Questions about day trading. Anyone?

Question

I've been using e-trade but with the $13 per trade its getting to be a little much when you buy and sell. What are some better sites for day trading. I have about $5,000 I'm using to buy and sell with.

p.s.

I understand the risks...i realize that's not much money to trade with but I'm not looking to make a fortune doing this. Please all I'm looking for is a good site to use that doesn't charge much per trade when using about $5,000

Answer 1

Zecco gives you 10 free trades a month as long as your equity is at least $2,500, after that it's $4.95 a trade.  For pattern day traders, you do need to have at least $25,000.

Answer 2

Value investing in my opinion is not only better according to research done by several Universities, but more cost-effective on commissions and capital gains taxes.  

Answer 3

I thought scattered was the best.

Answer 4

Your $5,000 should last you at least long enough to understand that you cannot make a profit day-trading unless you have a seat on the exchange.

On the bright side, it is only going to cost you $5,000 to learn that lesson; others have come before you and have paid a far higher price!

Answer 5

$13 does seem like a lot of money

there are a lot of brokers around to check out

Answer 6

First, with only $5,000.00 you are limited to periodic day trading.   If you make 4 or more day trades in any 5 consecutive business days, you will be labeled a "pattern day trader."  At that point you must have a margin account and maintain a minimum balance of $25,000.00.  That is a regulatory requirement, so it will aplly with any broker.

Second, if you are going to day trade, you need a reliable service and a good trading platform more than cheap fees.  There are many brokers that I am not familar with.  But I doubt that you will get cut rate trading fees with any broker suitable for day trading.

The key to reducing costs is to trade in high volume.  When I day trade I usually trade a 1000 shares.    That makes the per share cost low.   I think it will be difficult to be successful if you are trading 100 shares.  Especially on a regular basis.

I use Scottrade.  $7 per trade.  They have good service for routine trading.   But their Elite trading platform has some issues.  If I was a serious day trader, I would look for someone with a better trading platform.   Perhaps TDAmeritrade or Schwab   Haven't tried them, but they have good reputations.  

Perhaps the best thing to do would be move your account to another broker and try them out while you build up your account size to the needed $25K.

Answer 7

TD Ameritrade is cheaper.

You must have 25 K to be a pattern day trader, which is to say, to be able to trade frquently. With 5 K you'll have to limit your trades so as to avoid become a pattern day trader, which will mean you'll have to put 25 K in your acct.

Answer 8

TD Ameiratrade, $9 commission, on any size, the more you buy the less it is per share!

When you want to discuss really making money by investing in the market,  email me.