Day traders are very fickle about their tools. With profits coming at a razor thin margin and the need to be constantly on top of everything and every trade all through the day when the market is open, you need a platform that will respond to your technical needs and be economical enough to handle many, many daily trades.
Interactive Brokers is the choice of many day traders. But it is their technical advantages and pricing that put it at the top of many trader’s list. How did Interactive Traders get its start? Being the largest electronic broker firm in the United States is quite a position in the market, so it makes sense to find out how the company got to that zenith. That will help determine whether it is the right type of product for day traders. IB was one of the pioneers in computer-assisted trading in the late 1970s. It was the first company to used handheld computers for traders, in the early 1980s. And its founder got his start designing trading software before leaving to found the company, originally named Timber Point, in the late 1970s.
With that kind of digital DNA, it is no wonder that many home traders that rely on the Internet for their livelihood use Interactive Brokers for high frequency trading. It has been a market leader in the space since the beginning of computers in Wall Street. Now it works as one of the most coveted platforms by day traders in the world.
Even before you choose a platform to use when starting in the day trading game, you want to find the right day trading education site to bring your knowledge to the next level. There is no better way to educate yourself before you start risking large sums of money. You want to spend time watching veteran instructors take you through the ins and outs of trading strategies in online courses, because they have been through it.
With all that Interactive Brokers offers on the tech side, they also provide it at a lower price than many other discount brokers. The commissions from IB are low enough that aspiring day traders could make a go of it when they are selecting a platform. The base rate of .05 cents per share is great for high volume, high frequency traders.
Trader Workstation, the actual desktop software that Interactive Brokers offers is great for traders of all stripes. It is fast and customizable. You can even use a notification feature to build your own custom alerts that correspond to your trades and your investments. It will take some getting used to, but once you get the hang of Trader Workstation, it will work wonders for your profits.
As stated above, your education as a trader and investor is paramount. The tools are important, but how you learn to use them are even more so. Take the time to learn the proper strategies and you will be rewarded.