5 Best Day Trading Forex Brokers for 2024

List of the Best Forex Brokers for Day Trading

Best for US Traders

Best for International Traders

What is Day Trading?

Day trading is a strategy used in the financial markets where traders buy and sell securities within the same trading day. The goal is to capitalize on short-term price movements in stocks, currencies, or commodities.

Day traders aim to close out all positions by the end of the trading session to avoid holding any overnight risk. This approach requires quick decision-making and often employs the use of technical analysis and real-time market data to identify profitable trading opportunities.

How Did FX Empire Select the Best Forex Brokers for Day Trading?

• Safety and transparency. We only select fully regulated brokers and ensure compliance with the strictest safety requirements in the industry.
• Low trading fees. We selected brokers with low spreads and commissions, which is essential for day trading.
• Suitable platforms. We only considered brokers offering versatile and feature-rich platforms because day trading requires the execution of penetrating technical analyses.
• Supporting tools. We also looked for brokers that offer multiple tools for probing research or technical analysis, along with robust research content.
• Instruments selection. We preferred brokers with wide and diverse instrument offerings that allow traders to exploit various trading opportunities.

Our team of experts has identified each broker’s strengths and weaknesses using FX Empire’s comprehensive methodology. Here’s how we test.

Now let’s dive into the selected brokers.

How to Choose a Broker for Day Trading?

In this part, I will outline what traders must consider when looking for a trustworthy broker for day trading.

How to verify if a broker is regulated?

To verify whether a broker is regulated and to identify the regulatory body overseeing it, you can take several steps:

• Check Broker Regulation: Visit the broker’s website and scroll to the bottom to find its legal name and licensing number.
• Confirm Regulatory Compliance: Go to the regulator’s website and search for the broker using the licensing number.
• Evaluate Execution Transparency: On the broker’s website, look for a ‘best execution policy.’ Also, check for statements regarding execution quality and find information about the average execution speed.
• Evaluate Fees Transparency: Check whether the broker has live spreads data on its website. Also, explore the broker’s client agreement for any other non-trading fees.

Read more about Best regulated forex brokers.

How to check a broker’s protection level?

To find a trustworthy partner, make sure that the broker’s entity you choose is tightly regulated and complies with most industry safety requirements.

I have broken down the most important safety mechanisms to look for in a broker below:

• Segregation of client funds. Brokers must keep their clients’ funds in separate bank accounts from the ones used for their corporate capital. This is crucial for mitigating the risk of accounting errors.
• Negative balance protection. Negative balance protection means that a trader’s losses cannot exceed their account balance. This protection is indispensable when trading high-risk instruments, such as Contracts for Difference (CFDs).
• Limited market exposure. Limiting market exposure protects traders against adverse price fluctuations. That is why most top-tier regulators cap the maximum leverage allowed at 1:30, whereas less strict regulators can allow leverage as high as 1:2000.
• Compensation scheme. Depending on the jurisdiction where a broker is situated, a compensation scheme may also protect its clients against the company’s credit risk and liabilities.
  For instance, brokers regulated by CySEC participate in the Investor Compensation Fund (ICF). In the unlikely event of the company becoming insolvent, traders can be compensated by up to 20,000 EUR. The Financial Services Compensation Scheme (FSCS) – under FCA UK – protects traders by up to 85,000 GBP.

Find Best FCA-regulated brokers and Best CySEC-regulated brokers.

Why do execution standards matter?

Execution standards are crucial in day trading, where speed and precision significantly impact a trader’s success. A broker’s fast and accurate order execution can mitigate the risks of price manipulation and ensure trades are completed at the best possible prices.

Essential elements include a broker’s adherence to a “best execution policy,” its publication of quality execution statements, and reports on average execution speeds, ideally below 100 milliseconds for high-frequency trading strategies like scalping.

Experienced traders value these standards to avoid negative slippage and to utilize their chosen strategies effectively. Choosing brokers that commit to rigorous execution standards and provide technological support, such as VPS hosting, is vital for optimizing trading outcomes.

How to assess if a broker’s trading fees are competitive?

A broker might offer different account types with varying pricing. Which is best for your trading style? Let’s compare STP and ECN accounts:

STP accounts typically provide commission-free trading with floating spreads, while ECN accounts charge fixed commissions but offer raw spreads starting from 0.1 pips. At a glance, STP accounts might seem better since you only face the spread cost. However, some brokers increase STP spreads, making them less competitive.

To evaluate a broker’s account competitiveness, consider this: Compare the EURUSD spread on both account types, say 0.9 pips for STP and 0.1 for ECN, with a $6 commission on ECN for a 1 lot contract. Using the formula (trade value = spread x pip value + commission), you can calculate the cost-effectiveness of each account for a given position on EURUSD:

This is just a hypothetical example, but hopefully, it illustrates how more can be less in trading. So it’s worthwhile evaluating the costs of a broker you consider opening an account with for yourself before doing so. And if you are still uncertain, you can always check out our database of reviews to sort out the most competitive brokers.

Read more about Best lowest spread forex brokers and Best low swaps forex brokers.

How to choose a trading platform?

A trading platform is your window into the market. It allows you to observe price action behavior and study potential opportunities for placing orders. Technical traders use a platform’s array of indicators, drawing tools, and other features to examine various price patterns, changes in volatility, liquidity, and so on to gauge the most favorable times to enter or exit the market.

The best platforms are also the most versatile ones. They include a wide spectrum of technical indicators, such as Fibonacci retracement levels, oscillators, trend-based and range-based indicators, and others, as well as drawing tools, such as trend lines, channels, wedges, etc. They are also the ones that allow you to scale price action up and down easily.

The retail industry’s most popular platforms, MetaTrader 4 and MetaTrader 5, have established themselves as benchmarks for simplicity and reliability over the years. While they offer a decent range of technical indicators and drawing tools for multi-timeframe analysis, their rugged design becomes evident when compared to newer and sleeker platforms. Although MetaTrader is suitable for beginners, those seeking more advanced trading capabilities may require a sophisticated platform.

Read more about best MT4 brokers and best MT5 brokers.

In response, some brokers have developed their own proprietary platforms, which offer convenience and additional features not found in MetaTrader. These platforms allow for instrument search by asset class, easy scaling of price action, and execution of complex box orders. Ultimately, the choice of the best platform for you boils down to a trade-off between simplicity and practicality.

Check out our dedicated guide on Best forex trading platforms.

Key Factors to Consider for Day Trading

Successful day trading requires a robust system with clearly defined rules as to when and where to enter the market and under what conditions to exit it. Additionally, day traders must have nerves of steel and the mental fortitude to stick to the rules of their trading systems.

And to make sure that they are given the right tools to succeed, day traders need to make sure their broker provides the following:

• Fast order execution is crucial for day traders, where a small variance in entry point can significantly impact success, especially for those targeting 20-30 pip movements. Day traders should prioritize brokers offering execution speeds below 50 milliseconds to minimize slippage.
• Versatile pricing mechanisms are also key due to the varying number of trades day traders execute compared to position traders. Evaluating the costs between Classic (commission-free, floating spreads from 1.0 pips) and ECN accounts (fixed commissions, raw spreads from 0.1 pips) is essential for selecting the most cost-effective trading option.
• Advanced charting capabilities are vital for day trading, requiring platforms that offer detailed analysis through multiple timeframes and easy price action manipulation for precise short-term trading strategies.

Check out our list of Best fast execution forex brokers.

Risks of Day Trading

The primary risk in day trading lies in the psychological toll, as the constant price monitoring and decision-making can lead to rule neglect and recklessness driven by fear and greed. Besides the clear financial losses, traders must also be wary of mental exhaustion and learn to manage emotions while identifying trading opportunities.

Here are some more risks that must be considered:

• Market Volatility: Rapid price fluctuations can lead to significant losses.
• Capital Loss: High leverage can amplify losses, risking more than the initial investment.
• Overtrading: Frequent trading can lead to excessive fees and poor decision-making.
• Psychological Stress: The fast-paced nature of day trading can be emotionally taxing.
• Slippage: Differences between expected and actual execution prices can impact profits.
• Lack of Experience: Beginner traders may struggle to make profitable trades consistently.
• Timing Risks: Misjudging market movements can result in losses, especially in markets that move quickly.
• Liquidity Risk: Difficulty in exiting positions quickly at desired prices without affecting the market.

What to Avoid When Choosing a Forex Broker for Day Trading?

Here is a quick rundown of some of the most important things to avoid:

• Unregulated brokers. Trading with an unregulated broker exposes you to a higher risk of fraud or unethical business practices, as they are not bound by any regulatory standards or rules. Additionally, in case of any disputes or if the broker goes bankrupt, there might be no legal recourse or compensation schemes available to recover your funds.
• Lack of client protection. Avoid brokers that cannot ensure more than two of the following: segregated funds, negative balance protection, compensation scheme, and maximum leverage for retail traders no bigger than 1:100
• Low execution quality. Try to avoid brokers that cannot ensure more than two of the following: best execution policy, regular quality execution statements, and average execution speed under 100 milliseconds.
• High spreads and commissions. Sidestep brokers with floating spreads from 1.8 pips or above on STP accounts and with round-turn commissions above $7 on ECN accounts.

How to Avoid Forex and CFD Scams?

Scammers rely on the gullibility of traders. A common tactic fraudsters employ is to promise quick and easy profits at no risk to the trader. Often, scammers would use labels that closely resemble the brands of real and legitimate companies. That is why regulators like the FCA have registers where traders can read about fraudulent companies pretending to be others.

The best and easiest way to protect yourself is to make sure you work with a trustworthy and transparent broker. You can find a comprehensive list of reliable brokers by jurisdiction here.

Another important consideration is online safety. Be cautious about where you leave your personal information. Registering your details on suspicious pop-ups that promise enormous profits could lead to your contact information landing on a scammer’s dialing list. Remember, no licensed broker would make unsolicited cold calls.

The next time you get contacted out of the blue with promises of becoming the next Warren Buffet, you must remember that you are most likely speaking to a scammer. I think that nowhere is the “if something sounds too good to be true…” saying more accurate than in the world of trading. That is why you should do your due diligence before opening an account with any broker.

Our Methodology

Here at FX Empire, we have pioneered a unique methodology for evaluating Over-the-counter (OTC) derivatives brokers worldwide. Our goal is to provide a comprehensive picture of a broker’s pros and cons so that our readers can make informed decisions. We understand their need to choose the best partner for their particular goals and needs.

Our team of dedicated professionals is working continuously to improve our system and keep it up-to-date with current market trends. We test each broker systematically by employing over 250 variables across nine categories:

• Trust
• Fees
• Account Types
• Tradable Instruments
• Platforms and Tools
• Deposits and Withdrawals
• Customer Support
• Research
• Education

We strive to be as objective as possible, which is why our rigorous examinations are devoid of any personal bias as much as possible. We review the licenses of all the subsidiaries of a broker and check the fine print in the Client Agreement. The reliability of a broker is further determined based on the regulation, fees, and general transparency of the website.

We collect essential information by opening a live account with a broker entity and testing its services in real time. We measure the spreads, swaps, and commissions on its most popular account type and compare our findings to the industry average.

We also test the functionality of the available platforms, the number and types of tradable instruments, the reliability of customer support, and the quality of the research and educational materials.

For this guide, we looked for brokers that offer the best conditions for high-frequency trading, such as commission-free trading, low spreads, and fast order execution. We also considered brokers with versatile and feature-rich platforms, diverse instrument offerings, and comprehensive research content.

We abide by our strict guidelines for editorial integrity based on the objective standards we have set for our reviews. You can read more about our review process here.

Meet Our Writers

The team of forex and CFD analysts and editors at FXEmpire is composed of trading industry professionals and seasoned financial journalists. Our experts have been published on leading financial websites such as Investopedia and Forbes. In addition, they all have extensive trading experience.

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