Two Different Types of Stock Investing Software
If you’re considering getting started trading stocks, you may be looking for something to help you with it. Many people look to stock investing software to help them manage their trading.
This software comes in two different forms:
- Investment or portfolio management and
- Trading platforms.
Some companies even try to integrate both. Here is what you need to know.
Portfolio Management Investing Software
The most common type of stock investing software is portfolio management software. This is software that allows you to track your stock or investment positions, manage your cost basis, and just keep an eye on your overall portfolio position.
The most popular portfolio management software is Quicken. This product allows you to keep track of all your finances, but their portfolio manager is great because it syncs with all of your online accounts automatically.
There are also different companies offering cloud solutions to portfolio management, such as Mint or Adaptu. While neither of them offers as many options as Quicken, both are free, which is always a plus. Plus, they are both on the cloud, which means that you can access your portfolio data from anywhere. Also, many brokers now usually offer some type of online portfolio management software for their customers.
Find here a free open source stock portfolio application.
Stock Trading Platforms
The other major type of stock investing software is trading platforms. These are software packages developed usually by brokers, and for use by their customers. They offer all types of features beyond basic portfolio management.
For example, many trading platforms offer a wide variety of charts and research features, real time data and trade execution statistics, and different ways to calculate hypothetical trades. Many also offer access to third party research reports, such as Morningstar or Standard & Poors.
The more advanced trading platforms also calculate information based on your current positions, such as break-even exit points and automatic closing trades of complex transactions such as options spreads.
Some of the more popular trading platforms include Thinkorswim and OptionsXpress. Both of these companies are brokerages, and they offer these interactive platforms as services to their customers to make their trading easier.
Before purchasing any of the stock investing software packages, define first what you are going to do with it. Then try out a free version or get a free trial. Only after that you can start to consider buying one.
Know the difference between these two stock investing software types. Find out what you need and get before making any purchase decision. And:
- Sign up here for our free stock investing newsletter and
- Grab here a risk-free trial for our stock market information service.