Lecture Notes: Choosing the Best Broker for Day and Swing Trading

Introduction

• Presenter: Shea aka HumbleTrader
• Focus on actionable trading strategies and broker selection.
• Importance of selecting a broker that matches your trading style.
• Metaphor: Trader and broker relationship is like a captain and their ship.

Determining Your Trading Style

• Questions to assess your trading style:
  • Have you traded before?
  • Frequency of trades per day?
  • Duration for holding stocks?
  • Account capital and location?
• Types of traders:
  1. Beginner day trader with a small account
  2. Day trader
  3. Swing trader
  4. Long-term investor

Brokers for Beginner Traders

• Importance of Paper Trading: Avoid losing money quickly.
• Recommended Brokers:
  • TD Thinkorswim: User-friendly for beginners, charting, watchlists, scanners.
  • Webull: Free commission, beginner-friendly interface, mobile app.
  • Interactive Brokers: Available globally, data subscriptions needed for quotes.

Brokers for Live Trading (Long Positions)

• Interactive Brokers: Low cost per trade, good for both long and short positions.
• Fidelity Active Trader Pro: Commission-free, good customer service, short availability.
• TradeStation: Direct routing, advanced level 2 platform, supports trading automation.

Brokers for Shorting Stocks

• Easy to Borrow Stocks:
  • Interactive Brokers, Fidelity, TradeStation, Webull.
• Hard to Borrow Stocks:
  • CenterPoint Securities: Extensive short list, great customer service.
  • Cobra Trading: Direct access, available for international clients.
  • TradeZero: Best for small accounts and availability in Canada.

Overcoming the PDT Rule

• Options to Avoid PDT Rule:
  • Open a cash account to avoid PDT restrictions.
  • Maintain multiple margin accounts across different brokers.

Honorable Mentions

• TradingView: Excellent charting platform, integrates with multiple brokers.
• E-Trade and Charles Schwab: Popular in the US, good for options trading.

Brokers for Long-term Investing

• Blossom: Social investing app.
• US Brokers: Interactive Brokers, TD Ameritrade, Fidelity, Robinhood.
• Canadian Brokers: Interactive Brokers, Questrade, TD Waterhouse.

Shea's Personal Broker Choices

• Going Long: Interactive Brokers.
• Shorting: Centerpoint Securities, Cobra Trading, TradeZero.
• Mobile Tracking: Webull.
• Long-term Investing: Blossom, Questrade.

Pro Tips for Choosing a Broker

1. Don’t Follow the Crowd: Choose based on your trading needs.
2. Understand Your Trading Style: Be patient with learning new platforms.

Conclusion

• There’s no perfect broker; choose what fits your strategy.
• The importance of understanding costs and services in trading business.

For more information or questions about brokers, feel free to reach out in the comments or watch additional resources provided. Thank you for watching.