Historically, those who wanted to invest or trade stocks were often told to leave it to the professionals. They do the research, have the resources and know the right stocks to pick. It’s their job, it’s all they do.
But this isn’t necessarily the case in the 21st century.
Today, the popularity of stock trading is at an all-time high and it is mostly conducted by individuals–not stock brokers. But this doesn’t mean everyone should do it.
The fact is most of these traders will lose money either from a lack of experience or lack of research. Those who aren’t willing to put in the hard work necessary to find success should leave it to a professional.
Unless they have a reputable stock screener. In this article, we’re going to give you a general overview of the importance of stock screeners when trading.
And, as always, check out Modest Money’s five best stock screeners for a more detailed comparison.
Stock Screeners Explained
A stock screener is an essential tool for traders of all levels–whether you’re making your first trade or you’ve been doing it for years.
Stock screeners allow traders and investors to examine thousands of individual stocks to find ones that match their strategy. All of this is completed in a matter of seconds.
Furthermore, the more you put a stock screener to use, the better you become at narrowing down and finding the best investment opportunities for yourself.
Best Stock Screeners to Potentially Employ
It’s a well-known fact that streaming services, hand sanitizer and toilet paper companies saw a dramatic increase in business during COVID-19. What’s not common knowledge, however, is that stock trading did the same.
In 2021, stock trading apps generated $22.8 billion in revenue and over 130 million people used these apps–a 49% increase from 2020.
We also frequently read that 90% of stock traders fail to make money over time. If this number is accurate, that’s 117 million people who failed in 2021.
This further emphasizes the need to gain knowledge and experience. Specifically, the need for a stock screener.
Here are a few of our favorites:
Created in 2003, Trade Ideas was founded by a group of financial entrepreneurs to meet the demand for DIY investing.
One of the fastest-growing stock screeners in America, Trade Ideas employs artificial intelligence to scan thousands of trading opportunities. A few of the key features include:
- Live trading room
- Customizable screens
- AI functionalities
- Integration with brokerages
Since Trade Ideas takes advantage of high-end technology, it doesn’t come cheap. Subscriptions range between $17 and $228 per month.
They do have a free newsletter, however, and we urge you to check out the best investment newsletters before making a decision.
A cheaper option ranging from $14.95 to $59.95 per month is TradingView. This platform offers fundamental, financial and economic screening criteria that operate on HTML5 technology.
TradingView also offers a low to no-cost screening platform, allowing new traders to receive some of the perks without signing up for an account.
Though that is all advantageous, TradingView stands out to us in one way: its broad coverage of international stocks over more than 130 global exchanges. Other key perks are:
- 30-day free trial
- Extensive charting capabilities
- Interactive trading room
- Exceptional selection of fundamental screening criteria
Though the best stock screener for global investing by far, TradingView does get expensive for premium subscriptions. This is sometimes a turn-off–especially for new traders.
TrendSprider offers a unique way of looking at technical analysis. Its automatic features and technical AI will impress even veteran traders.
Our favorite features of TrendSpider include:
- Free education at TrendSpider University
- AI-powered algorithms
- The opportunity for continuous improvement
Experienced traders will appreciate the depth of TrendSpider, however, beginners will be subjected to a learning curve. You get the most out of it only when you know how to use it.
One downfall is the charts load slowly. Additionally, traders are often confronted with having to view multiple charts at once. And if you’re like most people, multitasking doesn’t come easy.
TrendSpider focuses more on the technical charting of stocks, instead of the fundamental, making it one of the best stock research websites.
Depending on your trading interests (stocks, EFTs or crypto), TrendSpider splits its pricing into three categories. The first two cost between $27 and $39, respectively. TrendSpider also offers an Elite package that has a monthly charge of $69.
The Bottom Line
Picking the best stock screener really comes down to how much work you’re willing to put in. Committing to rigorous and detailed research will give you a great advantage over those who wing it.
In short, the number of stock screeners on the market today gives you no excuse for not having the most up-to-date market data.