How safe are trading apps for your smartphone
Mobile trading is becoming increasingly popular, as it makes it possible to monitor current positions anytime and anywhere, regardless of time and place, and perform all actions on your own.
Apart from being a classic trader, you can now also trade stocks through websites or mobile apps. On top of that, you can get a direct insight into the price action.
What exactly is a trading app?
A trading app can be downloaded to your mobile phone and after creating an account and verifying, you can trade stocks there normally. Depending on the application, different markets and not all companies are displayed, but this is similar to banks.
You can then deposit money via your mobile phone and create a securities account. You should pay particular attention to order fees, third-party fees, i.e. fees incurred when buying on the stock exchange, and custody fees.
How it works
Trading apps like Exness trader app are more comprehensive in terms of function than pure stock apps.
Instead of providing information about various financial products or individual quotes, a trading app lets you buy, hold, and sell real stocks, ETFs, stocks, and other funds.
The way it works is so similar to trading platforms on a computer. For beginners, it is especially important to master the trader’s trade very well and to master it.
Which otherwise still brings some technical understanding, which comes very well with a trading app.
What are the costs?
To be successful in mobile trading, not only the right strategies must be an issue, but also the costs involved. Online trading is never free as brokers naturally want to receive something in return for providing the platform.
Classic custodial rights have become rather rare these days. However, it is mainly trading fees that now cost money. Possible costs include spreads, which are the difference between the buying and selling price of an asset.
The amount is the online broker’s payment for a service. A commission is also part of the trading fee.
For each transaction, it must be paid, either by a fixed amount or by a variable amount, which is then calculated according to the volume of transactions.
How secure are the trading apps?
The first safety measure should be to only use a reputable broker who has the necessary licenses and who is approved by the authorities.
However, investment security, financial stability and a good reputation in the industry are also good indications for judging the security of a supplier.
Reliable data encryption is also just as important as the broker itself protecting its account from unauthorized access.
Can I protect my mobile trading account?
Data protection is of course an important issue. Especially if you access it through the public mobile network then it can be a security loophole through which hackers can access an account.
Smartphones leak more information than you think, which is why you should pay close attention to very secure passwords and regular updates. Also, browsing history and cookies should be deleted regularly.
Passwords should never be saved and the theft protection is also useful so that in this case the mobile device can be locked – even if it is a refurbished phone that you own .
Trading with Leverage – Opportunity and Risk
Leverage is an important feature of trading. Since prices usually only change within small short-term ranges, leverage is needed to be able to profit from even small price changes.
For example, a leverage of 1:30 means that if the price changes by 1%, the corresponding trading value changes by 30 times, or 30%. It means both opportunity and risk.
Even with small stakes, profits are possible that one would seek in vain elsewhere. Just as quickly, total job loss threatens if it unfolds differently than expected.
CFDs are also a popular instrument used by trading apps to enable leverage. Phone “Contracts for Difference” are particularly price sensitive and can be used well in virtually any market with continuous price quotes.
What makes a good trading app
The “quality” of a trading application depends on various factors. A key criterion is the breadth and depth of trading options. Also important: the costs incurred during the negotiation. They have a significant impact on performance.
Another point: the information provided. Especially in trading, it is important to be able to follow price developments in “real time” for quick and targeted action.
Finally, handling is also important. A trading application should be user-friendly, transparent and easy to use. Then nothing stands in the way of your own trading career.