With so many trading software options on the market, selecting one which fits your needs can become overwhelming. Understanding your trading plan is the first and most crucial step when deciding the best free trading software for you. Answering questions like what markets you will be trading and which timeframes you will use give the best opportunity for success. Do not fall into the trap of going with the newest software on the market or what other traders you know currently use. Whether you are new to trading or have been trading for some time and want to explore other options, you must make sure the software you select meets all of your needs. Developing a list of what you want in your trading software will simplify the selection process. Here is an example list of benefits and features you may consider as part of your selection process.
- Visually appealing and easy to use. When you log on to your platform, you should be comfortable with what you see. Of course, you will need to become familiar with the specific details of any new software, but if you have a negative first impression of the screen from the beginning, you should look at other options.
- Ease of use. Whether you are an experienced trader or a newbie, navigating a complicated system can be frustrating. Traders of all levels prefer software that is simple and easy to understand.
- Cost of additional features. Some software packages have an enticing price, but adding essential features like backtesting or automated trades can become costly.
- Dependability and high quality. Day traders require a reliable data feed to ensure they receive real-time price information. Make sure your platform allows you to enter or adjust your orders quickly at current market prices.
- Support. You must make sure your broker is well equipped to support your software of choice. This should be the first step in the selection process.
- As a trader, you should understand how critical your trading software is. When making your selection, you should not cut corners. It would be best to do your due diligence before making your selection. Next, we will look at some of the programs used by day traders on their trading software.
What Programs Do Day Traders Use?
Nowhere is “the term the right tool for the right job” more applicable than in the trading industry. Using the wrong tools while trading could cost you a considerable amount of funds over time. This is especially true for traders that are just getting started. The trading software you select should provide access to various programs to make life easier for you as a trader. Although there are countless programs available to choose from, a trader’s preference can vary based on their trading style. But there are a few staples that most traders have in their toolbox and use regularly.
Stock scanners and screeners. Once you develop your trading plan, which includes what types of trades you will make, you must find stocks that meet your trading criteria. The most efficient way to find these stocks is to use a stock scanner or screener. A stock scanner or screener is a tool that will search the markets for stocks that meet the specific criteria that you have selected. Although stock scanners and screeners are designed to save time spent doing research, you must still verify a stock chosen from the stock scanner or screener meets your trade criteria.
Multiple time frames. A critical part of your trading plan is determining how long of a time frame you want to be in a trade. Depending on your strategy, this could range from minutes to hours to days. When traders get fixated on a single time frame before executing a trade, they risk losing sight of the bigger picture. That could impact the success of that trade. Make sure that your software can set up multiple time frames on the same screen. Most successful traders monitor two or three different timeframes while trading. Your software should be capable of showing multiple time frame charts on the same screen.
Up-to-date financial newsfeed. Every day there is news reported on the financial markets or the economy. Traders need to be aware of any communication that could impact their current or future trading positions. Most traders prefer the convenience of having market news right on their software. The best programs allow traders to filter their newsfeeds and present information relevant to their current positions or trading plan. For example, if a stock had an upcoming earnings announcement, it would show up on the chart when entering its symbol.
- Backtesting: The ability to evaluate how successful a trade you are considering would have been under similar market conditions in the past.
- Order execution: Is the order entry process fast and straightforward.
- Charts: Charts should interact with various indicators and drawing tools to assist your analysis.
- Support: Your broker must be capable of working with your platform of choice.
These are just a few examples of the best free day trading tools. It would be best to incorporate these and other options based on your trading plan. We will look into platforms used by professional traders.
What Platforms Do Professional Traders Use?
Experienced professional traders know the importance of using the best platform for trading. They understand that no two platforms are the same. They all have their strengths and weaknesses. Professional traders base their ratings on how effective the aforementioned tools are when evaluating trading platforms.
Here are some of the top trading platforms for 2022 :
- Think or Swim
- Trading View
- Stock Rover
- Meta Stock
- Trend Spider
- Trade Station
- Interactive Brokers
With so many options to choose from, it is challenging to decide on the right platform for you. A proven method to get an unbiased and accurate assessment is to look at what is being reported by the top industry publications.
Technical Analysis of Stocks and Commodities is one of the leading publications on the market for trading and investing.
In a recent edition of TASC magazine featuring the 2022 Readers’ Choice Awards,
NinjaTrader was voted Best Trading Software in the mid to low price categories for 2022. This is the third consecutive year NinjaTrader has won this award. Additionally, Technical Analysis of Stocks & Commodities has recommended the NinjaTrader platform as a superior trading platform for professional and new traders. The readers determine these awards, allowing them to rate different platforms against each other and recognize the best trading platforms for innovation and performance.
The readers of Technical Analysis of Stocks & Commodities have recommended NinjaTrader for professional and new traders. With over 500,000 traders worldwide, NinjaTrader’s powerful and easy-to-use platform is backed by dedicated and unmatched customer support. That is why NinjaTrader is the number one choice of traders worldwide.