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Best Day Trading Platforms in 2021

Online day trading increased in popularity last year. As people were forced to spend time in lockdown due to the COVID-19 pandemic, many turned to online trading and consumed more Internet products and services. On top of that, governments around the world helped households with extra income, but part of that income ended up in financial markets. 

As such, it is not surprising that day trading has become more popular, as suggested by the number of trading apps downloaded and the trading volume as well. This article presents the best day trading platform in 2021 and compares different platforms so as to make the choice easier for the FX trader.

Our List of the Best Day Trading Platform

You can find below the list of our best day trading platforms in 2021:

1
Min. Deposit
$10
Exclusive promotion
Our score
10
Leverage
500:1
New accounts
Spreads
0.7
PIPs
Regulations
Forex Pairs
55+
No Fee
Start Trading
Pros:
0% Commission Account
Low Spreads
Eco-Account Option
Payment Methods
Bitcoin, Credit Card, Debit Card
Full regulations list:
Please ensure that you fully understand the risks involved, taking into account your investments objectives and level of experience, before trading, and if necessary seek independent advice.
2
Min. Deposit
$10
Exclusive promotion
Our score
9.3
Leverage
500:1
New accounts
Spreads
0.8
PIPs
Regulations
Forex Pairs
55+
No Fee
Start Trading
Pros:
55+ currency pairs available
Trade on a trusted platform
24/7 support via live chats, email or phone call
Payment Methods
Credit Card, Debit Card, Visa, Bitcoin
Full regulations list:
LonghornFX offers high-leverage trading on a wide variety of assets. Trading with leverage carries a degree of risk which may result in losing more than your investments. Clients should practise risk management to protect themselves from losing more than they can afford when trading with leverage.
3
Min. Deposit
$200
Exclusive promotion
Our score
8.7
Leverage
500:1
New accounts
Spreads
0.5
PIPs
Regulations
FSPR, FMA New Zealand
Forex Pairs
27+
No Fee
Start Trading
Pros:
BlackBull Markets’ unique feature lies in its stated goal of delivering an “institutional” trading experience to retail clients
No-Dealing Desk Broker (NDD), with Straight Through Processing (STP) all done on a true ECN
State of the art Equinix servers, based in New York (NY4), London (LD5) and Tokyo (TY3)
Payment Methods
Mastercard, Visa, Bank Transfer, Neteller, Skrill, UnionPay, FasaPay
Full regulations list:
FSPR, FMA New Zealand
4
Min. Deposit
$200
Exclusive promotion
Our score
8.5
Leverage
30:1
New accounts
Spreads
1
PIPs
Regulations
CySEC, FCA
Forex Pairs
No Fee
Start Trading
Pros:
Join the Social Trading revolution. Connect with other traders, discuss trading strategies, and use our patented CopyTrader
eToro is the world’s leading social trading platform, offering a wide array of tools to invest in the capital markets
Largest number of currency pairs to trade
Payment Methods
Wire Transfer, Bank Transfer
Full regulations list:
CySEC, FCA
Cryptoassets are highly volatile unregulated investment products. No EU investor protection. eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro. Your capital is at risk.
5
Min. Deposit
$10
Exclusive promotion
Our score
7.9
Leverage
500:1
New accounts
Spreads
0.7
PIPs
Regulations
Forex Pairs
55+
No Fee
Start Trading
Pros:
Can fund with BTC
64 global companies including Netflix and Amazon
Free deposits and withdrawals
Payment Methods
Credit Card, Debit Card, Bitcoin, Wire Transfer
Full regulations list:
EagleFX offers leveraged trading on a range of assets within its platform. CFD and Spot Forex trading do carry a degree of risk which may result in you losing more than your initial investment. Please ensure you fully understand the risks involved with leveraged trading and ensure this is not detrimental to your personal or institution's financial well being.

What Is A Day Trading Platform?

A day trading platform is a technological solution offered by the brokerage house to transmit the orders for execution. The notion of day trading changed in time – at first, it referred to traders that keep positions open only during the trading day, and at the end of it all positions are closed. However, in the meantime, the FX market being open 24/5, the definition changed to include multiple trading days and up to a trading week. The principles, however, remain the same. 

A platform that enables day trading should have very tight spreads so that the cost of trading is minimized as much as possible. Also, it should be user-friendly and allow automated trading, as most day traders use lower time frames like the five-minute chart or even lower ones. 

How Does A Day Trading Platform Work?

A day trading platform acts as the tool that connects the trader with the broker. The trader has the absolute control, in the sense that the trader is responsible for the activity in the account and the orders sent to the broker. The validity instructions (i.e., when to buy), the quantity, and the prices, are all part of the trader’s risk management system and enabled by the day trading platform. 

Day trading platforms focus on the lower time frames because day traders are mostly scalpers. That is, they enter and exit a market multiple times during the trading day and mainly use technical, not fundamental analysis. For this reason, a day trading platform should have plenty of technical studies and all the possible lower timeframes. 

Key Features To Look In A Day Trading Platform

The most important thing to consider in a day trading platform is its ability to support automated trading. Almost all trading robots use lower time frames to scalp their way into and out of the market so the day trading platform must support automated trading.

Lower spreads are mandatory as well. The lower the spreads, the better for the day trader that wants to minimize the costs as much as possible. Because of the relatively higher trading activity when compared to swing trading, day traders require the lowest costs in the industry. 

Pros & Cons of Using A Day Trading Platform

Pros

Lower spreads
EA enabled
Technical functionalities
Multiple lower time frames
Reduced transaction costs

Cons

Difficult to differentiate between different platforms
Variable spreads may widen during volatile events
Hidden costs are possible (e.g., extra commissions)

How To Choose the Best Day Trading Platform for Me?

It all should start from the trading style. If you are a scalper that goes in and out of the markets frequently, you would want to use a day trading platform with lower and fixed spreads. Both conditions are difficult to find and usually come with additional costs, but that is the aim. 

Another thing to consider is if the trading platform is accessible for on-the-trading. Traders nowadays are mobile, and the best day trading platform should have similar capabilities both as an app and as an individual platform downloaded on the desktop. 

How To Safely Use a Broker to Make Money Online Trading?

A broker handles the orders received from the trader and routes them to the market for execution. For its efforts, the broker charges the trader a commission or a fee, typically embedded in the spreads between the bid and the ask prices. Ultimately, the trader is responsible for the research and analysis that goes into a trade. Therefore, before buying or selling a currency, the trader must ensure that a risk management system is in place so that any mistake will not threaten the trading account.

Conclusion

Short-term-oriented traders use day trading platforms to scalp and speculate on the rapid market movements seen in the FX market. The list presented in this article reveals the best day trading platforms in 2021 for the trader to compare and pick the one that suits best.

Frequently Asked Questions

  1. No. Some brokers choose to avoid regulation and register offshore. Therefore, part of a trader’s due-diligence process is to find out if the broker is regulated, if not, why not, and if it is, what are the additional services it offers as a regulated entity (e.g., segregated accounts, negative balance protection, etc.).

  2. It depends. Some platforms are more suitable for investing and swing trading, some other ones for scalping. Based on the trading style, different platforms suit different trading strategies.

  3. Yes. Besides the classic currency pairs available to trade with a regular Forex account, the broker offers some other markets. This way, traders may diversify their portfolios and even hedge based on the direct or indirect correlations between various markets. Other markets to trade from the same FX account are commodities, indices, and individual shares, all in the form of CFDs (Contracts for Difference)

  4. Yes. The procedure is simple, and in a few steps anyone can open a trading account with a broker allowed to cater to clients in that region. The most time-consuming step when opening a trading account is the verification process, which may take from a few hours to a couple of business days, depending on the broker.