What makes people flocking to stock trading apps? Allow me to share three features of investing using a trading and investing app as opposed to a traditional broker.
1. Trading apps often offer the most contemporary trading features
In terms of revenue, trading apps pale when compared with big brokers.
But many of these big brokers are unsuccessful in their offerings of modern trading features, such as fractional stock trading, competitive cash sweep programs and instant buying power. Fractional stock trading permits you to invest having a specific dollar amount, frequently as little as $1, as opposed to the need to buy in at the company’s full stock price. Before fractional shares, many cannot put money into pricey brands like Microsoft or Google’s parent company, Alphabet.
You can also find cash sweep programs, that provide traders and investors a solution to generate income on their uninvested cash, by incorporating platforms offering up to 5% APY on idle cash. Meanwhile, instant buying power can be a feature which gives customers access immediately to up to a specific amount of money of the deposit to have business dealings with rather than the need to wait days because of their money to pay off.
Some big brokers have been including modern trading features such as robo-advisors and fractional stock trading. But stock investing apps still appear to have the advantage on the state-of-the-art features.
2. Most traditional brokers don’t offer immediate access to cryptocurrency; trading apps do
Though it’s pulled back significantly in the last few years, cryptocurrencies’ global value neared $3 trillion in November 2021, evidence that it’s no longer a dismissable fad but a far more mainstream kind of investment.
So much so that President Biden issued an executive order in March 2022 directing federal agencies to report policy tips about regulatory and legislative actions connected with developing digital assets.
Moreover, progressively more Americans see crypto like a worthy investment. Roughly 34% say crypto is a good investment, up two % from July, when Finder last ran its survey, or higher from 17% in January 2023.
Most traditional brokers still don’t offer usage of crypto.
If you wish to spend money on this nascent asset, you will need a forex account with a crypto exchange or stock investing app, typically.
3. You’d be hard-pressed to discover a slimmer trading experience than on a regular trading app
While trading and investing apps are playing catch-up to big brokers regarding available tradable assets, traditional brokers lag behind trading apps in terms of offering intuitive, user-friendly mobile trading platforms. Traditional brokers offer mobile phone applications, though they’re clunky compared to mobile-first brokers.
Mobile-first trading platforms prioritize the aesthetics in the trading platform. The trading experience is simple and intuitive – trading and investing apps shine by looking into making it incredibly easy to enroll in a forex account and start investing. When 40% of non-investors worldwide not invest since they don’t discover how or find investing too confusing, simplicity is ever more important.
Stock trading apps can be a wonderful solution for the uninvested who are afraid to take a position.
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