End Of Day Trading

End of day trading is a convenient strategy for many traders. By placing your trades at the end of each trading day, you don’t need to spend time watching the markets all day, can avoid being distracted by news, and it can often lead to cheaper rates. This page will explain what end of day trading means, the benefits and risks, and how to get started with end of day trading. We will also detail an example.

Trading Brokers

#1 - Forex.com

Why We Chose Forex.com

Forex.com boasts a global reputation with multiple awards and 20+ years experience. Regulated in the US, EU, UK and Canada they provide a huge range of day trading markets, not just forex, and offer competitive fees on a cutting-edge platform. The brand also provides a suite of additional tools, from performance analytics and SMART Signals to advanced charts and strategy builders.

"Forex.com remains a best-in-class brokerage for active forex traders of all experience levels, with over 80 currency pairs, tight spreads from 0.0 pips and low commissions. The powerful charting platforms collectively offer over 100 technical indicators, as well as extensive research tools."

- DayTrading Review Team
  • Instruments: Forex, Spot Metals
  • Regulator: NFA, CFTC
  • Platforms: MT4, MT5, TradingView, eSignal, AutoChartist, TradingCentral
  • Min. Deposit: $100
  • Min. Trade: 0.01 Lots
  • Leverage: 1:50

Pros

  • You can enjoy industry-leading forex pricing starting from 0.0 pips, plus fast execution speeds of less than 1 second
  • The free demo account allows you to practice day trading strategies in a risk-free environment
  • Forex.com is a respected and trusted broker overseen by tier-one regulators including the US SEC

Cons

  • The investment offering varies between countries
  • The $15 monthly inactivity fee is higher than some competitors, including XM which only charges $5
  • It's a shame that there's no copy trading platform for beginners or signal providers

#2 - Interactive Brokers

Why We Chose Interactive Brokers

Interactive Brokers (IBKR) is a premier brokerage for experienced traders, providing access to 150 markets in 33 countries, along with a suite of comprehensive investment services. With over 40 years of experience, this Nasdaq-listed firm adheres to stringent regulations by the SEC, FCA, CIRO, and SFC, amongst others, and is one of the most trusted brokers for trading around the globe.

"Interactive Brokers is one of the best brokers for advanced day traders, providing powerful charting platforms, real-time data, and customizable layouts. Its superb pricing and advanced order options also make it highly attractive for day traders, while its diverse range of equities is still among the best in the industry."

- DayTrading Review Team
  • Instruments: Stocks, Options, Futures, Forex, Funds, Bonds, ETFs, Mutual Funds, CFDs, Cryptocurrencies
  • Regulator: FCA, SEC, FINRA, CBI, CIRO, SFC, MAS, MNB
  • Platforms: Trader Workstation (TWS), Desktop, GlobalTrader, Mobile, Client Portal, AlgoTrader, OmniTrader, eSignal, TradingCentral
  • Min. Deposit: $0
  • Min. Trade: $100
  • Leverage: 1:50

Pros

  • With low commissions, tight spreads and a transparent fee structure, IBKR delivers a cost-effective environment for short-term traders.
  • While primarily geared towards experienced traders, IBKR has made moves to broaden its appeal in recent years, reducing its minimum deposit from $10,000 to $0.
  • The TWS platform has clearly been built for intermediate and advanced traders and comes with over 100 order types and a reliable real-time market data feed that rarely goes offline.

Cons

  • Support can be slow and frustrating based on tests, so you might find it challenging to reach customer service representatives promptly or encounter delays in resolving issues.
  • You can only have one active session per account, so you can’t have your desktop program and mobile app running simultaneously, making for a sometimes frustrating trading experience.
  • IBKR provides a wide range of research tools, but their distribution across trading platforms and the web-based 'Account Management' page lacks consistency, leading to a confusing user experience.

#3 - NinjaTrader

Why We Chose NinjaTrader

NinjaTrader is a US-headquartered and regulated brokerage that specializes in futures trading. There are three pricing plans to suit different needs and budgets, as well as ultra-low margins on popular contracts. The brand's award-winning charting software and trading platform also offers a high-degree of customization and superb technical analysis features.

"NinjaTrader continues to meet the demands of active futures traders looking for low fees and premium analysis tools. The platform hosts top-rate charting features including hundreds of indicators and 10+ chart types."

- DayTrading Review Team
  • Instruments: Forex, Stocks, Options, Commodities, Futures, Crypto
  • Regulator: NFA, CFTC
  • Platforms: NinjaTrader Desktop, Web & Mobile, eSignal
  • Min. Deposit: $0
  • Min. Trade: 0.01 Lots
  • Leverage: 1:50

Pros

  • Traders can get free platform access and trade simulation capabilities in the unlimited demo
  • You can get thousands of add-ons and applications from developers in 150+ countries
  • NinjaTrader continues to deliver comprehensive charting software for active day traders with bespoke technical indicators and widgets

Cons

  • There is a withdrawal fee on some funding methods
  • Non forex and futures trading requires signing up with partner brokers
  • The premium platform tools come with an extra charge

#4 - eToro USA

Why We Chose eToro USA

eToro is a social investing platform that offers short-term and long-term trading on stocks, ETFs, options and crypto. The broker is well-known for its user-friendly community-centred platform and competitive fees. With FINRA and SIPC oversight and millions of users across the world, eToro is still one of the most respected brands in the industry. eToro securities trading is offered by eToro USA Securities, Inc.

"eToro remains a top pick for traders looking for leading social investing and copy trading services. With a low deposit, zero commissions and an intuitive platform, the broker will meet the needs of newer day traders."

- DayTrading Review Team
  • Instruments: Stocks, Options, ETFs, Crypto
  • Regulator: SEC, FINRA
  • Platforms: eToro Trading Platform & CopyTrader
  • Min. Deposit: $10
  • Min. Trade: $10

Pros

  • A free demo account means new users and prospective day traders can try the broker risk-free
  • The broker's Academy offers comprehensive learning materials for beginners to advanced-level investors
  • eToro USA Securities is a trustworthy, SEC-regulated broker that is a member of FINRA and SIPC

Cons

  • There's no MetaTrader 4 platform integration for traders who are accustomed to using third-party charting tools
  • The proprietary terminal doesn't support trading bots and there are no additional stock market analysis tools
  • There's a narrower range of day trading instruments available compared to competitors, with only stocks, ETFs and cryptos

#5 - OANDA US

Why We Chose OANDA US

OANDA is a popular brand offering exceptional execution, low deposit requirements and advanced charting and trading platform features. The top-rated brand has over 25 years of experience and is regulated by trusted agencies, including the NFA/CFTC. Around the clock support is available for short-term traders, alongside flexible contract sizes and automated trade executions.

"OANDA remains an excellent broker for US day traders seeking a user-friendly platform with premium analysis tools and a straightforward joining process. OANDA is also heavily regulated with a very high trust score."

- DayTrading Review Team
  • Instruments: Forex, Crypto
  • Regulator: NFA, CFTC
  • Platforms: OANDA Trade, MT4, TradingView, AutoChartist
  • Min. Deposit: $0
  • Min. Trade: 0.01 Lots
  • Leverage: 1:50

Pros

  • The broker's API facilitates access to 25 years of deep historical data and rates from 200+ currencies
  • The broker offers a transparent pricing structure with no hidden charges
  • Day traders can enjoy fast and reliable order execution

Cons

  • The range of day trading markets is limited to forex and cryptos only
  • There's only a small range of payment methods available, with no e-wallets supported
  • It's a shame that customer support is not available on weekends

See all Brokers

What Is End Of Day Trading?

An end of the day trading strategy simply means to make trading decisions very near to, or after the markets close. Whereas day traders watch charts all day, opening and closing trades when they choose, end of day traders typically trade at the close or the open. You can also continue trading stocks and ETFs in the after-hours market.

What is end of day trading

By placing your trades at the end of, or after the trading day, you are not distracted by news, changing market prices, or day-to-day life. End of day trading setups allow you to cut out the noise, can often lead to cheaper rates, and enable you trade with limit or stop orders. This strategy is useful for people who want to continue working their day job.

What Time Does End Of Day Trading Start?

Before we get into the details, let’s first look into when end of day trading starts. The times for day trading depend on which forex market you are trading, whether in the UK or elsewhere.

The forex market is open 24 hours a day, but local markets open and close at different times. For example, the European trading session opens at 8 am Frankfurt time and closes by 5 pm local time. If you are end of day trading on the London market, it opens and closes an hour later. When trading AUD, a popular currency for forex traders, the ASX (Australian stock exchange), is open 10 am to 4 pm Sydney time, so the end of day trading takes place close to the 4 pm mark.

In general, traditional day trading is when you see more market participants which leads to higher liquidity. However, end of day trading often sees a high volume of activity as many traders unwind their positions and close trading for the day.

So, to figure out what time day trading ends, check your local markets of interest.

Strategy Example

Placing your orders at the end of a trading day means you can still use the same intraday strategies. Many traders use swing trading on stocks or forex, using the end of day method. It’s simply the timing of when you place your trades that is different.

The best end of day trading methods use software to implement strategies. The system will create pending orders for the next day while time is effectively paused (i.e. when no trades are occurring).

One best end of day forex trading method is breakouts. This strategy allows you to capture the beginning of trends within currency moves.

The forex market contracts into periods of little movement (low volatility) and then expand into trends. Capturing the moment the market begins its expansion into a trend can generate profits. This is because you are getting in near the beginning of a trend. You are also not trying to pick a bottom.

This means you can capture some big winning trades (as the trend still has a long way to go), but also keep the win rate relatively high (compared to picking bottoms).

To trade a breakout, you need to wait for a low volatility range to form. You then enter a trade on the first move outside the range that has formed. Here is an example.

End of day trading strategies
Breakouts

The key to breakout trading is that you have larger winning trades than you have losing trades. To help achieve this, you can place a stop-loss.

Ideally, you want to measure between a 0.5% and 2% move of the currency and place the stop-loss there. 1.5% is optimal to keep the win rate high.

How to end of day trade
Risk limits

You also want to put a profit target on the next major level. To identify this level, you can look at a weekly chart for the nearest support and resistance level.

How to start end of day trading
Profit targets

Benefits Of End Of Day Trading

There are several benefits to the end of day trading:

Downsides Of End Of Day Trading

Despite some benefits, there are several downsides to end of day trading:

How To Get Started End Of Day Trading

As with all trading strategies, you first need to find a top broker and fund your account to access daily prices, charts and risk tools. Trading 212 and Robinhood are two popular options for end of day trading. It’s also always worth comparing spreads, platform features, mobile signals and customer support during end of trading hours.

Final Word On End Of Day Trading

End of day trading is a convenient method for anyone who wants a straightforward investing strategy. It’s also useful for anyone who wants to continue working their regular day job. End of day trading allows you to cut the noise, use limit or stop orders to control your trades, and can lead to competitive rates. Make sure you also use a top broker to get started end of day trading.

FAQ

What Is The Difference Between Intraday And End Of Day Trading?

Intraday trading is when forex traders place orders, or open and close positions, while the local market is open. End of day trading is a strategy whereby traders make forex decisions very near to, or after the markets close.

What Is The Best End Of Day Trading Software?

Any top broker will provide you with the best software to support an end of day trading strategy. Look for a broker that provides access to charts, trading signals and risk tools, such as stop losses and limit orders. These will support your technical analysis and may help you become a successful forex trader.

Can You Day Trade At Night?

Overnight trading is the trading that takes place outside of normal trading hours. Bonds have extended trading hours and overnight trading can take place on stocks between 4 am and 9:30 am (when the exchanges open) and 6 pm (when the exchanges close) and 8 pm.

Does High Frequency Investing During End Of Day Trading Affect The Markets?

High-frequency trading and end-of-day price dislocation can affect the markets. Firstly, more competition is accompanied by high-frequency trading and larger volumes, which improve market liquidity. Secondly, more competition may mean that high-frequency traders adapt their strategies and engage in more speculative trades, which can impact market liquidity.

Can You Trade At The End Of The Trading Day With Robinhood?

Robinhood offers extended-hours trading. This means you’ll be able to trade during pre-market and after-hours sessions. That equals an extra two and a half hours of market access, each day.

Can You Trade ETFs With End Of Day Trading?

Trading for stocks and ETFs typically closes at 4 pm ET, but unlike with mutual funds, you can continue trading stocks and ETFs in the after-hours market.