When searching for a way to make extra money and you alight upon day trading, you need to investigate what kind of trading platform makes sense for you. That is where Interactive Brokers comes in. When you look at daily average revenue trades, IB is the largest online broker in the United States. Plus, it is the largest forex broker in the space as well.
Finding another side career when you are trying to improve the appearance of your bank account can be a very daunting process. There is bartending at night, becoming a freelance writer or working as a cashier on the weekends at the local grocery store. But those are not the most lucrative side pursuits. What you want is a chance to really make a killing and try to beat your day job salary. So day trading could be the answer.
The thing is, like any good craftsman, a day trader is only as good as their tools. The platform that you use to work in the financial markets needs to be attuned to your needs and your style. High frequency traders demand a different kind of online broker than other, more casual investors. The way that day trades approach the market and the amount of trades they make are affecting by the dashboard, the commissions and the trade execution speed.
Interactive Brokers has one of the best commision structures of all the discount brokers in the space. Their margin rates are very low for traders that keep at least $1 million in their accounts. And their per share price is very competitive. When it comes to small orders, IB might be the best value, but if you are working with several thousand shares per trade, you can really start eating into your profits.
The TradeStation platform offered by Interactive Brokers is designed to allow traders the ability to work with nearly everything in the world, from options to ETFs to contracts to currency. The breadth of what you can trader is huge compared to many other brokers. That alone makes it very attractive to high frequency traders.
The research offerings from Interactive Brokers is not very robust, especially for a company that bills itself as a haven for professional traders. The way that IB has their research structured, traders are best served with information concerning stocks, not other securities. But, for extra fees, you can access third-party research offerings through Morningstar or other entities.
But what about aspiring day traders? The dashboard and inner workings are not all that intuitive. It make take a long time to be able to work efficiently with Interactive Brokers, if you are not a professional traders with loads of experience. It is designed for pros, not for novices. While the offerings are numerous and the margin rates are great, it stands to reason that more experienced traders will benefit from what the company has to offer.