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
Here is a short overview of each broker's pros and cons
- Plus500 US - Plus500 is a well-established broker that entered the US market in 2021. Authorized by the CFTC and NFA, it provides futures trading on forex, indices, commodities, cryptocurrencies, and interest rates. With a 10-minute sign-up, a manageable $100 minimum deposit, and a straightforward web platform, Plus500 continues to strengthen its offering for traders in the US.
- 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.
- Interactive Brokers - Interactive Brokers (IBKR) is a premier brokerage, 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.
- 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.
- FOREX.com - Founded in 1999, FOREX.com is now part of StoneX, a financial services organization serving over one million customers worldwide. Regulated in the US, UK, EU, Australia and beyond, the broker offers thousands of markets, not just forex, and provides excellent pricing on cutting-edge platforms.
- UnitedPips - Operating since 2016 and based in Saint Lucia, UnitedPips is a non-dealing desk broker serving clients in over 137 countries. It specializes in CFD trading across around 80+ assets with high leverage up to 1:1000.
Plus500 US
"Plus500 US stands out as an excellent choice for beginners, offering a very user-friendly platform, low day trading margins, and access to the Futures Academy to enhance trading skills. Its powerful tools and reliable service helped it scoop second place in DayTrading.com's annual 'Best US Broker' award."
Michael MacKenzie, Reviewer
Plus500 US Quick Facts
| Bonus Offer | Welcome Deposit Bonus up to $200 |
|---|---|
| Demo Account | Yes |
| Instruments | Futures on Cryptocurrencies, Metals, Agriculture, Forex, Interest rates, Energy, Equity Index future contracts |
| Regulator | CFTC, NFA |
| Platforms | WebTrader, App |
| Minimum Deposit | $100 |
| Minimum Trade | 0.0 Lots |
| Account Currencies | USD |
Pros
- Plus500 is a publicly traded company with a good reputation, over 24 million traders, and a sponsor of the Chicago Bulls, instilling a sense of trust
- The trading app provides a terrific user experience with a modern design, a clean layout and mobile-optimized charts
- The Futures Academy is an excellent resource for new traders with engaging videos and easy-to-follow articles, while the unlimited demo account is great for testing strategies
Cons
- The proprietary platform is user-friendly but lacks advanced technical analysis tools found in third-party solutions like MetaTrader 4
- Although support response times were fast during tests, there is no telephone assistance
- Plus500 US does not offer social trading capabilities, a feature available at alternatives like eToro US which could strengthen its offering for aspiring traders
NinjaTrader
"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."
NinjaTrader Quick Facts
| Demo Account | Yes |
|---|---|
| Instruments | Forex, Stocks, Options, Commodities, Futures, Crypto |
| Regulator | NFA, CFTC |
| Platforms | NinjaTrader Desktop, Web & Mobile, eSignal |
| Minimum Deposit | $0 |
| Minimum Trade | 0.01 Lots |
| Leverage | 1:50 |
| Account Currencies | USD |
Pros
- Low fees are offered, with $50 day trading margins & commissions from $.09 per micro contract
- You can get thousands of add-ons and applications from developers in 150+ countries
- NinjaTrader is a widely respected and award-winning futures broker and is heavily authorized by the NFA and CFTC
Cons
- The premium platform tools come with an extra charge
- Non forex and futures trading requires signing up with partner brokers
- There is a withdrawal fee on some funding methods
Interactive Brokers
"Interactive Brokers is one of the best brokers for advanced day traders, providing powerful charting platforms, real-time data, and customizable layouts, notably through the new IBKR Desktop application. 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."
Christian Harris, Reviewer
Interactive Brokers Quick Facts
| Demo Account | Yes |
|---|---|
| Instruments | Stocks, Options, Futures, Forex, Funds, Bonds, ETFs, Mutual Funds, CFDs, Cryptocurrencies |
| Regulator | FCA, SEC, FINRA, CFTC, CBI, CIRO, SFC, MAS, MNB, FINMA, AFM |
| Platforms | Trader Workstation (TWS), IBKR Desktop, GlobalTrader, Mobile, Client Portal, AlgoTrader, OmniTrader, TradingView, eSignal, TradingCentral, ProRealTime, Quantower |
| Minimum Deposit | $0 |
| Minimum Trade | $100 |
| Leverage | 1:50 |
| Account Currencies | USD, EUR, GBP, CAD, AUD, INR, JPY, SEK, NOK, DKK, CHF, AED, HUF |
Pros
- IBKR continues to deliver unmatched access to global stocks with tens of thousands of equities available from 100+ market centres in 24 countries, most recently the Saudi Stock Exchange.
- The new IBKR Desktop platform takes the best of TWS while adding bespoke tools like Option Lattice and Screeners with MultiSort to create a genuinely impressive trading experience for day traders at every level.
- With low commissions, tight spreads and a transparent fee structure, IBKR delivers a cost-effective environment for short-term traders.
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.
- 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.
- TWS’s learning curve is steep, and beginners may find it challenging to navigate the platform and understand all the features. Plus500's web platform is much better suited to new traders.
eToro USA
"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."
eToro USA Quick Facts
| Bonus Offer | Invest $100 and get $10 |
|---|---|
| Demo Account | Yes |
| Instruments | Stocks, Options, ETFs, Crypto |
| Regulator | SEC, FINRA |
| Platforms | eToro Trading Platform & CopyTrader |
| Minimum Deposit | $100 |
| Minimum Trade | $10 |
| Account Currencies | USD |
Pros
- Investors can access Smart Portfolios for a more hands-off approach, covering a range of sectors and markets such as renewable energy and artificial intelligence
- The low minimum deposit and straightforward account opening process means beginners can get started quickly
- The broker's Academy offers comprehensive learning materials for beginners to advanced-level investors
Cons
- There's a narrower range of day trading instruments available compared to competitors, with only stocks, ETFs and cryptos
- There's no MetaTrader 4 platform integration for traders who are accustomed to using third-party charting tools
- Average fees may cut into the profit margins of day traders
FOREX.com
"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."
FOREX.com Quick Facts
| Bonus Offer | Active Trader Program With A 15% Reduction In Costs |
|---|---|
| Demo Account | Yes |
| Instruments | Forex, Stocks, Futures, Futures Options |
| Regulator | NFA, CFTC |
| Platforms | MT4, MT5, TradingView, eSignal, AutoChartist, TradingCentral |
| Minimum Deposit | $100 |
| Minimum Trade | 0.01 Lots |
| Leverage | 1:50 |
| Account Currencies | USD, EUR, GBP, CAD, AUD, JPY, CHF, PLN |
Pros
- With over 20 years of experience, excellent regulatory oversight, and multiple accolades including runner-up in our 'Best Forex Broker' awards, FOREX.com boasts a global reputation as a trusted brokerage.
- Alongside a choice of leading platforms, FOREX.com offers a superb suite of supplementary tools including Trading Central research, SMART Signals pattern scanner, trading signals, and strategy builders.
- There’s a wealth of educational resources including tutorials, webinars, and a stacked YouTube channel to help you get educated in the financial markets.
Cons
- Demo accounts are frustratingly time-limited to 90 days, which doesn’t give you enough time to test day trading strategies effectively.
- Funding options are limited compared to leading alternatives like IC Markets and don’t include many popular e-wallets, notably UnionPay and POLi.
- Despite increasing its range of instruments, FOREX.com's product portfolio is still limited to forex and CFDs, so there are no options to invest in real stocks, real ETFs or real cryptocurrencies.
UnitedPips
"UnitedPips is ideal for traders seeking leveraged trading opportunities, the security of fixed spreads, and the flexibility to deposit, withdraw, and trade cryptocurrencies - all in one sleek TradingView-powered platform."
UnitedPips Quick Facts
| Bonus Offer | 40% Deposit Bonus |
|---|---|
| Demo Account | Yes |
| Instruments | CFDs, Forex, Precious Metals, Crypto |
| Regulator | IFSA |
| Platforms | UniTrader |
| Minimum Deposit | $10 |
| Minimum Trade | 0.01 Lots |
| Leverage | 1:1000 |
| Account Currencies | USD |
Pros
- UnitedPips offers impressive leverage up to 1:1000 with zero swap fees or commissions, which can enhance potential returns for day traders and swing traders looking to control prominent positions with less capital.
- Although being handed off mid-chat due to shift changes during testing was frustrating, customer support is generally good with quick, helpful responses, and 24/7 support via phone and email for regional teams is a definite advantage.
- UnitedPips’ platform performs well, with an intuitive design that will appeal to beginners, while the TradingView integration delivers powerful charting tools without overwhelming users, making it straightforward to execute trades efficiently.
Cons
- UnitedPips' selection of tradable instruments is still minimal, comprising a bare minimum selection of forex, metals and crypto. There are no equities, indices or ETFs, which may be a drawback for experienced traders looking for diverse opportunities.
- Unlike brokers such as IG, UnitedPips is an offshore broker not regulated by any 'green tier' financial authorities, raising concerns for traders seeking assurance and protection under well-established regulatory frameworks.
- UnitedPips lacks comprehensive research, while the educational content for beginner traders is woeful. Compared to brokers like eToro, which offers tutorials, webinars, and advanced courses, UnitedPips offers minimal resources to help new traders understand key concepts.
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.
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.
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.
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.
Benefits Of End Of Day Trading
There are several benefits to the end of day trading:
- Convenience – The process of end of day trading can be more convenient compared to intraday investing. If you have a full-time job, you don’t need to watch the markets all day. Because your analysis starts when the rest of the markets are closing, it means that it does not interfere with your regular job. You can place your orders to go live at the end of the trading day. Your positions will be left open overnight. But your trade adjustments, such as moving your risks to break even, or adjusting the profit levels are easier to manage.
- Cheaper rates – If you are trading stocks or futures, for example, you may need to pay fees for intraday data. You may also pay other fees such as transaction costs and a software charge. End of day trading is all about trading with closing prices. Many online brokers do not charge for this service. Because the end of day prices are widely available from everywhere, you do not have to pay additional sums to gain real-time market data. Scanning tools are also relatively cheaper when it comes to end of day trading.
- Limit or stop orders – End of day trading means you’ll likely need to use limit or stop orders. Some online brokerages charge a higher fee when you trade with market orders. This is because the execution costs are high. With limit orders, you are adding liquidity to the security that you want to trade. As a result, some brokers offer lower fees if you trade with limit orders.
- Discipline – End of day trading can make you more disciplined. You are using just a few hours a day to analyse the markets to create a trading plan. Because your attention is more focussed, the temptation of overtrading and the emotional influences of daily news announcements should be reduced.
Downsides Of End Of Day Trading
Despite some benefits, there are several downsides to end of day trading:
- Missing overnight developments – The biggest risk is that you are trading when the markets are less active. This puts you at risk of overnight market developments. For example, when earnings are released, prices tend to gap significantly. Because you are trading just once a day, at the closing hours of the markets, it can leave your positions vulnerable to overnight market movements.
- Manage risk efficiently – With day trading you can manage your risk efficiently. This is because you are constantly monitoring the markets. This isn’t the case with end of day trading. You can either make huge profits or your stops can be triggered even before you had a chance to adjust your risk parameters.
- Liquidity – You are also at risk of reduced liquidity with end of day trading. As a result, there is a chance that your limit orders will not be triggered at the price you wanted.
- Earnings season – Earnings timings are something to be wary of when end of day trading. Because most companies tend to release their earnings before the market opens or after the market closes, you can expect to see pre-market and after-market pricing turn volatile.
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
End of day trading is a convenient method 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.