What is the best Day Trading Brokerage?

Quote from hajimow:

If you have over 25K, and your broker still puts you in pattern daytrader list, buy a Nike running shoes and run away from that broker as fast as you can. Then buy a dart and put the broker's name on it and practice :)

And if by "kind to daytraders " you mean you need attention and will call your broker around the clock and flood them with lots of basic questions, maybe good brokers will also get annoyed. Go with IB and you won't regret.
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For some reason, I've encountered several people saying IB is a good broker for day trading. However, the internet is saturated with nonsense about this broker and that. (Which is what led me to this site.)

I tried using TradeKing, but found their tools lacking. Next Scottrade, and found their tools loaded with features and bugs to match. So please tell me why you (a person I don't know from Adam) thinks I should go with IB. Convince me.

BTW, I am a retired computer programmer, and a very logical person. Emotional arguments have no sway with me. As Sgt. Joe Friday used to say, "Just the facts, please." :p
 
Quote from Kat-Man-Do:

But large name brokers (for some reason) want to limit the number of trades. (they don't want to make money I guess) They say have a $25k account for Day Trading, so I put in $30k. Then they say, oh you are a pattern day trader, so out of $30k, they only let you trade with $7k.
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If you day trade more than 3 times in a given 5-day period in a margin account, and those trades are more than 6% of your trading activity, your broker *has* to label you a pattern day trader and you have to have more than $25K to trade. It's the law.

The amount of your margin you're allowed to use in a day trade, and whether sales get added to your buying power immediately or only at the end of the day, depends on the broker's rules. It may depend on the SMA value of your account as of the previous day's close - ask your broker if they can show you that amount. It may depend on whether you've recently had a day trading buying power violation. Your broker should be able to tell you all this. The front line help desk guys might not know, but they will transfer you to someone in the margin department who does.
 
Quote from MoldyOldyITguy:

For some reason, I've encountered several people saying IB is a good broker for day trading. However, the internet is saturated with nonsense about this broker and that. (Which is what led me to this site.)

I tried using TradeKing, but found their tools lacking. Next Scottrade, and found their tools loaded with features and bugs to match. So please tell me why you (a person I don't know from Adam) thinks I should go with IB. Convince me.

BTW, I am a retired computer programmer, and a very logical person. Emotional arguments have no sway with me. As Sgt. Joe Friday used to say, "Just the facts, please." :p
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I have been with many brokers in the past 15 years and all of them were doing many things wrong. Not too many features, very expensive commissions. I have been with IB since 2004 and I am very satisfied. In 2004 IB was a much smaller broker and they had no ad on TV or online. Things have changed now. The biggest complaint at that time was their customer support but I found no issue with that. In the last 7 years, I have contacted them twice and my problem was resolved. If you are one of those traders, IB is not for you:

1- If you need constant attention or advice
2- If you trade once or twice a month. They will charge you $10-$20 data fee if your commission is less than $30 in a month
3- If you need any paper document and you cannot do things online
4- If you get mad if you margin call and Ib automatically liquidates (save your ass) a part of your positions.
5- If you are an option trader and your trade cancel ratio is very high.

Once in a year you might have data feed problem for 5-10 minutes that happens with any broker

There are about 10 good brokers at this moment and some people have accounts with more than a couple of them. Other good brokers are smaller compared to IB and usually their commission is higher and some traders don't care to pay a little bit more. It is a matter of choice and preference.
 
I warned other traders of a broker that front-runs its clients, where is that post?

so if I mention the name of a broker that front-runs its clients, my post will be deleted?

OK, here is a list of brokers that front-run their clients:

1.

2.

3.

4.

5.



:D

I get it, this website is receiving sponsoring money from the brokers. I am not going to ruin your business, but you have to ethical toward traders who visit this website.
 
Quote from hajimow:

I have been with many brokers in the past 15 years and all of them were doing many things wrong. Not too many features, very expensive commissions. I have been with IB since 2004 and I am very satisfied. In 2004 IB was a much smaller broker and they had no ad on TV or online. Things have changed now. The biggest complaint at that time was their customer support but I found no issue with that. In the last 7 years, I have contacted them twice and my problem was resolved. If you are one of those traders, IB is not for you:

1- If you need constant attention or advice
2- If you trade once or twice a month. They will charge you $10-$20 data fee if your commission is less than $30 in a month
3- If you need any paper document and you cannot do things online
4- If you get mad if you margin call and Ib automatically liquidates (save your ass) a part of your positions.
5- If you are an option trader and your trade cancel ratio is very high.

Once in a year you might have data feed problem for 5-10 minutes that happens with any broker

There are about 10 good brokers at this moment and some people have accounts with more than a couple of them. Other good brokers are smaller compared to IB and usually their commission is higher and some traders don't care to pay a little bit more. It is a matter of choice and preference.
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That all sounds fine to me. I don't like to call my broker, and don't want them calling me so I feel all warm and fuzzy about them. In fact, that was a complaint I had about Scottrade--calling me every week or so to say, "Hi! How's it going?" With the added, "Oh, we weren't aware of any software issues with our products, but rest assured we'll do absolutely nothing about it other than to assure you everything is just fine--trust us."

Then I noticed some subtle issues which activated my BS sensor. For instance, you can ACH money into your account online, but you must call a local branch to request a check be sent. That is, you cannot easily withdraw your money once they have it. Of course this is their opportunity to reassure you that everything is just fine and you shouldn't pull your money from them.

But back to the issue at hand, what else can you (or anyone else) tell me about IB? Either good or bad. The fact that you're satisfied is great and you've been with them for years, but I'm sure there are others who would say the same thing about every broker out there.

What I want are solid, reliable tools and a solid, reliable broker. I would rather they don't waste my money with frills like fancy brochures and local offices where people can go to feel good and have their egos stroked. I can do my own research online, thanks--and I'm the only one I truly trust anyway. This was what I liked about TradeKing, but their tools were rather limited and their website a bit cumbursome to navigate. Scottrade seemed good on the surface, until I lost hundreds of dollars because of their buggy software and trading delays. It's painful enough to lose money on my own--I don't need a broker's help with that!
 
Quote from chictrader:

Cobra Trading hands down! They now offer RealTick and I got them down to $0.004 share.....it doesn't get any better IMO.
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I checked out chictrader's other posts, and guess what? He does nothing but post how he loves Cobra. It doesn't take a genius to figure out this clown's game.

Run away! Run away!!
 
Quote from MoldyOldyITguy:

That all sounds fine to me. I don't like to call my broker, and don't want them calling me so I feel all warm and fuzzy about them. In fact, that was a complaint I had about Scottrade--calling me every week or so to say, "Hi! How's it going?" With the added, "Oh, we weren't aware of any software issues with our products, but rest assured we'll do absolutely nothing about it other than to assure you everything is just fine--trust us."

Then I noticed some subtle issues which activated my BS sensor. For instance, you can ACH money into your account online, but you must call a local branch to request a check be sent. That is, you cannot easily withdraw your money once they have it. Of course this is their opportunity to reassure you that everything is just fine and you shouldn't pull your money from them.

But back to the issue at hand, what else can you (or anyone else) tell me about IB? Either good or bad. The fact that you're satisfied is great and you've been with them for years, but I'm sure there are others who would say the same thing about every broker out there.

What I want are solid, reliable tools and a solid, reliable broker. I would rather they don't waste my money with frills like fancy brochures and local offices where people can go to feel good and have their egos stroked. I can do my own research online, thanks--and I'm the only one I truly trust anyway. This was what I liked about TradeKing, but their tools were rather limited and their website a bit cumbursome to navigate. Scottrade seemed good on the surface, until I lost hundreds of dollars because of their buggy software and trading delays. It's painful enough to lose money on my own--I don't need a broker's help with that!
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Check the reviews on the brokers. IB has been reviewed by about 200 customers. I am happy with IB tools but I hear thinkorswim used to have better charting (maybe still has)but higher commission. Take your time and do a little bit more investigation. I believe you can open a paper account with IB. I opened my paper account with them after I opened my real account just to try some strategies. Scottrade is not that bad. It is for different kind of traders. They did not allow to sell naked call and put.Their commission was also high and they were selling the customer's orders. For swing stock traders Scottrade is an OK option.
 
I was wondering why I was enjoying MoldyOldyITguy's posts so much... then I read he was a computer programmer, and it all made sense. Not just any programmer, but an old programmer judging by his name - i.e. not the Mark Zuckerberg's of the world! The type of guy who grew up at the same time as the computer reached puberty I'm guessing, correct me if I'm wrong. I commend your type, you have a solid head on your shoulders from my experience. Stereotyping? Yes. True? Yes.

I've recommended my broker before, and actually had a PM session with one of the people who posted in this thread about them, but at the end of the day I agree with the person who said that there are 10 good brokers right now, and I think the difference between their core offerings is slim to none. It's like choosing a bank, do you really think Chase is going to be very different from BofA?

That said, I tend to prefer a (and am at) a slightly smaller broker (which is entirely relative when you're talking tens to hundreds of thousands of clients at all of them) primarily because I DO care about my interaction with my broker being a good experience. But if you, like MoldyOldyITguy, don't care to even know your individual broker exists? Then hell, nothing matters brokerage-wise aside from them offering the platform you wish to trade on and their commissions being cheap for your trading style.
 
Quote from soldsoldsold:

I was wondering why I was enjoying MoldyOldyITguy's posts so much... then I read he was a computer programmer, and it all made sense. Not just any programmer, but an old programmer judging by his name - i.e. not the Mark Zuckerberg's of the world! The type of guy who grew up at the same time as the computer reached puberty I'm guessing, correct me if I'm wrong. I commend your type, you have a solid head on your shoulders from my experience. Stereotyping? Yes. True? Yes.

I've recommended my broker before, and actually had a PM session with one of the people who posted in this thread about them, but at the end of the day I agree with the person who said that there are 10 good brokers right now, and I think the difference between their core offerings is slim to none. It's like choosing a bank, do you really think Chase is going to be very different from BofA?

That said, I tend to prefer a (and am at) a slightly smaller broker (which is entirely relative when you're talking tens to hundreds of thousands of clients at all of them) primarily because I DO care about my interaction with my broker being a good experience. But if you, like MoldyOldyITguy, don't care to even know your individual broker exists? Then hell, nothing matters brokerage-wise aside from them offering the platform you wish to trade on and their commissions being cheap for your trading style.
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I didn't realize I'd posted enough to garner an admirer. Huh! However, after reading your first paragraph, are you sure your name isn't Eddie Haskell Jr.?

You say there isn’t much difference between a Chase and a BofA. On this I agree completely. They both suck, just like Wells and Citi. Which is why I “bank” with a credit union. Credit unions weren’t involved in the last scandal, and hopefully they’re still wise enough not to be involved in the next one.

After performing my due diligence, I’ve decided to try IB. Looks to me like an excellent choice for a serious trader. They’re very well regarded, and I think for good reason. I'm sorry to disagree with you, but in my opinion, anyone who cares much about their interaction with their broker will likely lose money in the market. My dad was one of those kinds of people, and he lost a bundle in the last crash. He did love getting those phone calls from his broker though. Made him feel all nice and warm while his pocket was being picked.
 
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