Should You Begin Trading on Your Smartphone? Key Benefits and Limitations
The number of people using trading apps exceeded 150 million in 2021 and has grown since then. With advancements in technology and easy access to research, retail traders find the financial markets even more accessible today. Trading the global financial markets is now at their fingertips, thanks to smartphones. Mobile trading is a doorway into the world of opportunities presented by financial markets and can enable traders to quickly check their portfolio and make decisions on the go.
Advantages of Trading With a Smartphone
Here are a few reasons to begin your journey into the financial markets with mobile trading:
Ease of Use
The digital-first world is accustomed to mobile apps. A trading app is simply another application, different only in the activity you do with it. There is no learning curve, as Millennials and Gen Zs are comfortable with smartphones. Trading apps today have intuitive interfaces that are simple to use, customisable to your preferences, and offer all trading platforms and tools that are available on any other device.
To start trading with a mobile app, you don’t need to buy a powerful computer. You already have a smartphone that is connected to the internet. You can begin trading with it.
Market updates, calendar events, news updates, and trading signals are all just a swipe away. The facility to enable updates, notifications and reminders eliminates the need to constantly monitor the markets. Whether you are on your daily commute, chilling with your friends, or focused on work, a mobile app can effortlessly fit trading into your schedule.
Swift Order Placement
It's all about timing when it comes to the financial markets. Mobile trading platforms may significantly reduce the time taken to execute a trade. It’s easy to directly open or close a position from an update or a notification dialog box.
Mobile apps come with biometric unlocking. So, you can easily access your portfolio status or transaction details at any time, with safety. You can track your performance and view your trading history in seconds.
Lower Trading Costs
The leading brokerages provide mobile applications and all the features of the trading platform. Additionally in some cases, brokerage fees and minimum margin required for leveraged trading are lower when trading on a mobile app.
Multiple Payment Options
Mobile trading is well-integrated with diverse payment methods that facilitate real-time money transfers through the trader’s preferred gateway.
Ease of Integration
With advancements in technology, tools that aid decision making have increased exponentially. There are a host of plug-and-play tools that are easy to integrate with mobile trading and are available in form of in-app purchases or independent modules.
Disadvantages of Trading with Smartphones
The digital revolution in the brokerage industry has facilitated trading with access to all financial instruments and trading signals in a single place. It has also accelerated the opening and closing positions for traders even when on the move. However, it has certain limitations:
- Network coverage or poor network speed can create bottlenecks for traders.
- Some traders find it tedious to view all the data squeezed into a small screen.
- Ease of trading may result in overtrading if traders are not cautious of their moves.
- Opening multiple charts may not be possible in some mobile trading apps.
- There are heightened chances of committing a fat-finger error when working quickly with a mobile phone's tiny keyboard.
How to Choose a Mobile Trading Platform?
A beginner can start by downloading a mobile trading app that allows practising on a demo account before entering the live markets. This way, they can get accustomed to the app and build a trading strategy that works for them. Traders should thoroughly understand the terms and conditions, hidden costs, or limitations of the app they choose. Check the app testimonials and try to find if it has payment issues or has delayed updates, a common problem among many mobile apps that may have catastrophic results in live financial markets. Additionally choose a platform with similar mobile and web trading interfaces. This enables the flexibility of switching between the two at your convenience.
How to Start Trading with a Smartphone?
Choose a trading platform by doing some research, checking customer feedback, and assessing whether the app serves your trading requirements. If you have found one, simply download the app, and create an account with your login credentials. Customer verification with digital signatures and biometric sign-ups has made the account opening experience hassle-free and super-fast. You are now ready to make the most of the opportunities mobile trading offers.
Tips for Mobile Trading
- Find an app that provides educational content.
- Choose one that offers trading insights and signals to help you make decisions.
- Avoid impulsive trading, as it is convenient to make trades based on emotions when you are constantly checking the performance of your portfolio on your phone.
- Get a better internet plan to improve your trading experience, especially if your trading style in fast paced.
- If you are already trading with a web or desktop app, you can use the mobile trading app of the same broker.
To Sum Up
- Mobile trading apps are especially great for the always-on-the-go digital natives.
- Mobile trading offers greater accessibility, live tracking, quick trade initiations, and many more benefits.
- Beginning your trading journey with a mobile trading platform can smooth out the interface learning curve.
- While you can set up alerts and notifications, it’s best to have a schedule for trading.
- It’s a good idea to be aware of the limitations of mobile trading.
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