For day trading, you always need to place a trade through a broker. Therefore, broker websites charge you certain fees and commissions to facilitate the trades you execute. Generally, there are two fees that you should be aware of.

Spread 

Dissemination is defined as the difference between the bid and ask prices of an asset. This ensures a profit for the broker - regardless of how the asset moves in the short term. 

In day trading, the spread is expressed as "pips "When using CFDs and" points "in spread betting. This can become confusing. Instead, the spread is generally expressed as a percentage, which is easier to calculate. You must always take the spread into account when trading, as your profit is only booked after your winnings have covered it. 

Look at this example:

•     The purchase price of XYZ shares is 100.00
•     The selling price of the same XYZ share is 100.50
•     The percentage difference or spread is 0.5%.
•     If a trader bids XYZ and pays 100.50 USD, you can only ask for 100.00 USD.
•     In this case, you must make a profit of at least 0.5% to break even. 
•     Any amount above this is only counted as a profit. 

In day trading, the spread can easily be your villain. Since traders are mostly looking for small fluctuations, the spread can take the tiny advantage you might otherwise get from the trade. Therefore, it is important that you choose a trading site that offers tight spreads. 

Yes, all types of day trading are regulated. However, not every site is. Therefore, you need to ensure that you choose a regulated platform that is managed by a reputable licence issuer. All broker sites mentioned in this guide are regulated by these bodies.

Commissions

Apart from the spread, traders in https://exnesslatam.com/pt-br/ also have to pay commissions to the broker. However, nowadays you will find platforms that offer "zero commission" transactions. On these platforms, you need to focus on making sure that the spread doesn't swallow up your profit - as you may find that it is slightly higher to counteract the 0% commission.  

Day traders open and close a trade on the same day. This means they only keep the trade open for a few hours. If the asset scales, traders may not leave a trade open for more than a few seconds or minutes.

Broker commissions are also expressed as a percentage, so the amount will vary depending on the size of your trade. Again, remember that you will be charged commission on both the purchase and sale of the trade.

Conclusion 

Day trading certainly carries a lot of risks. You need to have some influence over your decisions and be prepared to face the repercussions. For beginners, it is important to learn as much as possible and prepare for unpredictability. 

We hope that our Learn Day Trading Guide has given you an overview of daily trading assets. If it intrigues you, it's up to you to gain more knowledge. Equipped with the right resources and skills, it is certainly possible to earn generous amounts through day trading.