Algorithmic trading nowadays, are being used by traders in order to initiate trading orders without human intervention. This specific trading strategy employs the service of computer programs to manage the timing and the volume of the orders. Of course, what follows after the notion of having specialized computer programs in order to get into algorithmic trading intimidates a great number of individual traders because of the cost that it would require in order to acquire and maintain that information system. What comes first in an ordinary trader's mind is that algorithmic trading entails building a multi-storey infrastructure. The fact is, any individual trader could easily get into algorithmic trading because even a simple automated system costing a few hundred dollars could allow the trader to implement algorithmic trading to his decision making process .

(i) How Complex Should Be Algorithmic Trading Software ?

At the instance you first hear the word algo-trading, the image that comes to your mind is a complex system with superhuman powers that could detect a market fluctuation in a blink and it seems impossible to have an algo-trading system given a limited budget. The complexity the word invokes id what makes it really intimidating. However, this is not true after all. Even a simple algorithm that could efficiently manage trading portfolios with a relative high speed could also qualify as algorithmic trading software. Yes, the math seems tedious and puzzling but algo-trading service providers already solved that for you. You could always start at the low-end of the spectrum and move higher up on the course of your trading business. Algorithmic trading could start by spending only a few hundred dollars.

(ii) How much would it cost ?

Inventing your own software would be an apparent solution; however, the large bandwidth and high speed internet access requirement could make it more expensive than purchasing reliable software, not to mention the stress and effort that mathematics and programming could toll. This is the particular reason why most of the traders using Algo-trading are employees of big trading companies. However, this should not hinder an individual trader into procuring algo-trading software for himself. In fact, there are many algo-trading service providers offer relatively cheaper trading solutions.

Several algo-trading service providers offer a relatively lower price for those individuals who want to start off their algorithmic trading carrier. For example, Trading Technologies International offers the trading tool X_TRAFER that manages several trading tasks and transactions all in one desktop. Also, CGQ's analytic tools and ISV services, one of the top in the industry, are offered in a competitive price. There are a lot of other Algo-trading service providers that allows an individual trader to jump start a trading business. You could browse their websites; look at their prices and find a deal that is right for your pocket. After all, it doesn't take huge amount of money. Algorithmic trading could start by spending only a few hundred dollars.