Trading stocks online has become, for many day traders, a viable second income. For some it has even become a new main source of income. And of course, for others, it is still a long and arduous battle towards the dream of consistent profitability. Whichever of these three groups a day trader falls into, the road towards becoming a good day trader is paved with endless hours of back testing strategies, saving charts, writing up journals, taking notes and analyzing content from proven winning traders. All of these things are necessary in order to become a consistently profitable day trader. However, the one thing an aspiring day trader needs to do above all else is to trade. We learn from our mistakes in life and from constant repetition in the thing at which we wish to excel.

Yes, a day trader needs to take many trades so as to learn the game. This is why commission free trading is essential for new day traders. In my opinion, probably the best online broker out there today for commission free trading is TradeZero. Here we will take a look specifically at the commission free trading package offered by TradeZero and break down the bottom line as to how much money a new day trader can typically save from commission free trading.

Commission Free Trading With TradeZero

TradeZero offers an outstanding package for commission free trading. The specifics of this will depend on a day trader's country of residence. For TradeZero customers:

  • In the USA who trade with TradeZero America all limit and market orders are commission free. The security in question must trade at $1 or greater and also must trade on the NYSE, AMEX or NASDAQ. Keep in mind U.S. pattern day trading (PDT) rules require day trading accounts to maintain at least $25,000 in equity in their account in order to be able to trade.

  • Who are Canadian residents: all limit orders are commission free. The symbol in question must trade at $1 or greater, must trade on the NYSE, AMEX or NASDAQ and the limit order must not create an immediate match. The order must also be for 100 shares or more. The minimum amount to trade is $500 and the PDT rule does not apply to Canadian residents. For full terms and conditions of service click here

  • Who trade with TradeZero International, all limit orders are commission free. The symbol in question must trade at $1 or greater, must trade on the NYSE, AMEX or NASDAQ and the limit order must not create an immediate match. The order must also be for 200 shares or more. The minimum amount to trade is $500 and the PDT rule does not apply to International residents. For full terms and conditions of serviceclick here.

In my opinion, there simply is no other top end, established and reliable online stock broker that offers this level of concession with regard to commission free trading.

Dollars Saved By Commission Free Trading

Day traders trade so as to make money. Make no mistake, money is the bottom line in this game. Learning to become a consistently profitable day trader is hard. As stated in the beginning of this article, a day trader needs to take trades in order to learn how to trade well. In the early days, most day traders will unfortunately lose some money. This is why it is important not to start out on the trading journey with too big an account size and to make sure to avail of commission free trading.

Many day traders begin trading with a small account, this can be in the region of $2,500 to $5,000. Until a clear process and consistency in profits has been established, a day trader may typically take 2 to 5 trades per day. Naturally, over the course of days, weeks and months these costs, if not commission free, add up.

It has been my personal experience that online stock brokers who do not offer commission free trading will typically charge anywhere between $1 to $5 for both entry and exit on a trade.

It is therefore extremely important to choose the correct online stock broker. Choosing a broker that offers commission free trading can be the difference between making day trading pay in the early days and between blowing up an account.

Choose wisely, trading friends.

Conclusion

Day trading is incredibly rewarding for those willing to put in the time to develop a winning strategy. Developing this winning strategy takes time and will typically involve the day trader taking many trades on a consistent basis so as to learn what works best for them. Commission free trading offered by online stock brokers such a TradeZero is therefore an essential starting point for new day traders. Commission free trading allows the day trader with a small account to take many trades without burning too much of their capital on commissions. This is especially preferable when buying penny stocks online.

Sources
TradeZero - Homepage (August 29th, 2022)
https://us.tradezero.co/

TradeZero US Pricing (August 29th, 2022)
https://us.tradezero.co/pricing

TradeZero Canada Pricing (August 29th, 2022)
https://www.tradezero.ca/pricing

TradeZero International Pricing (August 29th, 2022)
https://www.tradezero.co/pricing

Disclaimer
This content (“Content”) is produced by John Maher. The Content represents only the views and opinions of Mr. John Maher. Mr. Maher’s trading experiences and accomplishments are unique, and your trading results may vary substantially. TradeZero does not endorse the Content and makes no representations or warranties with respect to the accuracy of the Content or information available through any linked third party sites. The Content has been made available for informational and educational purposes only and should not be considered trading or investment advice or a recommendation as to any security. Trading securities can involve high risk and potential loss of funds. Mr. Maher is compensated by TradeZero for producing the Content and may also receive compensation for customers he introduces to TradeZero.

TradeZero provides self-directed brokerage accounts to customers through its operating affiliates: TradeZero America, Inc., a registered broker-dealer and a member of FINRA and SIPC; TradeZero Inc., a dealer registered with the Securities Commission of the Bahamas; and TradeZero Canada Securities ULC, an IIROC member firm and member of CIPF.