Best US Stock Trading and Investing Brokers May 2025

How to trade US stocks?

When trying to profit from rapid and minute price changes, day trading strategies are crucial. Thorough technical analysis, using charts, indicators and models to predict future price movements, is the basis for a reliable and successful approach. On this page you will find a detailed analysis of basic trading techniques, as well as advanced, automated and even asset-specific techniques.

How to get started in trading US stocks?

Focus on the fundamentals of a simple day trading strategy before getting bogged down in the complicated world of technical indicators and charting jargon. Many people make the mistake of believing that you need a very complex intraday strategy to succeed, but often the simpler the better. A plan must first simplify decision making. When considered as part of a larger plan, trade size, starting price and exit strategies all become simpler.

What you should include in your strategies?

Include in your plan the useful elements listed below:

 
• Money management: Determine the level of risk you are willing to take before you start. Remember that most successful traders risk no more than 2% of their money on each trade. If you want to stay in the game and succeed in the long run, you must be prepared to take some losses.
 
• Time management: Make sure that the time you spend trading is used efficiently. Money is time.
 
• Start small: Limit yourself to a maximum of three assets or markets per day while you get your bearings. It is better to be excellent in a few areas than to be mediocre and not succeed in too many.
 
• Education: Keep abreast of all the important markets, but also develop your ability to distinguish signal from noise.
 
• Consistency: After five coffees in front of the computer, it's harder than it looks to control your emotions. Instead of letting anxiety, fear or greed guide you, you should let logic, maths and your plan guide you.
 
• Timing: Every day the market will be choppy from the moment it opens. While experienced day traders are able to see trends and make money, you must remain patient. Hold back for the first 15 minutes, as there are still hours to go.
 
• Demo account: A must for any newcomer, but also the best place for experienced traders to backtest or test new or improved trading techniques. Many demo accounts like the one available on Plus500 have no time restrictions and are endless.

Five trading strategies for US stocks trader

The strategies listed below use charting methods. To suit a variety of markets and assets, they can be adjusted and modified.

 

1. Emergence

   The emergence strategy focuses on when price and volume cross a certain level on your chart. After the asset or stock breaks through the resistance, the breakout trader opens a long position. On the other hand, after the stock has broken through support, you open a short position.

    

   Volatility often increases when a stock or asset breaks through the designated price barrier, and prices often trend in the direction of the breakout.

    

   You must choose the best trading tool. Keep in mind the support and resistance levels of the asset when you do this. These levels are most meaningful and verified as the price has often reached them.

 

2. Scalping

   Scalping is one of the most commonly used techniques. It is particularly common in the foreign exchange market and aims to take advantage of rapid price movements. The motivating factor is volume. As soon as the trade starts to make a profit, you look to sell. Although this can be dangerous, it is a fast and entertaining method of trading. For the low risk/reward ratio to be balanced, you need a high probability of trade.

 

3. Dynamism

   This approach, common among novice trading methods, is based on reacting to news sources and spotting significant trend movements supported by high volume. There is usually at least one stock that moves between 20-30% each day, so there are plenty of opportunities. Simply hold your position until you see reversal indicators, at which point you should exit.

    

   If used appropriately, this strategy is easy to implement and successful. However, you need to make sure you are aware of impending news and earnings releases. A few extra seconds spent on each trade will have a significant impact on your daily earnings.

 

4. Reverse

   Reverse trading is practiced all over the world, although it is passionately contested and possibly dangerous when used by novices. It is also called mean reversion approach, pull back trending, and trend trading.

    

   Since the purpose of this technique is to trade against the trend, it violates common sense. You need to be able to recognize potential pullbacks and assess their strength. To do this, you need to have in-depth sector knowledge and expertise.

 

5. Pivot points

   The pivot point method of day trading can be excellent for spotting and acting on crucial support and/or resistance levels. In the foreign exchange market, it is very useful. In addition, pivot points can be used by traders within a range to identify entry positions, while traders following a trend or breakout can use them to find crucial levels that must be breached for a move to be considered a breakout.

Best Risk management practice to trade US stocks

Stop-loss

Effective strategies take risk into account. If you don't control your risk, you will lose more money than you can afford and you will quickly find yourself out of the game. This is why you should always use a stop-loss.

The price may seem to be going in the direction you had planned, but it can change its mind at any time. This risk will be managed by a stop-loss. If the item or stock is not delivered, you will end the trade with a small loss.

Size in position

You can choose your ideal position size using a smart approach. The amount of shares purchased in a single trade is known as the position size. The difference between your entry price and your stop-loss price is what you should take. Your risk is $0.20 per share, for example, if your entry point is $12 and your stop-loss is $11.80.

Divide $275 by $0.20 to determine how many trades you can make on a single trade. A holding size of 1,375 shares is allowed. This is the highest position you can take and still be under your 1% risk limit.

Also, make sure that the volume of the stock or asset is sufficient for the position size you are using. Also, remember that slippage on your entry and stop-loss can occur if you choose a position size that is too large for the market.

4 Best Brokers for Trading US Stocks

1. Pepperstone - Best Overall Broker for Trading US Stocks.

   Pepperstone is highly regarded for providing a robust trading environment for US stock traders. With competitive spreads, advanced trading tools, and fast execution speeds, Pepperstone stands out as an excellent choice for both novice and experienced traders.

2. FPMarkets - Top Choice for US Stocks Trading.

   FPMarkets provides competitive trading conditions for US Stocks CFDs, offering tight spreads, fast execution, and leverage up to 1:500. Ideal for traders seeking exposure to top US companies like Apple, Tesla, and Amazon.

3. Plus500 - Best Broker with Multiple Licenses.

   Plus500 offers a secure and user-friendly platform for trading US stocks (CFDs). With numerous regulatory licenses and strong investor protection measures, Plus500 is ideal for traders seeking a reliable platform for various financial instruments.

4. XM - Best Platform and Excellent Brokerage for Beginners.

   XM excels by offering extensive educational resources and practical online workshops to support US stock traders. Its user-friendly interface and comprehensive support make XM a great choice for beginners.

F.A.Q

What is the process for buying and selling US stocks?

To buy and sell US stocks, you will need to open an account with a broker like Plus500 that offers access to US stock markets. Once your account is set up, you can place buy and sell orders for US stocks using the broker's trading platform.

What fees are associated with trading US stocks?

Trading US stocks typically incurs fees such as brokerage commissions, exchange fees, and SEC fees. These fees can vary depending on the broker and the type of trade being made.

What is the minimum amount required to trade US stocks?

The minimum amount required to trade US stocks can vary depending on the broker, but it is typically around $100.

Are there any risks associated with trading US stocks?

Yes, trading US stocks carries a level of risk. The value of a stock can go up or down, and there is the potential for significant losses. It's important to have a good understanding of the risks involved and to diversify your portfolio.

How do I research US stocks before buying or selling?

There are many resources available for researching US stocks, such as financial news websites, company websites, and stock market data websites. Additionally, you can use technical analysis tools to study charts and identify trends.