What to Look for in a Trading App

Trading apps make trading forex, stocks, commodities, options and cryptocurrencies faster and easier. With the dramatic increase in online trading, these apps have also taken off and are giving thousands of people their first taste of trading. 

This development is both positive and negative. On the one hand, trading apps give people direct access to markets and eliminate the need for brokerage accounts. On the other hand, this freedom can often mean that there is no oversight and no regulations that can protect customers. In addition, some apps lack the same safety standards as secure broker websites. 

However, it is quite possible to stay safe when using a trading app. It is simply a question of knowing what to look for and using precautions when making a selection. Doing research before using an app to trade money is essential. If you have lost money to a trading app, speak to professionals and seek fund recovery assistance right away. 

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The Proliferation of Trading Apps

At the beginning of the COVID-19, economies were shaken with uncertainty and according to some prediction, trading volumes would dip significantly. Instead, online trading actually increased and the use of trading apps rise by 55%. 

Since many people were working at home, they were doing everything online and that includes trading. Even those who were not familiar with investing discovered that they enjoyed trading through these apps which are convenient and give the trader direct access to the market. 

Apps are often cheaper than signing up with a broker, and some charge no commissions or fees at all. There is no need to call up a broker with instructions to buy and sell but traders can execute orders right away. 

The Downside of Trading Apps

However, with every technological advance, there are also drawbacks. The following are things to watch out for with investment apps:

  • Many are not secure
  • They can lead to impulsive decisions and big losses
  • There is no guidance
  • Many are not regulated

The fact that trading apps give traders direct access to the markets is both an advantage and a drawback. Often the trading is too fast and can cause traders to make impulsive decisions. This, combined with the fact that many trading apps lack protections such as stop losses, can lead to huge losses. 

Many people can find these apps addictive, like video games. However, unlike actual games, they are trading with the user’s actual money. Part of the problem is that there is no guidance for many of these apps. It isn’t just beginners that can benefit from the input of a broker but also experienced investors who want to refine their trading technique may seek guidance. 

Another concern is that many trading apps are not regulated. This gives customers few if any protections from unscrupulous parties who create apps to take advantage of customers. Even those that are not intending to swindle customers may nonetheless offer unsecured apps and those that do not protect customer information with encryption. 

Tips for Selecting the Right Trading Apps

There are some pros and cons to trading apps. Some people may prefer to sign up with a broker and avoid these apps, others may opt for apps alone or still others may sign up with a registered broker and use their apps as a service. However you decide to use this technology, the following are some tips for selecting the right trading apps: 

  • Make sure it is registered
  • Confirm it uses encryption and two-step verification
  • Do research
  • Use the Demo account
  • Keep learning about investing

The most important step when choosing a trading app is to ensure that it is registered. Too many people believe that apps don’t need a license, but unfortunately, forex scams may take advantage of people who buy into this misconception. Just as a broker needs a license and oversight from a regulator, an app also needs to be regulated. 

Research who is behind the app. Financial technology is only as good as the people who develop it, so looking at the credentials of the people who created the app will indicate how reliable the application is. Read reviews on reputable tech sites rather than relying just on customer reviews, since many customer reviews are not authentic, but are created by the company or by competitors. 

Take the time and learn about investing before using a trading app. The pace of apps can go very quickly, so the more you know going in the better position will be in. Apps also have educational tools and demos that will help you get the idea of trading before risking your finances. 

Trading apps can be exciting, but they can also lead to significant losses without the proper research and precautions. Your best bet is to sign up with a registered broker and to use the proprietary trading platform that they offer as a service to their clients. This combines the freedom of direct access to markets and trading on the go with the expert guidance, oversight, and consistency of a brokerage account. 

If you have lost money to a trading app, you need fund recovery assistance right away. When you file a claim, experts will help you present your case to authorities and can improve your chances for fund recovery success. 

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