Your guide to share trading software
Detailed charts and technical analysis can help you decide which stocks to buy and sell. Find out whether share trading software is right for you.
Share trading software can help you pick winning investments on Australian and international stock exchanges. These software applications identify rising stocks for day trading and sustained income stocks for long-term investments.
You can use share trading software to achieve capital growth no matter your investment strategy; however, share trading software is favoured by day traders looking to take advantage of price movements before the market closes.
Standard brokerage - Australian shares
Share Trading Account Offer
Competitive broker fees on Australian shares, international shares, forex and CFD trading.
- Brokerage - AU shares: From AUD 5 or 0.05%
- Brokerage - US shares: USD 0
- Sign-up process: Instant
- Support - After hours: Yes
Important: Share trading carries risk of capital loss.
Share trading software is different to a share trading platform. A share trading platform acts as an intermediary between you and a stock exchange so you can make trades. Although some packages can automate trades, share trading software is not designed to place trades for you but, rather to help you with market analysis.
Also called technical analysis software, share trading software provides research and analysis tools which allow you to research stocks. Examples of tools you can use includes advanced charting and custom tax reporting. Share trading software also includes technical indication functions (indicators) which looks at patterns in the past to predict future performance.
Share trading software does have limitations. These applications give you guidance on which shares to trade; however, past performance is no guarantee of future results.
What is share trading software and how is it used?
Share trading software can give you information about the past and present performance of a company, live stock updates and recommendations about which shares to trade. Share trading software works by choosing the best stocks for you to trade based on predetermined criteria.
Share trading software is expensive. It’s important to research share trading software before you commit to making a purchase so you can be sure the features on offer are the best you can get for your budget. For example, different software applications make use of different indicators. Indicators are algorithms which help you decide which shares to trade. Popular market analysis software Metastock provides the RMO trading indicator, something that isn’t available with other packages such as BullCharts. You can request a free trial of most share trading analysis packages so you can test the features on offer before you buy the software.
Keep track of your holdings with Sharesight's portfolio tracker
Sharesight Portfolio Tracker
Sharesight works alongside your online share trading platform and can be integrated with your Xero account.
- Free for investors with less than 10 holdings
- Comprehensive dividend and tax reporting
- 25+ stock exchanges supported
What are the benefits of using share trading software?
- Backtesting. Backtesting is a share trading software feature you can use to test your trading strategies without spending a dollar. Your chosen trading strategy is tested against past performance of securities and different investments to give an indication about future performance.
- Notifications. Share trading analysis software can send alerts to your mobile phone when your trading signals have been met so you can execute your trades.
- Education. Share trading software applications feature educational tools you can use to learn about the software itself as well as different trading strategies and indicators.
- Updates. Software developers are constantly improving marketing analysis software so you’re always up-to-date.
- Product testing. Most share trading software packages include a free trial period. You can even ask the software provider for a list of the package’s recommended trades over the last couple of months if you want to assess the performance of the software’s technical indicators.
What are potential risks associated with using share trading software?
- There is no perfect system. There’s no guarantee you will make money using share market analysis software. The Australian Securities and Investment Commission (ASIC) advises investors to steer clear of any software promoted as a foolproof way to make money on share market. Share trading software can help you make a best guess about which stocks to trade, but the economy and the markets are unpredictable. While we can see market trends over time, these movements can be identified in retrospect only. Major international events such as the 2008 Global Financial Crisis completely disrupt market trends and make it near-impossible to predict what will happen next.
- Backtesting limitations. While backtesting is a major drawcard there are limitations. For example, backtesting doesn’t take into account market crashes and company announcements which can significantly influence share price.
- Active trading. Share trading software has simplified day trading for everyday investors. Although there’s potential for quick profits, day trading is a high risk investment strategy. Day traders can invest in securities, forex and commodities to take advantage of price movements before the close of the stock exchange.
Share trading strategy
A trading strategy sets out when you want to buy and when you want to sell securities. A trading strategy includes criteria for buy and sell orders such as stop loss orders designed to meet your investment objectives such as capital growth.
Day trading involves buying and selling securities and other investments such as commodities to take advantage of the movement in price between the time the market opens and the time it closes. Day traders generally leverage investments. Borrowing to invest presents opportunities for large profits as well as large losses. Some share trading software applications are suited to day traders only; while other applications with a focus on comprehensive charting are suited to long term investment strategies. Day traders capitalise on the short term price movements of investments.
Technical indicators let you set your own criteria so you can decide which stocks to purchase and sell. You can set parameters to identify opportunities for capital gain. Indicators examine the past performance of the stock market to make a prediction about price movements in the future.
Compare share and CFD trading accounts
Important: Share trading can be financially risky and the value of your investment can go down as well as up. Standard brokerage fee is the cost to trade $1,000 or less of ASX-listed shares and ETFs without any qualifications or special eligibility. If ASX shares aren’t available, the fee shown is for US shares.
Common questions about share trading software
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