Free Financial Trading Tools

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Online Trading tools

Online Trading platforms offer a comprehensive set of trading tools to their traders. They may vary according to individual broker with some of them absent or present, names changed to suit their purpose, but the essence remains the same with Chart, Signals, Technical analysis, Technical indicators, Fundamental analysis and Economic calendar being the core features.

Not every online trading broker provides an extensive set of trading tools as online trading are considered by some as an easy and light version of Forex and stock market. But the issue is that in every financial market operations your decisions cannot be based on pure luck or the very basic tools, which are of use only to beginners.

I would not argue that basic charts, and a couple of technical indicators provided by the vast majority of brokers through their web-based trading platform can and should be used, but that, thankfully, there are other essential tools to improve you profit ratio.

The first thing that prospective traders see when they open a online trading platform, whether it is a real account or demo, is a price chart of EUR/USD. Charts are key as they provide traders with a glimpse into price movements over a certain period of time.

Signals

Signals are a simple and straightforward way of showing support to new and upcoming traders as well as advanced traders.

Built-In Tools

In this sub-section we will cover the most common trading tools available on the online trading financial market.

Сharts

Many respectable brokerage companies provide you with free charts that show movement of an asset throughout time.

Technical Analysis

Technical analysis in online trading rely solely on technical indicators and historical data and patterns that tend to repeat.

Technical Indicators

After you got used to reading online trading technical indicators, you need to choose your asset-class and the asset itself.

Fundamental Analysis

Fundamental analysis factors in all the information from internal and external sources about the asset.

Economic Calendar

The importance of economic calendar cannot be overestimated as it the basis for market movements and traders’ outlook on any asset.

Hedging

Hedging can be employed in very rare instances as the majority of well-to-do brokers offer various kinds of insurance and the hedging need is eliminated.

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Loss Compensation

These upcoming brokerages offer traders as a way to promote their platform and brand-name a loss compensation tool.

How to Use Online Trading Tools ?

Signals, have been created to aid traders in starting their trades. They are usually created by professional company employed traders with extensive experience through their elaborate research and serve as a guideline.

Technical analysis is a feature that is required to be employed if you are to be a successful investor. It is learned over time and uses technical indicators as its primary tool. Various technical tools should be at hand, depending on your trading platform, to analyze current market conditions to take the best profit you can. I usually use a free MetaTrader 4 platform downloaded on my desktop to help me with this, as, unfortunately, brokers don’t always have the whole list of tools ready to use on their web-based platforms.

Fundamental analysis is based on the news feed from respectable sources such as Bloomberg or our website. The main principle is that if the news for a company is good then the underlying stock’s price should rise and vice versa

Economic calendar encompasses the most important country news and is similar to the previous analysis. If the market’s prediction of a given country’s GDP, for instance, is wrong and is lower than expected, then the reaction of price can be negative.

Why use Online Trading Tools?

Finally, using all of the above-mentioned tools is not obligatory, but will definitely make you a better trader, whose decisions are well-thought and founded not on speculations, but on firm data.

4 Free Simulated Stock Trading Tools for Paper Trading

Modified date: April 2, 2020

But it was the answer to the last question I asked that made me laugh. “If you wanted to invest now, how would you get started?” One future nurse responded, “I’d Google it.” Actually, that’s not a bad answer. We turn to search engines for answers to all kinds of questions.

So today I thought I’d share some resources for those looking to start investing in the stock market. There are a number of brokerages that offer free simulated stock trading tools. These tools are a great way to get your feet wet, so to speak, without risking any money.

But first a word of caution. These tools are ideal if you are interested in investing in individual stocks or ETFs. If what you want instead is to invest in diversified mutual funds, go to Vanguard, Fidelity or a company like Betterment.

Table of Contents:

What Is Paper Trading, Simulated or Virtual Stock Trading?

Simulated stock trading allows you to trade stocks and options without risking your money. The brokerage firms listed below that offer this feature will create an account for you with essentially fake money. You’ll see a balance (typically $10,000 or more) that you can invest, but it’s not real money.

A virtual trading account is just like a regular trading account with an online broker. These virtual accounts can be helpful in several respects. First, if you’ve never bought stocks before, placing a simulated order first will enable you to see how the process works. This can be really helpful, as I recall being very intimidated when I placed my first order. Second, if you plan to trade options, a virtual account allows you to explore various options strategies in a test environment before risking your own money. Finally, a simulated account can be a great way to teach your children about investing.

Below are five popular online brokers that offer a free stock trading simulator.

4 Free Simulated Stock Trading Options (for Paper Trading)

TD Ameritrade

TD Ameritrade paperMoney is a paper trading application available as a downloadable trading platform. With paperMoney, every user has access to a virtual margin account and a virtual IRA each funded with $100,000 of “play money.”

TD Ameritrade offers additional benefits such as advanced order types and the ability to backest and idea to see if it would have worked in the past.

Optionsxpress

Optionsxpress probably offers the most tools of any online broker. You get a free $25,000 virtual trading account and the ability to use optionsXpress account screens, trading tools and resources to trade stocks, options and futures.

You get access to:

  • Free real-time quotes and charts
  • 40+ innovative trading tools
  • Online or desktop virtual trading
  • Advanced orders such as trailing stops, one-cancels-other, triggered orders, and future spreads
  • Download positions to track and analyze virtual performance
  • Glossary and education center

Trademonster

The Trademonster virtual trading account called paperTRADE is focused mainly on options but you can trade stocks as well. You can trade all types of options strategies from covered calls to iron condors. When you open your free practice account, you’ll receive $100,000 in paper money, access to powerful trading tools and the free learning center.

paperTRADE features Include:

  • Delayed quotes, charts and options chains
  • Adjust positions with adjustTRADE
  • Drag and drop customization
  • Performance charts, what-if /risk analysis
  • Stock fundamentals and report cards
  • Easy spread creation using spreadMAKER

Interactive Brokers

Interactive brokers is one of the best brokers for the more advanced trader who doesn’t require a lot (if any) hand holding. Their virtual trading platform is identical to their real platform (Trader WorkStation) and just as complex. They offer access to more markets and instruments that almost any other broker and at the lowest cost. If you are just starting out stick to one of the brokers mentioned above. However this is one of the benefits of virtual trading – you can learn the platform without fear of losing money because you can’t figure it out.

  • Resources available include:
  • Stock, ETF and fund screeners
  • Education center
  • Automated trading
  • Financial calculators

Compare Brokerage Accounts

Article comments

Hi Rob, I fully agree that all new investors should test out their trading skills on a simulated platform before risking any real funds, and these are good platforms you have highlighted, although I think most of the reputable brokers provide these now. I do smile when I see brokers advertising a ‘Free $1 million Practice Account’, as if they are actually giving something away!

Tools

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Advanced Charts – powered by TradingView

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Technical analysis

Scan and analyse the intraday markets using automatic chart pattern recognition and pattern quality indicators. Technical analysis (powered by AutoChartist) is a web-based charting application accessible on our OANDA Trade platform. Continuous intraday market scanning, performance statistics, market volatility analysis and more.

Economic overlay

Keep your finger on the trading pulse. Receive updates on important economic announcements and events directly from your OANDA Trade platform. Global economic overview, customisable view, reference results and more. Also available on OANDA Trade practice accounts.

Dow Jones FX Select

Dow Jones FX Select provides real-time breaking news, expert trend analysis, and in-depth policy commentary developed by a global team of Dow Jones business news reporters and editors. Available in a variety of languages.

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Spread betting account

Take a position on our full range of financial instruments with a spread betting sub-account.

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Financial trading explained

Financial trading is no different to any other form of trading: it is about buying and selling assets in the hope of making a profit. Here we discuss the key concepts, participants and markets involved in financial trading.

What is financial trading?

Financial trading is the buying and selling of financial assets. It is carried out in one of two ways: via an exchange or over the counter (OTC). An exchange is a highly-organised marketplace where you can trade a specific type of instrument. For example, you can trade US shares on the New York Stock Exchange (NYSE). When you trade over the counter, the trade is made directly between two parties. For example, buying a CFD contract from a trading broker such as IG.

What is traded in financial trading?

Financial instruments such as shares, forex or bonds, or derivatives such as CFDs, futures or options can be traded. Whatever the instrument being traded, the intended outcome is always the same: to make a profit. If you buy an instrument at a low price and sell it at a higher price, you make a profit. If you sell an instrument for less than you bought it, you’ll make a loss.

Who trades?

In financial markets, millions of companies, individuals, institutions and even governments are all trading at the same time. But what is a trader? A trader is defined as a person who buys and sells financial instruments with the aim of making a profit.

Some traders stick to a particular instrument or asset class, while others have more diverse portfolios. Some do lots of research before placing a trade, while others read charts and watch out for trends. But trades all have one thing in common – they all carry risk. Risk is a key concept to all types of financial trading. No matter what instrument is being traded, who’s trading it or where the trade takes place, balancing potential profit against risk is key to a successful trading strategy.

Which markets can be traded?

There are thousands of different financial markets to be traded, including shares, indices, cryptocurrencies and forex. IG offers more than 16,000 markets to trade, including more than 12,000 shares, 90 currency pairs and 30 indices.

Trading vs investing: what’s the difference?

The difference between trading and investing lies in the means of making a profit and whether you take ownership of the asset. Traders attempt to profit from buying low and selling high (going long) or selling high and buying low (going short), usually over the short or medium term. Investors will also attempt to profit from buying shares at a low price and selling high, but over a longer term. They may also aim to earn income in the form of a dividend.

A popular method of trading includes CFD trading, while investors can trade ETFs. When you trade derivatives, you do not own the physical asset, but when you deal in shares, you own them.

Trading Investing
Gain exposure to the full value of your position with only a small deposit Put up the full value of the investment
Speculate on short and medium-term price movements Speculate on short, medium and long-term price moves
Take a position on a fall or rise in value Profit only when your investment rises in value
Trade via an exchange or over the counter (CFDs) ETFs, stocks, futures and options are traded on exchanges; bullion requires a specialist

How to get started with financial trading

Open an account

Create a CFD account in minutes. Once we’ve verified your identity, add funds using your debit card, PayPal or via bank transfer. If you’d like to try your hand at trading in a risk-free environment, you can open a demo account.

Find an opportunity

Browse over 16,000 markets and make use of our extensive range of tools and resources to find your first trade. Then, choose which market you want to trade based on your experience and risk appetite. All trading involves risk, especially if you’re trading using leverage, which is why you need a risk management strategy to protect against unnecessary losses.

Open and monitor your first trade on a range of devices

Once you’ve completed these steps, it’s time to enter the market. When you trade with CFDs, you can speculate on both rising and falling markets. If you think the price will rise, you would open a position to ‘buy’, and if you think the price will decline, you open a position to ‘sell’. Your trading decision should be based on your analysis of the market and your trading strategy. You can trade on a variety of platforms, including PC, Android, Apple iPad and more. You can also utilise our powerful charts to spot trades and stay ahead of the curve.

Financial trading in summary

We’ve summarised a few key points to remember on financial trading below.

  • Financial trading is about buying and selling assets in the hope of making aprofit
  • You can trade cash instruments such as forex and shares or derivatives such as CFDs and options
  • Financial trading is carried out via an exchange or over the counter
  • Companies, individuals, institutions and even governments trade
  • A market that moves a lot is known as a volatile market
  • IG offers more than 16,000 markets to trade, including shares, indices, cryptocurrencies and forex
  • The difference between trading and investing lies in the means of making a profit and whether you take ownership of the asset
  • To get started with financial trading, you simply have to open an account, research your market, find an opportunity and then open and monitor your first trade

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.

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Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.

Best Binary Options Brokers 2020:
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    BINARIUM

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    Free Education.
    Free Demo Account.
    Get Your Sign-Up Bonus Now!

  • BINOMO
    BINOMO

    Recommended Only For Experienced Traders!

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