DIY Fid, Finished paracord end, Kleen-Kut Paracord scissors & buoy wrap scissor cover
I've accumulated quite a few tools in my years as a knotter/rigger but you really don't need very much to get started in the hobby. When I first started tying, my most commonly used tool was the Dr. Slick Spring Creek Clamp, 5", Black, Straight. You'll find many less expensive "hemostats" on Amazon, this just happens to be the one I picked up at an outdoor outlet many years back. It served as a fid, a "pusher" and a puller. I don't use them for tying much any more, I "thread" with a fid more than I pull through these days, but I do use them for finishing the ends of paracord — see below.
As I said, I now use "fids" or lacing needles regularly. My first fids were homemade — machined by spinning an aluminum Chicago screw in a drill press and shaping it with a file. I progressed to using a pair of the Tandy Leather Long Jumbo Perma-Lok Needle 1193-05 that I'd modified by shortening and shaping the tips to be more needle like. I wouldn't bother these days because purpose made fids are readily available: 3 1/2" Stainless Steel 550 Paracord Fid, Lacing, Stitching Needle. I have fids and Perma-Lok needles in a variety of sizes to accommodate different cords — I don't use 550 exclusively.
Though not completely necessary I do find the Knotters Tool II (Stainless Steel) w/ 3 Different Size Stainless Steel Lacing Needles by Jig Pro Shop to be handy and it includes three fids. An aluminum version is available too, but I'm never one to shy away from investing in a tool that will last. I also use a 4 3/4" Paracord Tucking Tool (Stainless Steel) for tucking and smoothing. You can probably find a similar tool at the local pharmacy, and maybe even at a dollar store.
The best cutting tool I've found for paracord are the Kleen-Kut scissors sold by Paracordist.com. Unfortunately, the store is currently down so I can't supply a link. You can use good quality flush-cutters, bandage scissors or a good, sharp pair of "Fiskars" (or similar scissors) and they will all work. However, I tried everything I could to avoid buying the "special" scissors and, in the end, wish I'd just done it sooner.
My technique for finishing the ends of paracord: Clamp the end of the cord at a 45 degree angle with the hemostats. Cut the cord flush with edge of the clamp. Run a lighter along the edge of the cord to seal. While the cord is still warm, remove the clamp and, if necessary, re-clamp to the very end to squeeze and seal the end. Tuck the end back into the workpiece. If the end is going to be exposed I will sometimes remove a small length of the core first, then trim and seal just the jacket for a flatter, neater finish.
I do sometimes use a hot knife for finish work. Most often the Weller P2KC Professional Self-igniting Cordless Butane Soldering Iron. If I'm at my bench I do have an Engel Heat Cutter HSGM Hot Knife w/ Type R Blade available (used for "big rope" and purchased when I was rigging boats professionally) but it's total overkill for paracord work. I am intrigued by the Hand Held Electric Hot Knife Rope Cutter Set - 100 Watt, Cutting Blade (HHHK-HS18. The tool is probably not as durable as the Engel, but if one isn't using it all day, every day it's likely suitable. One Advantage of these "rope guns" is that they heat up almost instantly but, truthfully, the Weller doesn't take very long to come up to temperature and it's much more portable. Whichever you choose, it’s easy to mar your piece with the hot knife so I generally use the hemostats as a shield. (And again, I'm more often just using the lighter/hemostats for paracord work.)
I also keep a needle case with sail-makers needles and whipping twine (wrapped around the needle case) handy for stitching and whipping. (In a pinch, a single strand of 550 core makes a decent twine, particularly if you pass it along a block of wax.)
I want to emphasize that you don't need all of these tools, you might not really need any of them, but I do find that assembling a good kit and having the right tool available can help overcome tricky problems. I'd say that the Knotter's tool (admittedly, my attachment to this tool may be due to my love for marlin spikes in general) with it's fids—or barring that, just a set of fids—the hemostats, a good pair of scissors and a lighter would make a decent field kit. Add the rest of the stuff to your knotting bench over time. Or not.
I'll also say that there was a certain satisfaction to making and improvising my tools in the early days but now that there are so many quality purpose made tools available via Amazon I don't find it's worth my time any more. (I have a wooden bracelet/collar jig that I made but I recently acquired the aluminum jig from Acid Tactical and I think it's just brilliant and even assigning a lower value to my time than I normally would, much cheaper to buy than build.) I do have a plan to machine a set of Delrin fids and pushers for low-profile air travel "one of these days"
Hope this helps.
For EDC and quick and dirty cord work I carry a Black Ops Delta torch lighter. It is admittedly a little hot for paracord work, and one must be careful not to damage the work when melting ends to finish a piece. In general, a non-torch lighter is more controllable for cord work, but will take longer to seal an end.
My knot kit contains an old Zippo with a butane "flame" (as opposed to "torch") insert that works well for rough work.
When using a lighter I will whenever possible clamp the cord to be cut with a pair of locking "Forceps" (my surgical tech friend tells me they're not actually forceps but…), trim the line along the forcep edge, and apply the heat from the lighter. I usually take the time to trim the core short of the jacket, then trim and heat seal the jacket for the cleanest possible edge.
However, when precision is called for, a hot knife works better than a torch. I've found that most of the "cheap" hot butane hot knives don't really get hot enough for paracord (or take forever to heat up.) For portable use my pick is the Weller P2KC Professional Self-igniting Cordless Butane Soldering Iron Kit Quick & easy to light—it has a built-in ignition. Fast to heat. Burns just a little hotter when charged with ISOPRO stove fuel using a Primus Filling Adapter. (I charge all my Butane lighters with camp stove fuel canisters.)
For bench use in the shop, nothing beats the Engel Heat Cutter HSGM Hot Knife. A remnant of my work rigging racing yachts, and total overkill for paracord, but it is the ultimate tool for cutting line quickly and cleanly. That being said, I probably use the portable Weller 50 times as often as the Engel these days because I'm generally not knotting at my "big" workbench and for small diameter cord, it's just as fast and effective.