here are some essential features that a trading broker needs to combat these markets as a day trader. Think about margin trading, short locates, trading platform, leverage trading, real-time market data, fair commission structure, and pre and post-market trading. This is quite the list and there is even more the day trader should pay attention to before selecting a trading broker to trade with. TradeZero has many features that will support a day trader on their journey. So let’s dive into it.

Margin & Leverage Trading
When a day trader is trading on margin, he is buying or shorting more stock with borrowed funds from his/her trading broker, which increases the buying power of the day trader. Margin is the difference between the day trader’s trading account value and the loan he requests from a broker to execute the trade. For example, if the day trader has an account of $5,000 and the trade he is looking to execute is worth $10,000, the day trader will then need a 2:1 margin to execute that trade. Margin and leverage go hand in hand; a day trader can only trade with leverage after he has opened a margin account. Leverage allows a day trader to take on a bigger position on a trade without having to pay the full purchase price at the time with their own money.

Short Locates
For day traders who short sell, the ‘short locate’ feature is of great importance; some of the lower-priced stocks are hard to borrow, which means the day trader has to locate the shares first from their trading broker before they can open a short position on the stock. What makes TradeZero special is the ‘sell back’ option; if a day trader no longer needs the short locates, he can simply sell them back, and receive a credit in exchange.

Trading Platform
Where would a day trader be without a good trading platform to chart on, execute trades, and stay on top of the news? He would probably not get far; that’s why a trading broker needs to have a good trading platform. TradeZero offers multiple options; ZeroPro, ZeroWeb, ZeroFree & Zeromobile; by far the most advanced platform is ZeroPro which has everything you need as a day trader in the markets. It has a solid charting platform with indicators such as VWAP, Fibonacci, Bollinger Bands, a level 2 with time & sales, live news updates, alert settings and much more. If the day trader prefers a simpler interface, perhaps ZeroWeb, ZeroFree, or the ZeroMobile platform are a better fit.

Real-Time Market Data

This feature is also essential since accuracy is critical to base trading decisions on; a day trader is at a significant disadvantage if the trading broker he is using has lagging market data. Therefore, it is essential to have real-time market data if a day trader wants to compete in these markets.

Commission Structure
Perhaps a feature that people tend not to pay too much attention to is the structure of the commissions at a trading broker. If a trading broker has a high commission structure, a day trader is seeing his profits being eaten by them. TradeZero offers a fair commission structure with no hidden costs; every detail about commissions and fees can be found on the website. So make sure to check all the details about the commissions of the trading broker when signing up with them, and if they do not disclose it, that in itself could be a no go.

Pre & Post Market Trading
As a day trader, there lies an opportunity in pre & post-market trading if there is a good amount of liquidity on the stock. This applies both to longing and shorting; we have seen crazy % movers in both pre-market and after-hours trading, and having a trading broker that allows trading within these timeframes can really help the day trader to catch more opportunities in the markets. At TradeZero, a day trader has the ability to trade from 4am to 8pm eastern standard time.

Customer Service
Having the ability to contact the support of a trading broker is very important in case something goes wrong and a day trader needs assistance immediately. The customer service at TradeZero is available 24/7 whenever a day trader needs it.
Though it is also somewhat of a personal thing to look for specific features that a trading broker has, the features mentioned in this blog are some of the most important ones. No one trading broker is the same as they have different requirements, customer targets, and account minimums. Here at TradeZero offers tools for everyone, regardless of whether you are a complete beginner or an advanced trader.

DISCLAIMER
This content (“Content”) is produced for TradeZero and Bram Pierik is compensated for his involvement. The Content represents only the views and opinions of Mr. Pierik. Mr. Pierik’s trading experiences and accomplishments are unique, and your trading results may vary substantially. The mere appearance of the Content on a TradeZero website or social media channel does not constitute an endorsement by TradeZero of such Content and TradeZero does not make any representation or warranty with respect to the accuracy of the Content.  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. Links to third party sites are not under the control of TradeZero and TradeZero is not responsible for the accuracy of the content on such sites.

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.

References:
  1. Learn, S. (2022, July 4). How Are Leverage and Margin Similar and Different? Retrieved from SoFi: https://www.sofi.com/learn/content/leverage-vs-margin/
  2. (2022, July 4). What is 'Margin Trading'. Retrieved from TheEconomicTimes: https://economictimes.indiatimes.com/definition/margin-trading
  3. (2022, July 4). Comissions. Retrieved from TradeZero: https://www.tradezero.co/pricing
  4. (2022, July 4). Leverage. Retrieved from TradeZero: https://www.tradezero.co/higher-leverage#tzd-2