Online trading apps mean it is now easier than ever to keep up with the fluctuations of the world’s financial markets. Whether you follow major currency pairs, or you have a diverse portfolio of stocks and shares, online trading apps are accessible from any internet-enabled device. The hard part is choosing the right app.
So, here in this article I’m going to discuss about a few tips that can help you choose the right online trading application for your better trading experience.
How Experienced Are You?
Your level of previous trading experience will directly determine what type of app you go for. For example, if online trading is your livelihood and you already have a CFD broker you trust, an app such as StockTwits would be useful, as it offers real-time insights into market developments. As the name suggests, StockTwits is the Twitter for online traders and investors.
Less experienced online traders would benefit more from a trading app like eToro. This is a great example of a social trading app, which combines online trading with social networking.
You can source information from experienced traders, interact with them, and learn from people who do this for a living.
Costs and Fees
For many newbie investors, the cost of trading is the main consideration. If you haven’t tried online trading before, it is wise to look for a trading app where you can open a demo account and have a go with zero risk. Most of the larger platforms let users open demo accounts first, so it is a good place to start.
Once you are ready to invest some real money, look for an online trading app with a low deposit requirement. Some have no account minimum whereas others insist you maintain a minimum amount in your account.
Don’t forget to look at the fees for each app. Expect to pay a fee for each trade you make, as this is how the app provider makes its money.
Some online trading apps are free to use, so if you want to minimize your costs, they are a safe bet. Watch out for hidden fees. You may be charged annual fees, research fees, or extra fees for broker-assisted trades. Read the small print before you start using an online trading app.
Many online trading apps seek to entice new customers with special promotions such as commission-free trades or a cash bonus. If there is little to choose from between two apps – apart from a promotional deal – let this be your decider.
Read reviews and research your options before you try out an online trading app. If you find the app is difficult to use, download another one.
So, these are some basic but very important tips that will help you choose the best online trading app. Do share this resource with others via social media.