Countless traders now trade in binary options, foreign exchanges and stocks via mobile applications. Mobile apps may not be as comprehensive as desktop apps, but what they lack in complexity they make up for in convenience.
As with many other internet-based activities, it’s important that traders keep up-to-date and adapt themselves to modern technology – and countless traders are making sure they do just that. There are the figures to back this up – at the end of Q2 2015 less than one percent of trades were conducted via mobile apps. One year on and that figure has virtually tripled. Those figures may be small, but they are not likely to stay small for long.
How do brokers feel about mobile trading?
Presently, the numbers are too tiny for brokers to feel too many benefits from their traders using mobiles and smartphones to conduct their trading activities. This will change as the popularity of trading apps and mobile platforms continues to increase. The result will be a lower operating cost per trader.
Operating costs could fall so low that mobile platforms could easily handle millions of clients. Mobile platforms also give brokers the chance of automatically engaging with a number of customers at an individual level via personalisation. This will help to increase the individual activity and connection with each trader.
Brokers are already under pressure due to fierce pricing competition, meaning that their margins remain slim. The faster adaptability of mobile platforms will pave the way for future growth. Adam Grunwerg, who reviews the best brokers on Investoo, explained:
“Brokers will be able to market to traders aggressively on mobile via SMS, push notifications and phone calls from financial advisers.”
What’s in it for the traders?
The key aspect of mobile trading is convenience. Traders can open a new account with a broker, and once they have gone through the authentication process they can be trading within minutes. Demo accounts can be set up immediately.
Naturally, there are concerns with security when it comes to mobile devices, but thanks to recent advances in technology, smartphone and tablets are secure like never before. Both iOS and Android have fingerprint recognition technology, for example. This negates the issue of phones being stolen and accounts accessed by thieves and other miscreants. Brokers typically store sensitive information on servers anyhow, rather than holding it within the mobile app itself on the user’s device.
With mobile trading it’s the ease of actual trading that is perhaps the biggest selling point. No more do traders have to spend their entire trading day staring at a desktop screen. Information can be disseminated in real-time, and notifications sent to a mobile device when a pre-defined alert – such as a stock reaching a certain price – is triggered. Mobiles of course are quite capable of streaming audiovisual broadcasts, so traders are able to remain aware of the last economic news.
What’s in store in the future?
As mobile trading apps become the norm, integration with other apps will add to trading convenience. Why should you exit your trading app to transfer funds via your banking app? In future you’ll be able to deal with all your finances centrally.
Investors will also discover the benefit of having wider access to information, while brokers will have more data available in order to target each mobile app user on an individual basis.
It seems that the increase in mobile trading can only be seen as a win-win situation for both traders and brokers.