Any software which serves as an assistance to a user in analyzing and trading of stocks is known as a stock trading software. While some brokerage firms give the provision of trading software to their customers to manage their accounts but third-party trading software can also be purchased for better increments or improvements to the already provided software.
Application Programming Interfaces (APIs) and Electronic Communication Networks (ECNs) have given the stock trading software immense popularity and their usage is multiplying each day. There are several kinds of stock trading software but stated below are the key common features provided by such software-
- Placing Trades-
One can place trades via trading software. Market orders, limit orders and some other orders of advanced type can be placed from trading software.
- Technical Analysis-
There is a possibility of inclusion of interactive chart trading capabilities which further include both chart patterns and technical indicators.
- Fundamental Analysis-
For the simplification of the work of their users, many trading software gives their users the right to extract fundamental knowledge such as analyst ratings, financial statements, and some other specific tools.
- Programmatic Trading-
Advanced software reduces the task of the user by executing the trading systems programmatically instead of using manual commands for the same. This helps the users to analyze their work better because the software also provides the back-testing function.
- Paper Trading-
This is for the ones who are not yet ready to enter the stock market. Some software provides paper trading to their users. This helps the customers to check how well they are capable of performing in the real stock exchange.
Before actually opting for stock trading software, it is important for the trader to check what their requirement is and also evaluate the kind of software that suits their needs. Also, one should decide on such software after seeing their financial status because all these things make the work easy but require money. Investing in stocks is putting money on stake and someone with limited finances should either not go for any software or choose software which requires minimal investment.
Many active traders’ common choice is for automated trading systems and for this purpose they could choose different and up to date trading software which does maximum work rather than just placing trades. The basic fundamental of every trader should be to maximize their profits and choose the software accordingly.
The best trading software to choose from are-
This software is most appropriate for penny stock traders.
- Townsend RealTick
It is the best software for market data.
This software is very well suited for all those who love day trading, i.e. day traders.
- Eye in the Sky Trade Planning
For the ones who want accurate technical analysis, this is the finest software for them.
- Jigsaw Trading
It is one of the top-rated software for decision support.
- TurboTax Prep.
If anyone wants a software for tax preparation, this is the software one needs to download.
- Stock Vision- Power Scan
This is best suited for the ones looking for screener software.
Certainly, this software is excellent for the ones who require charting software.