Trading Software

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Examples of Software Categories

Trading Platforms

This is the type of trading software that all modern traders use. You sign up with a broker and get access to one or more trading platforms online, where you can place trades, manage your account, and make deposits and withdrawals.

Some brokers have their own proprietary trading platform that is only use by their own clients, while other brokers use one (or more) of the available third-party platforms, such as MetaTrader 4 (MT4), Metatrader 5 (MT5, cTrader, NinjaTrader, or TradingView.

In addition to offering the basics required for trading, many platforms also come with a lot of extra features, such as tools for technical analysis, economic calendar, news feed, educational material, and more. For platform walkthroughs, broker compatibility notes, and side-by-side comparisons geared to active traders, see DayTrading.com

Some traders prefer a comprehensive trading platform where all the extra features they need are included. Others use stand-alone trading software as a complement to their trading platform, and might for instance use a separate platform for technical analysis and keep up with the news through an independent and tailored news feed.

Charting and Technical Analysis

Traders that rely heavily on technical analysis need software that includes all the tools and feature their trading strategy requires, e.g. many different timeframes for charting, a big library of indicators, and support for tailor-made solutions. There is software in this category that allows for complex visualization and will let you track multiple markets simultaneously without issues.

For some traders, it is important that the technical analysis software is integrated into the trading platform, because they want to be able to place trades directly form the charting window. This is especially common among day traders looking for exceedingly short-term setups. Swing traders and position traders are not under the same time pressure.

News and Data Terminals

Specialized software platforms are available that will show you real-time news, economic data, sentiment indicators, and more. They can come with not only raw data but also analytical tools, chart overlays, and integration with trading platforms.

Automated Algorithmic Trading Systems

Automated Algorithmic Trading Systems (AATS) are computer programs that automatically place, manage, and exit trades based on pre-defined rules and algorithms. These systems are widely used in financial markets to execute high-speed, high-frequency, and data-driven trading strategies. These system typically rely on being very fast and needs to connect to broker APIs or directly to an exchange.

An AATS is a setup where trading decisions and executions are made automatically by code, based on predefined rules such as technical indicators, price action, news sentiment, time-based conditions, or even AI generated predictions. Here are a few examples of AATS software available for retail traders:

  • MetaTrader 4 (MT4). Create ExpertAdvisors (EAs); trading robots programmed using the MQL4 programming language. You can build your own or use robots built by other MT4 users. Some are free, others are for-pay.
  • MetaTrader 5 (MT5). Like MT4, but the programming language is called MQL5. While the MT4 is chiefly used for forex and CFDs, the MT5 platform has support for a wider range of assets, and this also impacts what the ecosystem of AATS written in MQL5 looks like.
  • TradingView. Use Pine Scrip to build AATS, and webhook for execution on a 3rd party trading platform.
  • QuantConnect + Lean Engine. Build robots using C#, Python. Use the hosted platform or run locally. Many serious quants use QuantConnect.
  • Backtrader (Python). Build robots in Python. Connect to Alpaca, Interactive Brokers, or OANDA for live execution.
  • Alpaca API + Python Bot. Build the bot in Python using Alpaca´s REST or WebSocket API.
  • 3Commas. Use prebuilt or custom bots (DCA, Grid, Options bots). Popular choice among cryptocurrency traders who do not want to learn coding.
  • Kryll.io. Drag-and-drop visual builder. Cloud-hosted bots. Popular among traders who do not want to learn coding.

Risk Management Software

Specialized risk management programs will help you build, fine tune, and execute your risk management strategy. Among other things, they can be used to automatically calculate exposure and margin requirements, and show you worst-case scenarios.

Examples of well-known risk management software for traders:

  • JBL Risk Manager A straightforward portfolio manage system, with a focus on position sizing and trading discipline. It helps you formalize and enforce rules around how much risk you take per trade, where to put stop losses and trailing stops, appropriate position sizing, and more. The aim is to protect your capital by planning in advance and thereby reduce the risk of emotional decision making in the heat of the moment. There is a free trial version of JBL Risk Manager available which is fully functional for 30 days.
  • Switch Markets Risk Management Tool
  • SmartRisk This AI-powered risk management tool uses the Kelly formula to determine optimal trade sizes.
  • RiskMaster for NinjaTrader8 This is a free risk management add-on for the trading platform NinjaTrader 8. It will help you put up solid risk management guardrails inside NinjaTrader 8, as it lets you set limits for trade size, losses, profits, and contracts.

Evaluation

Specialized evaluation software can be used to track your trading and provide your with valuable data about performance, strengths, weak spots, and more. Some programs can be connected to several trading accounts to provide both account-based information and paint you and overall picture. Some come with advanced analytical tools.

Compliance and Tracking

For professional traders, trading software can be integrated with compliance systems to ensure trades meet regulatory and firm-level guidelines.

Examples of Popular Third-Party Trading Platforms

When we speak of third-party trading platforms, or independent trading platforms, we mean trading software that is not tied to one specific broker. MT4, MT5, cTrader, NinjaTrader, and TradingView are all examples of trading platforms that are compatible with a wide range of brokers. Once you have learned how one of these platforms work, it is easy to move from one broker to another if you grow disenchanted with your current broker, since you do not have to go through the process of learning how a new trading platform works and evaluate if it is suitable for your trading strategy or not. If you are comparing brokers that offer access to these platforms, detailed reviews and comparisons are available at BrokerListings

Below, we will take a look at five third-party trading platforms:

  • MT4. Very popular among forex traders, but is now quite old. It is still maintained, but will not receive any major overhauls.
  • MT5. Was originally meant to replace the MT4, but both platforms are still offered. Compared to the MT4, the MT5 has better support for more asset types and more tools for technical analysis. It also receives more overhauls to remain current.
  • cTrader is compatible with both DD brokers, STP brokers, and ECN brokers, but is especially popular among traders using ECN accounts. A lot of support for technical analysis and algorithmic trading.
  • TradingView started out as a technical analysis platform, but is now also a trading platform. It offers an in-house brokerage service, but can also be used with other brokers.
  • NinjaTrader is especially popular among futures traders. It was recently purchased by the cryptocurrency trading company Kraken, and more support for cryptocurrency speculation is expected to be added soon.

MetaTrader 4 (MT4) and MetaTrader 5 (MT5)

MetaTrader 4 (MT) was launched back in 2005 and grew to be one of the most popular trading platforms for retail forex traders online. It supports technical analysis and automated trading, and you can use both DD brokers, STP brokers, and ECN brokers with this platform. The MT4 Expert Advisors (EAs) are automated trading strategies coded in the platform’s MQL4 language. Some are available for free, while others are subscription based. Over the years, a vast community has developed around the MT4 platform and you can find a myriad av EA:s, custom technical indicators, and more.

When MetaTrader 5 (MT5) was released in 2010, the idea was to let it replace the MT4. However, forex traders love the MT4 and did not want to let go, so MetaQuotes (the company behind both platforms) decided to offer both platforms parallel. Compared to the MT4, the MT5 has better support for a wider range of assets, and it also has a bigger toolbox for technical analysis, including more timeframes, more indicators, and greater support for custom solutions. The economic calendar integration is a big plus for fundamental analysis traders and news traders. While the MT4 is chiefly for forex and CFDs, the MT5 also supports stocks, futures, and options. Just like the MT4, the MT5 supports algorithmic trading through EAs, but they are built in MQL5 and not MQL4. Dept of market tools are much better at the MT5 platform, which has made it popular among traders using ECN brokers.

While the MT4 is still supported by MetaQuotes, it is not give any major overhauls. The changes are mostly about fixing bugs, providing updated security, and ensuring continued stability. According to unconfirmed rumors, MetaQuotes has also become increasingly unwilling to grant brokers new licenses for the MT4. Brokers who are already offering the MT4 are grandfathered in, but MetaQuotes seems to be pushing new brokers to offer the MT5 instead. The MT4 platform looks and feels dated compared to modern platforms, and while the interface is functional it is definitely limited. It is also important to take into account that MT4 versions older than build 1440 are no longer supported by MetaQuotes.

Ctrader

The cTrader platform was launched by Spotware Systems in 2011. It has a smaller market share than MT4/MT5, but you still have a lot of brokers to chose from if you want to use this trading platform. The platform is compatible with both DD, STP, and ECN brokers, but has become especially popular among traders using STP and ECN brokers, partly due to its focus on transparency. cTrader was one of the first retail platforms to include support for market depth (Level II pricing). As for 2025, roughly 250 different brokers are offering access to cTrader, and cTrader is integrated with 50+ liquidity providers.

The cTrader platforms support automatic trading through cAlgo, and trading bots can use programmed using C# instead of a specialized language like MQL5. A lot of traders already have experience with C# from other situations, making it easier to get started programming bots in cAlgo without much of a learning curve. With C#, you can created both automated trading robots (cBots) and custom indicators for the cTrader platform, using the .NET framework.

When it comes to charting, cTrader is generally considered a notch above MT4/MT5, with a more intuitive interface, smoother chart rendering, and more built-in tools.

TradingView

TradingView started out as a platform for charting and technical analysis, but eventually added a trading feature, and you can now place orders directly from TradingView if you have connected a brokerage account. TradingView offers its own brokerage service, but is also compatible with roughly 100 other brokers and some cryptocurrency platforms. To see a full list of supported brokers, open the Trading Panel in TradingView, and click on “See all brokers” at the bottom of the panel. Broker availability will vary by country.

Many traders still use TradingView for their technical analysis needs only, and prefer to place their trades on a separate trading platform. For intraday traders, this process can be too slow, but for swing traders and position traders it is usually not a problem.

TradingView is one of the most widely used charting platforms. No download is required and it offers cloud-based storage of charts, indicators, and alerts. Using the Pine Script language, you can code custom indicators.

A strong ecosystem exists around TradigView, with users developing and publishing strategies, scrips, and more.

NinjaTrader

NinjaTrader is especially popular among futures traders, but equities trading is also available. In addition to this, the platform is expected to soon become a great choice for cryptocurrency speculation as well, as the NinjaTrader company has been acquired by the cryptocurrency company Kraken.

The NinjaTrader platform offers extensive order types, advanced technical analysis, and strong support for algorithmic trading (via NinjaScript/C#). The depth of market interface (DOM interface) is highly regarded within the trading community, and so are the advanced order flow analysis tools. NinjaTrader can integrate with multiple data providers.

NinjaTrader typically caters to experienced traders and the platform learning curve can be quite steep. NinjaTrader´s focus on futures trading means it has never really sought to appeal to novice traders, as futures trading is not considered suitable for inexperienced traders. Unsurprisingly, NinjaTrader holds a much smaller market share than MT4/MT5 and cTrader.

NinjaTrader is offering a brokerage service, but the platform can also be used with third-party brokers. Which features and instruments that are available depends on region, broker, account type, and whether you have certain add ons. Examples of brokers that are compatible with NinjaTrader is Interactive Brokers, FOREX.com, FXCM, TD Broker, and City Index, and Ameritrade.

The brokerage company NinjaTrader is a registered Futures Commission Merchant (FCM) in the United States, and act as a direct futures broker. Its brokerage service include futures trading (e.g., CME, NYMEX, E-mini contracts), and integration with NinjaTrader´s clearing partners which handles clearing and margining.

Understanding the Background

Retail trading software did not really become widely available until the early 21st century, when brokers began to offer their services directly to individual traders online through trading platforms where the trader would place his or her own orders. Before that, professional traders had access to trading software, but consumers were typically required to make a phone call to their broker if they wanted to buy or sell securities or other instruments. Computers and trading software was used by the brokers, but the clients would not have direct access. With that said, portfolio management programs and charting software (such as MetaStock) was available as early as the 1980s, but it was not possible to place orders through these programs.

As home internet connections became much more common in the 1990s and early 2000s, online retail brokers and their software solutions began to pop up on the internet. Examples of early players are E*TRADE, TD Waterhouse, Charles Schwab, Interactive Brokers Trader Workstation (TWS), Thinkorswim, and NinjaTrader. Individual traders could now access software for trade execution, live stock quotes, basic charting, screening, and the creation of watchlists. When the trading platform MetaTrader 4 (MT4) was launched in 2005, it revolutionized the world of retail forex trading. Historical context on retail platforms and their impact on UK and European investors is available at Investing.co.uk

During the 2010, platform’s struggled to come up with solutions that would work well on mobile phones. Instead of being displayed on big computer screens and controlled using a mouse and a key board, trading interfaces had to function well on small phone screens and be controlled through touch-screen technology. One example of a company that figured this out early was Robinhood, who launched their mobile-first trading platform in 2013. Brokerage companies also realized that in addition to needing trading software that worked on mobile phones, the traders who accessed trading platforms through their phones rather than from desktop computers were often working on a shoe-string budget and needed accommodations. Brokerage companies increasingly began to compete by accepting very small deposits ($10) and permitting tiny trade sizes (micro-trading and nano-trading).

The 2010 was also an era that saw developments such as cloud-based charting software (including TradingView, launched in 2011), simplified interfaces for both mobile and desktop trading, gamification of the trading experience, social trading platforms, and copy trading software. The expansion of cryptocurrencies such as Bitcoin and Litecoin introduced a new asset class for speculation.

More recently, there has been a strong growth in retail algorithmic trading and automation software, and quantitative trading tools are now available even to non-institutional traders. Examples of notable platforms are QuantConnect (a cloud-based algorithmic trading platform) and cTrader (with its AlgoTrader), and other key players in this expanding field are Alpaca, IBKR, and Zipline.

As Artificial Intelligence (AI) powered tools have become more mainstream, they have entered the retail trading space in many different ways, and are believed to become an even stronger component of trading as we move forward.

We will probably also see an expansion of on-blockchain trading platforms with smart contract execution, as decentralized finance (DeFi) continue to expand.

DD Brokers, ECN Brokers, and STP Brokers

Beginner traders typically pick a broker of the dealer desk (market maker) type, since these brokers often come with terms and conditions that are attractive for beginners, such as a small minimum deposit, micro trade sizes, and commission-free trading. As you become more experienced and have built your bankroll, you might want to look into ECN brokers and STP brokers, as they can provide certain elements that are more suitable for advanced trading strategies.

Which type of broker you need (DD, ECN, or STP) will impact which trading software you can use, so this needs to be taken into consideration. If you know that you want to sign up with an ECN broker, there is no point researching a bunch of trading platforms that do no support ECN trading, and so on. Some trading platforms can be used for both DD, ECN, and STP, while others are more limited. And of course, a proprietary trading platform tied to one specific broker will only support whatever type or types of trading that specific broker is offering.

If your plan it to start with a DD broker but eventually move on to ECN or STP, it can be beneficial to pick a platform right from the start that supports this. That way, you do not have to learn a new trading platform as you move on.

How your orders are routed is the main different between DD brokers, ECN brokers, and STP brokers. A dealer desk broker (DD broker) will route your order to its own in-house dealer desk and can be your counterpart in the trade. When your broker is also your counterpart, it creates an automatic conflict of interest since you profit from your broker´s loss and vice versa. An ECN broker will instead route your order directly to an Electronic Communications Network. Your order goes to an electronic order book where independent market participants, such as banks, can be your counterpart in the trade. A Straight Through Processing broker (STP broker) works in a similar way, but will route your order to a pool of liquidity providers, such as banks and hedge funds. To recap: A DD broker can be your counterpart in the trade, but an ECN broker or STP broker can not. Therefore, ECN and STP brokers are popular among traders who want “true” interaction with the market and this conflict of interest with their broker. ECN brokers and STP brokers make their money from commissions and spreads, not from you losing a trade. They provide a higher degree of transparency, since orders are not filled internally. With ECN brokers, you can even see full depth of market and pricing (Level 2 Data).

Generally speaking, requotes / slippage is more common with DD brokers than with STP brokers, and it is exceptionally rare with ECN brokers. DD brokers are more likely to have fixed spreads, STP brokers have variable spreads, and ECN brokers have raw/variable spreads that can be extremely tight under certain conditions.

DD brokers are more likely to offer commission-free trading (they make their money from the spread and from your losing trades) and they often accept very small deposits, e.g. $10. STP brokers often require a first deposit in the $100-$500 range, and with ECN brokers you can expect to deposit at least $500 before you get started, sometimes considerably more.

DD brokers are more likely to outright prohibit scalping or make the environment unsuitable for scalping. Scalping is usually allowed with STP brokers, and fully supported with ECN brokers.

Generally speaking, STP brokers and ECN brokers cater to experienced traders, and this can become visible in several ways. You might for instance find out that the customer support staff is not really trained to provide a lot of hand-holding when it comes to the basic use of the trading software. DD brokers are much more used to onboarding individuals with zero trading experience and guide them as they learn the basics of how the trading software works. Some DD brokers even have a minimalist proprietary trading platform available for beginners, which provide novice traders with a place to learn the basics before they move on to a more feature-packed trading platforms such as MT5 or cTrader.

How To Put Together a Hardware Setup Suitable For Your Trading Software

No matter how great the trading software is, it will not work correctly if not paired with suitable hardware. The same is true for brokers; if you pick a super fast ECN broker but then use insufficient hardware and a poor internet connection, you will be a slow trader no matter how great the broker is in theory.

Because of this, we will now take a look at how a retail trader can put together suitable trading station set up that can handle even more advanced retail trader needs. Exactly what you need will depend on your software choices, your trading strategy, and personal preferences. Without a proper hardware setup that is enough for your particular situation, you will be struggling with a slow trading platform prone to freezing, charts that do not update quick enough, orders that are not executed on time, and so on.

Putting together a trading station does not have to be very expensive, but it is not shoe-string cheap other. The good news is that unlike gaming or video editing, trading does not really demand expensive graphics cards, not even if you are using a lot of charts, and huge monitors are also not required, even if you might have seen them in marketing material portraying the idea of a successful trader. So, instead of chasing down expensive graphics cards and filling your room with enormous monitors, my advice is that you put your money into CPU, RAM, internet connections, and a UPS backup.

If you are short on time and do not want to go through the more detailed explanations below, here are the cliff notes:

  • Processing power (CPU) is important. An Intel i7 or Ryzen 7 processor will work for most retail setups. If you plan on integrating AI tools, upgrade to a higher-end model, such as the RTX 4090.
  • At least 32 or 64 GB of RAM
  • A 1 TB NVMe SSD
  • NVIDIA RTX 3060 for multi-monitor support
  • A fiber connection to the internet, at least 100 Mbps. An additional independent connection as backup, e.g. a mobile phone hot spot connection through another provider.
  • UPS to cover sudden power outages
  • The number of monitors will depend on your trading style. Generally speaking 27 inch monitors with 1440p resolution work well for traders.

Central Processing Unit (CPU)

If your processor is not enough to run all the trading software, you will experience lag and freezes. This can become especially noticeable when switching windows or running backtests.

I do not recommend using anything less than a quad-core processor, such as Intel i5 (12th gen or newer) or AMD Ryzen 5. If you can afford it, it is better to upgrade to CPU with six to eight cores, especially if you are running multiple monitors and trading software, or if you rely on automated trading strategies. You can for instance go for an Intel i7/i9 or Ryzen 7/9. Specialized traders carrying out algorithmic trading, high-frequency simulations, or simultaneous backtesting should ideally go for workstation-class processors such as Intel Xeon or AMD Threadripper, which are designed for sustained heavy workloads.

Having a bit of redundancy when it comes to processing power means smoother multitasking and the programs will respond quicker, and this is definitely what you want as a trader, especially if you are doing fast-paced intraday trading.

You might have carried out trading with a fairly weak CPU in the past, but trading software (including a lot of charting software) is requiring more processing power today. If your computer is not given enough processing power, the whole system slows down or become prone to freezing. It is also worth remembering that trading software providers are continuously expand their product features, so planning for overhead in CPU power is a good idea.

Random Access Memory (RAM)

Modern trading softare typically need quite a lof of RAM to work perfectly, especially if you are juggling multiple charts and data feeds. Do not skimp when it comes to RAM, as it is fairly inexpensive compared and will make a big difference when it comes to trading experience.

Yes, you can probably run a basic trading setup with 16 GB of RAM, but I recommend getting at least 32 GB for a better experience. Also, if you are running several trading programs simultaneously, backtesting large data sets, or using heavy charting tools, 32 GB should be considered the minimum.

A serious trader should ideally go for 64 GB or even 128 GB RAM. Most of the time, this will be over the top, but it will come in handy when there is a situation where having only 32 GB of RAM would have resulted in a bottleneck.

If your computer does not have enough RAM, it will start relying on disk swapping, and this will create lag even if you have a fast SSD.

Solid State Drive (SSD) Instead of a Conventional Hard Drive

I recommend you use a Solid State Drive (SSD) instead of a conventional Hard Disk Drive (HDD). With a HDD, you are more likely to experience delays when loading software, pulling data, or caching feeds. An SSD will provide you with faster boot-up and quicker software launching, and also prevent lag when you are loading big files.

For a trading setup, I recommend getting at least a 500 GB SSD, but a 1 TB SSD is better, especially if you plan on storing historical data, backtesting results, or multiple software environments.

Ideally pick an NVMe SSD instead of an SSD using SATA. NVMe (Non-Volatile Memory Express) is a protocol designed specifically for accessing high-speed storage media (like SSDs) over a computer’s PCIe (Peripheral Component Interconnect Express) bus, and an SSD using NVMe will load data, files, and programs significantly faster.

You can still use an old-fashioned HDD for archival purposes, where speed is less of a concern.

Graphics Card (GPU)

This is a point where many traders go overboard and spend money on a graphics card (GPU) that is actually not necessary for the trading software. Yes, I know you want to be able to play certain video games on this setup, but then be honest with yourself. Do not delude yourself into believing your are investing all that money into your trading venture, because you are not.

Retail trading software will typically not need a high-end GPU for rendering, not even if you are doing a lot of charting. If your setup consists of one or two monitors, you will probably be okay with integrated graphics. If you have three or more monitors, dedicated GPU:s are better, but you can stick to entry-level cards like NVIDIA GTX 1660 or RTX 3060. Dedicated GPU:s can prevent charts from stuttering in a 3+ monitor setup.

Note: AI solutions such as machine learning models, neural networks, or AI-driven backtesting, are accelerated by the GPU. Therefore, spending money on a better GPU can be a smart choice if you plan on including this type of AI in your trading. A GPU with a large number of CUDA cores (in NVIDIA’s case) or compute units (in AMD’s case) can cut AI training times dramatically. If you are serious about AI-powered trading, you might want to look into GPU:s such as NVIDIA’s RTX 4090, or data center-class GPUs like the A100 or H100.

Internet Connections

There is not much point in getting super fast trading software, a super fast broker, and all the greatest hardware, if your internet connection is rubbish. For a retail trader with a standard DD broker, I recommend a stable internet connection with at least 50 Mbps download and at least 10 Mbps upload. A better choice is a 100 Mbps+ fiber connection with low latency (<20 ms). A wired Ethernet connection is preferred over Wi-Fi. Traders should also look into enterprise-grade routers or at least consumer models designed for low latency and reliability.

Remember, stability is just as important as speed, because you do not want your connection to fail you when it matters most. Latency, packet loss, and downtime all translate directly into losses for daytraders. With that said, swing traders and position traders are less pressed for time than intraday traders, and can usually do well even with a less than stellar internet connection.

Note: Since even the best internet connection can experience downtime, it is a good idea to have a backup connection, especially if you are an intraday trader. You can for instance use a mobile phone with a separate internet connection (another company than your primary ISP) and use it as a hot spot. Make sure it is always ready for use and located within reach.

Electricity

Your trading setup can not run without electricity. Even if blackouts are uncommon in your area, getting an Uninterruptible Power Supply (UPS) is recommend.

Make sure everything you need for your trading, e.g. your router, is connected to back-up power and not just the computer and screens.

Note: Surge protection is important to protect your hardware from power spike damage.

Monitors

Exactly how many monitors you need depend on your trading strategy and personal preferences. Generally speaking, intraday traders use more monitors than swing traders and position traders, and having 3+ monitors is not unusual among intraday traders.

Resolution 1080p is acceptable, but 1440p and 4K monitors are more popular among traders doing a lot of charting.