Selecting the best day trading platform is about finding a broker that offers low fees for high frequency trading along with features that keep you one step ahead of the rest.
We used Finder's proprietary algorithm to find brokers that offer the best selection of tools and to nail down those with the most attractive fees for high frequency traders.
According to our latest review, Interactive Brokers Trader Workstation (TWS) is the best day trading platform in Australia thanks to its extensive list of available assets and trading tools especially designed for algorithmic traders. It also offers extremely low fees, particularly if you're looking to trade larger amounts frequently or using leverage.
Tiger Brokers is one of the newest entrants to Australia's market and has already made its mark thanks to low fees, solid trading tools and training resources for those looking to upskill. In Finder's 2022 broker analysis, Tiger was awarded the title of Australia's best options trading account thanks to its low fees for US options and high quality trading tools.
Low options trading fees.
Trade ASX, US and HK stocks.
No minimum deposits.
Technical analysis tools.
Slightly cheaper brokerage elsewhere.
Might be tricky for newer investors.
Limited access to global markets.
Brokerage fee per trade: AU stocks: $5.50 per trade US stocks: US$2 UK stocks: Not available Other markets available: Details here Options: ASX: Not available US: US$0.95/contract (Min. US$3 per order) Inactivity fee: $0 Currency conversion fee: 0.53% of trade value
IG is our top pick for low costs because it has among the lowest fees across the board for ASX, US and other global stocks. It also has consistently low brokerage fees whether you're investing a few hundred or several thousand dollars at a time, plus a competitive currency exchange fee of 0.70%.
Practice with $20K of virtual funds, Improve trading skills on IG Academy
Switch to real trading of ASX and global stocks
Trade on desktop or mobile
Not suitable for casual investors. The IG app is targeted more towards active traders than casual investors.
Brokerage fee per trade: AU stocks: $5 or 0.05% if you make 3 or more trades in the previous month. $8 or 0.1% of your trade (whichever is higher) US stocks: US$0 UK stocks: £0 Other markets available: Details here ETF brokerage fees: AU ETFs: $5 or 0.05% if you make 3 or more trades in the previous month. $8 or 0.1% of your trade (whichever is higher) US ETFs: US$0 UK ETFs: £0 Other markets available: Details here Inactivity fee: if you make fewer than 3 trades during that time. Currency conversion fee: 0.70% of trade value
CMC Invest is a feature rich CHESS sponsored platform without the price tag. Along with low fees on global and ASX stocks, you get access to technical tools, stock analysis, watchlists and stock filters. You can also trade options (ETOs) and CFDs on forex, commodities, indices and stocks.
$0 brokerage on global stocks. CMC charges no commissions to trade stocks listed in the US, UK, Germany or Japan.
Conditional orders. Along with market and limit orders, you can place a range of conditional orders to fine tune your strategy.
Research tools. You get access to top quality research and filtering tools to help you find new opportunities.
Technical analysis tools. You can build your own charts with CMC's technical analysis suite.
Limited global markets. Only 4 global markets are commission-free to trade. Others are $59 per trade in brokerage.
Leverage (CFD) trading is available on a different account to the main stock trading account.
Brokerage fees: AU stocks: $0 brokerage (for buy orders up to $1,000) and $11 or 0.10% (whichever is greater) for all other buy and sell orders. US stocks: US$0 UK stocks: £0 ETF brokerage fees: AU ETFs: $0 brokerage for trades up to $1,000 (applied to the first buy order per ETF per day). $11 fee for trades up to $10,000. $15 fee for trades equal to or greater than $15,000. US ETFs: US$0 Options: ASX: $33/contract US: Not available Other markets available: Details here Inactivity fee: $0 Currency conversion fee: 0.60% of trade value
Webull: Best day trading platform (August 2023 update)
We've rated Webull as Australia's best platform for day trading because of its low fees for stock and options trading and high quality trading tools. Webull offers stocks from Australia, the US, China (A-Shares) and Hong Kong as well as US options plus margin trading for both stocks and options. Useful features include extended trading hours, technical analysis charts and probability analysis tools.
Access to stocks from Australia, US, China (A-Shares) and Hong Kong
US options trading at low fees
Demo account available
Quality technical analysis tools
High quality research tools
Fewer markets available than some other platforms
No ASX options trading
Zero commission trades are introductory only
Brokerage fee per trade: AU stocks: $0.0003 per trade value (min $4.90) US stocks: US$0.00025 per trade value UK stocks: £0 Other markets available: Details here Inactivity fee: Currency conversion fee: 0.50% (50 pips) of trade value
As Finder's best rated day trading account for the last 3 years running, it's easy to see why Interactive Brokers is hugely popular with active traders. It features a long list of trading tools including technical analysis charts, over a dozen conditional orders and a range of available assets, including stocks, options and CFDs. Interactive is also one of the only brokers to offer OTC (over the counter) stocks and futures.
Low brokerage fees on global and ASX stock trades.
Low options trading fees.
Top quality trading tools.
Complicated fee structure.
Its app user rating is lower than some others.
Its trader workstation is not for beginners.
Brokerage fee per trade: AU stocks: $5 or 0.08% (whichever is greater) for trade values up to $3,000,000 US stocks: US$0.0035 cents per share capped at 1.0% of trade value UK stocks: £1.00 or 0.050% (whichever is greater) for trade values up to £40,000,000 Options: AU: $0.33/contract, min $1.10 US: US$0.25 - US$0.65/contract, min US$1.00 Inactivity fee: $0 Currency conversion fee: 0.20% (Flat US$2 for transactions below $10,000 or 0.2% for amounts above $10,000)
Our methodology for the best day trading platforms
To find the platforms for day traders we analysed the fees and features of 40 platforms available in Australia. 40 features were included in the algorithm and the top rated trading platforms featured here had the highest average rating across the board.
Features included in the weightings were:
Brokerage fees for active investors that make 30 or more trades per month
The number of stock markets available
Its product range, including stocks, options, currencies and futures products
Whether it offer margin trading
Advanced trading tools such as conditional orders and technical analysis charts
Research tools such as stock ratings and news
What support options are available
Whether it's both desktop and mobile accessible
It's appropriateness for advanced traders
For more information on how we determined our finalists, check out our full methodology.
What is day trading?
Day trading involves buying and selling financial instruments within the same trading day. Traders aim to capitalise on short-term price movements to make profits.
It's important to note that day trading can be highly volatile and risky, and it requires a good understanding of the market, technical analysis, and risk management.
If you're considering day trading, it's crucial to educate yourself, stay informed about market trends, and develop a solid trading strategy.
Keep in mind that financial markets can be unpredictable, and there are no guaranteed profits. It's recommended to start with a small amount of capital, use risk management strategies, and be prepared to handle the emotional challenges that come with day trading.
Advantages and disadvantages of day trading
Pros
Potential for quick gains: Day trading offers the opportunity for rapid profit-making. Each trade decision represents a chance to earn money swiftly, which can outpace traditional investing.
User-friendly access: Modern online brokerage platforms have made day trading accessible from the comfort of your home. Setting up your trading activities can be done conveniently through your computer and smartphone.
Thrilling experience: Unlike long-term investments, day trading provides an exciting and dynamic environment. Researching opportunities, executing trades, and achieving successful outcomes can be a source of excitement.
Risk mitigation: Day traders typically close their positions before the market closes, minimising the risk of overnight losses. This contrasts with regular investors who may face unexpected overnight market movements.
Independence: For some dedicated individuals, day trading can become a full-time profession, offering the independence to work for yourself.
Cons
High risk: Day trading is a high-risk, high-reward strategy. Making poor decisions can lead to rapid losses. Statistics in 2024 reveal a stark reality about day trading, not just in Australia but globally. A significant majority of day traders, over 80%, end up losing money within their first year of trading.
Costs and taxation: Day trading can accumulate fees, and short-term capital gains may result in higher taxes. In Australia, selling investments held for less than a year may not qualify for the capital gains tax discount.
Stressful nature: The fast-paced nature of markets can be stressful, especially when trades are not going as planned. Day trading can be akin to gambling and may lead to addiction, affecting one's well-being and relationships.
Time-intensive: Successful day trading requires a significant time commitment. Extensive hours are needed for market research, tracking, and executing trades. Additionally, competition is fierce, even against professionals from major financial institutions.
Important: The standard brokerage fee displayed is the trade cost for new customers to purchase $1,000 of either Australian or US shares. Where a platform charges different fees for both US and Australian shares we show the lower of the two. Where both CHESS sponsored and custodian shares are offered, we display the cheapest option.
Frequently asked questions
There are many great apps that do not allow you to place trades but still offer a wide range of useful features for Australian share market investors, such as share market news, company reports, financial analysis and much more. However, all the apps listed above do allow you to place trades.
Most share trading apps are available for free to customers of online share trading platforms. However, you may need to pay an ongoing membership fee when you sign up to the online trading platform.
No, day trading is not universally suitable for everyone. It is a high-risk, high-reward strategy that demands a significant time commitment and expertise in market analysis. Success in day trading is elusive for the majority of participants, and it often requires a full-time dedication to the practice. If you are looking for a quick path to wealth through day trading, you are unlikely to achieve your desired results.
Disclaimer: This information should not be interpreted as an endorsement of futures, stocks, ETFs, options or any specific provider, service or offering. It should not be relied upon as investment advice or construed as providing recommendations of any kind. Futures, stocks, ETFs and options trading involve substantial risk of loss and therefore are not appropriate for all investors. Past performance is not an indication of future results. Consider your own circumstances and obtain your own advice before making any trades.
Kylie Purcell is the senior investments editor and analyst at Finder. She has completed a Certificate of Securities and Managed Investments (RG146) and specialises in investment products including online brokers, robo-advisors, stocks and ETFs.
How likely would you be to recommend finder to a friend or colleague?
0
1
2
3
4
5
6
7
8
9
10
Very UnlikelyExtremely Likely
Required
Thank you for your feedback.
Our goal is to create the best possible product, and your thoughts, ideas and suggestions play a major role in helping us identify opportunities to improve.
Important information about this website
finder.com.au is one of Australia's leading comparison websites. We are committed to our readers and stands by our editorial principles
We try to take an open and transparent approach and provide a broad-based comparison service. However, you should be aware that while we are an independently owned service, our comparison service does not include all providers or all products available in the market.
Some product issuers may provide products or offer services through multiple brands, associated companies or different labeling arrangements. This can make it difficult for consumers to compare alternatives or identify the companies behind the products. However, we aim to provide information to enable consumers to understand these issues.
We make money by featuring products on our site. Compensation received from the providers featured on our site can influence which products we write about as well as where and how products appear on our page, but the order or placement of these products does not influence our assessment or opinions of them, nor is it an endorsement or recommendation for them.
Products marked as 'Top Pick', 'Promoted' or 'Advertisement' are prominently displayed either as a result of a commercial advertising arrangement or to highlight a particular product, provider or feature. Finder may receive remuneration from the Provider if you click on the related link, purchase or enquire about the product. Finder's decision to show a 'promoted' product is neither a recommendation that the product is appropriate for you nor an indication that the product is the best in its category. We encourage you to use the tools and information we provide to compare your options.
Where our site links to particular products or displays 'Go to site' buttons, we may receive a commission, referral fee or payment when you click on those buttons or apply for a product. You can learn more about how we make money.
When products are grouped in a table or list, the order in which they are initially sorted may be influenced by a range of factors including price, fees and discounts; commercial partnerships; product features; and brand popularity. We provide tools so you can sort and filter these lists to highlight features that matter to you.
Please read our website terms of use and privacy policy for more information about our services and our approach to privacy.
