Trading Software

AAA

DEFINITION of 'Trading Software'

Computer programs that facilitate trading of financial products such as stocks and currencies. Software is usually provided by brokerage firms that enable their clients to trade financial products and manage their accounts. Different brokerages will have different software which determines the interface in which trades are made and information is searched. Other software can be purchased from third parties to enhance or add to what a brokerage provides.

INVESTOPEDIA EXPLAINS 'Trading Software'

Trading software have proliferated in recent years due to the growing popularity of electronic communication networks or ECNs, which are alternative trading networks that enable trading outside of the traditional stock exchanges or Bourses. ECNs have driven down transaction costs sharply, enabling many discount and full-service brokerages to offer trading software to their clients at little or no cost.

The software should be easy to navigate and, stable, and at the very least extremely secure. It is often a characteristic overlooked when selecting a brokerage, over other traits such as cost or popularity.

RELATED TERMS
  1. Electronic Communication Network ...

    An electronic system that attempts to eliminate the role of a ...
  2. Adware

    A software package that plays, displays or downloads advertisements ...
  3. Day Trader

    A investor who attempts to profit by making rapid trades intraday. ...
  4. Direct-Access Broker

    A stockbroker that concentrates on speed and order execution ...
  5. Currency Trading Platform

    A type of trading software used to help currency traders with ...
  6. Trading Account

    1. An account similar to a traditional bank account, holding ...
RELATED FAQS
  1. Is it better practice to use a stop order or a limit order?

    Both stop orders and limit orders have their advantages and disadvantages; traders need to decide between the two based on ... Read Full Answer >>
  2. What are the key differences between pro forma statements and GAAP statements?

    The U.S. generally accepted accounting principles (GAAP) require companies to adhere to uniform reporting standards that ... Read Full Answer >>
  3. How do day traders capture profits from the difference between bid and ask prices?

    Day traders capture profits from the difference between bid and ask prices by scalping stock. Sensing that a stock is going ... Read Full Answer >>
  4. How is buying on margin regulated by the Securities and Exchange Commission (SEC)?

    The Federal Reserve Board and the Financial Industry Regulatory Authority (FINRA) regulate buying on margin to a greater ... Read Full Answer >>
  5. How do the C-suite members work together to make a successful company?

    Corporate managers, typically chosen by a board of directors in large organizations, are ultimately responsible to stakeholders ... Read Full Answer >>
  6. Why is the Vortex Indicator (VI) important for traders and analysts?

    Doug Siepman and Etienne Botes developed the vortex indicator to anticipate reversals in price trends. They believed that ... Read Full Answer >>
Related Articles
  1. Forex Education

    Market Makers Vs. Electronic Communications Networks

    Learn the pros and cons of trading forex through these two types of brokers.
  2. Trading Strategies

    Day Trading Strategies For Beginners

    From picking the right type of stock to setting stop-losses, learn how to trade wisely.
  3. Options & Futures

    Direct Access Trading Systems

    DATs can dramatically speed up order execution - find out how this system gives novice traders an edge.
  4. Trading Systems & Software

    The Global Electronic Stock Market

    The way trading is conducted is changing rapidly as exchanges turn toward automation.
  5. Trading Strategies

    How To Tackle Intraday Volume

    Measure the flow of intraday volume to estimate the emotional intensity of the crowd.
  6. Investing

    TradeKing Vs. TradeStation: Which Meets Your Needs?

    Each of these two online brokerage firms offers a package of benefits, features and services that meets a distinct type of investor's needs.
  7. Professionals

    Top Strategies on How to Become a Stock Broker

    Gunning to be a stock broker and want an edge? Here's some veteran advice.
  8. Trading Strategies

    10 Steps To Becoming A Day Trader

    Want to be the master of your career by becoming a full-time day trader? Follow these 10 steps to be a successful trader.
  9. Trading Systems & Software

    Steps to Starting Up an Independent Broker Dealer

    Launching your own broker-dealer is a lot of work, but the potential payoff is great, both personally and financially.
  10. Trading Strategies

    The Top U.S. Regulated Stock Brokers

    To operate in the United States, stock brokers must comply with SEC regulations that protect investors. Here is a look at some of the best.

You May Also Like

Hot Definitions
  1. Unlevered Beta

    A type of metric that compares the risk of an unlevered company to the risk of the market. The unlevered beta is the beta ...
  2. Moving Average - MA

    A widely used indicator in technical analysis that helps smooth out price action by filtering out the “noise” from random ...
  3. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  4. Productivity

    An economic measure of output per unit of input. Inputs include labor and capital, while output is typically measured in ...
  5. Variance

    The spread between numbers in a data set, measuring Variance is calculated by taking the differences between each number ...
  6. Terminal Value - TV

    The value of a bond at maturity, or of an asset at a specified, future valuation date, taking into account factors such as ...
Trading Center