Best Trading Platforms in the US
A list of the Top Trading Platforms In the US:
1. IG Group
3. E*TRADE
Description of the Best Trading Platforms In the US
1. Interactive Brokers
Pros:
Regulated
Wide range of offerings
Low commission
Socially responsible
24/5 customer support across multiple channels
Cons:
No additional platforms
Inactivity fees
Best for: Experienced traders
This trading platform brokers in stocks, bonds and cryptocurrency. Stock and ETF trading is free for clients in the US, but there are high fees for inactivity.
You can open an account online and, in most cases, there is no minimum deposit. This can vary depending on your chosen account type.
The account setup process is complicated, and it can take a while to receive account verification.
Interactive Brokers features useful analysis tools. It also offers some of the best quality educational resources available. Analytical and educational content can only be accessed by registered users.
Both the desktop and mobile platforms can be difficult to navigate, so they are unlikely to be suitable for novice traders. Customer service is available via email, phone or live chat; however, it is not a 24/7 service.
When using the mobile app, you can log in using fingerprint or face recognition. This platform also has a two-step authentication process.
Interactive Brokers is regulated by the Securities and Exchange Commission (SEC). It offers negative balance protection, and its parent company is listed on the Nasdaq Stock Exchange.
2. IG
Pros:
Highly regulated
MetaTrader 4 (MT4)
Over 10,000 instruments
Available in the UK and US
24/7 customer support
Cons:
High fees
No deposit compensation scheme for US accounts
No copy trading
Inactivity fees
Best: Forex broker in US
IG’s web trading platform is suitable for both new and experienced traders. It has a simple, customizable interface.
The mobile platform is also easy to use and offers excellent functionality. There is no desktop platform for IG, but users can access MetaTrader4.
US traders can only trade forex products with IG. There are no fees for making a deposit; however, forex fees are high.
This platform has good research tools and a helpful news feed. You can also access IGTV where four news videos are posted each day. These focus on major news stories. You can also access chart analysis on key forex pairs.
There is a community forum where you can share knowledge and ideas with other traders.
Customer support is available most of the time, although it is not a 24/7 service. You can contact customer services by email, phone or web chat, but response times are often slow.
It is easy to set up a demo account and there are other useful educational resources available. These include videos, webinars and online courses.
IG is regulated by the Commodity Futures Trading Commission (CFTC) and National Futures Association (NFA).
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70% of IG retail investor accounts lose money when trading spread bets and CFDs with IG. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.
3. E*TRADE
Pros:
Regulated by the SEC and FINRA
Commission-free US-listed stocks and ETFs
Range of web and mobile platforms
User-friendly interface
24/7 customer support
Great educational and research resources
No minimum deposit
Cons:
No negative balance protection
No forex or cryptocurrencies
No fractional shares
Options are commission-free but contract fees apply
No debit/credit card deposits or withdrawals
Best for: Safer two-step login
Overall, this platform is user-friendly albeit with limited customization.
It provides clear reporting and has a safe two-step login process.
Web and mobile platforms are available, with different options available depending on what you want to trade.
The basic option brokers in stocks, bonds, ETFs and mutual funds. Forex trading is not available.
A demo account is available, but only if you opt for the POWER E*TRADE platform.
E*TRADE's newsfeed provides useful visuals, including charts. It is easy to read, with information sourced from third parties.
A link to Bloomberg TV can be accessed via the home screen. Users can view educational material that covers many useful topics. There are videos, webinars and tutorial guides.
24/7 customer support is offered via phone, email or live chat – although it can take some time to receive a reply.
This platform is regulated by the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA). There is no negative balance protection, but users are protected by a high investor protection amount.
What Is a Trading Platform?
Traders use trading platforms to manage their trading activity.
Trading platform software is available in different formats. Some platforms offer web-based or mobile access; others can be accessed from your desktop.
You can use your laptop, tablet or smartphone to view your trading platform at any time.
Some platforms are free; others offer discounts if you have a funded account or commit to a particular number of trades per month.
Many platforms offer educational and analytical tools. These are designed to improve your knowledge and trading performance.
There are many trading platforms to choose from. They are all slightly different, so you will need to find one that is suitable for your preferred stock markets or trading option and your current level of trading expertise.
However, there are other important considerations too. This article guides you through the important factors to research before choosing a trading platform and gives a list of the top 8 trading platforms in the US.
Key Points to Consider When Choosing a Trading Platform
Analytical Tools
Analytical tools are used to track your trading activity. For example, you can view profit and loss information or find out market performance statistics.
The analytical tools offered are defined by the target customers. Platforms hoping to attract experienced traders tend to offer more detailed analytical tools.
Educational Resources
Many platforms offer educational resources like webinars, online courses and instructional videos. Platforms aimed at novice traders tend to offer more educational resources.
Some trading platforms give you an option to open a demo account or sign up for a trial period. These options allow you to try out the platform's features before opening an account.
Real-Time Feed and News
Having access to up-to-date market information is essential to profitable trading.
Day traders and forex traders need a platform that offers a high-quality real-time feed and news service.
This is less of a priority if you are swing trading or holding positions overnight.
Customer Support
The level of customer support on offer varies.
Many platforms offer 24/7 customer services. Some only have email support, which can be slow and inconvenient.
If you are an inexperienced trader or are not confident with using technology, choosing a platform with easy-to-access support is wise.
Alerts
Profitable trading can be time-consuming. Your other commitments may mean that you can only access your trading platform at certain times.
If that is the case, consider using one that will send you alerts and execute orders on your behalf.
Types of Investment
What are your trading preferences?
Do you want to access all trade types or will you be focusing on one area (for example gold)?
Are you planning to trade in overseas markets or only the US?
If you intend to use more than one trading type, you can choose specialist platforms for each investment category.
Alternatively, if you only want to use one platform, choose one that can handle multiple investment types.
Ease of Use
The markets can change quickly, so it is important to find a platform that you find easy to navigate.
You will be accessing your chosen platform regularly, so it needs to be both intuitive and aesthetically pleasing.
Security
Trading is a high-risk activity. It is vital to choose a platform that offers the appropriate level of protection.
Once you have identified a platform that will provide all the features you need, find out whether it has a secure login process.
This could be biometric recognition (face or fingerprint) or a two-step authentication process.
You should also check whether the platform is regulated by a financial services authority.
Frequently Asked Questions
What are trading platforms?
Trading platforms are software applications that allow traders to place orders, analyze market data and manage their trading accounts.
These platforms provide access to financial markets and allow traders to buy and sell various financial instruments.
What are the different types of trading platforms?
There are several types of trading platforms, including desktop, web-based and mobile trading platforms.
Desktop platforms are installed on a computer and offer advanced features, while web-based platforms can be accessed through a web browser and are usually more user-friendly.
Mobile platforms are designed for trading on the go and can be used on smartphones and tablets.
What are the best day trading platforms?
The best day trading platforms are those that offer fast order execution, real-time market data, advanced charting tools and low fees.
Some popular day trading platforms include thinkorswim, TradeStation and Interactive Brokers.
How do trading platforms work?
Trading platforms connect traders to financial markets and allow them to place orders, monitor their accounts and access real-time market data.
These platforms usually have a user-friendly interface and offer advanced features such as charting tools and technical indicators.
What platforms allow day trading?
Most trading platforms allow day trading, but some are better suited for it than others. Day traders typically look for platforms that offer fast order execution, real-time market data and advanced charting tools.
What day trading platforms do pros use?
Professional traders use a variety of trading platforms, depending on their individual needs and preferences.
Some popular platforms among pros include Bloomberg Terminal, NinjaTrader and E*TRADE Pro.
What is the difference between a broker and a trading platform?
A broker is a company that provides financial services and facilitates transactions between buyers and sellers.
A trading platform, on the other hand, is the software or website that traders use to execute trades.
While brokers often offer their own proprietary trading platforms, they may also allow their clients to use third-party platforms.
Are trading platforms safe and secure?
Most reputable trading platforms are safe and secure, as they are typically regulated by financial authorities and employ robust security measures to protect user information and prevent unauthorized access.
However, it is important for traders to do their own research and choose a reputable platform to ensure the safety of their funds and personal information.
What are the best trading platforms in the US?
Some of the top trading platforms in the US include TD Ameritrade, E*TRADE, Interactive Brokers and Charles Schwab.
Each platform has its own unique features and strengths, so traders should choose one that best fits their trading style and needs.
How do I choose a trading platform?
When choosing a trading platform, it is important to consider factors such as fees, ease of use, range of available markets and assets, research and analysis tools, and customer support.
Traders should also ensure that the platform is regulated by a reputable financial authority and offers robust security measures to protect user information and funds.
What are some common mistakes to avoid when using a trading platform?
Common mistakes to avoid when using a trading platform include trading on emotion, neglecting risk management, failing to thoroughly research investments and not keeping up to date with market news and trends.
It is important for traders to approach trading with discipline and a solid strategy in order to achieve success.
Can I trade on a US trading platform if I am not a US citizen or resident?
It depends on the trading platform's specific regulations and policies. Some platforms may allow non-US residents to trade, while others may require a US citizenship or residency.
Traders should research the requirements of each platform they are interested in using to ensure they are eligible to trade.
Final Thoughts
There is a wide range of trading platforms to choose from. Your priority should be finding a platform that is suitable for your chosen trading activities and that you find easy to use.
You will access it regularly and will need to be able to act quickly when the markets change.
Remember to take advantage of free demo accounts or trial periods. These are useful for trying a few different platforms before deciding on which one you want to open an account with.
Use the demo account or trial period as a way of getting to know your way around the platform. Experiment with the different features and services to decide which platform best meets your needs.