I want to get started swing trading, and I have checked out the big list of brokers, but my question is: 1. do i need an online broker OR a direct access broker? AND what broker is good for a newbie starting out for swing trades? echo trader ? tradestation ? bright trading ? ameritrade ? etrade ? esignal ? IB ?
IB is all you need: fast, reliable and low commissions. My experiences with them are excellent. But perhaps it is best to read the broker reviews on the home page of ET. Succes & good trading when the time is there!
Quote from cashmoney69: 1. do i need an online broker OR a direct access broker? Both are online. Direct access gives you more control over your order routing, and generally (though not always) uses a front-end application installed on your computer instead of a web-based order-entry system. As a newbie, doing mid-term trading (i.e. holding more than a few seconds or minutes), you'd probably do better without having to learn the ins and outs of execution through a direct-access platform, which can be quite complicated. what broker is good for a newbie starting out for swing trades? echo trader bright trading These are proprietary trading firms, where you put up a small amount of money, and trade the firm's money with high leverage available. You have to pass the Series 7 test, your money is not SIPC-insured (because you are contributing capital to an LLC, not trading your own money), and perhaps most importantly, most prop firms are not really interested in low-volume, mid-term (i.e. overnight) trading. ameritrade etrade These are among the more established and well-known, web-based brokers. Scottrade and Brown & Company come to mind as well. tradestation IB I wouldn't recommend IB for newbies, and I don't think you would get approved there unless you lie about your experience. It might be a good place to come back to once you get some experience under your belt. esignal eSignal is a quote/charting platform that interfaces with a number of brokers (for an extra cost per month). They are not, themselves, a broker. As someone said, check the reviews. You might look for the "roundups" that appear in places like Barron's periodically, too. Good luck.
Strange advice. I started out as a newbie with IB and had no problem getting approved. Apart from the approval factor; why wouldn't you recommend IB to a newbie?