Which Stock Trading Apps should you opt for?
There was a time, not so long ago, that trading stocks and shares was not something that everyone could do.
Sure, you could go and find a broker, you could deposit a minimum balance that looked like a year’s paycheck and you could pay a healthy commission for each trade.
But things are different now.
There is a whole new landscape in the investment arena and it revolves around mobile investment apps, and the driving force behind this are turned-on millennials and seasoned investors alike.
What Can I Trade?
The variety on offer is very wide.
Perhaps the most exciting thing for regular investors is the ease with which you can now trade stocks and shares of thousands of companies listed on global stock markets.
Also available are various exchange traded funds, options, mutual funds, bonds and commodities, including gold.
If you are feeling more adventurous, then you can trade cryptocurrencies as well.
Mobile Investing Apps
Leading the way in mobile investing has to be RobinHood, a mobile investment app that has been around for a decade now.
RobinHood has been ground breaking in its zero commission approach and this has brought new opportunities to investors for whom expensive commission fees were a real deterrent to entry into the markets.
Mobile investing apps have come a long way. You can invest and track your investments on the go.
Crucially, modern mobile investing apps bring an element of simplicity to trading stocks and shares that makes trading stocks and shares something that all of us can take part in.
Many, if not most brokerages that offer a trading app now offer zero commissions. This means that you do not have to pay a fee for each trade that you make.
Fees might not be a problem if you buy infrequently and hold the stock for a long time.
However, zero commissions allow you to make more frequent trades and benefit from volatility in the markets.
The new wave of mobile trading apps also bring other benefits previously only available at the largest brokers, and that is tight spreads.
The spread is the difference between the price you pay when you buy a share, and the price you get when you sell a share.
This is one of the metrics you can use to assess your broker. A good broker should be able to offer competitive spreads.
Who Makes Trading Apps?
Apps that allow you to trade stocks and shares are now available from many large and respected financial institutions.
What these institutions are doing is offering a brokerage service and acting as a middle man between you and the exchange where the stocks and shares are traded.
Big names in the business are TD Ameritrade, Fidelity, Webull, and of course RobinHood, but there are many others and you should choose according to your trading and investment needs.
Is Mobile Trading Safe?
Whenever you give sums of money to any institution online you should proceed with care.
You should only trade using a company that you trust.
You should also be aware that trading of any kind like this carries risks, and that the value of your portfolio can go down as well as up. This is not a magic solution to make money, and you could end up with less money that you started with.
That being said, many people are now going online on their mobile devices and taking part in the new financial revolution that is mobile investing.
Investing has come a long way from the traditional image of stock brokers on the floor of the exchange.
Powerful tools for investment now lie within reach of the average person and a trade can be placed easily on your mobile device from anywhere in the world.
Investing is changing.