Why should you use a trading App?
The invention of mobile stock trading apps and sophisticated mobile phones came as a blessing for professionals in the stock markets. As an active trader, it’s now easy to download an investing app and trade from any location and at any time using the best stock trading app that would fulfill your trading needs.
However, a stock trading app incorporates both pros and cons, meaning it’s essential for experienced and beginner investors alike to understand how these apps work.
Why to Use an app for Stock Trading?
Stock trading tends to be quite cyclical in nature.
The number of stocks issued and available in the market at any one time are known quantities. The performance of listed companies is also a known factor, through a company’s earnings reports and filings made to the various regulators.
This information can be made available to traders and forms part of the majority of trading apps in the form of:
- Advanced Charting
While tracking the stock market, the advanced charting tools included in these applications offer valuable insights that keep customers engaged.
- Data and Analytics
For those into traditional online trading platforms, it’s worth noting that trading apps mimic the same information on the smartphone. What’s more, they can help investors spot opportunities and initiate complex trades faster, as our smartphones are always within reach!
- Trading on the Go
The ability to trade while on the move, based on the existing market condition, is one of the reasons why traders opt for this form of trading.
- Several Investment Options
Besides trading on stocks, app-based investment platforms enable traders to invest in mutual funds, options trading, exchange-traded funds, and other popular assets.
An Overview of Mobile Stock Trading Platforms
Previously, the online stock market involved opening investment accounts, sitting in front of a desktop trading platform and trading, based on resources that tracked stock prices and fundamentals.
The best stock investment strategy requires beginner and expert traders to get the timing correctly, whereby they stay on their screens as they wait for the trade.
The invention of stock trading apps proved to be beneficial to options traders and stock traders as they are no longer required to be glued to their desktop or laptop screens.
Trading in the stock market through mobile platforms is a trend that’s quickly gaining momentum.
Today, almost all online brokerages have created mobile-based high-quality trading platforms for their users.
Desktop vs Mobile Trading Apps
Instead of creating different applications for their clients who trade while on the go, online brokerage firms now opt for a seamless experience between mobile and desktop platforms.
By doing so, the two trading platforms share watch lists, alerts, portfolio analysis, and stock screeners.
Streaming data is now available in mobile applications together with educational resources and other advanced trading tools. The ongoing improvement in the performance of smartphones forced online brokers to provide mobile applications, in addition to desktop platforms.
News and Analysis
Share market applications give useful news alerts throughout the day, which keep the traders well informed about the important events that could have an effect on their trading. The news also brings potential trading decisions in line with the current stock market events.
Online brokerages design trading applications with the security of investors in mind. As a result, the app incorporates encrypted firewalls to secure personal data and financial transactions.
Potential Trading Apps Drawbacks
Although some apps have their cons, it’s worth noting that this comes down to the particular company’s applications instead of the applications in general. Here are some of the prospective drawbacks:
- Comprehensive review process
- Unfriendly user interface
- Delayed stock quotes
- A high commission fee
- Unimpressive tools
- Limited customer support
How to choose the Best Stock Trading Apps
- Identify Trading Objectives
Investors should recognise their trading objectives before getting into stock trading. First, traders should assess their trading reasons, whether they want to be in short-term or long-term positions. Second, traders should evaluate their risk profile along with anticipated profits. Remember to choose apps with education resources to learn much more about the stock market.
- Comparing the Trading Applications
When comparing investment applications, several things should come into play. One needs to examine all the applications and check out the general broker reviews and ratings.
- The Application Features
Examine the features and see what the applications provide. Does the app have a wide range of trade options, research tools, education tools, tradable asset index, and helpful industry news? Whatever the case, one should prioritise the application with the best features.
Here are some tips to consider when comparing these applications:
Read all the details to find out the broker’s commission structure or spread table as these will have an impact on trading results. Investors also need to check the cost to start trading, for example, does the broker have affordable account levels. As a beginner, it’s advisable to register with a broker that offers lower trades and an affordable account structure.
– Tradable Assets
What can one trade? Is it possible to trade other asset classes, such as cryptocurrencies, commodities, options trades and ETF trades?
Some of the features to be on the lookout for include:- Great security
– Insightful news and analysis
– Valuable tools and stock filters
– Real-time analytics and quotes
Since most applications claim to meet the above standards, it’s often hard for a stock market trader to pick the ideal application. So, check with colleagues and friends for their experience with the preferred applications.
As said earlier, one can also take advantage of the internet and analyse various reviews of the various applications.
The best Apps for Smartphones
The stock market is a big financial market that generates substantial information daily.
How to Use Trading Apps Effectively
If possible, when evaluating the favourite stock trading apps, one should be able to easily access the available investment assets. Ultimately, a stock trading app from a reputable brokerage increases the chances of being successful. The specific features that one should consider when trading stocks from a smartphone include:
- Access on both Android and iOS devices
- Handling all trading from the smartphone
- Easy to use features
- Access to technical and fundamental analysis
- Precise and fast trade execution
Trading any type of instrument involves a level of risk so there are some basic steps to follow before trading:
- Skill Assessment
Both beginner and advanced traders need to assess how ready they are to trade. Make sure to use any available educational materials and resources to get better acquainted with the trading process.
- Set Risk Level
On any given day, the amount of risk should range between 1% to 5% of the portfolio. “It’s advisable to take a break if things fail to go according to plan”, says the Corporate Finance Institute.
- Use a Demo Account
For those unsure about how stock trading applications work, consider signing up at a brokerage that offers a demo account. Using a demo account allows you to get to grips with the trading platforms and practise your trading in a risk-free environment with virtual funds.
- Avoid Buying a Lot of Shares Immediately
Regardless of what the application recommends, it’s practical to start slow and build risk. Buying too many shares during the first time makes one experience unnecessary losses. As an alternative, buy fractional shares, assess the situation and buy additional shares as the position improves.
- Contact the Customer Service
Before trading in the stock market, one should call the customer team to determine whether they are reliable. Always pick an application with efficient and dependable customer service because unforeseen issues can arise in the middle of a trade.
- Setting Goals
Traders need to set realistic profit expectations before entering a trade. In the goals, please define the acceptable minimum reward/risk.
- Trade Preparations
Regardless of the used program and trading system, label the minor and major resistance levels on the charts. Additionally, set price alerts and an easily recognisable exit signal.
- Set the Exit Rules
Most investors concentrate more on buying signals and pay little attention to where and when to exit the trade. Always learn to accept losses because it differentiates expert and beginner traders. Money management is one of the keys that sets successful traders apart.
Why Use Brokerage Accounts
It is impossible to buy and sell stocks and other asset classes without a brokerage account. So, anybody who wants to trade in the stock market should register for a trading account at reputable online brokers, such as tixee. Choosing tixee as your preferred online broker gives you access to a wide range of tradable assets highly competitive spreads, mobile trading platforms, an easy to use client interface, advanced trading tools, education material and other valuable tools.
Are Trading Applications Secure?
Well, the answer to this question depends on the application’s source. Picking a trading application wisely enables one to manage and track their trades with the potential for positive returns.
The safety of a trading application comes down to its origin. For example, downloading a trading application from a third-party application store puts one at a high risk of downloading a less than perfect application. Remember that third-party application stores lack the security protection features of reputable download sites, such as Apple Store and Google Play.
Should one Avoid Trading Applications?
Traders’ decisions need to be based on their knowledge and financial adequacy of the stock markets. The presence of several capital markets fits day and professional traders. The golden rule is to trade only through a recognised, reputable and safe mobile trading application.
Wrapping Up: Which is the Ideal Stock Trading App for Beginners?
The truth is there is no single application that serves every individual person’s requirement. While some traders prefer an active approach, others opt for a set-it-and-forget trading style.
The capability to invest without trading fees, initiating trades with the minimum balance requirement, and investing from the comfort of smart devices makes stock trading accessible to countless mobile users.
When it comes to trading stocks, it is sensible to adopt a passive investment style in diversified, low-cost index funds. Luckily, the best choice for beginners fits both active investors and passive investors.