Best Forex Trading Software
s automated Forex trading software a tool which can help you to maximize your profits on the Forex trading market? The answer to this is absolutely yes. With the right software, automated currency trading programs can make it much easier to make a profit on the Foreign exchange market.
However, you must be careful when purchasing this software. It is not all created equal and some of it cannot be trusted with your investments. If you use the wrong Forex trading software you may find that rather than making a nice profit, the software is actually causing you to lose money.
One class of Forex currency trading software is nothing more than a notifier which will tell you of trades that it believes will maximize your profit. It is up to you to analyze these trades and decide if you want to pull the trigger.
Those who are experts in the Forex market may find this to be the better type of software to use as they can use their own knowledge to analyze and supplement the trades found by the software. Others who are not experts may find the other type of Forex software more helpful.
The other category of Forex software does not simply notify you of available trades. It will analyze the market and determine which trades will maximize profits. Once it does this, the automated Forex trading software will make the trade at what it considers the perfect time to maximize your profits.
It can run 24 hours a day, 7 days a week and will make it much easier for those who do not know much about the Forex market to maximize their profits. For most people, this is the most preferred type of currency trading software as it does not require constant supervision and decision making.
Warrior Trading Blog
- February 27, 2016
- Ross Cameron
- Day TradingInvestingTop Tips
- Blog Posts
Many new traders make the beginner mistake of using the wrong tools. Using the right day trading software and day trading tools is critical to your success. While a skilled trader can make do with less than ideal tools, beginner traders need every advantage possible.
That means making sure your equipped with the best trading software, scanning software, and charting software.
I often talk about trying to ride a road bike in the sand. It doesnít matter if you have a $2000 road bike, you canít ride a road bike in the sand.
If you ride a $200 used beach bike with fat tires you will have a great time! The guy on the road bike will wonder why you are making it so easy.
Itís because you are using the right equipment for the environment. Itís not about how much money you spend, itís about using the right tools. Make your life easier by using the best tools below.
Tool #1 : Lightspeed Financial Broker
There are hundreds of brokers you can choose from and they all provide traders with a different experience.
Generally I group brokers into various categories depending on what services they provide or what financial instrument they specialize in. There are options, forex, stocks, long term investing, and scalping brokers.
For active day traders we need a few things, hot keys, direct access routing and fast executions.
For these reasons I use Lightspeed and consider them the best broker and one of the best tools for any trader.
If you are trading with a $500 trading account, Tradezero is the next best thing! They allow unlimited day trading with a $500 min balance (NO PATTERN DAY TRADER RESTRICTIONS)
Tool #2: Trade-Ideas Stock Scanning Software
Now that you have your broker funded you are ready to start trading! You need a way to find stocks to trade. Based on my Gap and Go and Momentum trading strategies there are only a few stocks worth trading on any given day.
Knowing how to identify those stocks before they make the big move is what separates the most profitable traders from everyone else.
I use Trade-Ideas for all my stock scanning software. You can use their predefined searches to see HOD movers, Volume spikes, Biggest Gainers/Losers, Turbo Breaks, etc.
Or you can do what Iíve done and build custom scanners using their set of hundreds of filters to tell the scanners exactly what you want to see.
Do you like trading Bull Flags? No problem. Flat Top Breakouts? Easy. There is no software in the world that can scan the market and find winning stock setups better than Trade-Ideas.
Tool #3: eSignal Charting
Okay so you have your broker, youíre all setup with Trade-Ideas, but you are ready to get some really high quality charts. You can use the charts that come standard with your broker.
Those will work for a while, but eventually you may want to take it up a level and use charts that allow you to draw and write custom formulas.
This is where eSignal comes into play. For a long time I used TC2000 for my charting, but when I added more monitors TC2000 was just too slow. eSignal allows me to easily run charts on 8 monitors without any lag time (check out how to set up a trading computer)
This is pretty impressive. And for me itís important because I like to keep an eye on several stocks at once. In addition to being fast and reliable, eSignal allows you to install custom scripts. I use these as custom indicators for reversals, and automatically drawing support/resistance lines.
Tool #4: Benzinga Ė Breaking News Provider
As youíll learn in our Day Trading Courses, each morning we start the day with a review the stocks gapping up on our Trade-Ideas scans. From there we have to look for the news catalyst, the reason why these stocks are moving higher.
Sometimes they are moving in sympathy with the market or a strong sector, but other times they have a unique catalyst like earnings.
Understanding the reason why a stock is moving is important because some catalysts are stronger than others! I use Benzinga Pro to search for the latest headlines. Then during the day I listen to the Benzinga Pro Radio.
They read the headlines and let us know when stocks are spiking, breaking news reports, etc. This breaking news feed has made me over $4k in the last two news trades alone (see $WATT and $MBLY).
Tool #5: TAS Market Profile
TAS Market Profile is one of the best day trading software programs on the street. There are a couple different packages you can choose from depending on what you are looking for.
They have a TAS Indicator Suite that offers 7 of their proprietary indicators including: TAS Market Map, TAS Boxes, TAS Vega, TAS Navigator, TAS Ratio and TAS Compression Levels.
I really like the TAS Market Map, TAS Vega and TAS Boxes for active trading and have found it to be of great value for making trade decisions.
They also offer TAS Scanner. This unique tool allows you to see stocks moving in different time frames with varying levels of buying or selling confidence at key levels. This is a powerful addition to your charting software and is something I use everyday.
The indicators and scanners work on a ton of different charting platforms including eSignal, Tradestation and Bloomberg. You can find a full list here.
We recently just joined forces with TAS Market Profile in order to get you the best value for your buck! Check out the following link for more information on how you can save on TAS Market Profile subscriptions!
Having the right tools alone for online trading wonít make you a profitable trader but it will point you in the right direction towards success and make your life a lot easier.
Trading is one of the most competitive careers you can choose so donít put yourself at a disadvantage or it could come back to haunt you!
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Best Online Trading Platforms for Day Trading
NerdWallet offers financial tools and advice to help people understand their options and make the best possible decisions. The guidance we offer and info we provide are deeply researched, objective and independent.
We spent over 300 hours reviewing the top online brokers before selecting the best for our readers. And to help you find the one thatís best for you, weíve highlighted their pros, cons and current offers.
If youíre an active trader looking to try your hand at beating the market, you probably have a good idea of what you want in a brokerage: low costs, premium research, innovative strategy tools and a comprehensive trading platform. Below, weíve selected the best online brokers in a variety of categories so you can choose one based on your personal priorities.
One note before you begin: Pattern day traders ó as defined by the SEC ó must have at least $25,000 in equity in their accounts and be approved for margin trading, regardless of whether their brokerís account minimum is lower. If you canít meet that minimum, you might want to check out our picks for the best brokerage accounts for stock trading instead.
Ľ New to this world? Learn the basics with how to day trade guide.
Best Online Trading Platforms for Day Trading
- Interactive Brokers: Best overall & for low margin rates
- TD Ameritrade: Best overall & for trading platform
- Charles Schwab: Best for trading platform
- Ally Invest: Best for options trading
- TradeStation: Best for options trading
- EOption: Best for low margin rates
NerdWalletís top online trading platforms for day trading
commission-free trades + up to $600 with qualifying deposit
The bottom line
TD Ameritrade makes up for higher-than-average trading commissions with better-than-average service, research and trading tools that will make everyone from beginner investors to active traders happy.
Large investment selection.
High-quality trading platforms.
No account minimum.
Good customer support.
Higher trade commission.
Costly broker-assisted trades.
High short-term ETF trading fee.
in cash bonus with a qualifying deposit
The bottom line
Ally Investís robust trading platform and lineup of free research, charting, data and analytical tools make it a good choice for active traders. But itís also appropriate for beginning investors who will appreciate that there is no account minimum and no annual fees.
No account minimum.
Strong web-based platform.
Robust research and tools.
No no-transaction-fee mutual funds.
The bottom line
TradeStation is the gold standard among active stock, options and futures investors who rely on the brokerís high-octane trading platform, reams of research and sophisticated analytical tools. The firm offers three commission plans ó flat-fee, per share/per contract and unbundled pricing plan (the latter two which will be attractive to active traders). The lack of commission-free ETFs and mutual funds can be a turnoff to some investors.
High-quality trading platforms
Active trader community
No commission-free ETFs
Minimum balance requirement for active trading platform
The bottom line
Interactive Brokers is a strong option for advanced, frequent traders: The broker offers international trade capabilities, low commissions and a quality trading platform. New traders might be turned off by inactivity fees, high balance requirements and a lack of educational resources.
Quality trading platform
Low margin rates
Wide investment selection
High minimum balance requirement
Minimal educational resources
cash bonus with a qualifying deposit
The bottom line
Charles Schwab has earned its strong reputation: The broker offers high-quality customer service, two robust trading platforms and a wide selection of commission-free ETFs and no-transaction-fee mutual funds.
No inactivity fees.
Two platforms with no minimum or fees.
Above-average mobile app.
Strong customer support.
Higher trade commissions.
Higher account minimum.
no promotion available at this time
The bottom line
EOptionís provides an efficient, no-frills platform for active investors who prioritize low costs over a fancy platform. The savings can be significant for advanced stock and options traders who have other sources for the research and data they need.
Deep discount commissions
Low margin rates
Can serve international investors
Very basic trading platform
Limited data and research
Best platforms for day trading: summary
Learn more about day trading before diving in
What is day trading?
Day trading is buying and selling stocks within a short time frame, often inside a day. The goal is to capitalize on stocks with rapid and frequent price fluctuations. Day traders often buy a stock they expect to rise in price, or short-sell a stock they expect to fall.
Day trading isnít for the faint of heart ó it magnifies all the inherent risks of investing ó and should be used as a secondary strategy, after youíve invested for long-term goals like retirement. To learn more, read our primer on day trading.
How much money do you need to day trade?
The SEC requires that pattern day traders maintain at least $25,000 in equity in their accounts. Under the SEC rules, youíre a pattern day trader if you day-trade four or more times within five business days and the day trades represent more than 6% of your total trading activity in that same five-day period. Day trading, defined by the SEC, is buying and selling or short-selling and buying the same security on the same day.
In our view, that means you should have an awful lot of money to engage in day trading, because that $25,000 should represent just a small piece of your overall investment portfolio ó the bulk of which should be invested for the long term.
Whatís the safest way to day trade?
Our guide to how to day trade gets into advice for minimizing risk, but as a quick synopsis: Rule No. 1 is only put up money you wouldnít mind parting with. In other words, treat day trading like gambling, not long-term investing.
Beyond that, be sure to do your research before you jump in, and establish an exit plan. Itís easy to make rash decisions when your positions start going bad, so setting rational strategies in advance can help curtail emotional reactions.
How do you learn how to day trade?
Practice. Many brokers offer virtual trading accounts that essentially let you test the waters with Monopoly money. Itís a great way to get started without the risk.
Weíve put together a list of virtual trading platforms, along with more information about how these work. We highly recommend testing out your trades on a virtual platform before putting your money on the line.
What securities are best suited for day trading?
Most day traders trade stocks, though you can day trade bonds, currencies or commodities, too. Generally, you want to look for securities that are:
- Highly liquid, with large trade volume.
- Relatively volatile. You want frequent price changes, which allows you to make a profit quickly.
- Known to you. An understanding of the stockís price history, and how it reacts to various events ó earnings reports, economic shifts ó is key. Many day traders trade only a few specific stocks, developing expertise in those companies and narrowing their focus.
- Newsworthy. Coverage of a stock will trigger people to buy or sell it. As a day trader, youíll want to follow the news to find trade ideas.
Ľ Donít think day trading is for you? Here are other suggestions for how to invest.
About the authors
Arielle is a personal finance writer at NerdWallet. Her work has been featured by Esquire, Money, USA Today, Forbes and The Associated Press. Read more
James Royal, Ph.D.
James is a personal finance writer at NerdWallet. His work has been featured by The Associated Press. He previously worked at the Motley Fool. Read more