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day period keep in mind pdt rule
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only applies to u.s traders using
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u.s based brokers such as all the ones
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that we talked about earlier
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ib tradestation fidelity think of swim
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as well as the premium brokers like
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cobra and centerpoint
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actually they don't even take clients
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under pdt
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but if you are in the us and want to
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avoid
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this restriction you can open a cash
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account
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with any of the brokers i mentioned
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earlier or
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you could also open the offshore trading
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account
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with cmg cmag is one of the only few
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offshore brokers
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with a good reputation that i know many
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of my trader friends
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like to use they are based out of
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trinidad and tobago
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and they take clients from the us and
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many international clients
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but not canadians again i'm sorry
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cmeg offers dash trader pro connections
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as well
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but their commission fees and borrow
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fees are
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extremely high their short locate
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availability is also
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not as good as straight zero or cobra
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trading either
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so make sure you read into the details
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in fine prints
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before opening an account with them if
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you want to learn more about
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other ways to get around the pdt rule
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make sure to check out
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this video now let's talk through really
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fast about a few other brokers
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that i know many traders like to use the
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street smart edge from shrub
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is one of the platform that i know to be
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very popular
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for options traders and then there's
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also td
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think or swim i love thinkorswim
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charting platform
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with all the customization and flexible
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grid
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and the free market data but truth be
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told
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ever since they started with free
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commission trading
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the platform executions have been
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extremely
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laggy and sometimes the market data
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would even freeze altogether
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which to be fair seems to be the problem
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for all these brokers that have gone
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commission free
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such as e-trade ib lite and popular free
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trading apps
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such as weeble and robinhood again i
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think
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these free commission trading platforms
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are great for beginner traders to get
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started
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with low upfront cost or to just
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practice
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free real-time paper trading but if you
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really want to take trading seriously as
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a business
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down the road after maybe six months or
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a year
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it's very much worth it to switch to a
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premium direct access
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broker the speed execution fields the
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routing options
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and the ability to short hard to borrow
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stocks
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are worth the extra couple dollars of
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commissions
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that's just the cost of doing business
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hopefully you'll find some of the
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brokers i just talked about
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fit your trading style i'll provide more
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details and links
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to all these brokers down below if you
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want to check them out
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please remember to drop a like if you
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enjoy the video
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and the research thank you guys so much
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for watching as always
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i'm the humble trader and i'll see you
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guys next week
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hey guys thanks for watching i hope you
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enjoy the video
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and the bad jokes if you want to see
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more
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day trading content make sure to
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subscribe and follow me on twitter
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and instagram for more if you'd like to
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trade with me daily
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and get my free weekend watch list and
[882]
trading journal
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make sure to check out the links below
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for more resources
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stay green stay positive and i'll see
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you guys next time
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