Do you know that two decades back it was very hard for a common man to trade? By trade we mean buy and sell financial instruments like stocks, securities, bonds, mutual funds, etc.
Just imagine how hard it was for our elders if they wanted to start trading. They had to go to the stock exchange building, constantly look at the board or find a person who can do all of it for them and keep themselves updated by calling the agent and in those days it was hard to use telephones even. Right?
Well, nowadays, we have all of that in our pockets. We just take out our mobile devices open an app of any online trading company like mobile trader android and start trading. How convenient it is, right? We now do not have to stand at a stock exchange to keep an eye upon our share or financial instrument’s performance.
But the question which must be coming into your mind is, how can something be so good to be true? There must be some pros and some cons of trading through mobile software or apps. Yup, there are. Nothing in the world is perfect and the same can be said for trading and when there is money involved then it is definitely not.
Some pros and cons of mobile trading software are as follows:
Pros of Mobile trading software:
If you know how to trade, mobile trading software is a blessing for you. And if you have trading software that is authentic and accurate, it can make you financially stable. So following are the pros of mobile trading software:
- No Prerequisites required: The most important aspect of mobile trading software is that you do not need any prerequisites to open a trading account. Like if you have ever gone to a bank to open an account, you must have experienced how hard it is to open an account and how time-consuming it is. You need to prove that you are the one who is opening the account. Then so many papers and forms you have to fill. After that, they need a reference. After all this process you will be able to open an account. But when you are online, you just need to fill a signup form. No reference required.
- Market Access: Once you have successfully opened the trading account with the online trading brokerage firm you have the access to the market 24/7. This is a blessing in this era because nowadays markets are so volatile that they change with every coming news and incident. Hence having market access whenever and wherever you need is a plus.
- Limited transaction cost: According to a report, back in the 1980s if you wish to make a transaction in a trading industry you had to pay a fee which ranges from £50 to £1000 on the NYSE (New York Security Exchange) depending upon the size of the order. This was a big hassle and that is why brokerage firms in those days were so profitable. However, today with this mobile trading software a person can perform a transaction without having a middle man or giving a small commission fee of like 3%.
- Liquidity: Many banks accept payments from different platforms and mobile trading software. Why I am telling this? Because this increases liquidity. With having access to the market all the time, this opens doors for a trader to buy and sell his instruments upon a given opportunity. Hence a trader can inject money through bank account directly in the app or can exit and send the money back in his bank account.
- Leverages: Through these online trading apps, many companies have started giving away starting leverages like giving an entry $50 or so to start with. Also, they allow taking leverage so that you keep on trading and return the money when you make a profit. Hence this makes it easier to play.
- Prolonged opportunities: The Internet makes it possible to access any opportunity at any time in a day. Traditionally, trading had a constant activity hour. However, still, that time is constant but being able to trade at any time opens new opportunities for anyone to enter into the market and start trading.
Cons of Mobile trading software:
Having so many advantages makes people think that this is too good to be true and they are right. Mobile trading software does have some cons and we are going to discuss them. So here are some of the most common cons of mobile trading software:
- Volatility: Having access to the market place 24 hours a day creates the market more volatile than ever. Just imagine a billionaire invests one billion dollars in a share suddenly. This will trigger the market and many people will or might start buying that share. Watching this you might invest in that share too. Once that billionaire saw that he has doubled his money, he can just simply sell that share and take his two billion dollars out of the market and the share price falls with the double speed. These acts are common and hence make the market volatile.
- Misinformation: Have you ever seen those ads where they say: “Become rich overnight” or anything similar? Yes right? This easy access to money makes these frauds common. But this is not something new. It has been existing in the financial market for ages but in different forms. You just have to be aware of fraud companies, ads, and brokers. Because committing fraud on mobile trading software is easy but hard to track.
- Hacking: When we talk about money we cannot leave thieves out of the equation. Again, this is not something new but this is more dangerous than ever before. In physical theft, a thief has a limited reach but in this online world, they can reach your bank account too. So carefully sync your bank account with your mobile trading software and make sure that the company is secured.
Talking about trading, this is a game that involves money but it is a professional game. Traditionally this game was limited to a certain period but since the advent of the internet and mobile software, this game has been extended to 24 hours a day. This is a good thing for a trader but this new thing comes with its cons.
Although the pros are very attractive and convincing we cannot neglect the cons of the software. When we can have access to the market all the time someone else also has the same access so he can either hit the market to make it volatile or he can hit your account. So what to do? Just play safe and do a little bit of research about the mobile trading software before entering and also never believe in every news which comes to you.