Mobile trading is becoming more and more popular, because it allows to monitor the current positions anytime and anywhere, independent of time and location, and to perform all actions by oneself.
In addition to being a classic trader, you can now also trade stocks via websites or mobile apps. On top of that, you can get a direct overview of the development of the price.
What Exactly is a Trading App?
A trading app can be downloaded to your cell phone and after you have created an account and been verified, you can trade stocks there normally. Depending on the app, different markets and not all companies are displayed, but this is similar to banks.
You can then deposit money via your cell phone and create a securities account. You should pay particular attention to order fees, third-party fees, i.e. costs incurred when buying on a stock exchange, and custody account fees.
How it Works
Trading apps like the Exness trader app are more comprehensive in terms of function than pure stock apps.
Instead of providing information on various financial products or individual quotes, a trading app allows you to buy, hold and sell real securities, ETFs, stocks, and other funds.
The way it works is so similar to trading platforms on a computer. For beginners, it is especially important to deal very well with the trading craft and to master it.
Who otherwise still brings a little technical understanding, which comes very well with a trading app.
What Costs Are There?
To be successful in mobile trading, not only good strategies should be an issue, but also the costs that arise. Online trading is never free because brokers naturally want to receive something in return for providing the platform.
Classic custody fees have become rather rare nowadays. However, it is mainly trading fees that now cost money. Possible costs include spreads, which is the difference between the buying and selling price of an asset.
The amount is the payment of the online broker for a service. A commission is also one of the trading fees.
For each trade, this must be paid, either by a fixed amount or variable, which is then calculated based on the volume of trade.
How Secure Are the Trading Apps?
The first security measure should be to use only a reputable broker, which has the necessary licenses and is approved by the authorities.
However, security for investment, financial stability, and a good reputation in the industry are also good indications to judge the security of a provider.
Trustworthy data encryption is also just as important as the broker itself protecting one’s account from unauthorized access.
Can I Protect My Mobile Trading Account?
Data protection is of course an important issue. Especially if you access it through the public mobile network, this can be a security hole through which hackers can gain access to an account.
Smartphones disclose more information than you think, which is why you should pay particular attention to very secure passwords and regular updates. Besides, browsing history and cookies should be deleted regularly.
Passwords should never be saved and protection against theft is also useful so that in this case the mobile device can be locked – even if it’s a refurbished phone that you have.
Trading with Leverage – Opportunity and Risk
An important trading feature is “leverage”. Since prices usually only change in small ranges in the short term, leverage is needed to be able to profit from even small price changes.
For example, a leverage of 1:30 means that if the price changes by 1%, the corresponding trading value changes by 30 times, i.e. 30%. This means opportunity and risk at the same time.
Even with small stakes, profits are possible that one would look for in vain elsewhere. Just as fast the total loss of employment threatens if it runs differently than thought.
CFDs are also a popular instrument used by trading apps to enable leverage. Such “Contracts for Difference” are particularly price-sensitive and can be used well on virtually all markets with continuous price quotations.
What Makes a Good Trading App
The “quality” of a trading app depends on various factors. One essential criterion is the breadth and depth of the trading options. Also important: the fees incurred during trading. They have a significant impact on performance.
Another point: the information offered. Especially in trading, it is important to be able to follow price developments in “real-time” for goal-oriented and fast action.
Last but not least, handling is also important. A trading app should be user-friendly, transparent, and easy to use. Then nothing stands in the way of your own trader career.