That way, the need for low cost and the need for speed can be properly balanced for a better opportunity to help achieve profitable trading. Debit spreads, Credit spreads, Box spreads, Long and short butterflies including calendar butterflies, Calendar spreads, Condors including calendar condors, Long and short iron butterflied including calendars, Covered calls and puts. Essentially, an OTC day trading broker will act as your counter-part. It also offers simple and intuitive market data and order entry panels, real-time streaming news and a customizable user interface. Most direct access firms charge commissions based on trading volume, and on a per share basis.
eOption offers Direct Access Trading for active traders looking to reduce costs and for trading operations of all sizes. Regardless of your trading style, eOption offers state of the art technology for your trading environment, reduced costs, and quality service.
BREAKING DOWN 'Direct Access Trading - DAT'
Multiple Direct Access Platforms for active traders. Sterling Trader Pro is one of the leading direct-access trading platforms for trading equities and options. The platform is fully customizable to the needs of individual traders to deliver a singular, exceptional trading experience.
DAS Trader Pro offers advanced order types, basket trading, charting, and multi-account management in a real-time environment. DAS combines powerful features such as advanced analytics, multi-instrument trading, and portfolio management into a single trading platform.
Both Sterling and DAS offer mobile solutions for active traders on the move. Our mission is to provide active traders the highest level of service, systems. Before the rise of DAT systems, traders would have to place orders to buy or sell stock through a traditional brokerage firm, which could cause problems with delays in trade execution and inability to get the best market price available.
This program enables traders to view a complete list of bid and ask prices, as well as the sizes of the orders, which gives the trader much more valuable information and a greater opportunity for profit. After a trader chooses a price to place the order, only one click is required to commence the trade, and then the trader must enter the number of shares for the order. Some direct access systems allow a trader to select a default value to be entered automatically, allowing a trader to order, for example, 1, shares without having to manually enter four extra key strokes each time, which can save time and be more convenient.
What is 'Direct Access Trading - DAT' Direct access trading DAT is a technology system that enables stock traders to trade directly with another client, a market maker on Nasdaq, or a specialist on the floor of an exchange, all without broker interference. A trader is an individual who engages in the transfer of financial Day traders execute short and long trades to capitalize on intraday A specialist firm is a firm that employs specialists that represent Set up a demo account, make sure you like the platform, and send off some questions to gauge how good their customer service is.
Get this choice right and your bottom line will thank you for it. Use this table with reviews of trading brokers to compare all the brokers we have ever reviewed. Please note that some of these brokers might not accept trading accounts being opened from your country.
If we can determine that a broker would not accept an account from your location, it is marked in grey in the table. The trading platform is the software used by a trader to see price data from the markets and to place trade orders with a broker.
Market data can either be retrieved from the broker in question, or from independent data providers like Thomson Reuters.
In this section, we detail how to pick the best trading platform for day traders. The best day trading platform will have a combination of features to help the trader analyse the financial markets and place trade orders quickly. In particular, a top rated trading platform will offer excellent implementations of these features:. An independent trading platform is used for visualising market data and managing your trading, but it needs to connect to one or more brokers to actually place a trade on the market.
These professional day trading platforms typically offer a more advanced interface than that of the average brokerage, and help you to find and place trades with one or more brokers of your choosing.
Different platforms have different strengths. NOTE — Not all brokers support this kind of integration with independent platforms, so use our reviews to find ones that do. When choosing between brokers you also need to consider the types of account on offer. The account that is right for you will depend on several factors, such as your appetite for risk, initial capital and how much time you have to trade. With that said, below is a break down of the different options, including their benefits and drawbacks.
Most day trading brokers will offer a standard cash account. This is simply when you buy and sell securities with the capital you already have, instead of using borrowed funds or margin.
Most brokers will offer a cash account as their standard, default option. There are several benefits to cash accounts. Firstly, because there is no margin available, cash accounts are relatively straightforward to open and maintain.
Also, you have less risk than margin accounts because the most you can lose is your initial capital. Trading with a cash account also means you have less upside potential because there is no leverage. In addition, you have to wait for funds to settle in a cash account before you can trade again. At some brokers, this process can take several days. Most brokers will offer a margin account.
Essentially, this allows you to borrow capital to increase your position size. For example, you may only pay half of the value of a purchase and your broker will loan you the rest.
Note brokers often apply margin restrictions on certain securities during periods of high volatility and short interest. Firstly, you can choose when you pay back your loan, as long as you stay within maintenance margin requirements.
Secondly, you can leverage assets to magnify your position size and potentially increase your returns. Also, interest rates are normally lower than credit cards or a bank loan. Finally, if you have a concentrated portfolio, you may be able to use existing securities as collateral for a margin loan.
Despite the benefits, there are serious risks. With a cash account you can only lose your initial capital, however, a margin call could see you lose more than your initial deposit. You also have interest charges to factor in. In addition, you need to check maintenance margin requirements. If not, you could get short-squeezed resulting in forced liquidation from a margin call. Overall then, margin accounts are a sensible choice for active traders with a reasonable tolerance for risk.
Cobra Trading is a direct access broker offering several different trading platforms, a $ trade minimum and low per share pricing. Direct access trading systems allow traders to trade stock (or virtually any other financial instrument) directly with a market maker or a specialist on the floor of the exchange, or immediate order execution. The absence of a middleman can save a trader several seconds to several minutes of time. Interactive Brokers Direct Access Broker IB charges $ per share for stock and ETF trades, with $1 minimum. Options are $ per contract if the premium is greater than or equal to $ The $ charge is discounted to as low as $ for premiums under $ IB .