Day trading software is the generic name for any software that helps you analyze, decide and execute trades. It can give you access to all the analysis tools and technical indicators and resources you need. The best software can also identify trades and even automate or execute them according to your strategy. Whether you are after trading software for beginners, or are an advanced trader, with more options than ever before, your research has never been more important.
First, you’ll learn exactly how these software packages work. This page will then highlight what to look for from your broker’s software offering, while breaking down forex software , stock software and others in detail. It will also touch on software demo accounts, devices and regional differences to get to know.
How does the trading software work?
- Data – Before you start day trading, you need to know the prices of the stocks, futures and/or currencies you want to trade. For stocks and futures, those prices will typically come from the exchange where they are traded. Forex, however, does not have a central exchange.
- Charting – Smart traders will usually chart prices in charting software . Many vendors will also provide feeds. These charting packages usually provide fundamental technical analysis indicators . Choose a more advanced plan and you can benefit from more indicators and the ability to backtest your strategies.
- Make a trade – With your data in hand and after analyzing it on the chart, at some point you will want to enter a trade. For that, you will need some kind of trading software, an electronic trading platform . A lot of software these days will also allow you to develop your own trading strategies with application programming interfaces (APIs). They may also provide you with special ability automated trading for day trading.
- Broker vs Independent Vendor – A lot of brokers will provide software that is linked directly to their in-house system, but you can also use third-party applications through independent software vendors with such integrated support brokers. The benefit of third-party solutions is that they often have more advanced features and allow you to trade with many different brokers with a single interface.
Tools
Mac or Windows?
When choosing your software, you need something that works seamlessly with your desktop or laptop computer. Any breakdown or technical issue can seriously cost you your profits. Fortunately, day traders are no longer tied to Windows computers, recent years have seen an increase in the popularity of day trading software for Mac.
For example, MetaTrader4 is the world’s most popular trading platform. It’s user-friendly, so combined with the easy-to-navigate Mac, it’s ideal for both beginners and veterans alike. But whether you are looking for the best trading software for Mac or Windows, check reviews to ensure technical tools, data feeds, portfolio trackers, backtesting capabilities and any other features you require will be without a hitch. Also, make sure the initial trading software download is free. Reputable brokers should not charge you for installation privileges.
Mobile day trading software
You can also get extremely useful mobile trading software, usually in the form of apps on iOS and Android. They are not designed to replace desktop applications because they lack in the capability area. They are best used to complement your normal trading software.
Make sure when choosing your software that the mobile app is free. A good app will provide brief market updates, trends and common stock tickers. If the app overloads you with information that pushes you to make impulsive decisions, be clear.
What are you looking for
Brokers will usually offer standard software, but if you want additional features that may be necessary for your strategy then you may have to pay more. So conduct a thorough software comparison before you start trading with your hard earned capital.
Costs and needs
- Does it meet your needs? – There is no one size fits all. Different trading software will suit different people. Are you following a simple stock strategy like moving average tracking? Also, do you want to use a more complex multi-condition strategy? Will you need a live forex feed? To make sure it meets your needs, try the software for free download and practice trading for the first day.
- Cost – How much does intraday trading software cost? It is too easy to choose the cheapest trading software. While this may save you money in the short term, you may be sacrificing the essential features your strategy requires. Adding these features later can cost you more than if you invested in a comprehensive software to get started. Also, check if the software is available as part of a standard brokerage account, or does it cost extra?
Technology
- Speed of execution – Time is money and nowhere is more authentic than the world of daily transactions. Make sure your software will allow you to enter and exit trades quickly. Check reviews for any trade execution red flags. A few seconds can be the differentiating finish being red or black at the end of the day.
- Accessibility – Is this a web-based software offering? If so, you’ll only need an internet connection to get online, plus you won’t have installation, updating, and maintenance costs. Web-based trading software is the best choice for beginners. However, if you use extremely complex algorithms, you may need a computer-based installable software. Keep in mind that this will be a more expensive route to go down.
- Features – Day traders rely on short-term price movements to make profits. What does your strategy need to track these price movements? Will you need specific charts, data feeds, news sources, specific market access? If so, check if these will be included as standard.
- Analysis – Is your strategy dependent on technical indicators and pattern recognition? Will the software recognize the arbitrage opportunity? A comprehensive analysis software that will give you all the analysis features you need in a user-friendly package.
Forex trading software
What is the best forex trading software available on the market today? With hundreds to choose from, finding the right software for your needs is not a simple decision. The first question to ask is ‘what information, resources and tools do you need to advance your forex strategy?’
Here are some of the most popular currency trading software available:
- Trading Platforms – These platforms allow you to manage and execute forex trades manually.
- Trading Signal Generators – They will provide you with recommended levels to enter and exit positions.
- Technical analysis software – They will provide you with charts of historical exchange rates, plus a range of technical indicators.
- Automated Forex Trading Software – Once you have pre-programmed your rules and strategies, these programs will automatically execute trades on your behalf.
Stock trading software
With today’s volatile market trends, choosing the right stock trading software is essential. It is often said that there are very few valuable stocks that trade every day. That means identifying them before they make their big move will be what separates profitable traders from the rest. Before you buy, always check trading software reviews first.
Additionally, look for the following capabilities from your software:
- Market Scan – The program should scan the market for potential opportunities and quickly draw your attention to the stocks of interest.
- Charting Software – These software will help you decipher the market conditions, so look for software that keeps their charts user-friendly or even offers customization options.
- Portfolio Tracking – This will help you keep a close eye on all previous trades, helping you identify mistakes and hone your strategy.
- Backtesting – The software will allow you to backtest your trading system against historical data, giving you an idea of how and if your strategy will work, before you risk your capital really.
Other instruments and markets
In addition to the software for the above tools, you can also use the following tools:
- Commodity Trading Software – There is a rich supply of international trading software for the commodity market. Plus, you can get your hands on some of the best free online trading and charting software around.
- Bitcoin Day Trading Software – As the market is still evolving, new options appear every month. You will also find some of the best trading simulators, probably free.
- Emini Trading Software – Emini options continue to grow, so you can choose between generic systems or professional Emini software. You will also find many good extension software options, with many reviews on software forums.
- Penny Stock Software – There is healthy competition, so if you are looking for the best place to buy penny stock trading software, Google will quickly answer all your prayers. You can also easily use buy and sell signal software for penny stocks.
- Software for NSE – You can find free trading software for the Indian market or you can choose from ever-growing options.
- Software for Cryptocurrency – You can choose between robot, prediction software or you can find many manual options. Now you can also get your hands on useful virtual currency management software to keep your online wallet heavy.
Software magazine
Day trading journaling software allows you to keep an online journal. Why would you want that? Because they keep a detailed account of all your previous transactions. They record instruments, dates, prices, entry and exit points. This allows you to not only fill out your tax returns with ease, but also analyze your recent trading performance. It can help you identify mistakes, allowing you to trade smarter in the future. This makes it some of the most important day trading software out there.
Popular software
Make sure when you compare software, you check reviews first. Even software that is claimed to be one of the ‘top 10 day trading software’, can have some serious downsides. Also note, the easiest trading software will not necessarily be the best. If it’s easy because it lacks the essentials outlined above, your bottom line may suffer.
Having said that, consider the popular and highly rated options below:
- MetaTrader – Market leading multifunctional trading platform. Integration with many top brokers.
- TradingView – Top charting package with loads of technical analysis tools and the ability to build and roll back test strategies. It is also possible to automate trades, and copy trades.
- Linux Software – Considered to be some of the fastest real-time trading software around.
- JSE Software- Considered to be one of the best futures trading software available.
- MCX Analysis Software – One of Tim Sykes’ recommended trading software systems.
- TD Ameritrade – Some of the best live and virtual day trading software available, scoring exceptionally high in US reviews.
- Etrade Software – Convenient, fast, reliable, and used by traders of all levels.
- Consors Software – This German offers some of the best trading simulators for free.
- AlgoTrader – This is ideal if you are looking for customizable open source software to execute automated strategies.
- NinjaTrader – allows developers to build their own built-in indicators.
- ZuluTrade – Automate trading or copy trading signals or traders. Popular in America.
- eToro – The leading social trading network. Copy profitable traders – or become a “leader” and earn as other traders follow your trades.
Software strategy
Choosing the right software is a hugely important decision, but part of that decision comes with making sure it works in harmony with your day trading strategies . If you trade forex using a simple price action strategy, then you can have everything you need with the broker’s standard program software.
Tools like TradingView can also help you build and back up test strategies, including using your own code if desired.
However, if you have a complex strategy, you may need software that has all the indicators and technical tools in a few clicks, to ensure you make quick and accurate decisions. . Your strategic needs will likely be greater, and you may require optional advanced features that are often expensive.
Demo account
If you want to test a particular software before committing to it, the best way to do that is a demo demo account. A demo account is a form of practice account where you trade for free with the game making money using the real software and its features. It’s a great way to try out your own software, strategies and skills and is something we highly recommend. We list all trading demo accounts here .
Regional impact
Tailored to a specific market
The best trading software for Australia and Canada, may not be up to the mark in the Indian and South African markets. This is simply because software in India can be extremely different from software in Australia. Spider Software, for example, offers technical analysis software specifically for the Indian market. But if you want to trade stocks in the West, you may find that remote software won’t give you all the access to the data feeds and news resources you need to trade successfully.
There is also the question of cost. You can get a lot of free charting software for the Indian market, but similarly powerful and comprehensive software in the UK, Europe and the US can often come with a hefty price tag. So make sure your software comparison takes into account location and price.
Tax considerations
The same principle applies to day trading tax software. The accounting software needs to be able to calculate the exact amount of tax payable to your country-specific agency, such as the IRS. In addition to wasting your time, any tax errors will fall on your lap, as will any fines.
The last word about the place
If you are British, do your homework and find out what is the best UK-specific trading software. If you are Canadian, check that you won’t face any tax problems if you invest in accounting software from South Africa.
Get home points
It is worth remembering that your choice of broker may limit the tools available to you. Free day trading software may seem like a no-brainer to start with, but if it comes with the sacrifice of technical tools that can enhance trading decisions it can make you have to pay the price. Remember that the best forex day trading software may not cut the mustard when you use it for stocks, so do your research and consider all the factors outlined above. Most importantly, you wouldn’t buy a car without first taking it for a test drive and your day trading software shouldn’t be any different.