Since the 2020 market boom, more and more people have become day traders. These new day traders have flooded the stock market thanks to the quarantine, stimulus checks, stocks rocketing off "to the moon" and "overnight" millionaires becoming popularized by the media.
Many of them were lured in by new brokerage firms such as Robinhood with their "free commissions" advertised everywhere mixed in with their "refer a friend" promotional offer. What these day traders didn't know is how much they were limited by not performing the correct due diligence so they could maximize their opportunities by having the right brokerage firm during the hot market.
What New Day Traders Missed
By not performing the proper research into their new brokerage firm, these day traders missed out on trading OTCs (over the counter stocks) that ran in the thousands of percentages, advanced level 2 access, customizable pro charting software, short selling, top performing scanners, educational opportunities offered by the right brokerage firms, and much, much more!
What to Look for in a Broker
When day traders are out scouting which trading software and brokerage is right for them, day traders must ask themselves certain key questions:
- What do I want to day trade?
- What is the minimum account balance required to access this broker or trading software?
- What does my broker offer?
- Does this trading software have advanced features?
- Does this broker have mobile trading software?
- Is this trading software compatible with current Apple or Windows operating systems?
- How is the customer service?
- What trading software is right for day trading?
- Does this trading software offer premarket and after hours trading?
- Does this trading software offer level 2?
- How efficient are executions?
- How will this trading software provide me with an edge over other traders?
- Does this brokerage offer short selling opportunities?
- Do the top day traders recommend using this trading software?
- Is this brokerage firm insured?
- Is this brokerage firm available in certain countries?
For this example, TradeZero gives day traders mobility. By mobility, day traders have the software availability for different operating systems such as ZeroPro for Windows, ZeroWeb for Apple computers and a mobile phone day trading app. Most, if not all, trading software has free commissions for listed stocks and usually charges for OTCs which typically means more efficient fills. Level 2 is available on TradeZero trading software. By using level 2 a day trader is able to see the orders that other day traders are placing which improves the day traders’ edge when determining entries, exits, levels of support and resistance zones.
Opportunity for New Day Traders
TradeZero gives day traders with small accounts opportunities to get their feet wet. This is very important for new day traders who are starting out and want to learn short selling. Having the availability to open a margin account and get practice with an efficient broker can be difficult, but TradeZero empowers new traders to get started through its low account minimums.
Efficient Customer Support
TradeZero customer support is incredibly simple to use. If a day trader needs help or assistance, TradeZero has phone support and 24/7 online customer support on standby to help each day trader. When accessing their website, there is a green message icon where someone is waiting to help the next day trader. TradeZero even has information available on their website so they can answer day traders' questions under “Frequently Asked Questions or FAQ”.
Convenience and Efficiency
By having a brokerage with trading software that works for day traders, day traders are able to hone in on the skills needed to improve their trading. Some brokerages are able to link your account to trading journals so the day trader can track their trades without having to manually type in each individual trade every time. This is a neat feature that many day traders aren't aware of. A secret tool of many successful, if not all successful, day traders is tracking their trades.
To conclude, when looking to select the right broker, make sure they answer some of the above questions posed in this article – then, enjoy the journey.
Pinterest | Website (July 23, 2022) https://www.pinterest.com/pin/zeroweb-a-powerful-web-trading-platform--738449670135687006/
TradeZero | Website (July 23, 2022) https://tradezero.ca
This content (“Content”) is produced by Tessa Lamping. The Content represents only the views and opinions of Ms. Lamping. Ms. Lamping’s trading experiences and accomplishments are unique, and your trading results may vary substantially. TradeZero does not endorse the Content and makes no representations or warranties with respect to the accuracy of the Content or information available through any linked third party sites. The Content has been made available for informational and educational purposes only and should not be considered trading or investment advice or a recommendation as to any security. Trading securities can involve high risk and potential loss of funds. Ms. Lamping is compensated by TradeZero for producing the Content and may also receive compensation for customers she introduces to TradeZero.
TradeZero provides self-directed brokerage accounts to customers through its operating affiliates: TradeZero America, Inc., a registered broker-dealer and a member of FINRA and SIPC; TradeZero Inc., a dealer registered with the Securities Commission of the Bahamas; and TradeZero Canada Securities ULC, an IIROC member firm and member of CIPF.