Best Direct Access Brokers

Direct access brokers provide active traders direct access to financial markets, giving them greater speed and control over order execution. They often offer more sophisticated platforms and a different fee structure than mainstream brokers.

This guide will give you an overview of the strengths and weaknesses of each direct access platform.   

How We Chose the Best Direct Access Brokers

We chose the best direct access brokers by evaluating their fund access, fee structure and effective fund screening tools, prioritizing platforms that empower investors of all levels for cost-efficient portfolio growth.

5 Best Direct Access Brokers

1. Interactive Brokers – Best for Global Traders

Interactive Brokers (IBKR) offers low costs, extensive global market access and direct routing capabilities to numerous exchanges and electronic communication networks (ECNs). IBKR’s platforms and transparent fee structure are suited to active traders who want control over order execution and access to a range of financial instruments worldwide.

Key features: 

• Fees: IBKR’s tiered commission structure, where costs decrease with higher trading volumes, can result in low per-share or percentage-based commissions for stocks, exchange-traded funds (ETFs) and options. It also offers a fixed-rate commission option. There is no minimum for most account types but inactivity fees may apply to accounts with low trading activity and small balances. Direct access routing usually incurs exchange and ECN fees, which are passed to the client. 

• Investment access: IBKR provides access to a variety of global markets, including stocks, options, futures, currencies, bonds and ETFs across many exchanges worldwide. Its direct access capabilities extend to various order types and routing options, allowing traders to target specific liquidity providers and optimize execution.

• Platform experience: IBKR offers powerful desktop (Trader Workstation), web (Client Portal) and mobile applications designed for active traders. Trader Workstation is customizable and provides advanced charting tools, real-time data feeds and sophisticated order types. The mobile app offers trading on the go with many of the features available on the desktop platform. The platforms are fast and efficient in direct market interaction.

• Tools/Education highlights: IBKR offers many tools, including advanced charting with technical indicators, backtesting capabilities, risk-management tools and real-time news and analytics. It also offers educational resources like webinars and tutorials to help users navigate the platforms and understand trading concepts.

• Drawbacks: Interactive Brokers’ platforms and fee structures are complex and may be overwhelming for novice investors or people who prefer a simpler, more intuitive interface. The inactivity fees may deter buy-and-hold investors with smaller accounts who trade infrequently. 

Who it’s best for: Active and sophisticated traders who want direct market access, low costs, global reach and advanced trading platforms with customizable routing options. 

2. SpeedTrader – Best for Day Traders

SpeedTrader is engineered to meet the needs of active day traders, providing direct and efficient access to financial markets and ECNs through multiple direct routing options. Its focus on speed, advanced trading platforms and competitive commission structures geared toward high-frequency trading provides day traders with the tools for rapid order execution and market interaction.

Key features: 

• Fees: SpeedTrader has commission plans designed for active trading, including per-share and per-trade options. Its per-share rates are of $0.0009 per share for stocks and $0.25 per contract for options are competitive for high-volume traders. Direct routing to specific destinations often involves pass-through ECN fees. Day trading accounts require a minimum balance that exceeds the Financial Industry Regulatory Authority’s (FINRA) pattern day trader rule of $25,000.

• Investment access: SpeedTrader, which focuses on equities and options, provides direct access to major U.S. exchanges and many ECNs. This allows day traders to select routing destinations to achieve better execution prices and speed. While ETFs are accessible, the platform’s emphasis is on the fast-paced trading of individual stocks and options.

• Platform experience: SpeedTrader’s desktop, web and mobile platforms have options for integrating with third-party platforms like DAS Trader Pro. The platforms are built for speed and customization, featuring Level II Quotes, advanced real-time charting with technical indicators, customizable hotkeys for quick order entry and integrated short locate functionality for short-selling. 

• Tools/Education highlights: SpeedTrader provides tools like real-time market data feeds, customizable charting with a range of technical analysis tools and direct routing capabilities with detailed execution reports. It offers support resources to help traders optimize their setups and understand direct market access.

• Drawbacks: SpeedTrader’s platforms can have a steep learning curve for novice traders. The focus on active day trading means there’s less emphasis on long-term investment tools and educational resources. The required minimum account balance can be a barrier for some investors. 

Who it’s best for: Active day traders who want direct market access, ultra-fast execution speeds, customizable platforms with advanced charting and routing options and competitive commission structures for high-frequency trading of stocks and options.

3. TradeStation – Best for Strategy-Focused Traders 

TradeStation is a direct access brokerage platform known for its sophisticated charting, backtesting capabilities and strategy automation. It was developed as a software for designing and testing trading strategies and now provides direct routing to many financial markets, catering to active traders who want in-depth analysis and algorithmic execution.

Key features: 

• Fees: TradeStation offers commission-free trading for stocks, ETFs and options, although options have a per-contract fee. For direct-routed options orders, an additional per-contract fee may apply. Futures trading has a per-contract commission plus exchange and regulatory fees. There’s no minimum to open an account but inactivity fees may apply to accounts with low balances and trading activity. Direct routing for equities may also incur a small per-share fee.

• Investment access: TradeStation provides direct access to a range of securities, including stocks, options, ETFs, futures and futures options, on major U.S. exchanges. The platform allows traders to select routing destinations, which can optimize order execution speed and price.

• Platform experience: TradeStation’s desktop, web-based and mobile app platforms are designed for active traders. The desktop version is highly customizable, featuring advanced charting with many technical indicators and studies, Level II quotes, Matrix order entry and the ability to develop, backtest and automate trading strategies using its EasyLanguage programming. The web and mobile platforms streamline core trading functions.

• Tools/Education highlights: Highlights of TradeStation’s tools for technical analysis and strategy development include advanced charting, RadarScreen for real-time scanning, OptionStation Pro for options analysis and Portfolio Maestro for portfolio backtesting. It also offers educational resources such as platform tutorials, trading courses and webinars focused on leveraging the platform’s analytical and automation capabilities. 

• Drawbacks: TradeStation’s platforms have a steeper learning curve than other retail brokers. Although it’s commission-free for many instruments, direct routing may incur additional fees. 

Who it’s best for: Experienced, technically oriented traders who want a powerful platform for in-depth charting, strategy backtesting and automation and direct market access for active trading in stocks, options and futures.

4. Cobra Trading – Best for Customer Service

Cobra Trading is a direct access broker focused on providing active equity and options traders with a high level of customer service, competitive commission structures and access to trading platforms that include many direct routing options. 

Key features: 

• Fees: Cobra Trading offers several commission plans for active traders, including competitive per-share and per-contract rates. Direct routing to specific markets typically involves pass-through ECN fees to ensure transparency in execution costs. Day trading accounts usually require a minimum balance. 

• Investment access: Cobra Trading provides direct access to U.S. equities and options markets, offering a range of direct routing choices to exchanges and ECNs. This allows active traders to strategically direct their orders for better execution speed and price. While ETFs are accessible, the platform is optimized for the fast-paced trading of individual stocks and options. 

• Platform experience: Cobra Trading has several professional-grade trading platforms, including DAS Trader Pro and Sterling Trader Pro, which are known for their speed, customization and direct routing capabilities. The platforms feature advanced Level II quotes, real-time charting with extensive technical indicators, customizable hotkeys for quick order entry and tools for short locating. Mobile access is available through the platforms’ mobile apps.

• Tools/Education highlights: Cobra Trading provides traders with tools for direct market access, including real-time market data, advanced charting packages and detailed execution analysis. It emphasizes personalized customer support and help with platform setup and routing configurations. Educational resources focus on platform use and direct access trading mechanics.   

• Drawbacks: Cobra’s platforms require monthly subscription fees in addition to commissions. They also can have steeper learning curves for traders unfamiliar with advanced direct access features. 

Who it’s best for: Active equity and options day traders who prioritize direct market access through sophisticated platforms, want robust execution capabilities and value personalized customer support. . 

5. TradeZero – Best for Active Traders

TradeZero caters to traders who specialize in short selling by providing direct market access, commission-free limit orders and a specialized short locate tool. With multiple platform offerings and efficient order execution, TradeZero equips active traders with the tools to capitalize on market movements in both directions.

Key features: 

• Fees: TradeZero offers commission-free trading for limit orders that add liquidity on NYSE-, AMEX- and NASDAQ-listed stocks priced above $1 and greater than 200 shares. Other order types incur per-share or flat fees. Options trading has a per-contract fee. TradeZero also charges for deposits and withdrawals. A minimum account balance of $2,500 is required for U.S. clients. 

• Investment access: TradeZero provides direct access to U.S. equities and options markets, emphasizing short-selling capabilities. ETFs are available, but the platform is geared toward active trading strategies in individual stocks and options.

• Platform experience: TradeZero offers several trading platforms for active short traders that offer advanced charting, Level II quotes, customizable layouts and integrated short locate functionality. ZeroFree and ZeroMobile offer basic interfaces for web and mobile trading with optional add-ons for features like Level II data and options trading. 

• Tools/Education highlights: TradeZero’s patented Stock Locates is designed to help short sellers find shares. Its platforms offer charting with technical indicators and level II data. Educational resources include live, interactive sessions and articles that cater to various experience levels.

• Drawbacks: Commission-free trading has specific conditions and other trades incur fees. Deposit and withdrawal fees can be significant. The advanced ZeroPro platform has a monthly fee. Regulatory oversight is based in the Bahamas. 

Who it’s best for: Active traders who are focused on short selling strategies and want direct market access, a specialized short locate tool and commission-free trading on qualifying limit orders.

Choosing the Right Direct Access Broker

Choosing the right direct access broker can impact your investment success. The platforms offer many options catering to a variety of trader profiles.

Interactive Brokers is well-suited for global traders who want extensive market reach and low costs while SpeedTrader is built for the fast-paced demands of day traders. Strategy-focused traders will like TradeStation’s analytical tools and automation capabilities. Cobra Trading emphasizes personalized customer service and TradeZero caters to active traders with a focus on short selling.

The right brokerage platform’s features, fee structures and available markets should align with your investment objectives and trading styles. 

Frequently Asked Questions