When it comes to setting up a trading station, there are certainly many different hardware and software options available to select from. With this page, we will examine several commonly used configurations and outline areas worthy of further research when it comes to outfitting your office for trading. Please keep in mind, however, that the selection of hardware and/or software for trading is largely a personal choice. As such, the information presented here simply reflects our personal views on the subject. EQUIPMENT: While we have nothing against Macintosh computers, we recommend using an IBM compatible PC platform when it comes to your hardware - in other words a Dell, Gateway, or other computer system based around the Intel or AMD processors. This is largely because most trading software is designed around the Microsoft Windows operating system. When it comes to your computer manufacturer, there are clearly many to select from. Choices range from Dell Computer, to the local computer store, to building it yourself. Regardless of where your computer actually comes from, the following is a basic outline of what you should aim for: Motherboard & CPU: The motherboard is the main board in the computer where everything else plugs into. The CPU is located on the motherboard and is the "chip" that runs the computer - also known as the Central Processing Unit. Unless you are building the computer yourself, the motherboard will be dedicated by your computer manufacturer in most cases. This is also largely true of the CPU (which goes on the motherboard), however in some cases you may have the option of using either an AMD or Intel CPU. While both chips are very good, we tend to lean towards using Intel CPU's. The AMD chip is usually a few dollars less (and in some cases actually a touch faster), however in most cases we still like to opt for the Intel line of chips. Because of pricing and the speed of production, most new systems will use the latest chips. Anything beyond the Pentium III running at 500 MHz is plenty fast for most trading work stations. If you plan to build your own system, check out the quality motherboards available from SuperMicro as well as CPU's currently available from Intel. SuperMicro desktop motherboards (while more expensive) are also probably the best available. Short of building your own machine, we would recommend an Intel P4 CPU based computer running at 3.06 Ghz or faster. A good example of this would be the Dell 4600 line of computers, which can be commonly found on Ebay.com for between $500 and $800 - or which of course can be ordered directly from Dell. Memory: System memory (also called RAM or Random Access Memory) is where much of the "work" takes place in your computer. If you think of the CPU as the speed of the computer's brain, then the amount of RAM install is how much your computer can think about at one time. Needless to say, when it comes to a computer used to run your trading platform (which includes multiple open windows and multiple applications running simultaneously) the more memory the better. Luckily, these days memory prices aren't as high as they used to, so in most cases you should be able to upgrade your computer's RAM fairly inexpensively. Your computer should have no less than 256 Megabytes of RAM and ideally more along the lines of 512 Megabytes. Make sure the type of memory used is matched to both the speed and type of the motherboard, as well as in some cases, the CPU. Selecting faster RAM (and a motherboard with a matching high speed FSB (front side bus) will also help improve performance). Hard Drive Controller: The hard drive controller is a card which plugs into the motherboard and transfers data from the hard drive into the computer's memory. In some cases, the motherboard will have a hard drive (and floppy drive) controller built directly in. In most cases, this will take the form of an IDE controller and this necessitates the use of an IDE compatible hard drive. Controllers (whether on the motherboard or as stand alone cards) are typically rated by how fast they transfer data. Ratings of ATA/33, ATA/66, ATA/100 or even ATA/133 are pretty typical; the higher the number the faster the transfer rate. Since transferring data from your hard drive is typically the bottle neck in your computer's performance when it comes to many functions, having a fast interface card is nice. There are other controller types (such as SCSI or Serial ATA controllers) which can provide even higher performance, but these days normal IDE drives are very cost effective and generally as long as you are at or above the ATA/100 levels you should be more than fine. For more information on high speed ATA hard drive controller cards, visit Promise Technology, a maker of high performance hard drive controllers. Hard Drive: Hard drives are used to store information. When you turn off your computer, the RAM (where your computer works) is erased, so you need some place to record data and save programs; this place is the hard drive. In most cases (as mentioned above) you'll be selecting from IDE drives. Due to recent price wars among hard drive makers, you can now get very high capacity hard drives for a fraction of the price you'd have paid even a few years ago. These days, most computers come standard with 40 or 80 gigabyte or higher hard drives - and this is usually plenty of space. One thing you may wish to consider is having two hard drives installed in your computer. Having a second hard drive is very handy and can be used as a quick and easy method for backing up important files. Note that when we say "second hard drive" we mean another psychical drive installed in the computer, not one large drive broken into two or more logical "drive letters". Western Digital, Seagate and Maxtor are all top quality manufacturers of hard drives. Faster RPM and access rates translate into faster data transfer. Floppy & Other Drives: Your computer will (should) include one 3.5 inch floppy drive capable of reading standard 1.44 KB floppy disks. Any data that is too large to fit on a flopy drive can always be burned onto a CDR disc (see below). CD-ROM & DVD Drives: CD-ROM drives come in many different speeds and configurations these days. Our recommendation is to include a CDRW drive (this is a CD-ROM drive that will also burn data onto a CDRW and/or CDR disc as well as reading a CD-ROM). In our experience, Sony CDRW drives work well and offer good value for the money. Any CDRW drive which supports speeds of 40x or 48x on writing should be fine. In most cases, you'll want an internal drive which uses an IDE interface - we would avoid external drives that attach to the USB ports, as they tend to be slower. Keep in mind, if you have more than 4 IDE devices in your computer (this would be CD-ROM drives, DVD drives, and hard drives), then you may need to use an additional IDE interface card to support more than the standard 4 IDE devices that today's average computer will handle). DVD compatible CD-ROM drives are simply CD-ROM drives which are also able to read the digital format used by Digital Video Discs. These drives are nice from the standpoint that you can watch DVD's on your computer as well as access data on CD-ROM discs. Case: The case (or chassis) is where the computer is housed. In our view, it's best to avoid the very compact cases (and this includes most desktop cases). Using a larger case (such as a full tower or medium tower case) allows more air flow to reach the internal components of the computer (which do produce quite a bit of heat) and also allows for further expansion down the road. It not only makes working on the computer much easier (should you need to install an expansion card or upgrade the memory) but having a larger case also tends to reduce the risk of twisted cables and tightly squeezed components. Tower cases also allow you to locate much of the computer under your desk and out of the way of your work space. Keyboard: There are many keyboards on the market and in general, it's a personal choice when it comes to which keyboard to use. Keyboards from Logitech are very good and often also provide additional function keys which can be programmed for common tasks, etc. Mouse: Unless you are looking for something very specific, our view is that the best mouse is a standard Microsoft IntelliMouse which has a small roller ball in the middle of the two buttons. Again, it's a personal choice, but sticking to the actual Microsoft mouse is typically a good idea because the drivers tend to be much more readily compatible with the Windows operating system. Video Card: When it comes to video cards, there are many choices from many different manufactures. Often times, the video "card" and connection (where the monitor attaches) are built into the motherboard. This usually works fine, however if you require additional (or faster) monitors, then a video card may need to be installed. Having a separate video card allows for greater flexibility and speed in most cases. Video cards range from a few dollars to a few hundred dollars. In our personal view, Matrox Graphics and ATI Technologies Inc. both make outstanding video cards. ATI's RADEON line of video cards (for example the 9000 series (e.g. 9600) of cards) are all very high quality and work well with Windows XP. Matrox also has several very good quality multiple monitor cards (see below). Video cards generally are either AGP or PCI in design. This refers to the type of slot they plug into on the motherboard. Both AGP and PCI are fine and while AGP cards may run a little faster, the difference is generally not an issue outside of very sophisticated CAD or video production type applications. Multiple Monitor Video Card: Starting with Windows 98, Microsoft provided support for multiple monitors on a single computer. Having 2 or more monitors (typically up to 3 or 4) is very handy for trading. For example, you can have your main quote and order entry software running on one screen, while your news and charts run on a second. Having a third monitor is nice as well for ancillary applications such as your web browser, e-mail, etc. While generally you simply plug in additional video cards into your computer, you can also provide support for more than one monitor through the use of a specific multiple "head" (i.e. video connector) video card. Dual head and quad head cards are available from Matrox as well as other manufacturers. Monitors: Computer monitors (whether you use a single monitor or multiple monitors) generally take the form of either a traditional CRT video screen or an LCD TFT flat screen panel displays (as used on laptop computers). Flat screen LCD monitors are quite nice and certainly high tech looking, but don't over look a good old fashioned computer monitor too quickly (each have their pluses and minuses). With the advent of lower cost LCD flat screen displays, regular computer monitor prices have fallen to very attractive levels (especially if you don't mind buying a slightly used monitor). Standard monitors in 18 to 23 inch sizes can often be found for as little as several hundred dollars each on Ebay.com. While these older style monitors do take up their fair share of desk space, keep in mind that they use an analog signal and this tends to produce a smoother image when compared to their LCD TFT counter parts. On the other hand, LCD flat panel displays (which can generally handle a digital and/or analog signal) also produce very nice images which are rich in color. Because there is no "picture tube", these displays take up much less desk space. Cost does tend to be a factor, but prices are steadily coming down. When it comes to size (for either design monitor) 21 to 24 inch is best for single monitor sizes, while 15 to 18 inch and up can be used for multiple monitor installations. When it comes to manufacturers of traditional monitors, we generally like Sony, ViewSonic or NEC. For flat screen LCD displays, the monitors available from Sony and Samgsung are probably the best. If you have money to burn, check into the Sony SDM-P232W/B 23" display, or better yet, the Samsung 243T 24" LCD display. In our experience, the Samsung monitors have the sharpest image quality (even better than Sony in many cases). Internet Connection: Your Internet connection is provided by your ISP (Internet Service Provider) and provides connectivity to the outside world and the Internet. Once connected, you are assigned an IP number and data can be transferred to your computer using what's called the TCP/IP protocol. Your connection to the Internet allows you to send and receive e-mail, web pages and even real-time news, and quotes. This is also the connection that allows you to connect to your broker so you can place orders. Internet connections can take several different forms, but generally will either be a dial up connection (such as a 56K dial up account from an ISP like AOL or MSN) or a higher speed connection, such as an ISDN, DSL or a cable connection. For most people serious about trading, we recommend using either an ISDN, DSL or cable connection. In our view, DSL is the best option if you are located in an area where it is readily available. ISDN and cable are also very viable options, if you are unable to get DSL in your area. DSL speeds range from 128Kbps all the way up several megabits per second. Keep in mind, when talking about Internet connections, speed is generally quoted in "kilo bits per second" (Kbps), not "kilo bytes per second". As such, a DSL connection speed of 768K really means 768K bits per second. Because there are 8 bits in a byte, you must divided this rating by 8 to arrive at the actual "kilobytes" per second. Therefore, a DSL connection of 768Kbps will transfer data around 96KB (kilobytes) per second. Additionally, DSL connections are generally faster downloading data to your computer, as opposed to sending data from your computer. A DSL connection quoted as 768/128 means you can download data at 768Kbps, while sending data from your computer will only occur at 128Kbps. However, the upload speed (as long as it is at least 128kbps) is fine, since generally most data is downloaded from the Internet, while usually only a fairly small amount is uploaded. For trading, we feel a DSL connection of between 384Kbps (384/128) and 768Kbps (768/128) or higher is the best option. The faster, the better when it comes to your connection. Keep in mind that while larger companies such as MSN, etc. do provide ISP services, often times you can get better service, support and connectivity by using a slightly smaller and more local ISP in your area. Check the yellow pages and local computer user groups for information on which ISP may be providing the best service in your area before opting for one of the larger ISP's - you may be in for a pleasant surprise and better service in the long run! Modem: The type of modem you use on your computer usually depends largely on the type of Internet connection you are going to have. A dial up line will generally mean a 56K modem, while an ISDN or DSL line will require some form of ISDN or DSL "modem" be attached to your computer. Generally speaking, these modems (whether 56K, ISDN, or DSL) will be available in either internal or external configurations. Internal modems plug direction into your computer, while external modems attach via a cable. In our view, an external modem is the best, since it allows you to monitor your connection status a little more easily. The use of an external modem frees up a slot in your computer and if needed, also allows you to disconnect from the Internet manually without having power down your entire system. Keep in mind, faster "modems" such as ISDN or DSL modems may also require you to have a network card installed in your computer in order for you to network the modem to your computer. For dial up modems, we generally recommend U.S. Robotics, while ISDN and DSL modems will generally be dictated (and often times supplied) by either your ISP or telephone company responsible for providing your ISDN or DSL connection. Network Interface Card: A Network Interface Card (NIC) allows you to connect your computer to a network or piece of network hardware using an ethernet connection. Network cards are generally rated at either 10 or 100 megabits in speed (10/100 fast ethernet cards will automatically adapt to either speed found on the network). A network card generally plugs into your computer and then a network cable can be used to attach to an ISDN or DSL modem or hub which will provide connectivity out to the Internet. We recommend 3Com 10/100 fast ethernet cards which use PCI slots in your computer. These days more and more computers ship with a built in 10/100 NIC on the motherboard, so external network cards are largely not required. UPS: A UPS (or uninterruptible power supply) is an important piece of hardware for any computer, especially one used for trading. A UPS is really just a large battery (or array of batteries) which will provide power to your computer in the event of a power outage. Generally, a UPS will provide between 5 and 30 minutes of backup power in the event the main power goes out. This not only helps to protect your computer from black and brown outs, but also provides additional time to save files, close trades, etc. should there be a loss of main power. We recommend use of the American Power Conversion line of UPS's. SOFTWARE: Trading Software: When it comes to which trading software to select, there are clearly many options available. Using a dedicated application for trading is far superior to using a web based broker, which requires to you connect using your web browser. Web based brokers are typically much slower, more prone to problems and often require a number of tedious steps when it comes to placing or canceling orders. For anyone serious about trading, we recommend the use of a direct access broker such as MBTrading.com. In the case of MBTrading, you are provided with a Windows based trading application called The Navigator. This software provides you with a direction connection to your account and allows nearly instant order executions and confirmations. While there are other similar packages available, we feel MBTrading's Navigator is the most advanced, flexible and cutting edge trading solution available today; we recommend it for anyone who is the least bit serious about trading. Operating System: In this day and age, Microsoft provides the most widely used and accepted operating system (OS) for the average desktop computer user. While other operating systems (such as Linux or BSD) may provide better operating systems in many areas, the fact of the matter is that if you are going to download and install most trading software, then most likely you are going to need to be running Windows. As such, we recommend sticking to Windows when it comes to setting up a trading work station. Our specific recommendation is for Windows XP Professional - with the service packs and updates installed. Windows XP home is also fine, however the Professional version does provide a little additional in the way of configuration and power. Browser: Your web browser, while we don't recommend it as your main means of placing orders, is still a very important application for accessing data and browsing the world wide web (i.e. the Internet). The two leading providers of web browsers are currently Netscape and Microsoft. While historically we have always leaned towards Netscape for our web browser, the most recent versions (namely Version 6.0) have left us feeling a little flat. As such, if you are not already a Netscape devotee, then we would recommend checking out Microsoft's Internet Explorer when it comes to making your browser selection. E-mail: Hands down the most powerful and flexible E-mail program available is Qualcomm's Eudora E-mail Software. In our view, Eudora is by far the best solution available when it comes to sending and receiving e-mail. Unfortunately, some ISP's (such as MSN, JUNO, AOL, etc) have taken it upon themselves to use non-standard Internet mail transfer formats which makes using Eudora nearly impossible. Until this changes, users of MSN or other non-standard ISP's may find they have to use alternatives to Eudora. However, for those using standardized ISP's, we strongly suggest Eudora for your e-mail needs. Market Data Providers: For traders seeking real time data such as market news or intraday charts, you'll likely want to use a 3rd party provider of such data (if your trading platform doesn't incorporate it). Cutting edge trading systems (such as MBTrading's Navigator) no longer force you to use pre-selected news or charting software. Instead, they provide basic quotes, level II data and order entry, while allowing you to select from the ever growing number of news and chart providers. As mentioned, unless you are planning to build your own computer, then probably your best bang for the buck would be a Dell 4600 Desktop computer (or something similar) that uses the Intel P4 3.06 Ghz or faster CPU. Add to that at least 512MB of RAM and a large IDE hard drive (80GB or larger) - along with a CDRW and perhaps DVD drive - and you have yourself the start of a very nice (and powerful) system. Quick check list for computer specs: Intel P4 3.06 Ghz or faster CPU 512MB+ of RAM 80GB or larger IDE hard drive ATA100 or ATA133 40x or faster CDRW drive 10/100 Network interface card (NIC) 1.44 Floppy drive Microsoft Windows XP Professional Microsoft Internet Explorer 6.0 or higher High speed internet connection (DSL, cable, etc.) APC or similar backup UPS external power supply