Day trading can be a lucrative profession. To make the most out of this profession, you’ll need to leverage the best day trading software. The best day trading softwares are dependent on your trading style.
However, it doesn’t matter if you plan on going long or short with trades, all traders would agree day trading software is a critical component to their success. Let’s dive into the best day trading softwares below and help take your trading success to the next level.
Quicklook: Best Day Trading Software
- TradeStation – Best For Executing Trades and Investor Resources
- NinjaTrader – Best Free Day Trading Software
- WeBull – Best Low Cost Trading Option
- RobinHood – Best Day Trading Software for Beginners
- Zen Trading Strategies – Best Algorithmic Day Trading Software
Table of Contents
- Best Day Trading Software Options
- What Is Day Trading?
- What Is Day Trading Software?
- How Does Day Trading Software Work?
- Advantage and Disadvantages of Day Trading
- What to Consider With Day Trading Software
- Have the Right Tools
- Frequently Asked Questions
5 Best Day Trading Software Options
We’ve scanned the market and compiled a brief list of our top 5 best day trading software options.
TradeStation was initially founded in 1982, and is now a common choice for many day traders.
Within the platform, you can buy and sell various investments, such as; stocks, cryptocurrency, mutual funds, bonds, futures, and options.
Standout Features: The best standout feature is simply how many investor resources this platform provides.
- The endless amount of investor resources TradeStation provides
- The ability to trade in a variety of investments
- TradeStation has low cost trading options, and all their fees are laid out in a concise fashion on their website
- You cannot trade foreign exchange
- Their customer service is not exceptional
- Their software can feel a bit complicated and overwhelming
Pricing: Anyone can open an account with TradeStation. Their pricing and fees are contingent on what you trade.
NinjaTrader was founded in 2003, and has quickly become a reputable trading platform for many day traders.
NinjaTrader is a powerful trading software that provides many benefits, chart options, and simulation support.
Standout Features: One of NinjaTraders most standout features has to be their simulation and backtesting capabilities.
- You can develop your own trading strategy and backtest it against real market conditions
- The software is free to use
- You can bolt on apps and indicators to your trading setup
- There is no mobile app
- If you’re a Mac or Linux user, you will not have access to their software
Pricing: NinjaTrader is free to use if you fund your account. Funding requires $400.
WeBull is another day trading software option. WeBull was founded in May of 2017 and is a common option for those just starting out. They have an easy to use interface and is surely user friendly!
Standout Features: It’s standout feature is the low costs a trader pays on the various trading options WeBull allows you to execute.
- There are low trading fees
- No commissions for going long on options, ETFs, or stocks
- Their platform is easy to use
- There is a $75 transfer fee
- This is a newer software, some may wish to use day trading software that has stood the test of time
- Customer service is a hassle. There is no live chat and phone support may require a long hold time.
Pricing: All of their pricing can be found on their website. In general, this is more inexpensive software. With that said, it’s not entirely free. Be sure to familiarize yourself with their fees.
If you’re a beginner trader, RobinHood is a very appealing platform. RobinHood is also a newer company, initially founded in 2013. But as of 2021, RobinHood has north of 13,000,000 users!
They also have a focus on 100% commission free trading which is an excellent feature for those just starting out in the day trading world.
Standout Features: RobinHood is incredibly easy to use!
- Their software is incredibly easy to use
- They have a strong mobile app
- They guarantee 100% commission free trading
- There is limited technical analysis opportunities
- The platform in general is easy for beginners to use, but for more advanced traders it may be lacking in some departments
- There is limited investment resources
Pricing: There are no fees to open an account, nor do you pay a trading commission when you buy/sell positions.
Zen Trading Strategies
Zen Trading Strategies is advanced day trading software. This software provides the trader with great visual indicators on when to open or close a position, and is focused on machine learning and algorithmic patterns.
Standout Features: The visual indicators this software provides is second to none.
- This software does deep technical analysis
- The software is designed to minimize risk and maximize profit
- This is a very complex day trading software not suitable for those who are just starting out
- If you’re nor familiar with technical analysis or trading patterns, this software will be overwhelming
Pricing: The software costs $67/month, but you can do a 7 day free trial.
What Is Day Trading?
Day trading is when an individual speculates on which direction a security will move in a very short time period – typically between a few minutes to a full trading day. This style of trading comes at an increased risk, however, there is tremendous upside potential.
What Is Day Trading Software?
Simply put, day trading software is software that not only allows you to execute your trading positions, it also provides you with tools to analyze your trading decisions. For example, good day trading software will allow you to review charts, market news, technical analysis, and will even provide mobile trading options. You’ll be able to buy and sell your positions, and you can choose from numerous order options.
How Does Day Trading Software Work?
Understanding how day trading software works can be more complicated. There is not a one size fits all day trading software that works the same way for everyone. On a high level, the best day trading software will allow you to:
- Execute your trades quickly and efficiently
- Evaluate your trading positions and strategies
- Follow the market news – for example, live stream CNBC
- Leverage charting features
- Trade from your mobile device
Each day trading software will have their own nuances and features that will take some time getting used to. Many of the best day trading software comes with hours of educational material on how you can fully leverage their software and features.
Advantages & Disadvantages of Day Trading
Day trading has a lot of advantages and disadvantages. Let’s cover the most common ones below.
Advantages of day trading:
- Ability to create an unlimited upside potential on how much money you own
- Control your own schedule
- Be your own boss
- You can work from anywhere in the world, as long as you have a stable internet connection
Disadvantages of day trading include:
- There is great risk that comes with day trading. You can lose whatever you invest.
- Trading can be very lonely. You will not be collaborating with teams, it’s simply you against the charts/data you’ve reviewed.
- Day trading can be incredibly stressful
What to Consider With Day Trading Software
When considering which one of the best day trading software programs is right for you, you should consider the following.
Low Commission and Fee Structure
First and foremost, you want to find day trading software that is affordable. The fees and commission you pay on your trades can quickly erode your profit, and increase your overall risk. There are free day trading software on the market, and believe it or not, free doesn’t mean it’s a discounted software or suboptimal user experience!
Not only do you want to find a low commision and fee structure in your day trading software, you’ll also want to make sure the platform itself is user friendly. Day trading software can be complicated!
You want to find day trading software that is easy to navigate, and that provides you with all the information you need but does not overwhelm you with useless information.
Continuously Updating Data
Especially with day trading as your timeline is much shorter, you need up to date information to make the most informed trading decisions. Make sure the day trading software you’re choosing provides live quotes and market information. Any delay can be a major disadvantage!
Investor Resources / Charting Tools
The resources the day trading software provides must be taken into consideration. Between the various charting tools, technical analysis options, level two quoting, and live market news – having access to a lot of information is key!
However, as mentioned above – make sure to not overwhelm yourself with too much information. You want the ability to access whatever, but you should not have everything accessed all at once!
Direct Market Access
Similar to continuously updating data, you want to make sure your trades have direct market access. In other words, that your trades are executed in live time, and do not have a delay.
Seconds are very expensive in the world of day trading, and can quickly reshape a trading decision. The best day trading software fulfills your orders as you’ve instructed, whether you’re trading from a laptop, cell phone, tablet, or desktop.
Automated Day Trading Software
With today’s modern technology, you have the ability to automate part of your day trades. You can have the computer buy/sell securities if they follow the rule you give them.
For example, you can create an order that says “buy a specific stock when the price per share reaches $150.” Therefore, you do not need to be in front of the monitor all day long. Make sure your day trading software has an opportunity to automate some of the trading decisions.
Have The Right Tools
Just as a carpenter has a hammer in their tool chest, a day trader will have the right day trading software. Day trading comes with an increased risk exposure and shouldn’t be taken lightly. The best day trading softwares can help leverage this risk.
Working with a financial advisor is a great way to ensure you’re making fully baked investing decisions. Financial advisors will help you determine what percentage of your portfolio you can trade, and what percentage you should invest for the long term.
Frequently Asked Questions
You can invest $1,000, but you will not be able to day trade it. To be considered a day trader, you need to have an account size of at least $25,000.
Making money in day trading is not guaranteed. How much money you make depends entirely on what you invest in, the risk you’re willing to accept, and how much money you’ve allocated to a specific trade.
Day trading is wildly profitable for some, but not profitable for others. Many people cannot handle the stress associated with day trading, which causes them to make bad trading decisions or fail to follow their plan.