Introduction to Mobile Trading
Mobile trading refers to the use of mobile devices (typically smartphones and tablets) for the buying and selling of financial instruments instead of traditional trading with a computer. While traders have always been able to check market performance on their phones, trading in mobile is a more recent invention that allows players to open new trades or manage existing ones from their mobile devices. Trading on the phone comes with loads of benefits but also has a few risks and challenges. In this post, we’ll explore all you need to know about how to trade on mobile, its benefits for mobile phone traders, as well as the risks and challenges associated with it.
How to Start Trading on Your Mobile Device
Today, mobile trading has become quite common with almost every major brokerage offering a mobile application or browser-based platform that allows customers to trade from their mobile browsers. This can be a proprietary app made by a specific broker or a common app like MetaTrader 4.
Some of these apps and mobile trading platforms allow you to view or monitor market data even without opening an account. However, you can also place live trades via these apps after opening a trading account with a broker.
After logging into your live account on the mobile application (or via your mobile browser), you’ll have access to a wide range of live trading features including viewing market trading charts, placing trades, and managing existing trades.
Benefits of Mobile Trading for Investors
Now that you know how trading on phone works, here are some mobile trading benefits that you should know as an investor.
- Online mobile trading gives traders a platform to trade from anywhere using their mobile devices.
- Seamless access with mobile phones makes it easier to place trading orders quickly and efficiently.
- Many mobile trading apps provide live data that makes it easier for users to make investment decisions. Some apps also come with extra features that improve the trading experience such as price alerts, in-app notifications and so on.
- Mobile trading makes it easier for investors to monitor trading in real time and pull out of trades when they need to.
Popular Mobile Trading Platforms
With mobile trading growing increasingly popular, virtually all brokerages now support mobile trading options. Some of the most popular mobile trading platforms are highlighted below:
- Robinhood
- MetaTrader
- JP Morgan Wealth Management
- WeBull
- E-trade
- Ally Invest
- Charles Schwab
- TD Ameritrade
To choose the best mobile trading apps among these options, you need to consider the core and extra features of each app as well as their benefits for mobile trading.
Trading Stocks and Forex on Mobile Phones
With the increasing technological capabilities of mobile devices and the growing adoption of these devices by modern brokers, many mobile apps and trading mobile platforms now allow users to trade forex actively on their mobile devices, replacing the traditional desktop method.
Traders can access the Forex market, execute mobile trades, and monitor their position all using their mobile device. They also get to analyze market trends using data, graphs and charts on the application.
In addition to mobile trading forex, the mobile trading revolution is applicable to stock trading as well. Many of these apps don’t just allow you to connect to the stock market, they offer a comprehensive library of online resources and on-demand educational materials to help users make informed stock trading decisions.
Risks and Challenges of Mobile Trading
One of the biggest risks of mobile trading is the small screen size of mobile devices. While brokers try to make their apps as clear and intuitive as possible, there’s a higher risk of human error like accidentally clicking an incorrect option when working on a small screen.
Trading in mobile with a smartphone is also more prone to technical issues compared to trading with computers. Examples of potential technical issues traders can encounter when trading on phones include connection problems, battery depletion, app crashes and so on. These issues are less common on computers and even when they do occur, the fact that professional traders use multiple screens for various functions makes up for them.
Tips for Successful Online Mobile Trading
Considering the peculiar challenges of online mobile trading, traders or investors looking to learn how to trade on mobile must follow specific tips and strategies to ensure their online mobile trading success. Some of the most important mobile trading tips are highlighted below:
- Choose a reliable mobile trading platform with all the features that you need.
- Practice mobile trading first with a demo account before you start investing your own money. Even if you’re already familiar with desktop trading with desktop, mobile trading is a slightly different experience and it may take a while to get used to it.
- Get a good device: trading apps consume significant resources and device power. This can become a problem, especially if you intend to trade for extended periods. Optimize your device settings and consider a tablet or a smartphone with a larger screen for better viewing.
- Mobile trading requires a stable internet connection. Always use a reliable Wi-Fi network or get on a good cellular data plan.
- Secure your device with strong passwords, and biometric authentication.
Frequently Asked Questions
What is mobile trading?
Mobile trading refers to the process of placing and monitoring stocks or forex trades via mobile devices.
How do I start trading on my phone?
To start trading on your phone, you need to download a mobile application or visit a mobile trading platform via the browser of your mobile device.
What are the benefits of trading on mobile devices?
The biggest benefit of trading on mobile devices is the convenience it offers. You can place new trades, and monitor and exit trades on the go, anytime and anywhere. Many mobile trading apps also come with additional features that improve your trading experience.
Which mobile trading platforms are the best?
Some of the best mobile trading platforms include Metatrader4, Robinhood, E-trade, and Ally Invest.
Can you trade stocks and Forex on a mobile phone?
Yes. You can trade both stocks and forex on your mobile device.
What are the risks of trading in mobile apps?
The small screen size of mobile devices is a major limitation of mobile trading. There’s a higher risk of errors due to these limitations.
How do mobile phones benefit active traders?
Active traders can benefit from the convenience of mobile trading. It makes it easier to monitor trades, get real-time updates and manage trades when they need to.
