Updated June 19, 2023
A good worker may never blame his tools, but the tools of trading are essential for making profits. The market has many choices, from free trading tools to their paid counterparts.
If the stock market is a pack of cards, the ace is none other than tools that calculate investment performance and monitor fees and asset allocations. With these complex trading tools, handling and tracking your investments was always more difficult. So, how do you choose the best option?
Trading Tools
1. Personal Capital: Linking Investors to Their Accounts
Personal Capital en-cashes on an investor’s capability of linking virtually to any investment account. It includes investment accounts such as retirement and taxable accounts. Once these are linked, allocation, fee, and performance are tracked using this single trading tool which offers multiple benefits.
Graphs ensure that it is easy to compare returns and understand asset allocation. This trading tool also offers a 401k Fee Analyzer which calculates the effect of fee payment across a time horizon. Free apps for smartphones and tablets are another positive feature of Personal Capital. The best things in life are free, and this investment tool is one of them.
2. Morningstar: Dawn of a New Era in Investing
Morningstar offers a lot of benefits. To elucidate further, it is one of the most robust tracking trading tools which can use today. Once you enter your portfolio, Morningstar makes trading tools to evaluate the investment available. Morningstar includes the following tools- performance and investment cost tracker, comparative index tracker, and more advanced trading tools such as star rating.
An award winning feature of Morningstar is its X-Ray tool which enables users to observe details of a portfolio of mutual funds or exchange traded funds. It will highlight the portfolio’s asset allocation, stock sectors, style box rating, industry sectors, and geographical exposure.
The only drawback of this trading tool is that it does not directly link to the investment account. Unless you acquire, portfolios must be manually input into a premium membership.
3. Budgeting Software: Finance Apps that earn Profits for You
Budgeting tools may appear to be an offbeat way to track investments, yet several trading tools can help you to track how much you spend and invest in the markets. These finance apps will make life simpler and complex investments easier for you.
You can manage all your bills and payments in one place, check the prices of commodities, and control your stock portfolio with unerring accuracy and precision using these wonderful apps:
BlackGold: Adding a Shine to your Investments
This finance app enables you to track crude oil, natural gas, gas, and heating oil prices. BlackGold provides silver, state-wide gasoline tracking, and an ergonomically designed user interface. This app is compatible with iPads, iPods, and iPhones and requires iOS 3.1.3 or more recent versions.
Pageonce Money and Bills: Multiple Benefits
Don’t think twice about downloading Pageonce Money & Bills, an app that allows you to track all finances in one place and gain reminders for due bill dates apart from monitoring your investment transactions. This app is compatible with iPhones, iPad, and iPods. It requires iOS of 3.0 or later versions for best results.
Venmo: Pay for your Investments in one go
Forbes magazine has called this the crown jewel of all finance apps. This app links the bank account or trading account to the device. Its rich reporting interface plus zero payment transaction fees is a major value addition. Venmo works equally well with iPad, iPods, and iPhones and requires iOS 3.1.3 or later.
Wikinvest Portfolio Manager: The Portfolio in the Palm of your Hand
Wikinvest Portfolio Manager ensures the complete portfolio can be accessed within the palm of your hand so that you can pocket good profits through regular tracking. This finance app imports brokerage holdings automatically and helps investors stay on top of market news. It works with all Apple devices and needs iOS 3.0 or more recent versions.
4. Financial Ratios: Making Sense of Financial Data
Interpreting numbers in the markets is more of an art than a science, but it is hard to master. Financial ratios help make sense of numbers and the company’s financial statements. They also help to isolate important bits of information and combine them into a meaningful whole.
Price Ratios: Assessing if the price is lucrative
Price ratios assess if the stock’s price is reasonable, easy to use, and intuitive. These are relative metrics used to compare the financial performance of two companies, the company over time or the company’s ratio to a benchmark. The various type of price rations includes the following:
- P/E or Price to Earnings Ratio
- PEG Ratio
- Price to Sales Ratio
- Price to Book Ratio
- Dividend Yield
- Dividend Payout Ratio
Profitability Ratio: Assessing if Profit is Sizable
As the name suggests, profitability ratios indicate how efficiently a company converts business operations into profits. Profit drives the stock price, and this financial metric is an essential tool in business, finance, and investing. The various types of profitability ratios are as follows:
- Return on Assets
- Return on Equity
- Profit Margin
Liquidity Ratio: Assessing if Short Term Obligations will be Met
The liquidity ratio shows how capable a business is of meeting short term obligations. Why is liquidity important? It is because a company with adequate liquidity for paying short term debts may also make favorable decisions to raise money. Tough times don’t last, but financially healthy companies do. The various types of ratios are as follows:
- Current Ratio
- Quick Ratio
Debt ratios: Assessing if Long Term Health is Nurtured
These ratios are concerned with the long term health of a particular business through the impact of its capital and financial structure. There are various debt ratios, such as :
- Debt to Equity Ratio
- Interest Coverage Ratio
Efficiency Ratios: Assessing if Company’s Resources are well Used
These ratios assess how efficiently a business employs resources in investing fixed assets and working capital. It mirrors the efficiency levels of the company’s management besides reflecting on its financial performance. The various types of efficiency ratios are:
- Assets Turnover Ratio
- Inventory Turnover Ratio
5. Portfolio Management Software: Adding to growth
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Investors build wealth using the investment portfolio as a base. When the portfolio is small, freeware database tools may suffice. Investors and traders will find that there will come the point where basic trading tools will no longer meet fundamental portfolio management software needs.
Investment portfolio management tools enable investors to track, monitor, manage, and analyze their portfolio investments. Independent portfolio management software program provides consolidation, and to understand its value, you have to comprehend how this simplifies multiple investments across multiple accounts.
A unified investment portfolio management program enables consolidation, tracking, management, and analysis of the complete portfolio using a central trading tool.
Quicken Premier Portfolio Management Software: X-Ray Interface
Portfolio management software users who prefer using desktops will find Intuit Quicken’s Premier 2015 software will rapidly improve their investment management efficiency. This software assists in managing money and provides macro portfolio tracking and performance review features to monitor and compare products in your investment portfolio. This software is equipped with state of an art X-ray interface.
This portfolio management software is costly but makes up for its price by generating healthy profits. This software also provides a lot of conveniences. You can import transactions from numerous online platforms, track cost basis, estimate capital gains while selling a holding, and optimize portfolio management.
This is one of the top rated investment portfolio software. This trading tool showcases portfolio performance apart from buying and selling decisions. It also displays updated portfolio values and tracks cost basis and capital gains.
Investment Account Manager: Extensive investment tracking
Investors looking for a top-rated portfolio management software that does a lot more will strike gold with Quant IX Software’s Investment Account Manager Professional, which is suited for investment tracking and portfolio management.
You can have centralized portfolio management for stocks, ETFs, mutual funds, bonds, options, cash, etc. Professional money managers and inventors worldwide have used the software since the 1980s.
The centralized, secure portfolio lets users see accounts in one place. Multiple portfolios can be combined on a single report, generating customizable reports.
The software has an easy means of being set up and duplication apart from easy price securities to monitor and track your investments. Detailed transactions account for purchases, sales, dividends, expenses, interest, universal stocks, and split dividends. Spin offs and more are available through this investment account manager.
The platform is associated with high quality chart graphics that plot your portfolios’ performance, asset allocation, income, diversification, maturity schedule, and more.
Fund Manager Portfolio Management Software
Individual investors, professional money managers, and active trading. These features will be used to manage and track a wide portfolio comprising funds, stocks, bonds, and other investment vehicles on the growth path. Fund Manager is a comprehensive portfolio management software program with versions for investment advisors.
The well formatted Portfolio Editor employs a Windows Explorer interface to manage investments and numerous portfolios. Different graph types and report types are available from this software. This software also offers advanced portfolio management features and the ability to export capital gains information.
Personal Portfolio Manager Software
From OWL, individual and professional portfolio managers can use this neat investment and portfolio management software. This analytical and investment portfolio management software tool is meant for individual investors or traders. PPM enables investors to manage and track portfolios. Multiple portfolios can be set up using the features of this system.
Stator Portfolio Manager Software
It is an efficient portfolio management software keeping traders in mind. This trading tool has facilities for complex charting and sub groupings for analysis and management purposes.
6. Accounting Management Software
It includes solutions for managing the investment portfolio apart from accounting, reporting, and client-related tasks. Key features include GIPS-compliant performance reporting presentation, and a wide range of securities are covered. Some of the best accounting management software include FC Portfolio by FundCount, Prospero by Sage, QED, and many more.
7. Benchmarking Software
This includes web based CRM solutions with industry specific capabilities for management of office operations such as Dynamo, FrontPM, FrontERM, Front GP and more.
8. Equities Software
Stock screening software covering securities, namely fundamental and technical screens, comes under this trading tool. Broker neutral multi assets trading platform software is also a popular choice. This software also provides wealth management, financial advisors, and private banking services.
9. Risk Management Software
Risk and portfolio analysis associated with equity and mutual fund portfolios for corporations’ money management and financial departments will be available through software like Kraytis risk analyzer.
10. Android Apps for Investing
Bloomberg for Smartphone is a unique app providing unique news and analytical content, up-to-date market data, and portfolio tracking tools. It is only one of the many investment related Android apps that can work well on smartphones.
From stock markets to commodities prices and the bond market, this app covers just about everything. Another popular Android app is Stock Market Heat Map which visually gauges the super performers and under-performers in the market. App based social networks like Scutify are also a good idea because it represents a community of investors who give useful insights.
Conclusion
Stock market trading is not about just the right techniques. Having the correct trading tools is equally important. If you want to be a successful investor, these tools can help you get there. Make a smart choice and watch your investments multiply! Investment vehicles only drive growth if you have the right trading.
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