Day trading Brokers in Australia
Day trading is an investment style supported short (or rather very short) term trading, opening buy or sell positions and shutting them on an equivalent trading day. For this reason, it’s also called intraday trading.
In the Day Trader, he usually searches in real time for purchasing and selling opportunities that match his investment strategy. Once this chance is found , open an edge . the instant this position goes into profit, it closes it, albeit profitability is low. He usually prioritizes opening positions that match his strategy as repeatedly as possible than the quantity of advantages each transaction brings.
The Best Day trading platforms in Australia
Day trading has its pros and cons. By not keeping transactions open overnight, the risks of possible price differences at the top of the session compared to the opening subsequent day are avoided. The working day doesn’t end in any case with an open position; which avoids the danger of finding surprises in market movements subsequent day. this is often called “overnight” risk. Despite the very fact that the Forex market remains open 24 hours each day and therefore the risk of the characteristic market opening gap is reduced.
The rollover or swap rate of all open positions overnight is additionally avoided. it’s therefore a practical thanks to consolidate the profits obtained, by closing short-term operations rather than establishing medium or long-term strategies; Those which can gain an initial advantage, but which are subsequently affected or disappear thanks to future losses.
As the main drawback, we could argue that Day Trading requires more dedication and focus. All this increases the strain of the trader as he has got to open many positions, control them, manage them and shut them throughout the day.
The main keys to undertaking this sort of short-term investing are:
- Excellent risk control.
- Need to monitor orders in the least times, so as to handle them properly.
- Ability to research markets and make quick decisions.
- Monitoring of market movements during the trading session, to regulate open positions.
One of the prerequisites for doing Online Trading is to work with a web broker that gives fast order execution, also because the lowest possible spreads.
Many Day Traders operate with automatic trading systems (Expert Advisors), generally used on the MetaTrader 4 platform, the foremost widely utilized in the planet today (due to its simple use, customization and possibility of building automatic trading strategies). Consequently, the broker must offer this platform and permit the utilization of expert advisers; also as allow the utilization of short-term strategies (such as scalping).
After testing and analyzing many online brokers, those you’ll see within the table above are those we concede to be the simplest day trading brokers.