How much startup capital do I need at the minimum to day trade?

Generic
1

How much startup capital do I need at the minimum to day trade?

2

The indicative cost for trading systems and infrastructure for day trading is as follows:

  1. For LFT, you can use broker provided software/trading platforms and host the algorithms/strategy on cloud-based servers. It should not cost much.
     
  2. For MFT the cost can go up to few hundreds of dollars per month for the trading platform through the available vendors. You might need dedicated hardware and colocation facility depending on the strategy.
     
  3. For HFT the system and infrastructure cost can go from few hundred thousand dollars to few million per year. Given the technology & infrastructure requirements & risks involved, HFT is generally not recommended for the individual traders.
Please note that these are all highly approximate numbers and can vary a lot depending on the kind of setup and geography/exchange that you are trading in.

I hope this helps.

Thanks!
3

Thanks I also was asking in terms of a $20000 account how much if I become an expert can I see monthly generating income by day trading?

4

That would be highly subjective to a lot of things. While there are people who make triple digit % annual returns, probabilistically speaking it’d be quite rare. In general, 20%-25% consistent returns with a Sharpe ratio of about 1.5 to 2, would be considered pretty decent. However, it is highly dependent on what kind of strategies you are running, how trading system/infrastructure is and a host of other things.

5

it also depeds on knowledge that you may or not have and what country you are located in, and knowledge of institutional trading

6

You’re right, Charlie. Thanks for your comment.