About the Features of Trading Software and Selecting the Best Trading Software

Posted by Linda Hudson on September 25th, 2019

Trading software is used for the trading and analysis of financial products, for example, stocks or currencies. It has grown in popularity over the years due to the rising popularity of electronic communication networks, or ECNs, and the accessibility of application programming interfaces, or APIs.

ECNs are substitute trading networks which facilitate trading of traditional stock exchanges, while APIs which provide real-time price and fundamental data have made it easier for third-party software developers to enter the market.

Stock trading software is a program that helps to research potential stocks, view charts, read analyses etc. A major part of the stock market has become mechanized, with hedge funds that utilize sophisticated computer programs. The day trading software may lead to a better trade, since, it would be rich in the features, easy to use and provide you with the actionable information.

There are different types of trading software with distinct features, provided by the brokerages and the third-party developers.

Some of the most common features include:

Technical Analysis - There are trading software which comprises of interactive charting capabilities, including both chart patterns such as trend lines and technical indicators, namely, moving averages or momentum oscillators.

Fundamental Analysis - Certain stock trading software provides fundamental information. This might include financial statements, analyst ratings, and other proprietary tools, specifically crafted for the investors, with due diligence.

Programmatic Trading - The advanced software enables traders to develop trading systems which can be executed programmatically, and provide back testing functionality, designed to help traders understand and evaluate the performance of automated trading systems in the past.

Paper Trading - Some of them have the capability to place fake trades, known as paper trading, especially common in the forex markets. Through this, the traders can assess the skills prior to, committing to the definite capital.


While deciding on the right one, it is important for the traders and investors to carefully consider the features they need. The Active traders who are dependent on the automated trading systems might go for a completely different trading software, than would be required by the investor who is only looking for the software to place trades.

The software applications might vary with respect to the fee structures, performance characteristics, and other factors that have an impact on the profitability.

All the factors mentioned above must be considered by the Traders, before making a decision about a particular trading software, to help maximize the profitability.

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Linda Hudson

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Linda Hudson
Joined: July 26th, 2016
Articles Posted: 176

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