Cheap prices aren’t a valid reason to select a particular broker. Check out why and learn how to select the right broker to day trade.
“That’s it!!!” you yell to yourself.
It’s been a stressful day at work and you’ve finally decided that you’ve had enough of working for someone else. The thought of going back to work tomorrow makes you feel a pit in your stomach. But what can you do besides working for someone else?
GOOGLE [HOW… TO… MAKE… MONEY… ONLINE]
Regardless of how your “Enter” button looks, you begin scrambling around the internet for 30 minutes or less searching for ways to make money online to later stumble upon day trading.
Being amazed by the results of others, you decide to dive deeper into it. After hours of research, you decided to give it a try and notice that you need a broker to begin day trading. Therefore, you begin looking for the cheapest one.
Just stop right there!
We don’t pick brokers using the same method you would use to pick whether you should buy the large can of milk vs the small one as there are more servings for less.
Picking a broker is a serious decision and should be approached objectively and with scrutiny. Most, if not all brokers that are recommended, have some compensation involved and most gurus or day trading educators, do not conduct proper due diligence before making a decision to recommend them. They simply promote it because they are compensated to or, in doing so.
Yes! Humbled Trader promotes brokers as well. However, we make an effort to conduct proper due diligence on brokers before recommending them. This ensures our loyal and humbled ones have a safe, and reliable broker to count on.
“Cheap prices aren’t a valid reason to select a particular broker.” – Shay
This is an upbringing issue where it has become second nature for us to look for the cheapest prices. Why pay top dollar? After all, it’s just a trading platform, right?
In trading, there are many different strategies and each strategy will have its own set of demands. Therefore, your broker needs to have the resources to fulfill the needs of your strategy.
Example: If you discover that you love short selling, you’ll need a broker that provides unlimited shares to short.
Therefore, before picking a broker, you need to first learn a strategy [learn my day trading strategies here] to understand its demands. This will lead to you selecting the RIGHT broker that can meet the demands of your strategy and propel your day trading success.
Many times, opportunities will appear that beginners aren’t able to capitalize on because they watch every nickel and dime surrounding fees. It’s essential to your success that you have a broker that meets the needs of strategy which will allow you to capitalize on the opportunities.
“Don’t get hung up on fees. It’s just the cost of doing business.” – Shay
Beyond fees, an important factor to consider when picking a stockbroker is, how long they have been around.
How long your broker has been around is a crucial test to determine if they have experience. It also determines how stable and safe they are. During the past financial crises of 2007 to 2008 to name a few, many brokers went bankrupt. As a result, many traders lost their accounts.
Therefore, be sure to check the date they were established. This will determine if they have ever maneuvered any major economic downturn. If they are around long enough and still here, they are doing something right.
Picking a broker to save on cost isn’t correct. Pick a broker that provides you with the resources you need for your strategy to be successful.
Here is a list of brokers of my recommended brokers…
Best Brokers for going Longs
- Etrade (US only)
- Interactive Brokers
- Centerpoint ($30K and over to open an account with them)
Have a small account and want to short sell?
If you are over the PDT Rule and Best Brokers for Short selling
- Cobra Trading