Image Day Trading Stock Tip Lesson

Sign up for our free announcements so that you will be the first to know about new articles which will help you with your day trading!  
First Name:

We promise to never sell, rent, or give out your e-mail address to anybody!

Day Trading Stock Tip - Questions To Ask An Online Trading Broker Part 3

Online Day Trading Brokers -- Questions To Ask (Part 3)

Here is Part 3 of the article about questions to ask a prospective online day trading brokerage firm:

- Can you trade multiple instruments from the same account (stocks, options, futures, etc.)?

- If you want to trade international stocks, do they have a list of rules and taxation considerations they can provide you?

- Ask them what the procedure is if you have a resting order which, for some odd reason, does not get executed by software. Example: if you buy a stock at $25, and place a stop market order at $24.50, and your order does not even get sent to the market.

- Does the day trading-oriented brokerage firm offer any extra services like live market calls, new trader education, or discounts on training seminars (live or computer training)?

- Does the online trading brokerage firm offer "risk monitoring"? This means that you and the broker agree to pre-set limits on maximum daily losses, maximum number of open positions (either long or short), etc. If you reach or begin to exceed these limits, the broker would then be alerted and either contact you or control your trades due to your exceeding the pre-set risk levels. Not all firms offer this, but it is a "nice to have" as it means that someone else is also watching your account and risk concerns; remember that, unless otherwise specified in your contract, ALL risk is your responsibility even if the online broker offers risk monitoring.

- Do they offer access to all exchanges within the asset class? For example, for stocks you may be able to trade NASDAQ, NYSE, and AMEX stocks but do you get access to Bulletin Board and Pink Sheet stocks? For forex trading, do you have access to all pairs? For futures trading do you have access to all contracts, or just all e-mini contracts, or just all e-mini contracts which the clearing firm handles?

- Which data vendor is the software platform using?

- Can the online trading broker or the online trading software firm provide you with a list of symbols and index symbols (such as for the Dow Jones Industrial Average, the Semiconductor Index, etc.)?

- Are there certain market "internals" which you cannot access due to the data vendor chosen? For example, are you prevented from getting the S&P Fair Value or the NYSE TICK indicator?

There are several more questions you can ask, but these are a good start and may be ones you didn't realize... even if you are a seasoned online day trader!



Day Trading Book

Day Trading Stock Tip Ebook Recommendation Image



Search This Site


Related Products And FREE Videos


More Articles

Why It Is OK To Make Tremendous Amounts Of Money In Online Trading

... just a few of them: 1) Earning money through online trading is not well-understood by most of society since you are not selling anything, working 9-to-5, or producing a physical item. 2) Earning more money in a month than your parents earned in a year ... 

Read Full Article  

Questions To Ask An Online Trading Broker Part 1

... writing. Doing this will prevent problems down the road and minimize any confusion. Here are several questions you can ask your prospective brokerage firm, and they appear in no particular order. While these are oriented for stock trading, choose the applicable ... 

Read Full Article  

Questions To Ask An Online Trading Broker Part 2

... such as Liquidity Quote, TotalView, or other advanced quotes? - Does the software offer fixed stops? If so, what order types are allowed (market, limit, and others)? - Does the software offer trailing stops? If so, what order types are allowed (market, ... 

Read Full Article  

Online Trading Daily Psychology Self Suggestions Part 1

... prices and levels 4) Remember that I will adhere to the stops I set 5) When the market is trending I may consider allowing for a little "wiggle room" 6) When the market is uncertain I will take quicker profits 7) Even if I have 5 consecutive non-winning ... 

Read Full Article  

Online Day Trading Checklist

... emotional challenges you may have had during a trade or during the day. - Make sure that your setups were as clean and textbook as possible, based on your entry and exit rules - Write about positive aspects of the day in your journal - Study at least one ... 

Read Full Article