What To Expect From Brokers With Free Stock Trading Tools
If you are in the market for a new broker, you have probably seen a lot of time devoted to the promotion of trading tools. Trading tools are software applications designed to make your trading experience easier and more profitable. Most brokers offer a bevy of tools, all designed to take the pain out of researching and choosing appropriate investments. Here are a list of some of the more popular and useful tools being offered by brokers today:
- Screeners. Screeners are basically a database query designed to apply either preselected or user selected criteria against all of the investment vehicles on the market today. Common screeners include stock screeners, mutual fund screeners, ETF screeners and many more. Screeners help investors pick specific investments to review out of hundreds of thousands of potential options. What screeners can’t do is replace good research and analysis. Screeners can’t pick winning investments for you. But, what they can do is help you create a short list of potentially good investments, which can speed up your selection process and research. Consider using a stock screener to find out what stocks to buy.
- Strategy analyzers. Strategy analyzers work this way: you enter your trading strategy into the tool and the tool determines whether or not it is a viable one and may even suggest adjustments. Strategy analyzers help minimize the margin of human error made during trading; however, they can‘t ensure a positive result (or profit).
- Tax analyzers. This tool is extremely helpful when it comes to figuring out how your portfolio and the actions you take may affect your tax burden and what you will owe. Does it make sense to sell stocks and withdraw the money? What are the tax implications of removing money from your IRA to buy a home? These questions and many more can be answered by using a tax analyzer tool.
- Educational tools. Some brokers offer tools designed to teach you the ropes of trading by using an interactive, instant feedback educational tool. These can be extremely helpful for novice investors who are just getting their feet wet, but professional traders can also benefit from using such a tool, especially if they are getting into a new investment vehicle.
- Mobile trading platforms. This is an extremely popular tool that allows investors to trade anywhere by simply accessing an application on their cellular telephone. This is a location independent way to invest and trade.
- Real time and streaming quotes. This is one of the most basic offerings provided by brokers and offers a lot of value. Knowing how your investment is doing in real time at any given moment is the key to making profitable investments. In many cases, this tool can even be appended to a desktop, Internet browser or even cellular phone for easy and instant access to the markets.
Trading tools are an important resource for any investor. Each tool is designed to automate a specific aspect of trading and can help simplify complicated and sometimes confusing concepts, thereby allowing the trader to focus on making money.