Starting out as a day trader is tough. That is why you need as much information about the various trading platforms out there as possible. It is the best way to determine which trading platform is the best one for you in your day trading exploits. This Ameritrade review will give you the ins and outs of the popular trading platform so that you make an informed decision.
First off, what does an aspiring day trader want out of a trading platform. Trading platform like Ameritrade need to give users a simple interface, with easy access to buy buttons that also houses breaking news, advanced charting and research capabilities that allow you to make decisions in real time. That is the crux of it. Day traders need to make quick decisions, based on quality information. And the trades need to be executed quickly if you have any hope of taking advantage of volatility in the market.
Ameritrade has no minimum investment threshold. That is a point in the platform’s favor. You can start trading with as little as $50 right now. It is great way to test out your intentions and learn if you really like trading with just a little bit of money. The benefits for novice traders looking learn on the job are obvious.
The fees are not so great for day traders. The commissions are a bit higher than average, which means that you are losing a bit more than you might like on each trade. Some active traders are happy with the trade off in high commissions because they can use Ameritrade’s premium research tools. Those are accessible to any trader, regardless of account balance or trading volume. That is a great asset.
Ameritrade’s Thinkorswim platform also has an On Demand feature which allows traders to test out strategies and techniques without risking actual cash. This service is actually free, so it is a bonus for those traders with smaller accounts that want to learn on the job. And almost every asset class that could be traded is available on Ameritrade’s platform.
The research available to Ameritrade’s customers is also nice bonus that many traders would value. The range of quality research companies that provide reports for Ameritrade is quite large. In addition to the research, Ameritrade offers real-time performance and risk analysis, which allows traders to monitor how they are doing trade-by-trade.
Mobile trading may be one of the biggest advantages of the program. The advanced capabilities of Thinkorswim’s mobile trading platform is a real selling point for those traders that want to trade from their phones. The mobile applications are available for a wide variety of phones and devices, including Blackberry, iPhone, Android and Windows devices.
Perhaps most important to day traders though is the issue with short term trading. Some of the commodities on Ameritrade have a holding period, meaning that traders have to hold on to ownership for 30 days, which makes most of what day traders do moot.