Category Archives: Trading

Best Trading Platforms for Day Trading

This article will look at the best trading platforms for day trading. We all know that intraday or day trading differs from regular investing. Regardless of the asset class, we talk about (be it equity or crypto), intraday trading is quite different from investing.

Note that in today’s article, we are mainly going to focus on the trading platforms that are great for equity, most of them support cryptocurrency trading, but they may not be as great as the best trading platforms of crypto.

First, let’s talk about some aspects where intraday trading differs from investing.

Time:

When we talk about investing, we generally mean long-term investing. The ideal time horizon for long-term investing is uncertain, at least in pen and paper. You can hold a stock/cryptos as long as possible. According to many legendary investors, the longer you hold a good stock, the better return it will offer.

While in day trading, no matter whatever you do or how many stocks you purchase, you have to square off (exit) all your active positions (active position refers to the stocks you are trading in day-trading). It won’t matter whether you are in loss or profit; in the end, you must count your profit and loss and exit the positions.

Speed:

In investing, we don’t have to take headaches such as getting our orders executed rapidly. Even if you are trading with a good amount of capital, the price range of stocks hardly varies, and if it does, the price will make a negligible difference from the aspect of long-term investing.

But, in intraday trading, especially if you do scalp trading, you need to choose the platforms where your orders get triggered at the fastest possible speed. Unlike long-term investing, here in day trading, differences in price as low as a fraction of a dollar may make a huge difference in profit or loss.

We have seen some notable differences between day trading and normal investing. Hence, the platform you use should be the best for day trading. Every day trader prefers the platform which provides them with facilities required for day trading. These facilities include fast order execution, bigger leverage, advanced charts, etc.

Let’s now briefly talk about the things you should look for in a trading platform before opening an account or starting day trading.

Speed of the platform:

There is nothing much to tell about. The fast your trading platform is, the faster your orders will get executed, and the more possibility will be there for you to make money.

Charges:

Charges of any platform are one of the most vital factors to consider before choosing any trading platform. As we use trading platforms to check the stocks, analyze charts and similar types of data about stocks or place our orders in the exchange, we use the facility of the platform; that’s why most of the platforms charge us a nominal fee for it.

Before trading on any platform, you should know its fee structure and compare it with similar platforms to verify whether the platform fee is justified.  In this blog post below, we shall discuss the trading platforms that we feel are better for day trading.

So let’s start:

Best Trading Platforms for Day Trading 2022

  • Webull
  • E*TRADE
  • Fidelity

Let’s dive into detail.

Webull – Best Trading Platform for Day Trading

The first trading platform we are going to talk about is Webull. Weibull is one of the best trading platforms across the United States that provides you with all the necessary facilities required for day trading.

First of all, Webull is quite easy to use. It is even beginner friendly. So if you are new to trading, you can start your journey with Webull.

The second thing is that the cost and fees to take trades are comparatively low. There are many advanced features available in Webull that you can use to take a more accurate trade.

Finally, with Webull, you can even trade in crypto.

Pros of Webull

  • Beginner friendly.
  • Their platform is easy to navigate.
  • Short selling facility available.

But, there are a few drawbacks of Webull as well. With Webull, you can’t invest in mutual funds because Webull does not support mutual funds.

Cons of Webull

  • Not for investing in mutual funds.

E*TRADE Trading Platform for Day Trading

E*TRADE is one of the leading stock market brokers in the country. They have lots of cool features, which is why we have chosen this platform as one of the best trading platforms for day trading.

E*TRADE has almost everything that a trader needs. It has got some useful tools which are quite easy to use. We can’t but mention E*TRADE’s great customer support, who are dedicated to solving your complaints at a decent speed.

Most of the trading platforms nowadays, have fine mobile apps, but not everyone has a mobile platform that is almost as powerful and useful as their desktop/laptop/web platform.

E*TRADE is an exception. E*TRADE comes with a great mobile app with really good mobile app. So if you don’t get access to your desktop or laptop but still want to do trading, you can look for this platform for their brilliant mobile app.

Pros of E*TRADE

  • Great customer satisfaction team.
  • Provides access to various useful tools.
  • Has a good mobile app.

Cons of E*TRADE

  • The web interface could be improved.

Fidelity Trading Platform

Fidelity may be a good platform to consider if you want to take trades in different segments in the stock market, such as direct stocks, ETF, and derivatives segments like options.

The best thing we analyzed about Fidelity is that they provide a quality screener tool powered by a good historical database of stocks. If you are such a trader who deals with historical data of stocks, Fidelity provides you with that. Currently, they have at least 10 years of data about stocks that it includes in its screener tool. For stocks research also, Fidelity is quite useful.

Just like E*TRADE, Fidelity also has an excellent mobile application. The application has got quite good reviews on Google Play Store and App Store.

Their customer support is also fine, but the main problem with Fidelity remains in the charges for additional fees regarding brokerage.

Fidelity Pros

  • Good customer support.
  • Best for stock research.
  • Lets one trade in Stocks without any charge.

Warning:

Day trading can be one of the best ways to make money out of the stock market. While it sounds very enthusiastic, beware of the risks involved in day trading. We always recommend making a solid strategy before taking any trade. If you are new to the stock market, we encourage you to learn the market first and then trade.

Conclusion

We hope that you will be able to select the best trading platforms for day trading on your own by using the data and strategy we have used to choose these platforms for this post.

Please note that we haven’t been able to add all the brokers to comply with the standard length of the post; that doesn’t mean that those trading platforms are any less than those we have mentioned here.

We are again enforcing on the matter to look for the brokerage charge and additional chargers because this is what you will have to keep paying as long as you trade. You can also read the reviews of these platforms on Google Play and the App store to know what the users think about the apps.

Options Trading: How to Get Started 

This blog is all about Options Trading and how to get started with options trading. It will also introduce you to beginner options trading strategies you can use to profit from up and down volatility in the equities market.

This article will discuss the beginner’s guide to futures & options. Suppose you don’t have any prior knowledge about features & options but have a keen interest in knowing about them.

In that case, you can keep reading the article, and by the end of the article, you will learn about the basics of features & options. But in the very article, we will mainly be focusing on Options, and we will talk over features in some other articles. 

Futures & Options V/s Equity

There are certain segments of stock markets where stocks are traded. In every segment, stocks are traded in a whole different way. Of them, Equity is the most popular way out there. Equity is the oldest among these segments, and it is comparatively easy to understand among all these segments.

Equity is the direct shareholding of a company, which means that if you hold the Equity of stock, you are the company’s direct shareholder. Equity is by far the most known segment, as said, and if we talk about the shareholding of a company, we do mean the equity shareholding

Futures & Options

But there are other segments in the market other than Equity. Options are one of them. After hearing the word Options, the next immediate word that appears in a trader’s mind is Futures. Indeed, Futures & options are very co-related words and are often spelled together. The working principle behind both features & options is almost the same, which is – derivative. 

In fact, features & options trading is done in the derivative market. So the concept & the principle of the derivative is very much involved in futures & options. So to understand features & options, we will need to understand the story of derivatives at the very beginning. 

Derivative

From the definition, the derivative is a type of contact. Derivative contract derives its value from any underlying asset – it is the most used sentence to tech derivate. Let’s start with what futures & options are with a practical example – 

What is Contact?

Suppose you want to purchase 5 grams of Gold today. As of today (10th May 2022), the current price of Gold is 60.57 dollars per gram. But you are assuming that the price of Gold may decrease in the future.

So if you buy 5 grams of Gold today, you will be at a loss in the near future, according to your calculations. That’s why you go to any jewelry shop, but the shop owner thinks differently from you. He believes that the price of gold will increase in the future. 

So you two make a mutual contact with each other. The point of contact is that whatever the price of Gold is, you will buy 5 grams of Gold on 1st June at today’s current rate (i.e., 60.57 dollars per gram).
 Carefully try to understand the case – 2 scenarios can happen in this case. 

  1. The price of gold can either go up.
  2. Or, it can go down from today’s rate.

If the price goes up, let’s say – that on the day of 1st June, the rate is 61.57 dollars per gram; in that case, you will still be able to buy 5 grams of gold @60.57 dollars, according to the contact made with the jeweler. So this will result in a profit of 5 dollars due to the contract.

But in the other case, if the price of gold goes down, let’s the day – that one on the contract execution date the rate goes down by 1 dollar per gram, then you will have to pay today’s rate though the price has gone down. In this case, you will incur a loss of 5 dollars. So that’s how contacts are made.

In futures & options also we make these types of contact. But here everything is done online. Now, to trade in futures & options you will need to have a few things. First of all, you will need to –

Open A Trading Account

In the article on the stock market beginner guide, we guided you on how you can open a stockbroking account in the equity segment. Unlike equity, the futures & options segment is not that easy. Hence, the process of opening a broking account is a bit complicated here. To open an F&O account you will need to have proper proof of your income.

Some of the questions that you have to submit while filling up that proof of income include-

Your Investment Objects-

Options trading is risky, and if you do have the amount of money needed for options trading, you may be questioned why you are going into this field instead of simply investing it? 

Your Trading Experience- 

People who are good at technical analysis and have prolonged trading experience should only opt for options trading. If you have very little understanding of the market but still want to do options trading, it’s purely by chance that you can earn money from it. 

It rarely happens that a person absolutely novice in options has made consistent money from it. That’s why you will need to provide your past trading experience. 

Your Financial Stats-

With all that previous information, you will also need to clarify some of your important financial states, such as – the amount of cash you have in your hand, your annual income, your net worth, etc.
 
Your brokers will analyze your answers to those mentioned above & other questions and will suggest to you what extent of risk you should go for.  Remember that the first & foremost criteria for trading in futures and options are to have a large capital.
 
Here is the list of some well-known brokers with whom you can open your options trading 
account –

  • Robinhood
  • E*Trade
  • Webull

About Robinhood & Webull

Robinhood & Webull are both popular options trading brokerage apps & are used by many users to take trade-in options. There are some great features of both these platforms. These are – 

  • No trading fees while buying or selling an option contract.
  • No minimum account balance.

But unlike trading apps, in many options trading apps, you have to keep a minimum balance to take trades. The minimum balance is higher than what you need if you had only equity segments enabled in your broking app.

Options Trading Process

While it is tough to tell the process of options trading in some words, here we write just the basics of options trading.

Types of Options

  • Call options
  • Put options

Call Options

Call options are taken when you assume that the stock price may go up. So if you are observing a positive momentum in any stock, you can go and purchase the call option of stock. 

Put Options

Put options are taken when you are assuming that the stock price may eventually go down. If there is a bearish trend in the market and you believe that the price of a certain stock may go down in the future, you can take the put options. 

What to Do If You Observe a Sideways Momentum in the Market:

Sideways momentum is a momentum when the stock price neither goes up nor goes down. When the stock trades at almost the same price for days, it is that situation. In that case, you should neither buy a call option nor a put option. If you have already bought any call or put options, you should sell them to avoid bigger losses in the future. 

Conclusion

That’s all about futures and options from this post. Futures and options is a very large topic, and honestly, it cannot be described in just one article. Even the basics of futures and options are so big that it needs a complete book to describe all the processes and the techniques of futures and options. 

We have not only limited this article to only options. However, we have tried our best to describe the absolute basics of futures and options. We have discussed the basics like – the concept of derivatives in F&O, Put Options & Call Options, and the necessary steps to follow to open a trading account to trade options – to help you understand options properly. 

Again, we are saying that futures and options are pretty riskier than normal equity markets. So if you do not have prior & a proper experience in trading, you should first observe the market and then enter into the futures and options segment. 

Futures and options are more of a game of technical analyzing skills than fundamental analysis skills. As options trading is done for a shorter amount of time, you should depend on the technical analysis of any stocks.