Table of Contents
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Affiliate Disclosure DailyForex.com adheres to strict guidelines to preserve editorial integrity to help you make decisions with confidence. Some of the reviews and content we feature on this site are supported by affiliate partnerships from which this website may receive money. This may impact how, where and which companies / services we review and write about. Our team of experts work to continually re-evaluate the reviews and information we provide on all the top Forex / CFD brokerages featured here. Our research focuses heavily on the broker’s custody of client deposits and the breadth of its client offering. Safety is evaluated by quality and length of the broker's track record, plus the scope of regulatory standing. Major factors in determining the quality of a broker’s offer include the cost of trading, the range of instruments available to trade, and general ease of use regarding execution and market information.

Top Day Trading Brokers

Day trading is a short-term trading strategy where traders open & close all trades before the end of the trading day. Below, you'll find our favorite Forex brokers for day trading, following a thorough examination done by our analysts.

1
4.7/5
The ratings shown on DailyForex.com are determined by hours of research from our editorial team into over 10 factors, including account fees, deposit/withdrawal options, regulatory status, tradable assets, and more.
Best all around broker
High floating leverage + fast execution
2
4.6/5
The ratings shown on DailyForex.com are determined by hours of research from our editorial team into over 10 factors, including account fees, deposit/withdrawal options, regulatory status, tradable assets, and more.
High level regulation in multiple jurisdictions
Impressive range of tradeable assets including vanilla options and gold options
3
4.5/5
The ratings shown on DailyForex.com are determined by hours of research from our editorial team into over 10 factors, including account fees, deposit/withdrawal options, regulatory status, tradable assets, and more.
ECN-style trading
Daily market research and Autochartist access
4
4.5/5
The ratings shown on DailyForex.com are determined by hours of research from our editorial team into over 10 factors, including account fees, deposit/withdrawal options, regulatory status, tradable assets, and more.
Best ECN execution on the MT4 platform
Excellent implementation of cTrader and Smart Trader Tools
5
4.5/5
The ratings shown on DailyForex.com are determined by hours of research from our editorial team into over 10 factors, including account fees, deposit/withdrawal options, regulatory status, tradable assets, and more.
Deep liquidity, fast order execution & a well-balanced asset selection of 800+ assets.
$100 minimum deposit & ten payment processors, including cryptocurrencies.

  • FXTM, Best all-around broker with high floating leverage and fast execution.
  • AvaTrade, Highly regulated, choice of fixed or floating spreads.
  • FP Markets, ECN trading with leverage up to 1:500.
  • Pepperstone, Great ECN execution on MT4 platform.
  • DNA Markets, Super asset selection for Forex and cryptocurrency traders.

Best Day Trading Brokers Comparison

Regulators
CMA, CySEC, FCA, FSC Mauritius, FSCAASIC, BVI, Central Bank of Ireland, FFAJ, FSCA, KNF, MiFIDASIC, CySEC, FSCAASIC, BaFin, CMA, CySEC, DFSA, FCA, SCBASIC
Year Established
20112006200520102023
Execution Type(s)
ECN/STP, Market MakerMarket MakerECN/STPNo Dealing Desk, NDDECN/STP, Market Maker
Minimum Deposit
$200
$100
$100
$200
$100
Average Trading Cost EUR/USD
0.1 pips0.9 pips1.1 pips1.1 pips1.1 pips ($11.00)
Average Trading Cost GBP/USD
0.2 pips1.5 pips1.4 pips1.6 pips1.3 pips ($13.00)
Average Trading Cost Gold
$0.18 $0.29 $0.21 $0.20 $0.12
Trading Platform(s)
MetaTrader 4, MetaTrader 5, Proprietary platformOther, MetaTrader 4, MetaTrader 5, Web-based+MetaTrader 4, MetaTrader 5, cTrader, Proprietary platform, Web-basedMetaTrader 4, MetaTrader 5, cTrader, Trading ViewMetaTrader 4, MetaTrader 5
Islamic Account
Negative Balance Protection
N/A

FXTM

In Summary Best all-around broker with high floating leverage and fast execution

FXTM is one of the best day trading brokers and one of the best all-around choices. It upgrades the MT4 and MT5 trading platforms with six add-ons and provides mobile traders with its proprietary FXTM Trader. Automated traders have access to VPS hosting, and manual traders benefit from the FXTM Pivot Points Strategy. FXTM also features excellent performance statistics, confirmed by Big Four accountancy PricewaterhouseCoopers Limited (PwC).

FXTM Pros & Cons

Read more on FXTM »
4.7/5 in this category

Pros & Cons

  • Excellent commission-based Forex pricing environment and transparency
  • Upgraded MT4/MT5 trading platforms plus proprietary mobile trading app
  • Quality market research and educational content for beginner traders
  • A highly regulated broker with a tier-1 license
  • No cryptocurrencies and limited choice of commodities

AvaTrade

In Summary Highly regulated, choice of fixed or floating spreads

AvaTrade remains one of the best online brokers for day trading with a commission-free trading environment. It also provides new traders a market-leading educational unit with SharpTrader and its 40 lessons and 200 videos. More than 300,000 traders enjoy one of the most regulated online brokers and 24/7 customer support in 14 languages for a minimum deposit of $100 and five payment options. AvaTrade has more than 70,000 affiliates in over 150 countries.

Read more on AvaTrade »
4.6/5 in this category

Pros & Cons

  • High-quality educational offering via SharpTrader
  • Excellent choice of trading platforms catering to various trading needs
  • Broad asset selection and cross-asset diversification opportunities
  • Well-regulated and trusted broker with oversight from a central bank
  • Trading costs competitive but nothing special

FP Markets

In Summary ECN trading with leverage up to 1:500

Day traders will find plenty of good features available at FPMarkets which includes both the MetaTrader 4 (MT4) and the MetaTrader 5 (MT5) trading platforms. Both of these world class platforms are available as a desktop client, as well as a WebTrader and a mobile application. Select clients may also qualify for the Iress trading platform, which is restricted, based on your geographical location. FPMarkets also offers twelve plug-ins which are includes with its Trading Tools package, along with its AutoChartist plug-in.

Read more on FP Markets »
4.5/5 in this category

Pros & Cons

  • Choice of trading platforms and auxiliary trading tools
  • Very competitive cost structure and excellent asset selection
  • Low minimum deposit requirement and leverage of up to 1:500
  • Well-regulated and trustworthy
  • Availability of Iress geographically restricted

Pepperstone

In Summary Great ECN execution on MT4 platform

Pepperstone, founded in 2010 and headquartered and regulated in Australia, the U.K., and Dubai, is probably the most well-known ECN Forex broker in the world. As an ECN broker, Pepperstone offer raw spreads and low commissions. Taken together, Pepperstone’s “Razor” account offers one of the most competitive costs of trading in Forex that you will find anywhere. In addition to their global headquarters in Australia, Pepperstone also have presences in London, England, where they enjoy full regulation by the Financial Conduct Authority (FCA), and in Dubai, where they are regulated by the Dubai Financial Services Authority (DFSA).

Read more on Pepperstone »
4.5/5 in this category

Pros & Cons

  • Excellent choice of trading platforms consisting of MT4/MT5, and cTrader
  • Market-leading MT4/MT5 upgrade package, Autochartist, and API trading
  • Social trading support via Myfxbook, MetaTrader Signals, and DupliTrade
  • Leverage of up to 1:30 and superb trade execution
  • Demo accounts have 30-day time limits

DNA Markets

In Summary Super asset selection for Forex and cryptocurrency traders

I rank DNA Markets among the best brokers for day trading due to its low, commission-based trading fees of raw spreads from 0.0 pips for a commission of $6.00 per 1.0 standard round lot. Non-Australian-resident traders also benefit from competitive leverage with negative balance protection, a margin call level at 100% margin level, and an automatic stop-out level at 50%.

DNA Markets supports micro lot trading from 0.01 lots, or 1,000 currency units. Traders can choose MT4 and MT5, which enable algorithmic trading, and there are no restrictions on trading strategies, including scalping and algorithmic trading using EAs.

Read more on DNA Markets »
4.5/5 in this category

Pros & Cons

  • Competitive, commission-based trading fees
  • Choice of payment processors, including cryptocurrencies
  • Excellent choice of Forex and cryptocurrency pairs
  • MT4/MT5 trading platforms for algorithmic and copy trading
  • Limited commodity asset selection and no ETF trading

What is Day Trading?

Let us be clear about what exactly day trading Forex means. It can be defined as sitting in front of a trading screen for a meaningful continuous period of time and making trades that should substantially be closed by the time the trader closes up the computer and is done for the session.

A day trader might be scalping, meaning going for fast trades with very small profit targets of under 10 pips or so, or they might even be swing trading, trying to catch a daily move for as much 200 or so pips. Both can be day trading if these trades are opened and closed within a single session.

How Much Money Do I Need to Day Trade?

There is no minimum requirement placed by regulators or brokers, except in the US, where it is $25,000 due to the pattern day trading rule, which stipulates that anyone making more than 4 day trades in a week must hold at least this much equity in their trading account. Day trading with insufficient capital usually results in losses, and we recommend no less than $5,000 for Forex day trading and $10,000 for equity day trading.

How Day Traders Use Their Online Broker

Day traders require tight spreads, usually in a competitive commission-based trading environment and preferably with a volume-based cashback program. High leverage, full support for automated trading solutions, multi-chart capabilities, and real-time trading information are other services day traders require. Access to deep liquidity and cutting-edge technology with excellent execution statistics will deliver an additional edge.

How Do I Choose the Best Broker for Day Trading?

A competitive day trading platform must support automated trading solutions and allow third-party solutions to connect. It should offer an excellent charting package, and the broker should have no restrictions on trading strategies or high leverage.

Which Brokers Offer Market Rebates for Adding Liquidity?

Brokers with a prime brokerage unit and those acting as liquidity providers to other brokers usually offer market rebates for adding liquidity. Some well-established market makers with a hybrid ECN execution model and pure ECN brokers also maintain volume-based rebates.

Customer Service

Most traders rarely require customer service, if at all, but should always seek a broker with an excellent support team. Unexpected events can happen, like a server outage, a liquidity event, or a security issue. Day trading is stressful even without interruptions and having a responsive customer service desk will smooth over unexpected developments.

Dealing Desk

Day traders should consider a broker with a dealing desk that can place market orders or close open positions per request. It comes at an additional cost but offers an extra security layer if a trader loses market access during volatile markets.

Customer Service Quality

It is not enough to provide customer service, the quality counts. A quick response time and multiple ways to connect remains essential. The best online brokers for day trading offer 24/5 or 24/7 multilingual customer service and answer queries in a matter of minutes.

Extra Offerings

Extra offerings separate the best brokers from good ones. It can consist of deposit bonuses, free trades, VPS hosting at no additional cost, and third-party trading tools that provide an edge to traders. Offering value-added services confirms the commitment of brokers to clients.

Account Levels

Some brokers offer a multi-tiered account approach. Traders get access to improved trading conditions as they ascend the levels, with VIP clients receiving non-trading perks like invites to trendy events. A growing number of brokers dropped this approach. They provide all clients with equal access to services.

Returns on Cash

A few brokers pay interest on free capital, which can offer a nice passive income stream in the negative, zero, and near-zero interest rate environment of today.

Trading Strategy

Day traders need to select a broker without restrictions on trading strategies. Full support for automated trading strategies and no restrictions on scalping and high-frequency trading is a requirement. Social trading remains optional.

Managed Trading Accounts

Several brokers offer managed trading account to clients, and a growing number cater to retail account management via MAM/PAMM accounts or proprietary alternatives. It provides traders the choice to commit capital to an account manager who will bear responsibilities for all trading operations. Managers receive compensation through a performance fee or a profit-sharing agreement. A minimum deposit into a strategy usually applies, higher for a professionally managed account and lower at MAM/PAMM alternatives. Traders may receive an investor password to check the portfolio in retail account management services, depending on the broker and account management system.

Pooled Funds

Pooled funds are the most common professionally managed trading accounts. The returns of the portfolio remain divided among investors according to their share of the capital. Brokers with managed funds usually maintain numerous ones, catering to varying degrees of risk and investment goals.

Individual Accounts

An individually managed account is often the most expensive alternative and comes with the highest minimum capital requirements but provides the most attention to individual trading needs and expectations.

Regulations & Licensing

Day traders should always select a regulated broker, fully compliant and with all required licenses. Not all jurisdictions provide a competitive trading environment, which is another factor to consider. The US and the EU rank at the top of uncompetitive trading conditions, while Australia leads competitiveness among tier-one regulators. South Africa, Dubai, and Singapore are among the most innovative ones, together with a dozen offshore jurisdictions. They include the British Virgin Islands, Seychelles, Belize, the Marshall Islands, the Cayman Islands, and Vanuatu. St. Vincent and the Grenadines remain the primary location for unregulated brokers.

How Brokers Make Money

The two primary methods for brokers to make money is via spreads and commissions. Market makers also earn directly from client losses where they act as the counterparty. ECN/STP brokers derive the bulk of revenues from commissions.

Market Makers

They usually offer commission-free trading environments with higher spreads. Some of the best day trading brokers are market makers with excellent conditions and trading tools, with the more advanced ones offering a hybrid model, including a commission-based ECN/STP model. Several offer traders a choice between fixed and variable spread accounts.

  • Fixed Spreads do not fluctuate and remain constant. They are generally higher to compensate for the lack of profit potential for the broker.
  • Variable Spreads reflect market conditions plus the broker mark-up. They are necessary for scalpers and high-frequency traders.

Over-the-Counter Brokers (OTC)

OTC brokers can offer day traders access to assets not listed on exchanges. They often include penny stocks, which carry a high degree of risk but also enormous profit potential. Some of the best day traders earn their living trading with OTC brokers in the OTC markets. OTC trading takes place via a dealer network and not a centralized exchange.

Broker Payment Methods

All brokers offer clients bank wires and credit/debit cards as payment methods, but we recommend traders focus on online payment processors. The processing times and costs remain lower, and it allows day traders to keep their trading activities separate from their day-to-day banking needs.

Trading in Different Regions

Since the bulk of trading is online, most traders, except those in the US, may select an international broker with a better trading environment. Before choosing an offshore broker, traders must consider applicable taxes and regulations.

Tax Considerations

We recommend traders consult a tax expert in their jurisdiction to advise on what taxes apply, how to file them, and to get advice on tax optimization. The best brokers for day trading are often in tax-friendly countries, but traders will have to pay taxes in their home country.

Regulation

Before traders select an offshore broker, they must ensure that the regulation is sufficient and protects them from malpractice and fraud. Segregation of client deposits from broker funds and negative balance protection must exist.

A Profitable Day Trading Strategy that Works

Creating a good day trading strategy is quite simple: just take any trading strategy that works on higher time frames such as the daily time frame, and use shorter time frames to take the entries that are already being signaled.

For example, one trading strategy that has a great track record over many years is trading 50-day breakouts on the EUR/USD and USD/JPY currency pairs, using a stop loss equal to one day’s average true range over the last 15 days or so.

You can apply this to day trading by, for example, waiting until the EUR/USD ends the New York session at a 50-day high, and then opening a day trading session the next day and looking for a long trade.

EUR/USD End of Day 50-day High Closes

You already know that the daily chart and long-term trend are telling you that the odds are in favor of a long trade, so look only for a long trade. The great thing about day trading like this is that if you catch the turn that day, you might be able to catch a move of say 200 pips of profit if you leave the trade open over several days, but using only a 20-pip stop loss instead of perhaps an 80-pip stop loss you would need when trading this strategy on a daily chart.

I said earlier that day traders close out all their positions at the end of a day’s trading session, but there is no rule saying you have to do this – as long as you make sure there is a reasonable hard stop loss order in place before you switch off. If the price is trending strongly, why not leave at least some of your winning trade in floating profit to run overnight?

The real secret of day trading is that it enables you to make bigger profits through the use of relatively tight stop losses. In the above example, by succeeding with a 20 pip stop instead of an 80 pip stop, you would multiply your profit, your reward to risk ratio, by a factor of four.

Day Trading Strategy

The reality is that Forex trading is rather simple. Think about it: you place a trade and either it goes in your favor or not. Every trade you take has a roughly 50-50 chance to work out, maybe as high as 60-40 if you really do well. Markets will either go higher or lower. You can help move the odds a little bit more in your favor if you can find tighter spreads. The spread is essentially the same thing that a casino does on a roulette wheel, with those two green numbers making sure that the red and the black players don’t automatically win half of the gains each. The casino acts as a market maker, keeping everything that hits those two green numbers while the red and the black players throw money back and forth at each other. This is essentially how most Forex platforms work. That is why I say there is “a roughly 50-50 chance to work out.” Due to spreads and other trading fees, it is probably a little closer to 49%.

In the end, a trade either works out or it does not. If you have a little bit of trading acumen, then you can tilt the odds a little further in your favor. Or perhaps you have the ability to hold onto gains much longer than the average trader, and therefore your profits are much larger. In the end, there is no specific magic strategy. That does not mean there are not some things you can do to increase your profitability and the likelihood that you are going to become a profitable trader.

Bottom Line

For day traders to have the best chance of success, it is important for them to use a broker which provides fast and reliable execution and a competitive spread and/or commission. This is because day traders often trade quite large position sizes with tight stop losses and relatively small profit targets, meaning even a fraction of a pip won or lost by good or poor execution can make significant differences to profitability. Overnight swap fees, on the other hand, are not of importance to day traders who close all their open positions before 5pm New York time.

Day traders often seek to use relatively high leverage. Although I argue that the maximum leverage on Forex even in tightly regulated areas like the European Union at 30:1, is more than enough for any day trader, some day traders may want brokers offering even higher maximum leverage. These traders will need to seek brokers who are not regulated in the EU, USA, UK, Australia, or the USA, but are instead operating from more flexible regulatory bases such as New Zealand, Mauritius, or the Seychelles. Day traders often find ECN execution brokers useful as they often offer a competitive overall spread and commission.

Day traders should be careful to choose a broker that meets such needs, but good regulation and safety are an even higher priority, due to the primary importance of preserving capital in trading.

You might also be interested in reviewing the below top brokers:

FAQs

Which broker is best for day trading?

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The best broker for day trading will offer an excellent trading platform with support for automated trading solutions, a competitive commission-based cost structure with a volume-based rebate program, and a broad asset selection.

Do I need a broker to day trade?

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Yes, a broker connects day traders to financial markets and enables trading.

Can you start day trading with $500?

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Outside the US, it is possible to start with $500 but not recommended. Day trading is a more capital-intensive trading strategy.

Can you start day trading with $1000?

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It is sufficient for Forex day trading but not enough for equities, where we recommend a minimum of $10,000.

How much money can you make with day trading?

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It depends on the size of the portfolio, and traders must have realistic profit expectations. It is a high-stress strategy, and most profitable traders make less than 10% a month. Consistency remains one of the most defining aspects, and traders may also face monthly losses. Traders should consider earning 25% to 40% per year an enormous success.

What is the cheapest day trading platform?

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The cheapest day trading platform is the one with the lowest spreads and commissions for the volume which you are trading in.

Why do you need 25k to day trade?

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You only need a minimum of $25k to day trade if you are trading with a FINRA regulated broker, which is basically any broker regulated in the USA. This is because of the US “pattern day trading rule”, a law which stipulates that anyone who makes more than four day trades within a five-day period must have at least $25k in their account. Note that it is still possible to make four day trades per week even if you have less than $25k.

Can I live off day trading?

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It is possible, but very challenging, to make a living off day trading. Consider that anyone who makes more than 20% in a year trading is performing extremely well, then ask yourself whether 20% of your account size is enough for you to live on over a year, to reach your personal answer to this question – and this assumes you can trade very well under strong pressure.

Can a beginner do day trading?

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Day trading is extremely challenging, so is not recommended for beginners, who should start with longer-term trading styles such as swing or position trading.

Is day trading really worth it?

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Many traders fail to make money day trading, but find they can be profitable, or even more profitable, using longer-term trading styles. For this reason, many traders will find that the time and effort of day trading is not worth it for them.

Can day traders make 1% a day?

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It is possible to make 1% profit in a day, but nobody will be able to make 1% profit every day. Day traders should focus on long-term profitability and taking advantage of whatever opportunities the market offers, instead of trying to reach an arbitrary profit level daily. There is no rule saying a day trader must make a trade every single day.

What is the 1% rule for day trading?

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The 1% rule for day trading says that you should never risk more than 1% of your risk capital on a single trade. Many day traders have a daily loss limit too, such as 2% or 3%, and stop trading for the day when this level of loss is reached.

Can a day trader make millions?

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It is possible for day traders to make large profits, but very unlikely. Any day trader making more than 20% per year is doing extremely well and outperforming, so whether they can eventually make millions depends upon how much trading capital they have when they become a successful day trader.

Christopher Lewis
About Christopher Lewis

Christopher Lewis has been trading Forex for several years. He writes about Forex for many online publications, including his own site, aptly named The Trader Guy.