10 Best AI Stock Picking Services & Providers in 2024

Artificial intelligence (AI) has grown by leaps and bounds in recent years. Today, AI can now automate the stock picking process.

In this guide, we explore the 10 best AI stock picking websites for 2024. We also explain how AI pickers work and what factors to consider when choosing a provider.

Best AI Stock Picking Services Reviewed

Some of the most important factors to consider when choosing an AI stock picker include transparency, past performance, target returns, and the number of daily/weekly selections. Pricing, supported markets, and customer support should also be considered.

Below, we compare the 10 best AI stock picking websites for these metrics.

1. AltIndex – Overall Best AI Stock Picker for Investors??

AltIndex is our number one pick. This user-friendly platform specializes in social sentiment analysis. In simple terms, it scrapes data from social media networks to evaluate overall sentiment on companies. Considering the sheer number of social media users, AltIndex handles billions of data points at any given time. This includes trends on social media followers, ‘likes’, and shares. AltIndex also uses natural language processing and machine learning to extract and analyze social media comments.

The data is then structured into categories, such as whether sentiment on a company is positive or negative. It also takes demographics into account, such as where the social media users are from, their age, and their income brackets. While this requires a significant amount of data, the insights provided by AltIndex are invaluable. For example, the data is converted into a real-time AI score, which ranges from 0 to 100.

The closer the score is to 0, the more negative society views the stock. In contrast, stocks with a high AI score have positive sentiment and thus – represent a strong buy. In addition to social metrics, AltIndex also uses other forms of alternative data. For instance, its AI software analyzes website visits, news article mentions, and job postings. The latter looks at how many jobs the company is posting in comparison to the industry average. If the number is high, this could highlight growth within the company.

In terms of markets, our AltIndex review found that it specializes in US-listed stocks. This covers thousands of large and small-cap companies, ranging from Apple and Amazon to Tesla, IBM, and Microsoft. Users have several options when finding a suitable stock pick. The most convenient option is to sign up for its AI picker alerts. This sends an email when the AltIndex algorithm has found a suitable stock pick. The number of stock picks received is sporadic. Some days there will be no picks at all. While on others, there can be up to 10.

When it comes to past performance, there is a 6-month delay in historical data. Currently, AltIndex shows its returns from January 2023. There were 35 stock recommendations posted, 74% of which yielded a profit. This translated into monthly growth of 21.6%. AltIndex also allows users to find stock recommendations manually. The platform lists stocks by their respective AI score, from strong buys down to strong sells.

Users can click on a stock to find out more about its social sentiment metrics. Stocks can also be filtered by the industry. This includes everything from retail, banking, and hotels to airlines, security services, and transportation. Irrespective of the method chosen, the AltIndex platform is suited for both beginners and experienced traders alike. Some users will simply buy stocks based on the AI stock. While others will perform their own due diligence before investing.

Either way, AltIndex plans are affordable. That said, plans are priced based on the features offered. For example, the starter plan ($29 per month) comes with 10 stock alerts. For 50 stock alerts and access to the AltIndex API, the pro plan is required ($99). For unlimited stock alerts and personalized customer support, an enterprise plan will be needed. Prices are quoted based on the user’s needs. There is also a free plan available to all new users. This includes up to two stock alerts but only permits 20 dashboard visits.

2. Danelfin – Automated Stock Ratings Based on Explainable AI?

Danelfin is also one of the best AI stock picking websites. We like that the platform uses ‘explainable’ AI when generating its stock picks. This form of AI explains how it reached its analysis conclusion. For instance, it displays the specific indicators that have been triggered, enabling investors to understand the recommendation.

Danelfin uses more than 600 technical indicators, ranging from the MFI and MACD to the RSI and 52-week high. It also examines 150 fundamental indicators. This includes metrics like company growth, revenues, market capitalization, and net margins. What’s more, Danelfin also utilizes over 150 sentiment indicators. This takes into account hedge fund positions, EPS estimates, and insider transactions.

All of these data points are structured and interpreted to generate an AI score. This runs from 1 to 10. Stocks with a score of between 1 and 3 have a very low probability of outperforming the market. While those with a score of between 7 and 10 represent strong buys. Danelfin covers thousands of stocks from the US and European markets. It aims to outperform the S&P 500 and STOXX 600, respectively.

According to Danelfin, its AI stock picking service has generated gains of 158% between 2017 and 2022. It successfully outperformed the S&P 500 during this period, which grew by just 70%. Danelfin offers several plans. The plus ($17 per month), and pro ($49 per month) plans offer unlimited stock and ETF rankings, plus a daily newsletter.

The pro plan also offers unlimited trade ideas and individual alpha stock trading signals. Both plans come with a 14-day free trial and can be canceled at any time. The free plan is worth considering as a first-time user. This comes with up to 10 stock and 20 ETF rankings, plus the top two trade ideas.

3. Candlestick.ai – 3 AI Stock Picks Per Week at $9.99/Month?

Candlestick.ai is an AI stock picking provider that operates a mobile-only service. Users will need to download and install its mobile app to get started. The app is available on both iOS and Android devices. Candlestick.ai provides three stock picks every week. These are delivered via push notifications – so users will never miss a trading opportunity.?Users also have the option of creating their own filters.

This ensures that picks are only received if they align with the user’s risk tolerance. We also like that Candlestick.ai offers transparent stock picks. It offers insights into how the AI stock software formulated its trading idea. For example, once a stock pick alert is sent, it displays the name of the company and the entry price. The alert also signals key metrics, such as a strong earnings report and high social sentiment score.

The user can then research the stock pick further should they wish. Moreover, users can keep tabs on their existing stock picks to assess their performance. Additionally, users can search for individual stocks to evaluate their potential. Candlestick.ai is also launching an AI advisor. This will enable users to ask investment-related questions.

For instance, suppose Candlestick.ai recommends buying Tesla stock. The user can ask the advisor for more information about the recommendation. In terms of markets, Candlestick.ai tracks more than 6,000 stocks in real-time. It charges a very reasonable $9.99 per month. The price is justified considering Candlestick.ai picks generated gains of 23% last year.

4. Free AI Stock Picker – Free Recommendations on Russell 1000 Stocks? ?

Free AI Stock Picker offers a completely free service. The platform specializes in stocks that are listed on the Russell 1000. Free Ai Stock Picker generates recommendations based on reinforcement learning. This is a sub-segment of artificial intelligence that focuses on trends. For each supported stock, the platform offers a detailed AI-generated chart.

When the chart is green, this highlights that the stock is firmly in an upward trend. Charts update every night after the markets have closed. According to Free Ai Stock Picker, it analyzes over 12 million data points daily. In June 2023, the platform distributed five stock alerts.

All five generated gains, ranging from 3.05% to 60.62%. For each stock recommendation still in play, Free AI Stock Picker offers a color-code system. While ‘green’ means the stock is trending upwards, ‘yellow’ highlights that a reversal could be likely. ‘Red’ suggests the stock has entered a downward trend and hence – a sell.

One of the main drawbacks of Free Ai Stock Picker is that it doesn’t offer real-time notifications. Instead, users need to visit the website to see if there are any new stock picks. This is also the case when reviewing existing stock picks. That said, the service is completely free to use – so might appeal to investors using AI stock picks for the first time.

5. Trade Ideas – Dozens of AI Stock Picking Strategies Based on Technical Data? ?

Trade Ideas is the best AI stock picking service for technical traders. The platform has developed more than a dozen AI stock picking strategies based on a range of indicators. For example, the ‘Alpha Predator’ strategy generates picks on stock priced at under $20. It specifically looks for green candlestick trends from 5-day to 5-minute movements.

Another AI stock picking strategy is the ‘Bullish Pullback’. This looks at stocks priced between $20 and $100 that have declined by at least 25% over the target timeframe. The strategy looks for the perfect entry point to catch the market reversal. Trade Ideas offers more than just AI stock picks. It has an entire suite of features that can help investors make smarter decisions.

For example, it has a fully-fledged trading simulator that enables investors to test new strategies. This will come in handy when trying its AI stock picks for the first time. Additionally, Trade Ideas also comes with a tool that integrates with leading online brokers. This enables users to automate their strategies and AI selections. Trade Ideas also keeps investors updated with real-time stock news and expert insights.

Although Trade Ideas comes packed with features, it is one of the most expensive AI stock pickers on the market.? For instance, the premium plan costs $228 per month. This plan is required to access the AI picking tool. This is reduced to $167 per month when purchased as an annual plan.

6. Tickeron – AI Robot Signals Covering Fundamental and Technical Analysis? ?

Tickeron is one of the best AI stock picking providers for automated signals. The underlying robot will scan the markets around the clock looking for trading opportunities. Not only does the robot find stock trading ideas but it also covers cryptocurrencies and forex. There are many strategies to choose from, including both technical and fundamental analysis. For example, the ‘downtrend protection’ strategy focuses on technical indicators like the parabolic and envelope.

It looks for stocks that are currently in a downtrend but have the potential to begin a reversal. This strategy has been active for over five years and has generated annualized gains of 71%. More risk-averse traders might consider the ‘valuation and profitability strategy. This focuses on fundamental analysis and aims to find undervalued stocks with strong profitability ratios. This strategy has averaged annualized returns of 4%. We like that all Tickeron strategies are transparent.

Each comes with an in-depth explanation of its methodology, including its long-term goals and risk tolerance. Moreover, users can view detailed summaries of each strategy, in terms of its past performance and projected returns. We also like that there are strategies for both active and passive traders. The Tickeron filter system makes it simple to find a suitable strategy.

All signals sent by the AI robot come with the stock ticker and suggested entry price. Tickeron also provides the suggested take-profit and stop-loss levels. This ensures that Tickeron is suitable for both beginners and experienced traders alike. In terms of pricing, Tickeron offers two options. The flexible plan costs $90 and this can be canceled at any time. The other option is to pay annually, which reduces the monthly price by 50%.

7. EquBot – Custom AI Stock Signals Generated From Over 1 Million Data Points? ?

EquBot is one of the best AI stock picking websites for professional traders. It offers custom AI signals that are backed by IBM Watson. The technology specializes in data analytics and natural language processing. This has the capacity to extract vast sums of information from the public domain. In fact, EquBot scans and analyzes over 1 million data points per day.

This includes financial health scores, such as revenues, debt levels, operating income, dividend yields, and earnings-per-share. It also examines financial news articles to assess overall sentiment and trends. EquBot also extracts macroeconomic data. This includes country-specific GDP levels, employment rates, and consumer confidence.

All of these data points are analyzed to generate trading signals across more than 50,000 stocks. That being said, EquBot is aimed at accredited and institutional clients, so likely won’t suffice for retail investors. It does not display pricing on its website, so interested users will need to contact EquBot for a custom quote.

8. StockHero – Automated AI Stock Trading From Just $4.99 per Month? ?

StockHero is the best AI stock picking provider for those on a budget. It charges just $4.99 per month for its lite plan, which enables users to choose one bot from its marketplace. Bots are submitted by third-party developers that want to monetize their strategies. StockHero backtests each strategy before listing it on its marketplace.

Crucially, StockHero also comes with a backtesting facility. This enables users to test their bots before deploying them with real money. The backtesting facility supports 100 data points per second and enables users to evaluate performance metrics in real-time. This includes metrics like the maximum drawdown and Sharpe ratio.

Another feature of StockHero is that it supports brokerage APIs. This means that users can connect StockHero to their preferred trading platform, which enables the bot to trade on their behalf. Those seeking additional functionality might consider a more expensive plan. For $49.99 and $99.99 respectively, users can deploy up to 15 and 50 bots simultaneously.

9. Kavout – Long-Term Stock Portfolios Built by AI and Machine Learning? ?

Founded in 2016, Kavout has developed proprietary software that functions on AI and machine learning. Kavout offers several services, although the most popular is its long-term portfolio builder. There are two strategies to choose from, depending on the investor’s appetite for risk. High-risk investors will be suited for the Kai Equity portfolio.

This invests in large-cap US stocks and has generated average annualized returns of 25% since 2020. During the same period, the S&P 500 has returned an average annualized growth of 13.9%. Low-risk investors might consider the Kai Dynamic Asset Allocation portfolio.

This has returned average annualized returns of 14.2% since 2020 – so has slightly outperformed the S&P5 00. Although Kavout has generated above-average market returns, its service is aimed at large-scale investors. This is because there is a minimum investment requirement of $100,000.

10. TrendSpider – Automated the Chart Analysis Process Through AI Recognition? ??

TrendSpider is the best AI stock picking provider for day traders. Its software enables traders to automate their chart analysis processes through AI Recognition. This means that the software will flag potential trends when specific indicators are triggered. This enables traders to find opportunities before the broader market.

TrendSpider is able to scan both technical and non-technical data. The former includes economic indicators like the MACD, RSI, and Fibonacci retracement. Non-technical data include seasonality, unusual options flows, and insider transactions. All of these metrics are built into the AI software to provide real-time trading insights. The trader can then determine which stocks to buy and sell, alongside the most effective entry and exit points.

That said, TrendSpider will only appeal to experienced traders who have a firm grasp of chart analysis. Professional day traders will likely be suited for the elite plus plan at $179 per month. This comes with full functionality. Those seeking fewer features can consider the essential or elite plans at $39 and $79 per month, respectively.

Types of AI Stock Pickers

There are many different types of AI trading platforms that provide stock picking services. For instance, while some provide real-time insights, others distribute stock alerts with specific trading instructions.

Let’s explore the main types of AI stock picking services currently in the market.

AI Analytics and Alternative Data

Some AI stock pickers provide real-time insights, giving investors a 360-degree view of the market. They extract significant amounts of alternative data from the public domain to evaluate overall sentiment. So what is alternative data and how is it used to make informed stock trading decisions?

Put simply, alternative data collects insights from non-traditional sources. This includes social media networks like Twitter and Facebook, with the AI software extracting stock mentions, comments, ‘likes’, and other metrics. This enables investors to assess sentiment on thousands of stocks.

For example, AltIndex – which is one of the best alternative data providers, analyzes social sentiment to build an AI score. This runs from 0-100 and it determines the likelihood of the stock outperforming the market. Stocks with a score of 70 or more signals a strong buying opportunity. AltIndex doubles up as a fully-fledged stock picking service, alerting users via email when it has a recommendation.

Stock Picking Alerts

Some providers specialize in stock picking alerts. This means that investors receive real-time notifications on which stocks to buy and when. The AI picker will have its own methodology – which should be provided on its website. For example, some will focus on technical indicators while others use fundamental data. Some providers use a combination of both.

Either way, this type of AI stock picker will appeal to investors who want a fully-automated service as well as the best stock research tools. For example, Candlestick.ai sends out three stock alerts every week. Alerts are sent via push notifications via its iOS and Android app. The user will then need to buy the respective stock from their chosen brokerage.

Stock Picking Bots

Some AI stock picker websites offer automated bots. Not only do bots remove the need for investors to manually research the markets – but place trades.

For example, the StockHero marketplace comes packed with bot strategies to suit all investor profiles. After choosing a bot, investors can link it to their preferred broker via an API. When the bot comes up with a new stock recommendation, it will automatically enter the position for the investor.

This type of AI stock picker comes with both benefits and drawbacks. On the one hand, the bot can trade around the clock, even when the investor is asleep. It does not feel emotion or fatigue, which is something that cannot be replicated by human traders.

However, AI bots are extremely risky – especially when risk management parameters are not installed. For instance, suppose the AI bot is trained to buy and sell stocks based on technical data. If there is a major news story impacting the stock’s value, the bot will not be aware of this.

AI-Managed Portfolios

We also come across AI stock pickers that offer managed portfolio services. For example, Kavout combines AI and machine learning to build and maintain portfolios on behalf of its clients. This is similar to a wealth management service.

But instead of an experienced fund manager making stock decisions, portfolios are led by AI. One of Kavout’s AI portfolios has generated average annualized returns of 25% since January 2020. While these returns outperform the market considerably, Kavout requires a minimum investment of $100,000.

Benefits of AI Stock Selectors

Discussed below are some of the main benefits of using AI stock selectors.

Make Smart Investments as a Beginner

Rarely do beginners have the financial know-how to effectively pick stocks. The most successful investors have been buying and selling stocks for many decades. They know what signals to look for, which data to focus on, and how to enter risk-averse positions.

Beginners can fast-track the learning process by using an AI stock picker. The service will do the heavy lifting behind the scenes, such as collecting and analyzing data. The AI picker will then provide insights into which stocks are worth buying, and which should be avoided.

Streamline the Analysis Process

AI stock pickers remove the need to manually research the market. Not only will this appeal to novice traders but also to those with experience. After all, researching a company’s technical and fundamental data is very time-consuming.

Investors also need to interpret the data and make comparisons with industry competitors. But by using an AI stock picker, investors can streamline the analysis process.

Never Miss a Trading Opportunity

Being able to manually research and analyze the entire stock market is beyond the realms of possibility. In the US, for example, there are over 5,000 stocks listed on the NYSE and NASDAQ. There are many others listed on smaller exchanges, not to mention overseas markets.

AI stock pickers solve this issue, as they can analyze millions of data points every second. This ensures that investors never miss a trading opportunity again. Whether it’s a small or large-cap company, AI stock pickers keep investors in the loop at all times.

Can AI Really Help You Make Better Stock Trading Decisions?

The simple answer is yes – AI can help investors make better trading decisions. After all, investors rely on data to determine the financial health and potential of a stock. This could include its quarterly financial performance, new product launches, or short-term debt levels. Either way, the research process requires analysis skills and plenty of time.

AI streamlines the research process to help investors save time with some offering the most accurate stock predictions. Most importantly, the capabilities of AI far exceed that of a human analyst. For example, AltIndex scans, extracts, and analyzes billions of data points from social media and other websites. It can then assign stocks an AI score based on these metrics. This could not be replicated by a human that relies on manual processes.

That said, relying solely on AI to make stock trading decisions can be risky. Instead, it’s wise to independently research each stock pick provided by the AI service. This process is made easier when the AI stock picker provides insights into its recommendation.

Conclusion

In summary, artificial intelligence has been used by hedge funds for many decades. The technology is now becoming mainstream, enabling investors to make smarter trading decisions.

Those looking to outperform the market through AI-led insights might consider AltIndex.

The platform offers real-time AI scores on thousands of stocks based on social sentiment analysis. It also alerts users via email when new stock recommendations are found.

References

https://www.ibm.com/watson

https://www.ftserussell.com/russell-indexes-your-index-matters/russell-1000

https://www.nytimes.com/2021/07/16/technology/what-happened-ibm-watson.html

https://developer.apple.com/documentation/naturallanguage/

https://www.thomsonreuters.com/en/artificial-intelligence/machine-learning.html

https://www.bloomberg.com/quote/SPX:IND

https://www.jpmorgan.com/technology/artificial-intelligence

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