Are the best stock apps the equivalent of older and more traditional methods of managing stock trades? They’ve certainly become popular, with many of the best stocks apps attracting thousands, even millions of followers. Proponents of the app have had a powerful influence on the market driving up prices on stocks and make fast trades.
The best stock apps make stock trading fast, affordable and accessible. It’s now possible for people who might previously not have had enough funds to make trades to now have a big influence on the stocks.
How do the best stock apps differ from other platforms?
There are a couple of key differences between trading applications and working with traditional brokers. The biggest difference is cost. Many of the best stock apps have made trading free which is very different from brokers who usually take a cut for their services. The other thing that makes them different is that they have access to the market. Most small-time investors used to typically focus on equities, funds and bonds but that has changed a lot since the introduction of applications. Most apps now provide access to a lot of different types of stocks and ever allow cryptocurrency trading. Traders can also buy options and make other riskier types of trades.
The fact that trades can be made on a mobile phone is a big change too. This makes it much easier to follow how trades are progressing and to make fast moves as the market evolves.
How do they earn money?
Many of the new platform options don’t charge fees for trades. They’re able to keep overheads very low without brokers. They make most of their income instead of on interest made from money deposited and order flow. This basically means that big market makers basically pay brokers in order to get the rights to take their orders. The idea is that people are more likely to buy stocks from a trustworthy retail broker than they are from large hedge funds. This kind of thing has caused a bit of discomfort in recent years however and there has been criticism raised that there is a bit of conflict of interest between. With the way that many of these platform’s work, it’s possible for them to quite dramatically change markets and have a big influence on real-world financial markets.
Which one should you download?
There are a lot of different platform options out there to choose from. The best stock apps for you to choose will depend on the kind of trading you want to do. When deciding you should check out what kind of markets, they operate in. Do you for example want to make trades in the ASX or do you want to access international markets? Some will allow you to access international stocks whilst others won’t. You should also compare what kinds of fees they use and other details, how long does it take for deposits to appear in your account for example? And how long does it take for money to settle and be withdrawn from your account?
Finding out this kind of information will help you to decide with application or platform is best for you. If you’re not sure, try asking your friends for information and recommendations. Getting guidance will help you work out which platforms you are most likely to have positive experiences with.
If you try them out, make sure you be mindful that it’s quite easy to get carried away. Always trade responsibly and don’t over invest with anything you don’t want to lose.