Top 20 free day trading tools and software you should know

Types of trading tools and how to use them

Day trading requires the use of a variety of resources, including tools and services. These tools are essential because modern trading is electronic. Manually analyzing trades, spotting market shifts, determining your level of risk, and reviewing trading performance will be challenging. But with the help of some top tools for day traders, you can simultaneously carry out the above tasks while you trade.

You are already using trading tools on a fundamental level if you have a laptop and internet access. Other day trading tools to integrate to make trading productive are:

Let's look at some of these trading tools and their examples.

Technical analysis tools for day traders

If you understand the technical analysis process, it will be easy to decipher complex data to facilitate decision-making. Technical analysis is a skill that gets better with practice and study. But to see the progress, you need certain programs for day trading. These tools for day traders assist traders in forecasting future prices based on historical price trends.

Here are some examples of top technical analysis tools for trading:

Indicators

Indicators are statistical tools used by traders to forecast financial or economic trends. Generally speaking, indicators are technical chart patterns that are based on a security's price, volume, or open interest. In the current market environment, these indicators help to make the market more understandable and make it simpler to spot patterns and buy or sell signals.

Indicators are grouped into trends, channels, oscillators, forecasts, etc.

Trade advisors

Trading advisors can execute trades for you following the instructions you've previously programmed in them. This system, which monitors the foreign exchange markets, automatically generates signals when trading opportunities are present. Trade advisors are unpredictable, but they can be helpful if you comprehend their various uses and methods of application.

Among the top advisors, you must use our grid, trend advisors, scalpers, etc.

Scripts

The script can perform analytical and trading tasks, and you can use it to close out all of your positions at once, speed up your process, and become a variable spread broker. To determine the spread and minimum distance allowed by your broker for the specific pair, you can use specialized scripts and dashboards.

They assist you in determining whether a chart is trending or stationary by drawing attention to all swing highs and lows. Grid, trend advisors, and scalpers are three popular script types.

Day trading tools: fundamental analysis instruments

Finding a financial instrument's intrinsic and true value is the goal of fundamental analysis. A crucial aspect of fundamental analysis is the use of economic data and central bank policies. Most fundamental analysis software heavily favors earnings, growth, and market value.

News portals and feed

Another important fundamental analysis program for day trading is the news portals and feeds. You can obtain up-to-date information from sources like:

Screeners

Screeners are real-time visualizations of the stock market and Day trading tools for spotting patterns used by day traders to find trading opportunities quickly. Screeners enable you to examine shifting currencies. You can use these tools to concentrate on currency pairs that have specific volumes or are experiencing specific levels of volatility.

Top screeners' tools for day traders include:

Day trading tools: graphical analysis

A graphical analysis tool for day traders helps traders read market sentiments via patterns and signals. You can recognize market trends and make more accurate predictions about how the price of an asset will develop. This allows traders to time their trades and choose the best entry and exit points.

Autochartist

Autochartist is a top tool for day traders. It is used to spot chart patterns using technical tools like Fibonacci retracements. Even at the odd hours of the day, this tool can help you become familiar with trading opportunities. It keeps an eye on the markets around the clock and alerts you to profitable trading moves.

Indicators for finding patterns

The use of indicator tools for day traders, which are accessible for use with different trading platforms, can help day traders quickly locate precise chart patterns on different currencies. Using these day trader tools will save you the time it would take to manually trace these patterns.

Examples:

Day trading tools: instruments for passive investment

An instrument for passive investment is among the best day trading tools traders should integrate. By minimizing buying and selling, passive investing tools for trading helps traders maximize returns.

Social trading platform

Social trading is a form of investment that first started to gain popularity in 2010 with the launch of eToro’s platform. The social trading platforms follow the principles of social media: communication, exchange of knowledge, mutual help, and partnership.

Copy trading systems are used as an add-in to the social trading platforms on Forex. They enable the members of the community to earn money jointly.

Novice traders without knowledge and experience have an opportunity to subscribe to the signals of professional traders and copy their trades either manually or automatically.

In exchange, expert traders gain a high social status in the community, and as a rule some commission from the return.

PAMM-accounts

Systems of Forex PAMM brokers in 2023 are significantly different from those systems that traders used 5-10 years ago. At that time, systems were called LAMM accounts - Lot Allocation Management Module. The difference is that with the LAMM system the manager’s order is simply duplicated for each investor. That is, investors deposit an amount equal to the amount deposited by the investor. Using this system is advisable only when the amount of funds in the accounts of all participants are approximately the same.

PAMM accounts are popular because orders are not copied. The investor’s rate can be any percentage. If it is less, he risks less money, but the profit in case he wins will also be lower. Rates for investors are usually determined by the manager. Note that different PAMM brokers may have different conditions.

Trading signals

Any outlets that help investors by sharing daily signals can be classified as signal providers. They could be daily trading signals websites, specialist Telegram channels, or social media feeds. At the provider’s discretion, the daily signals can be shared for free, or could be locked behind a fee.

Pros

The pros of these day trading signals providers are the ease and availability of the information. You can often expect multiple updates a day that help you trade and invest wisely.

Similarly, anyone who is learning how to invest smartly can learn daily signals easily with these channels and solutions. By leaning on the expertise of experienced investors, you can maximize your portfolio’s performance while gaining a deeper understanding of how daily signals work for yourself.

Cons

The cons of day trading signals are worth keeping in mind too. The biggest of these is that even the best day trading signals aren’t foolproof. Even the wisest investor makes a misstep from time to time, and sometimes this happens due to unpredictable shockwaves affecting the market.

You should always, as with any investment opportunity, do your own research and stay wise against scams. Although the solutions and advice we have listed below have been checked and vetted, there are bad actors out there keen to get their hands on your wealth by dishonest means. Stay vigilant.

Day trading calculators

The Trader's Calculator, also known as the Forex Calculator, is a potent tool that enables you to manage risk and quickly and easily estimate your potential profit before opening a trading position. It will assist you in making the best trading choices before opening positions for the selected instruments.

1. Pip value calculator and Lot calculator

The Pip Value Calculator precisely calculates the pip value for forex pairs, indices, and cryptocurrencies. It also checks the pip using real-time market quotes, the account base currency, the lot size, and trading pairs. To determine the value of a pip, all you need is your base currency, the currency pair you are trading on, the exchange rate, and your position size.

2. Volatility calculator

Using the Forex Volatility Calculator, you can determine the historical volatility for both common and uncommon pairs over different time frames.

Volatility is a statistical indicator of the dispersion of returns, and it measures how much an asset's prices fluctuate around the mean price.

3. Correlation Coefficient Calculator

Correlation is frequently used to verify that an analysis is accurate. The covariance and correlation calculators compute the correlation and assess the result's significance.

Other day trading tools

Aside from the day trading tools listed above, there are other tools for day traders; and they help to make your trading experience satisfactory. These tools for trading include:

Economic calendar

The best day trading tools for learning about major financial events globally include an economic calendar. It's a crucial asset for day traders who use fundamental analysis. It is incorporated into some of the best trading platforms, including TradingView and MetaTrader 5 (MT5), and helps reduce the risk of making rash decisions.

Before opening positions daily, experienced traders check the Economic Calendar. It is a way to learn the precise times for all announcements and exchange rates.

Financial reporting calendar

A key tool for day traders is the financial reporting calendar because reports from the US and other nations can affect currency pairs. The finance calendar's main objective is to support currency traders who base their decisions on fundamental analysis. These reports concern the Gross Domestic Product (GDP), the Consumer Confidence Index, the Consumer Price Index (CPI), and the Trade Balance.

Market sentiment

A market sentiment tool is one way to learn about how the market is moving and how that will affect trading trends and price fluctuations. Market sentiment is a day-trading indicator of anticipated volatility or price changes. Due to its ability to alert users to potentially dangerous situations and price reversals, this is one of the best day trading tools.

Heat map

The heat map tools for day traders is yet another essential tool for day traders. It depicts price activity using three visual symbols and parameters (color, brightness, and area). This tool aids traders in locating the actual orders being placed in the market. Marketers use heat maps to identify trends in website usage and make data-driven adjustments to improve conversion rates and revenue.

Pivot Points

A pivot point tool is necessary if you want to calculate the market's overall trend over various time frames or use a technical analysis indicator. The pivot point itself is just the average of the high and low prices for the current trading day and the previous trading day's closing price. Additionally, using pivot point levels in your forex trading is as simple as using regular support and resistance levels as your guide.

Trader's Diaries

Every source you use to learn about the previous pattern or market movement is crucial when trading. A trader's diary tool will give day traders a historical perspective. It serves as a database for your performance and provides a quick snapshot of your trading account's status. As a result, it allows you to assess your trading history.

This tool informs traders about profitable trades, the currency pairs that performed best for them, and even the time frames that produced the highest profit margins.

VSA analysis tools

Tools for volume spread analysis consider candlestick spread and volume, which are the foundation for the data used in strategic planning. A special platform is available to users, and it searches for differences between supply and demand while allowing users to create custom analytical and graphical reports.

This tool for day traders allows you to determine the trends and weak points of an uptrend as well as whether or not it will continue. A skilled trader can use these resources to ascertain when the market is in any of these phases:

How to Choose tools for trading

The first step is to select a reliable trading platform. Brokers with sophisticated trading platforms frequently incorporate free trading tools that traders can use while trading.

Top trading platforms offer some of the best day trading tools that a trader needs. However, you can add various trading tools to the platform as add-ons. Some brokers offer tools that provide traders with the following:

Having the right mix of trading tools is more important than integrating many of these tools. You'll need a broker, trading software, charting software, scanning software, and other tools.

A trader may favor trading by patterns, the news, or another strategy. As a result, when choosing tools for day traders, base your decisions on trading techniques and the tools that meet the requirements. A trading platform's toolset and ability to integrate with different add-ons are advantageous to a trader.

Best brokers with maximum functionality tools for trading

1

9.4/10

Go to broker

eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. Don’t invest unless you’re prepared to lose all the money you invest.

Minimum deposit:

$50

Bonus for deposit:

0%

Regulation:

CySEC, FCA, ASIC

Review

The eToro broker was founded in 2007. The company promotes itself as a social trading platform working with traders from over 140 countries. The broker has several divisions operating under different jurisdictions and licensed by different regulators. For example, eToro (Europe) is licensed by the Cypriot regulator CySEC (109/10) and eToro (UK) is licensed by the British regulator FCA (583263). The broker also has a representative office in Australia and the USA. eToro Profile Details

Pros/Cons

•the minimum transaction amount for copying is $1;

•handy functionality for passive investing;

•regulated by independent monitors;

•it is possible to purchase contracts for fractional shares (that is, to invest amounts less than the cost of one share);

•it is possible to buy shares at once (not CFDs) on the US stock exchanges.

•high spreads;

•periodic technical failures in order execution;

•lack of the most popular platforms such as MetaTrader 4 and MetaTrader 5 in Europe and the CIS;

•no access to ECN systems, orders are processed only according to the STP (straight-through processing) scheme with access to specific liquidity providers;

•there is a commission for withdrawing funds;

•impolite support staff;

•inconvenient website.

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2

9.2/10

Go to broker

Your capital is at risk.

Minimum deposit:

No minimum

Bonus for deposit:

0%

Regulation:

FSC (BVI), ASIC, IIROC, FCA, CFTC, NFA

Review

The name OANDA is an acronym for “Olsen & Associates” or “Olsen AND Associates”. It is registered in the United States and provides its clients with a wide range of financial services in most countries of the world. The company was founded in 1996 and is currently regulated in four jurisdictions. The main regulator of the broker is the UK Financial Conduct Authority (FCA). Oanda Canada is licensed by IIROC. The company has several significant awards to its credit, including a victory in the category "Best Forex Trading Technologies" from the UK Forex Awards, "Best Trading Platform" from FX Week, as well as "Best Customer Service" from the US Foreign Exchange Report.

Pros/Cons

•Minimum deposit from 1 dollar.

•A large selection of the most popular trading instruments.

•Several reliable and reputable financial regulators.

•Inconvenient and poorly functioning site.

•Lack of cent accounts.

•Lack of bonus programs.

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3

9.1/10

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Minimum deposit:

$1

Bonus for deposit:

0%

Regulation:

FCA, BaFin, ASIC, MAS, CySec, FINMA, BMA, CFTC, NFA

Review

IG Markets has been providing brokerage services for retail traders since 2014. It was established in 1974 in London to work with professional traders. It is a part of the IG Group with representative offices in 17 countries. IG Markets stocks are traded on the London Stock Exchange as a part of the FTSE 250 index. The broker is regulated by FCA (Financial Conduct Authority | the UK), CySec (Cyprus Securities and Exchange Commission), ASIC (Australian Securities and Investments Commission), BaFin (the Federal Financial Supervisory Authority | Germany), FINMA (Swiss Financial Market Supervisory Authority), and NFA (National Futures Association). The IG Group global representative office is supervised by BMA (the Bermuda Monetary Authority). The broker provides services of trading Forex and different CFDs through MetaTrader 4 and its in-house platforms for retail and professional traders.

Pros/Cons

•Regulated activities and participation in compensation funds;

•No minimum deposit requirements when opening an account with the international division;

•Leverage is available for trading currencies and CFDs;

•Wide range of trading assets and markets;

•Fee rebates for new and active existing clients with large trading volumes;

•Floating spreads from 0.6 pips for retail Forex traders;

•Bonuses for new clients and partnership programs for different client categories.

•The broker can reject opening accounts to traders with low capital or insufficient knowledge of derivatives trading;

•Deposits and withdrawals can’t be made with e-wallets, electronic payment systems, or cryptocurrencies;

•Trading conditions differ for various countries, so you have to look for the broker’s website in your country.

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