Trading computers range from standard computers available at any computer store, to custom built computers with multiple CPUs, terabytes of hard drive space, and support for eight screens. However, from a trading perspective, trading computers only need to be able to perform a few tasks, such as running trading and charting software and accessing the Internet, perhaps in addition to any basic non trading activities, such as web surfing and email.
Minimum Specifications
Trading computers can be any make and model, but should meet the following minimum specifications so that they are fast enough and reliable enough for trading (especially short term trading styles such as scalping and day trading):
- Operating System : Windows XP or Vista (also UNIX but with less trading and charting software choices)
- CPU (Processor) : Intel Celeron or AMD at 1.0 GHZ
- Memory (RAM) : 512 MB
- Hard Drive : 30 GB (tick data does not take up very much space)
- Screen Size : 15 " (38.1 cm)
- Screen Resolution : 1280 X 800
- Network Interface : 10 / 100 Mbps (Ethernet or Wifi)
The most important features are the CPU speed, the memory, the screen size, and the screen resolution, which should all be as high and large as possible. The more powerful a trading computer is, the more markets and charts it will be able to handle, so beginning traders can usually use less powerful computers, while more experienced traders may want more powerful computers.
Computer Style
Some traders prefer desktop computers, while others prefer laptop (notebook) computers. Both computer styles are equally suited to trading, so the choice can be based upon other criteria. For example, if price is the most important criteria, a desktop computer will cost slightly less than a laptop computer, but if portability is more important, a laptop computer is obviously the better choice.
Operating System
Windows XP or Vista (XP preferred) are the recommended operating system, because most brokerage provided trading software, and most charting software, requires Windows XP or Vista. Some trading brokerages offer trading software that is compatible with Unix and Mac operating systems (such as Interactive Brokers), but Windows XP or Vista will give you the widest choice of trading brokerage, and of trading and charting software.
