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Online Stocks Trading Software

February 14, 2023
Stock trading

Online trading refers to the exchange of securities, such as stocks, over a web-based platform. This is made possible by an online financial middleman that uses specialized computer software to carry out trades. 

What is a Trading Platform? 

A trading platform is software that makes it easier for intermediaries like online brokers to open, close, and manage market positions. 

Brokers also give clients access to online trading platforms for free or at a discount in exchange for keeping a sponsored account active or making a certain number of trades. Most trading platforms often provide a good mix of robust functionality and reasonable costs. 

Basics of Trading Platform 

Some types of trading software are available from independent developers, while others are accessible through brokerage firms, each has some unique features, but most features are common across the board. 

Some features remain common, and they include: 

Executing Trades 

Most online stock trading software can make trades, including limit orders, market orders, and other sophisticated order types. You may execute these transactions in real time. Some trading software also allows you to search for real-time quotes and access the Level 2 order book. Others may also help you keep track of your trading information, such as your win rate and how much money you usually make or lose on closed deals. 

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Technical Analysis 

Traders use technical analysis to look at market data like price charts, trend lines, and indicators to make investment decisions and find places to make money. A technical analyst believes that a stock’s past price changes can shed light on how its value may change. 

A trading platform should also include interactive forecasting features using technical indicators like: 

  • Bollinger bands. 
  • Fibonacci Retracement 
  • A stochastic oscillator 
  • Ichimoku cloud. 
  • Moving average (MA) 
  • Exponential moving average (EMA) 
  • Relative strength index (RSI) 
  • Moving average convergence divergence (MACD) 

It should also be easy to find helpful chart patterns and draw trendlines on any standard trading platform. Like indicators, these chart patterns and trendlines can help determine how the market will move. 

Fundamental Analysis 

There may also be tools for fundamental analysis on some trading platforms. With fundamental analysis tools, it’s easy and quick to figure out what a company is worth on the open market. These tools will help you determine a company’s financial health, its ability to pay its debts, and the fair market value of its shares. 

Programmatic Trading 

A sophisticated trading platform will also let you build trading algorithms that can be executed automatically with the push of a button. In addition, the back-testing features of such a software solution may show you how the performance of your automated trading system would have been in the past. 

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Demo Trading 

The learning curve for any new trading interface is steep. When too many charts, graphs, and buttons are on the screen, even in an easy-to-use tool, we might get overloaded and need clarification. To make up for this, most trading platforms offer practice versions that are like real-time stock market trading. 

Demo trading allows you to practice making trades without actually spending any money. It also allows you to try different strategies without risking any real cash. It is a fantastic tool for any trader, whether they are just starting and need to learn the ropes or are seasoned pros looking to try a new strategy. 

Picking a Stock Trading Platform 

When choosing a trading platform, you should consider how much it will cost and its features. Day traders who deal in stocks regularly may benefit from a trading platform that provides them with tools like Level 2 quotations and a market maker depth chart. But if you’re an options trader, consider software that’s made for simulating those kinds of trades. 

When picking a trading platform, fees are also a vital factor to consider. For example, if stock scalping is your primary trading strategy, you should look for platforms with cheap transaction fees. 


If you’ve read this far, you probably already know what the best online trading platform for you is: one with low fees, helpful research and educational materials, options for cutting-edge trading strategies, and lots of trading opportunities. First, you should decide what’s most important to you in trading. Then, use this article as a guide to compare the different stock trading software options. The market provides a variety of options to satisfy everyone’s preferences.  

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