How to Choose the Right Broker
WHAT DAY TRADING TOOLS, SOFTWARE, AND BROKERS TO USE?
And do you want just any trading tools? No, you want the best value options. Not always expensive is good, often expensive tools and software’s are too much for what you need and a bad investment for your trading. This is why we’re going to show you what we think of as:
Top Brokerage Accounts
Right now, you can choose from dozens and dozens of potential brokerage accounts out there. But how do you chose? Well, first and foremost, it’s about execution speed. Your brokerage firm is your vehicle to trade and they execute your orders. Yet, if you have a bad broker that fills your order late, you lose money, even if you are trading properly and accurately. The second characteristic of a top broker is their commission structure. Any brokerage asks a certain amount of money in return for executing each of your orders. This varies from broker to broker and can make or break your trading profits – especially if you’re trading in small accounts. In these 2 respects – execution speed and commission – many brokers are either terrible or expensive or both. So we’ll show you some afforadble and quality brokerages you can open an account with. Before, though, you should know about one more caveat: the pattern day trader rule.
How To Avoid Pattern Day Trader Status?
The pattern day trader (PDT) rule, stipulated by the U.S. Government, states that all U.S. based brokerage accounts will need a minimum of $25,000 in order to place more than 4 trades within 5 business days. And to give some context here: most day traders would place more than 4 trades on a single day. Therefore, all U.S-based brokers are legally obliged to enforce the pattern day trader rule for all U.S. residents. But not to fear: you can day trade with less than $25,000 in your account and many people do. You only have to use a non-U.S. based broker such as CMEG: Capital Elite Market Groups.
INTERACTIVE BROKERS
IB clients enjoy one of the lowest cost access to stocks, options, futures and forex from a single account. Traders can choose a service level aligned with their needs and switch between plans at any time. IB offers two service plans for traders, but we recommend that you only use IBKR Pro.
IMPORTANT: To use DAS Trader Pro for your IBKR Pro trading account, you need an additional subscription directly with DAS Trader. Check the DAS Trader Website to see subscription prices for Interactive Brokers accounts which ranges between $150 to $200 per month. DAS Trader Pro has offered members of the Bear Bull Traders community an exclusive deal on data for use with their platform for IB users. You will now have access to the following data as part of your normal $150/month data fee (with no additional cost to you). Click here for more info.
* Please note: Commissions are at the broker’s discretion and subject to change. Check brokers commission agreement at the time of sign up
CMEG: CAPITAL MARKETS ELITE GROUP
Capital Markets Elite Group is a relatively new broker located in Trinidad and Tobago. The good thing about this is that they aren’t bound by the pattern day trader rule.
If you open an account with them, please e-mail [email protected] and mention code BearBullCMEG2018 to get access to the discounted rates.
* Commissions are at the broker’s discretion and subject to change. Check brokers commission agreement at the time of sign up.