Choosing Trading Software
What extra features does it offer?
Other features include scanning functions to identify stocks to buy, optimisation features and strong backtesting capabilities. One extra feature may be integrated neural networks. The vendor may also include data feeds. Don’t pay extra for features that you don’t need. Check to see whether you can upgrade later without a large premium.
How much does it cost?
There are two components of cost: firstly initial acquisition cost, secondly ongoing costs.
Initial acquisition cost for trading software is often very high, running to $1000+. Choosing the options you need may increase the cost further. Remember that there may be freeware alternatives that you can explore, or you could invest some time in setting up an Excel spreadsheet until you can justify a full package.
Some add-ins may also be quite expensive, so be informed – some packages may include certain features as standard.
Ongoing costs should not be underestimated, particularly if there is a tie in with a broker that you have to use. This also includes charges for software updates and additional features that you may need.
In addition, remember to take data costs into account.
Conclusion
This article provides some criteria for comparing and selecting trading software. Future articles will provide some reviews and information on some of the leading packages.
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