Which Platform for Stock Trading?

[angelaktariel 10]

I know there are quite a few platforms out there. I am new to this, and currently use Ameritrade and their platforms. I trade stocks and plan on doing it full time, so I am looking into which platform would be the best for that. I know some platforms are better for futures, options and other trades, but I would love to hear what would be the best for stocks. Interested hearing what my options are and feedback from you guys. The good and the bad, so I can make somewhat of an educated decision.

 

Thanks,

Eva

[stanlyd 10]

I like Think or Swim and Interactive Brokers. I know we will hear about the terrible customer service with IB and yeah, it's true. However it's nice that they will allow you to have a universal account for trading multiple products so thats nice for a new trader qwho wants to try things out with small capital. You will need some good charting also. I have been using esignal for two years and every month I plan to look at another package but I keep putting off. Not that esignal is bad. I actually like it but it seems more expensive then some of the others.

[angelaktariel 10]

Hello Jay,

 

I have heard of Think or Swim and IB (yes, I read about their bad service..is that going to get better???) I will check both of them and Esignal as well, as I know a lot of people are using them for charting.

 

So, tell me, what do you like about Think or Swim? And I would like to have the ability to trade multiple products eventually, as nothing is written in stone.

 

The other question I have, are these platforms have month to month fees, or do they expect you to sign yearly contracts? Also, I know some don't charge if you trade certain amount per month. I guess I will check them out and see what options are available.

 

Again, thanks.....

Eva

[james_gsx 16]

A few things I would think about coming from someone who always seems to be moving money. It's a serious pain in the ass so make sure you pick the right place.

 

1 - What do you trade?

Do you just trade stocks or do you trade options and futures?

 

2 - How do you trade?

Are you day trading equities, position trading, or swing trading? If you are just trading stocks and plan on keeping to that then you have no reason to move. I know all the charts are cool, but in reality you don't need them since there are so many ways to get free charts.

 

3 - What do you plan on trading?

Do you plan on trading multiple vehicles such as futures, options, and stocks? If you want to trade futures then you will need a broker with solid charting software. If you want options you will want a broker that will be filled with options data, etc.

 

4 - Do you have a budget?

Some of them are expensive and they eat away at your bottom line faster than you will imagine. This is annoying when you are starting out because you think you are a horrible trader losing all your money. Then you look at the bottom line and realize all your money is going to your broker for all those fancy charts and indicators

 

If you are just trading equities and even swing trading them then stick with TD Ameritrade unless you find a really good reason to switch. Most brokers offer pretty good charts and other tools that will be more than sufficient. I personally use Trade Station for futures (soon to change) and Fidelity for stocks and options. Fidelity is simple, I can buy and sell then check on my positions and that's all I need.

 

If you take the route I see most newbies take then you will most likely meet options in a few weeks. In that case I like Think or Swim since you can do equities and options, and they have a pretty good charting platform. Go check out their website for a free demo and see how you like it.

 

At the end of the day the hard reality is you don't need real time quotes. They are nice to have, but if you are swing trading it will only add to the emotion sitting there watching every tick of a stock if you plan on holding it for a few days/weeks. So if you currently have a broker that offers free streaming quotes and it's simple to use, then stick with that. Otherwise you spend more time looking for new brokers and services and less time trading.

[torero 10]

It depends on the style you're trading. If you scalp or at least short-term trading, Ninja with its DOM matrix is very good and fast. But if you plan on taking on trades that last a few hours to a day or more than, any one will do. It comes down to keep your commissions down, good and immediate support and reliable uptime.

[Trvlwanderer 10]

Don't forget to research interest rates on idle money is paid. Sitting on a base of 50k for trading while getting less than 3% is giving away money. Also look at margin rates and amount of leverage for daytrading.

 

There are many front ends for IB if you go that route. Quotetracker for charts, button trader for execution for example.

 

Also, if you periodically "skim" those profits, insure you can get your money when needed and check the fees for transfers.

[angelaktariel 10]

James, thanks for posting such detailed message to try to find out how to help me best. Here are my answer to your questions:

 

1. & 3. Right now I only trade stocks, but I know I will be interested in options down the line most likely.

 

2. I plan on daytrading (not scalping) equities.

 

4. As far as the budget goes, I really don't know what is out there, so I will check out the places you guys are recommending. Right now the only charge I get is the 9.95 charge per trade, and I do like Ameritrade's Command Center so far and their Strategy Desk offers back testing, however I haven't put that to use yet, so don't know how important that will be. I agree with you as far as commission and such go, don't really want to waste money, make a broker rich and not have profit left for myself, so I have to be smart and have the right reason why I pick one over the other. That is why I am asking for opinions here.

 

Anyway, I guess to sum it up, I am looking to daytrade equities and as you mentioned as I am a newbie, looking at options as well.

 

Let me know what you think....

 

Thanks,

Eva

[angelaktariel 10]

Trvlwanderer - thanks for the tip on looking at the interest rates and margin rates and such, not to mention the insurance. That is not even something that has entered in my mind, so I appreciate you pointing it out.

 

Eva

[5KOptions 10]

Think or Swim is the best trading platform for options available today. I've traded with CyberTrader, ScotTrade, Fidelity, OptionXpress, TradeStation... You will want the desktop, downloaded software. The web based version is good but the speed compared to the desktop version will kill you, but when away from your computer it will do. Stock trading is very simple also as you can create an order from any screen you are on, buy or sell, opening or closing. You can trade any product from an account. The one warning I'll give is the first time you open it up you may not know what to do with what you see. They have numerous toutorials which help. You can also use a "paper account" to practice and learn to use it and test your trading ideas before risking money. It's designed by and for porfessional floor traders and they don't look at trading like we do. They also offer free or almost free classes. It has great charting with all the usual indicators. The charts are "detachable" and you can have many open at once and create trades right off the chart. They have a trade desk you can call for help and they will tell you what they think about a trade your are in or thinking about entering. They can and will give advise, as all are qualified and traders themselves. You will have to begin opening an account to get a trial of the software. This can be done all over the net. Check it out you won't be disappointed. They will match or beat anyone's pricing except IB and those like IB.

[angelaktariel 10]

Thank you 5KOptions! I am definitely checking out ThinkorSwim! I know someone who trades options and she recommended it ThinkorSwim as well. I don't know her that well, but I think I will give her a call and see if I can come by to see her system. Thank you for giving me your reasons why you like them, it certainly helps me!!!

 

Eva

[mikejonessmith 10]

I know there are quite a few platforms out there. I am new to this, and currently use Ameritrade and their platforms. I trade stocks and plan on doing it full time, so I am looking into which platform would be the best for that. I know some platforms are better for futures, options and other trades, but I would love to hear what would be the best for stocks. Interested hearing what my options are and feedback from you guys. The good and the bad, so I can make somewhat of an educated decision.

 

Thanks,

Eva

 

 

Angle I am interested in the platform you selected ?? and the broker ???

[angelaktariel 10]

I ended up using Tradestation and so far I like it, don't have any major issues. I had a lot to learn, but I got used to it already. Let me know if I can help you answer any other questions.

[mikejonessmith 10]

I ended up using Tradestation and so far I like it, don't have any major issues. I had a lot to learn, but I got used to it already. Let me know if I can help you answer any other questions.

 

Angle (Angela)

 

thanks for your comments ... I too will look into that one ...

[igotyofire 10]

i just signed up with scotts trade today, well see how it goes, completely new to the subjects of stocks

[stanlyd 10]

I am not sure if that broker is a direct access broker. If your daytrading stocks you will want to be able to route your orders how you choose. Just food for thought.

[mikejonessmith 10]

I am not sure if that broker is a direct access broker. If your daytrading stocks you will want to be able to route your orders how you choose. Just food for thought.

 

Can you tell me more about this ... I found myself researching the subject ??

 

Thanks

[stanlyd 10]

Well its just about having the luxury of dealing with the ECN or the market maker whom is offering what you want. So this will allow you to see through level 2 whom is offering what you want and for the best price. Then you can place you order directly to that market maker or ecn,trader or whatever specifically. Otherwise you really have no idea where your broker would be routing your order.

Let me try to explain. Say you want 1000 shares at .50 you see on level2 that a MM and an ECN have only 600 (400 from one and 200 from the other) at .50 offered and the next offer is at .62. Well you wouldnt want to place a market order and get 600 filled at your price and the rest at the "best price they can get"(.62) Know what I mean?

I'm horrible at explaining this stuff, but basically it means you can trade direct with whom you want , whether it be a ECN,MM, trader. It also is useful in getting your trades executed quick. With some brokers they actually route the orders through market makers anyway so you using the broker as a middleman so to speak. They make all kinds of deals with MM's and other online brokers to share in the profits of filiing orders but it's not always in your favor how they get that job done. If your not day trading then it may not really matter. If your going for .20 ,.30 moves then it's important. Commissions will also not be the same, they will be a bit more depending how much you trade.

Here is more on the topic.

[igotyofire 10]

Quotes from elitetrader forum

 

"Why are you day trading with scottrade?....get a direct access broker. Scottrade is for swing/position traders mostly.

 

good luck

 

- nathan"

 

"Lina as you become more sophisticated in the mkts, you will naturally want to leave scottrade.... just like a baby bird leaves the nest. scottrade is ok for swing trade, but not daytrade. If my memory serves me right, you can not place a stop under .25 cents. Also tools like VIX, TRIN, TICK, Put Call, and Adv/dec are not available on scottrade. You, better than anyone else will know when its time to move on. Its ok for now, since your just starting out, but as your lil wings build strength.... you eventually will fly to greener pastures. Good Luck."

 

so im guessing i can just get my feet wet if i so choose but need to look elsewhere,heh

[smwinc 20]

"Lina as you become more sophisticated in the mkts, you will naturally want to leave scottrade.... just like a baby bird leaves the nest.

 

...

 

so im guessing i can just get my feet wet if i so choose but need to look elsewhere,heh

 

Exactly.

 

The general progression people tend to make is from a "general" solution to more specialised solutions, as their needs widen:

 

1. trading with "all in one" software for charts, orders and your broker/clearing firm. Usually a market-maker.

 

2. using specific software for charting (e.g. Tradestation, Ensign Windows, etc), and different software to process orders (e.g Interactive Brokers, Infinity Futures, etc.)

 

3. Using one computer with specific software for charting, and one computer with specific software for placing trades.

 

4. Using one computer & one internet connection for charting, and one computer with a dedicated network for placing trades.

 

5. using one computer & one internet connection for charting, and one computer with a dedicated network for placing trades through software, which communicates with your own private clearing firm (e.g. Infinity AT clear through TransAct futures. If you use software such as TradingTechnologies, you nominate your own clearing firm.)

 

As your trading progresses, your needs progress. This is fine and a normal process. When you just start trading with a Simulation account or 1 lot's, your not going to go out and buy 2 new computers and start needing 30k a year just to cover costs.

 

The only issue comes when someone at stage (1) is trying to copy what someone at stage (3) - (5) is doing.

 

I.e. If you don't have a risk management plan - back up internet connection, computer, phone access, back-up trading account - don't trade with size that would send you bankrupt if one or more of your trading tools failed (because it happens to everyone, eventually).