The Business of Apps reported that over 130 million people used stock trading apps worldwide in 2021. This represents a 49% increase over the previous year, and we can assume this number has only increased since then. The number of stock trading app users and their percentage increase over these two years highlight a significant change in how people invest, showing mobile apps are becoming a dominant fixture in trading.Â
There are several reasons for this, including how they are changing the way people approach trading, their low investment amount requirements, and the access they give traders. In this article, we highlight these and other ways mobile apps are leading to an evolution in trading.
Making Investing Available to Everyone
Several notable barriers made it difficult for people to trade or invest in different markets. These included a lack of information, complex trading platforms, and high minimum investment minimums. Mobile apps have addressed these three areas differently but with the same result: they have led to the democratization of trading.
They have reduced the entry barrier associated with high account minimums by allowing much lower investment options. The best example of this is fractional shares and cryptocurrencies. Instead of buying shares worth hundreds or thousands of dollars, investors can buy a fraction of them and then grow their investments over time.
Mobile apps have removed the need for traders to deal with or struggle with complex trading platforms by providing easy-to-use interfaces. Mobile trading apps are intuitive and easy to use, offering intelligent navigation and easy access to all the data a trader might want.
They have also simplified the process of depositing funds and making trades. You only need to enter the pertinent details for both transactions and wait for the actions to be completed.
Lastly, they have made real-time data and educational resources easily accessible to traders. These apps provide tools like different charts, news articles, and announcements that keep traders informed. They also provide articles, courses, and videos that help beginner traders get started or experienced traders keep learning and sharpening their knowledge and strategies.
Bringing Innovation and Automation to Your Mobile Device
Algorithmic trading has been around for some time, and numerous platforms already provide the ability for users to use it for trade scheduling or execution depending on specific conditions and criteria being met. A user only needs to decide on their predefined parameters and let the trading platform do the rest.
This functionality is now available on some trading apps, and we will see it included in many more in the future. The best thing about this is that technology evolves and matures, so this functionality will be better and even more robust in the future.
Another important innovation available in mobile trading apps is socially driven trading. Some apps allow you to connect with other investors. Doing this provides immense learning opportunities for both parties and allows them to share trades, insight, techniques, tools, and everything they have learned so they can mutually benefit from their connection.
Better Security
Traders and trading platforms have always taken account security seriously. The reason is that their accounts hold significant amounts, and a breach would mean significant losses to the trader and reputational damage to the platform.
Trading platforms already take measures to protect user data, with many at least encrypting user data while in transit and at rest. They also ask that users protect their accounts using two-factor authentication. This additional layer of security works best alongside other measures like using strong passwords and harder-to-guess device passcodes.
Helping Traders Embrace Emerging Trends
Traders should always follow market and price trends. However, they should also start paying attention to trends happening outside the market that will affect trading in the future. The two most impactful technologies in this area will likely be artificial intelligence and machine learning.
We are already seeing traders use machine learning and artificial intelligence to pick stocks, complete trades, and make investment decisions based on factors like their risk tolerance.
Machine learning can take all past data and parse it to perform the same functions within a mobile trading app. Artificial intelligence can provide real-time, personalized, and detailed advice and information on the best trades to follow or make and the ones you should avoid.
We have already seen both technologies used extensively in other areas and are starting to see them used in the trading world. However, their use in trading apps is not as extensive as in other areas.
Even though they have been around for some time, mobile trading apps are nowhere near being mature. Traders are always adding features and improving them to make them secure and more beneficial to anyone who uses them. We can expect to see additional changes in the future, and for those apps to play such a bigger role in trading that they change trading as we know it today.
