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How to find the best platform for day traders
Most people do thorough research when searching for a good online trading provider, but are not sure how to locate the best day trading platform. Learn how to search for and find the best day trading platform.
Start trading today. For account opening enquiries call 1800 601 799 between 9am and 6pm (AEDT) weekdays or email newaccounts.au@ig.com.
What’s a day trading platform?
A day trading platform is the technology used to facilitate the trade of financial instruments, enabling positions to be opened and closed within a single day. This trading style is not suitable for people seeking to trade or invest in the longer term.
When trading with us, a fee will be charged to your account for keeping your intraday trade open until the following day. You should refer to the Product Details for information on when the cut-off time for overnight funding charges applies.
Note that there’s a difference between an online trading provider and a trading platform. An online trading provider provides the platform, while the platform facilitates the trading activity on the financial markets. An online provider like us enables you to open an account for trading or investing1 securities in the financial markets.
Our day trading platform will enable you to trade using a derivative product – CFDs. CFDs are leveraged products, meaning you’ll amplify your exposure to the markets. Leverage will magnify profits and losses you make on your day trade – manage your risk carefully.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.
Alternatively, you could open an intraday position without leverage by trading shares. Trading shares offers decreased assets and market exposure, which means you’d need sufficient market movements in the day to make the day trade worthwhile.
How to find the best day trading platform
To find the best day trading platform, there are several things to take into consideration. These include your experience as a trader, trading goals, the types of assets you’d like to trade, costs and charges involved and the type of support you will be offered.
1. Consider your experience and trading goals
Taking your experience and trading goals into consideration when venturing into day trading will enable you to have clear goals in mind. This will ensure you put in the time to practise and fine-tune your trading style and strategy before you open your first position.
You can use fundamental analysis as part of your trading style or plan to predict market price movements and use technical indicators for your strategy. Your strategy is determined by your preference and the level of risk you’re willing to be exposed to when trading the markets.
If you’re a beginner, you’ll need to choose the trading strategy that suits your preferences. For example, if you choose to use scalping as your day trading strategy, you’d make lots of small trades of the asset you’re trading with the aim of profiting from the little price changes.
Once you’ve chosen your strategy, ensure that you diligently stick to it as one impromptu move may lead to a trade that results in a huge loss. Your aim is to make a series of small wins from your trade and benefit from them instead of a few large ones.
You can learn more about trading strategies by visiting our Analyse and Learn section on the website or IG Academy. You can also try out these trading strategies by opening a demo account with us and practice with $20,000 in virtual funds. Once you have gained your confidence with using our platform, you can open a live account with us.
2. Learn key day trading concepts
There are some essential day trading concepts you’ll need to educate yourself on when it comes to the financial markets:
- Volatility – intraday trading will require that you have the ability to identify if the market price has sufficient movement to present profit-making opportunities. This is known as ‘volatility’, which measures how much an asset’s price moves over a period of time
- Liquidity – this describes how easy it would be to open or close a position in the markets without the asset’s price being affected. A rising demand for an asset increases its liquidity, meaning you can take or close positions at the price you want. With us, you’ll get deep internal liquidity, giving you access to several buyers and sellers, which will assist with the quick execution of your trade
- Volume – this provides details on the number of times an asset has been traded over a certain timeframe and is a key indicator of the market’s liquidity. You can trade volumes as a strategy to identify entry and exit points in the markets. For instance, a rise in volume when there’s a sharp movement in the market is indicative of the market maintaining that direction in the future
3. Find out about day trading products and assets
CFDs are the main day trading products used. These are leveraged products that will increase your market exposure at a fraction of the full value of your trade. But while they’ll magnify your profits when the markets move in your favour, they’ll amplify your losses if they move against you.
Carefully manage your risk and only trade using an amount you’re comfortable losing. There are over 17,000 markets you can trade with CFDs.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.
These are the four assets that are most popular among our traders:
- Stock market indices – these indices track the performance of company shares within the financial markets. Indices trading is popular, and highly liquid and will enable you to support your judgement based on the stock market’s historical data. Note that past performance doesn’t guarantee future outcomes
- Shares – you’ll trade individual shares. If you decide to venture into day trading on shares, you must be wary about the liquidity and volatility of shares in the financial market. For instance, trading an entire index will include all the shares within it (the index), meaning trading individual shares is likely to carry more risk. It’s important to perform solid fundamental and technical analysis before you invest1 in or trade company shares
- Forex – this market will enable you to trade currencies. When trading forex, you’ll always be trading a currency pair. For example, GBP/USD measures the exchange rate between the pound and the dollar. You’ll either take a position on the pound increasing against the dollar, or the dollar increasing against the pound. Forex is the largest and most liquid market in the world with trillions of trades taking place per day but it can also be highly volatile
- Commodities – you can also trade on raw physical commodities such as oil and gold. When you speculate on the price movement of the underlying asset, you’ll do this at a fraction of the full value of the physical commodity. But you won’t take physical ownership of the commodity
These four popular markets are not an exhaustive list. With us, you can also trade ETFs, interest rates, bonds and many more asset classes. When trading with us, you’ll get access to key indices and forex pairs 24/7,3 including at the weekend. You’ll also have exposure to trading key US shares out-of-hours. Other online trading providers might not offer you the same access to extended hours on their day trading platforms.
4. Compare day trading providers’ costs and fees
There are costs and fees associated with day trading platforms. It’s important to compare these to determine how much the overall cost of your trade will be. An online provider like us will provide full disclosure of the costs and charges associated with your day trade.
Some of the costs and charges you can expect to incur when day trading with us will include the spread. Overnight fees are charged when you keep your position on the spot markets open until the following day. Note that overnight fees are not applicable when open positions on futures and options are not closed on the same day since these have a set expiry date.
5. Day trading platform features to look out for
Our day trading platform offers these features and tools:
- Execution speed. The speed at which the platform executes your trade is essential, especially since markets operate in real time. When trading with us, you’ll get access to a platform that has the best execution at 0.027-second speed6
- Deep liquidity. Your aim should be to find a platform that makes it easy to open and close a position at market price. The platform should also enable you to buy and sell without having a negative impact on the price of the asset you’re trading. You’ll have access to deep liquidity with numerous buyers and sellers available on the financial markets when you trade with us
- Order fill. Your trading provider’s platform should have the capacity to successfully complete executing your order to trade assets. This is provided the asset hasn’t reached its expiry, there are sufficient trading volumes on the market and it’s within trading hours. We’ll offer you the best order fill with over 98% of orders being filled at the requested price2
- Proactive. The best trading platform will send you trading alerts when, for instance, your trade reaches the price levels you’ve set. You can also view charts with indicators showing market price movements in real time. With a trading platform like ours, you can set up trading signals via third party providers Signal Centre and Autochartist and receive actionable signals for buying and selling
- Engaging. It will also enable you to take control of your trading by letting you set stops and limits, including guaranteed stops on your open position to prevent losing more money than you bargained for. This is what you can expect when trading on our platform
- Real-time interaction. The trading platform you choose should market events in real-time and feed back to its users so they can make trades synonymous with what’s happening on the ground. With us, you’ll receive in-platform news, videos, analyst recommendations and social media for instant reaction to the markets
6. Find out how easy it is to deposit and withdraw money
You can deposit funds at the click of the ‘add funds’ button via our web trading platform or mobile app. You’ll then choose the payment method of your choice. Funds can be deposited using a credit card, debit card, PayPal account or via BPAY in Australia or EFT in New Zealand. You must ensure that any card, PayPal or bank account is in your name when depositing into your IG account, as we’re unable to accept any third-party funding.
There’s no minimum or maximum deposit amount when making bank transfers. Once there are funds in your account, you can start opening positions on your share trading or CFD trading accounts.
7. Check out the trading provider’s customer support
With us, you’ll have a responsive customer support team to field your queries. Our client services team is available to give you a one-on-one walk through our platform to set up your account, if you need it.
We also have 24-hour3 live support to ask trading experts for assistance. You can reach us either via phone call or email.
8. Learn about the trading provider’s day trading platforms
Familiarise yourself with your online trading provider’s day trading platform to determine if it suits your needs as a trader. Some providers might offer a web platform or only synchronise with third-party tools like MetaTrader 4 (MT4).
With our award-winning platform, you can access and place your day trade via our web or mobile app.4 You’ll also get exclusive access to these third-party platforms – L2 Dealer, DMA platform, ProRealTime and MT4.
What’s the best day trading platform and provider for you?
There are various aspects to take into consideration when choosing a day trading account and online trading provider like us. An online trading provider like us facilitates the trades in the financial market, while a day trading platform is the technology used to facilitate the buying and selling of those assets.
When you choose an online provider, you’ll consider the type of trading accounts you like to use, markets and assets you’d like to trade and the costs and charges of your trade. When choosing an online trading platform, you might find it useful to consider the ease of trade when using the technology and the overall customer experience.
Trade on our award-winning platform4
- Trade with us, Australia's No.1 CFD provider5
- Receive a one-on-one walk-through when opening an account with us and access to 24 hours a day3 telephonic support from the service desk
- Get exposure to 17,000 markets that include indices, shares, forex, commodities and more
- Get access to popular markets out-of-hours and on weekends, which enable you to trade for longer (not available on all markets).
Make use of our educational tools
- Enhance your trading knowledge using free training material on IG Academy
- Open a demo account to put your theoretical knowledge into practice with virtual funds
- Get access to IG Live to receive the latest market news and analysis from our industry experts
- Be part of the peer-learning experience through our community forum with more than 42,770 members (as of June 2023)
How to start day trading with us
- Fill in a form. We’ll ask you a few questions about your trading knowledge. This will ensure that we give you the best experience on our platform
- Get verification. We’ll usually be able to verify you immediately
- Fund your account and start trading. Once you’ve deposited money into your account, you’ll be able to start trading. You can withdraw money from your account as and when you wish – for free
FAQs
How much money do you need to start day trading?
With us, you won’t be required to have a minimum deposit to start day trading. But, if you’re trading leveraged products, ensure you understand how they work and manage your risk. You’ll need to deposit enough funds in your account in case the market turns against you once you open your trade.
Try these next
Discover how to open your first trade with us
Find out how leveraged trading works
Trade or invest1 on our award-winning platform4
1 When investing with us, you’ll do so via our share trading platform using our custodial model. This means that we manage, hold and safeguard securities you choose to buy and sell on your behalf. Via our custodial model, you’ll be able to buy and have a stake in actual assets – for example, shares in an ASX 200-tracking ETF or ASX 200-constituent company. You’ll also be entitled to dividends if any are paid, and granted voting rights if applicable.
2 Based on IG Group's OTC data for April – June 2022.
3 24/7 excludes the hours from 9am to 7pm (AEDT), and 20 minutes just before the weekday market opens on Monday morning. Note: These times do change when daylight savings ends/starts across AU/UK/US time zones.
4 Best Finance App, Best Multi-Platform Provider and Best Platform for the Active Trader as awarded at the ADVFN International Financial Awards 2024.
5 Number 1 in Australia by primary relationships, CFDs & FX, Investment Trends November 2024 Leveraged Trading Report.
6 Based on IG Group's OTC data for Jun – Aug 2023
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Disclaimers
- CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You do not own or have any interest in the underlying asset. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. Please consider the Margin Trading Product Disclosure Statement (PDS), Risk Disclosure Notice and Target Market Determination before entering into any CFD transaction with us.
- The value of shares, ETFs and ETCs bought through an IG share trading account can fall as well as rise, which could mean getting back less than you originally put in. Past performance is no guarantee of future results.
- Please ensure you fully understand the risks and take care to manage your exposure.
- The information on this website is prepared without considering your objectives, financial situation or needs. Consequently, you should consider the information in light of your objectives, financial situation and needs.
- This website is operated by IG Australia Pty Ltd. IG Australia Pty Ltd is located on Level 32, Queen & Collins, 376-390 Collins Street, Melbourne, VIC 3000. ABN 93 096 585 410, Australian Financial Services Licence No. 515106. Derivatives Issuer Licence in New Zealand FSP No. 684191, NZBN 9429047618251.