Trading software is now incredibly popular for day traders because computer applications have made it easier than ever before to automate trading. Selecting the correct day trading software is vitally important, and you need a piece of software that suits your trading style and preferences.
When you’re a day trader, all of your trades are time sensitive, as your positions have to be opened and closed on the same day. Here, you’re aiming to make profits in smaller price differentials on large order volumes by frequent buying and selling, usually on leverage.
What is Day Trading Software?
Day trading software is provided by brokers such as EXT Capital. It’s a form of automated computer program, and it helps clients perform their trading activities without the need for contacting the broker over the phone.
In addition, not only can the software be used to execute trades, but it can also track them using technical indicators, charting software and fundamental analysis. It can also track multiple assets and currencies concurrently.
Features and functions of day trading software vary between brokers. They’re also regularly updated, so different versions of the same piece of software will also have different features. Generally speaking, the latest versions of all the software will have the highest number of features and will be the most up-to-date.
What Should I Look for in Day Trading Software?
When you’re looking to invest in a broker and trading software, there are a number of features you should look for, such as:
- A web based offering: This way, you can connect from anywhere. Plus, there’s no need to upgrade manually, and there’s also no maintenance costs.
- Flexibility: You want a platform that’s able to work for you, no matter what you trade. Your needs will differ on a daily basis, dependent on whether you’re trading options, forex or stocks. Take a look at exactly what the platform can offer and see if it meets your needs. You don’t want to be running multiple platforms simultaneously.
- Additional features: when you’re trading, you need to remember you’re capitalising on short term movements. As such, you’ll need your platform to not only be able to act quickly, but also to alert you to market volatility. So, look for platforms that offer optional extras to boost your trading success rates, such as news, education and charting software. Many brokers provide these free, but check before you buy.
Follow these hints and tips and you’ll find the perfect day trading software in no time. And, if you’re in doubt, try a demo account before you buy.