Top 5 Alternative Data Platforms For Traders In 2023

Being a stock trader can be intimidating, especially when you need access to the right data at the right time. However, thanks to alternative data platforms, traders now have a better chance to leverage price movements by gaining real-time insights into the market and the economy.

Sadly, it’s easier said than done. Accessing the ideal alternative data platform that can simplify data without drilling a hole in your pocket is rare. Therefore, we’ve curated a list of the top alternative data platforms for traders in 2023.

Continue reading as we walk you through the best platforms to hone your trading skills and master your investments.

Top Alternative Data Platforms For Traders

1. AltIndex

AltIndex is among our list's latest and most unique alternative data platforms. This retail investor-focused platform is free to use. It gives you an insight into the data from millions of traditional and digital resources. At its core, AltIndex is best known for specializing in social sentiment analysis, where it secures alternative data by extracting billions of data points across different social media platforms.

Users can also leverage the AltIndex platform to gain real-time insight into crypto trading. The AI-driven platform leverages NLP (Natural Language Processing) and Machine Learning to extract and analyze top cryptocurrencies based on their investment thesis. What’s more? The platform also has a scoring system that rates different cryptos from 1-100. The higher the score, the better the possibility of a crypto share outperforming the market in the short term.

Data Feature:

Analyzes billions of social media metrics with the aid of an AI grading system, and social sentiment analysis provides data as bite-sized insights.

Core Functions:

●   Real-time insights
●   Free to use
●   Sentiment analysis across social media
●   Stock picking services with a 65% win rate

2. FactSet

FactSet is another alternative data platform that allows equity traders to get real-time investment returns. The platform has earned its name for helping its financial clients since the late 1970s. Users of the FactSet platform may make trades, keep track of portfolio risk and performance, and remain up to date on market developments. It is accessible through desktop, online, and mobile apps.

FactSet is one of the market's most successful alternative data firms, thanks to its 90% client retention rate. However, FactSet is more expensive than its major rivals (Bloomberg and Refinitiv), so you'll have to pay to join the ranks of its satisfied clients.

Data Feature:

● Access to more than 200 data sets (including 60 exclusive sets)

Core Functions:

●   Monitor global markets
●   Comprehensive reports
●   Real-time research tools
●   Research public and private companies
●   Industry-level insights

3. Refinitiv Eikon

Next, we have Refinitiv Eikon, another alternative data platform that is known for its accurate and real-time data representation of the market. Refinitiv joined the London Stock Exchange Group (LSEG), increasing its ability to have an effect on the financial sector.

The user-friendly platform for Eikon may be downloaded to a computer or a mobile device. A variety of APIs and apps may be plugged into its open platform, which is flexible and allows you to target data and extract it as you see fit.

Data Feature:

●   Global pricing data
●   Estimate
●   Reuters news and insights
●   Fundamentals
●   Unique charting tools

Core Functions:

●   Trading
●   Intelligent search
●   Customized alerts
●   Mobile apps
●   Google Chrome extension

4. Symphony

Next, we have Symphony, another alternative data platform that is the central hub for professional networking and community development in the financial sector. Symphony was developed to address data security, compliance, and real-time communication issues. You may acquire all the current information you require in a secure setting.

Symphony uses end-to-end encryption to protect all of your communications, and they use bots and automation to improve everyday workflows. Symphony works with more than 1,000 institutions. It has more than 500,000 users and is responsible for relaying millions of messages every month.

Core Functions:

●   Send messages
●   Meet in real-time
●   Share files
●   Automate trade flows

5. AlphaSense

Concluding our list of the top alternative data platforms for traders is AlphaSense. This platform was designed to assist businesses and financial institutions in making choices quickly and confidently. Once signed up, users can access real-time information on the platform by analyzing millions of documents using AI and NLP search technologies.

Besides, the platform has an easy sharing option that allows users to share data with their colleagues and fellow traders. AlphaSense is used by thousands of organizations, including 50% of the S&P and 70% of the top 50 hedge funds, to research and make decisions. With AlphaSense, businesses can effortlessly exchange information and insights, automate their research process, and keep up with market trends.

Core Functions:

● Compiled from more than 10,000 sources
● Allows us to recognize and analyze many monetary concepts and their synonyms

Takeaway For Choosing The Right Alternative Data Platform

Given the limited number of platforms on our blog, it’s common for readers to continue their quest for the best alternative data options for them. So here’s a quick takeaway of the key factors you need to consider when researching the best alternative data options:

Type of Data Provided
Thanks to their increasing popularity, we have numerous categories of alternative data platforms, each catering to a certain industry. Therefore, the first step is to define your needs and understand what alternative data platform you require. However, remember that you’d need more than one data source to make informed decisions while at it.

Accuracy and Speed
Of course, alternative data is only valuable if it is reliable. Some companies only provide estimations or projections. Therefore, the accuracy of their data may be less than 100%.

Speed is another aspect that users need to be aware of. Investors will only value alternative data if it provides a timing advantage. The objective is to get data before more general marketplaces.

Pricing
Alternative data is rarely free, in contrast to established media sources. The price will vary according to how sophisticated, precise, and current the data is. Besides, you need to source data from an established platform, irrespective of the source. Since the information will be utilized to make investment decisions, the amount paid must also give you higher returns.

Conclusion

Data sets are entering the investment trend! Today, we have a lot of hedge funds and other financial institutions that are spending time and resources finding the ideal alternative data platforms for their operations. Interestingly, however, the popularity of alternative data platforms has also allowed individual investors to make the most of their investments.

Disclaimer : The above is a sponsored post, the views expressed are those of the sponsor/author and do not represent the stand and views of Outlook Editorial.