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How do I Choose the Best Online Trading Software?

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  • Written By: A. Leverkuhn
  • Edited By: Andrew Jones
  • Last Modified Date: 05 November 2016
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When it comes to finding the best online trading software, investors will mostly be looking for programs that provide easy access and tracking, with the lowest fees and commissions attached. Online trading software is some of the most innovative technology on the market for allowing the “average person” to become a successful day trader and take part in the kinds of investment activities that used to be exclusively for professionals. Indeed, software products of this type are replacing human brokers in a lot of situations, as independent investors work their retirement accounts or other capital allocations for desired gains.

Those who are looking for the best online trading software should definitely examine the security and customer service levels of the online brokerage provider. Some of the best online trading software is maintained by established firms offering impeccable customer service and the guarantee of consumer protection through state of the art internet security. Some of these firms even offer “brick and mortar” consultation offices in major cities. Look for systems that come with a credible brand to avoid problems with insufficient security or customer service.

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Another huge part of selecting the best online trading software is finding online brokerage products with good record-keeping built in. One of the most important aspects of investing is being able to track your original cost basis. The cost basis is what the investor originally paid for an asset, equity or security, or any financial product. When it comes to annual tax filing, the Internal Revenue Service requires investors to specify their cost basis in order to do accurate tax calculations and assessments. Without this information, individual investors will have significant accounting problems. The best online trading programs have cost basis record-keeping as a standard characteristic.

It’s also a good idea to think about how effectively online trading software provides easy, accessible data on paid commissions for trades, and, for that matter, how the service collects fees for trades. Excessive commissions put a damper on efforts to pursue gains from online trading, so take a look around and make sure that your online brokerage fees are in accordance with the industry standard. Other concerns with online trading software include real-time updates, good supporting market analysis information, and other tools that an investor needs to make well-informed decisions about buying and selling.

Consider all of the above when shopping for good online trading software. Ask questions when talking to your online brokerage representatives, and request a demonstration. Getting the best software involves looking at what you need in finding out what the online service offers.

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