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.