The Pros and Cons of Trading Apps

Apps are supposed to make our lives easier. There is an app for almost everything, from shopping to gaming to keeping track of how many steps we take or water we drink. Naturally, there is also an abundance of trading apps. 

Convenient trading without interference and the ability to fund your account instantly are some of the advantages of these new trading tools. On the downside, standards of security vary and it is easy to go overboard with trading apps, particularly for novice traders. Additionally, many of these apps are actually not legit but are created as part of a trading scam. 

If you have lost money through a trading app, seek fund recovery experts who can help track down the people behind the app and work to retrieve your funds. We have tried and true tools, including intelligence reports, that can assist with fund recovery. 

Chargebax has the expertise and the right strategies to make your chargeback, wire recall or crypto recovery case successful. We consult with clients and develop strategies to bolster your claim and help you recover your funds. Talk to our professionals today. 

What Are Trading Apps? 

Trading apps do what other apps do–they allow you to complete a task through technology and all in one place. Often apps concentrate the services of a broker or a merchant in a tool you can install on your phone. You may still visit the website, but the idea of an app is that everything you need for trading is there. 

Some trading apps are offered independently of brokers whereas others are given as perks to clients of certain brokers. Large brokerages offer trading apps that are of a high standard. The difference is that, if you are a client of a broker, you can still have access to the guidance and knowledge of a regulated broker by using an app they provide. Other trading apps do not have this advantage. 

Other trading apps are wholly independent of licensed brokerages. This may seem like a great way to trade stocks, forex, cryptocurrencies, options and other assets without fees or a middleman, but there are also many disadvantages. There are many trading apps that are not registered and may not be legitimate. It is important to do research on a trading app before entrusting your money to these tools. 

Pros of Trading Apps

Many people love to use trading apps for the following reasons: 

  • Lower Fees
  • Quick Access to Markets
  • Educational Features
  • Demo 

Brokers charge commissions, fees, and spreads. Trading app fees can be lower and some do not charge commissions at all. Customers can feel they are accessing the markets directly without a middleman. With brokerages, clients need to contact the broker when they want to buy and sell an asset, but trading apps can execute orders instantly. This is particularly advantageous when trading fast-moving and volatile assets like forex and cryptocurrencies. 

Many trading apps have features designed for novice and seasoned traders alike. You can learn the basics of investing and trading from an app and get access to charts, technical and fundamental analysis, market-moving updates, videos, tutorials and podcasts. Also, apps often give traders a chance to try out their service with a demo account to give trading a try without risking losses. 

Cons of Trading Apps

It is important also to beware of the disadvantages of trading apps, including:

  • Lack of Guidance
  • Many Are Not Registered
  • Trading Can Be Too Quick
  • Losses Can Be Greater
  • Many Are Not Secure

Although many people feel trading apps are liberating, others feel anchorless. There is no one to ask for trading advice. They may be able to consult analysis, but some feel it is important to follow a guide for trading and a broker provides this. Trading apps often are not licensed. 

People often make the mistake of thinking that trading apps do not need to be regulated, but every financial service should be licensed. With no license, there is no oversight, and ultimately, this creates a risky environment for a trader. Some trading apps are created by scammers to steal money and data. 

Even with legitimate trading apps, the trades can be executed too quickly for safety. This can lead to huge losses with volatile assets like forex or options. Apps can be used impulsively, almost like gambling. They can be similar to video games on which users can get hooked without doing due diligence or thinking carefully about trades. 

In addition, many trading apps lack the same standards of security and encoding as licensed brokerage websites. According to research performed by ioActive, 64% of desktop and 6% mobile applications did not use encryption for customer data. A full 21% of both mobile and desktop apps did not store users’ passwords in an encrypted form. This makes users’ information vulnerable to hackers and leaves data as well as funds unprotected. 

Tips for Using Trading Apps

Apps are excellent tools when used correctly and with the right oversight. The following are some tips for the safe use of trading apps:

  • Use apps issued by a licensed broker
  • Ensure the app uses encryption and other security measures
  • Do due diligence and full research on the app
  • Take your time when using a trading app

Do not get tempted into making lightning-quick trades with an app. Instead, take your time to think about trades. Start with less volatile assets and work your way up to quicker trades with crypto and forex. Research any app you use thoroughly and ensure that it is of the highest standard. Check that it protects all customer information with encryption. Most importantly, use a trading app that is licensed, preferably one that is associated with a regulated top-tier broker. 

If you have lost money to a trading app, you can retrieve your funds with the help of fund recovery assistance. Chargebax experts deal with numerous fund recovery cases and have helped our clients retrieve funds from crypto scams, forex scams, and disputes. We create intelligence reports, negotiate with banks and provide a plan of action that will help you get your funds back.