Smartphones have become the next best thing for traders all across the world. Mobile trading is gaining popularity day by day and it is said that the modern market is already being dominated by it. This is due to the growing participation of different clients both retail and institutional ones.
When trading it is important to pay attention to the market. What is going on, where, and why? Foreign Exchange Market, or Forex (FX), can be influenced by a multitude of different reasons. These may be political opinions, statements, new laws, public events, or even tweets. Shifting from desktop computers to mobile trading applications gives the investor an opportunity to quickly place their order or close the trade as soon as they receive some kind of new information as well as keep an eye out at any place wherever they may be.
Although it is not all sunshine and rainbows as connectivity seems to be the biggest problem at this moment. While the signal for high-speed 4G or at least 3-3.5G is present in most of the cities the rural areas are struggling with connectivity. The idea is that there are issues with stable internet connection in locations where there are hills, or valleys, or in more remote areas of the world. The upcoming faster 5G network is also not going to be solving the issue due to how the technology itself works. While the speed and transmission rate is higher, unfortunately, the coverage is lower meaning there have to be many more antennas set up everywhere to keep the world connected. This also does not include the developing parts of the world where mobile data providers may not be as well established meaning that mobile internet may not be accessible from everywhere. Although, accessibility-wise it still beats your everyday normal rooted computer that requires either an Ethernet connection or active Wi-Fi to be able to connect to the network.
Several popular brokerages have also been working on integrating additional artificial intelligence (AI) enhanced functions into their applications to reduce human interference as much as possible. This is to reduce resource consumption as well as accelerate the process itself. Due to this a lot of newer traders are picking up and studying how to learn to trade on their smartphone devices, which are also much more common than home computers. This is not to say that the bigger computers are redundant now. It is no secret that more processing power as well as bigger screen and user-friendly big buttons everywhere make things that much more clarity and understanding. Ideally, one should have both available if he or she is a serious trader.
This is not only true for Forex but for other markets as well. Mobile trading is taking the world by storm everywhere including cryptocurrency markets, stock exchanges, and so on. While it is true that there has been a steady increase in mobile traders during the last couple of years they are still representing a small percentage of the overall world’s trading population. The shift is likely to be driven by a common understanding that mobile applications are much more accessible and easier to use on the go. This also means that the world development going on around you doesn’t escape the attention as necessary action can be done with just a couple of finger presses on the smartphone. The customized features offered by lots of brokerages on the basis of queries that users are most frequently requesting as well as a number of quality of life improvements like automated functions on mobile trading applications are making life that much easier.
Key Benefits of Mobile Trading
It wouldn’t work otherwise if we do not go over some benefits of mobile trading.
First, it is that much easier to place an order due to the fact that it can be done effortlessly on mobile trading applications in comparison to desktop counterparts. There is no need to go home or take out a big device from your bag that has to be carried everywhere. No need to boot it up, open browser, etc. On Smartphone, it’s just a couple of finger presses away.
Secondly, the investor has the ability to monitor market data and portfolio in real-time. All of the popular mobile applications have live market data that includes stock indices, currencies, commodities, derivatives, shares, etc. The existing portfolio can also be accessed and reviewed at any point and time without much effort. This means that the user has the ability to briefly check the performance of their portfolio and the underlying assets.
Smartphones are always bothering us. You always pay attention to them. Always looking out for those notifications that may come at any point and time. The same goes for mobile trading applications. Due to the fact that the trader can receive notifications about their affairs in the market means that nothing will go unnoticed. These can be done independently without exchanges, custodians, and brokerages sending you messages all the time to keep you updated. This takes some workload from people working in the brokerage to focus on other important matters as well as gives even better service due to rooting out the human factor. The AI never sleeps, never eats, and never goes on a break.
As we have already mentioned, smartphones are more than usually our corridor to knowledge about the world around us. This is where we can find all the necessary news and updates to make our decisions much more informed and close to reality. The specific developments of assets is also a huge addition to the scheme.
Brokerages are doing their own research of the market to advise their customers. This means that all the updates to the charts and the systems can be seen immediately through your phone. This also presents the ability to view historical charts and analysis on the go. These are usually on the premium side of these applications but such service exists and is a worthwhile quality of life improvement.
Limitations of Mobile Trading
Although it is not all so good. There certainly are some limitations to using smartphones. If there were none everyone would be using them right? Right.
The biggest issue is that there are a number of mobile trading applications that have restricted access which means that there are a number of obstacles on the way for the trader. These can be anything from the unavailability of the derivative products, currency products, or even data of stock indices. Although this is heavily dependent on the application that is being used.
As we have already mentioned briefly smartphones have smaller screen sizes. These make seeing and processing the information for the human brain a tad bit harder. Although arguably this is something one can get used to it is still easier to miss something on the tiny screen of your iOS or Android device.
Mobile connectivity is also one of the main reasons why smartphones are also not the best option for trading. This is a downside that is not on the user to fix. One cannot get better glasses nor can one get a phone with a bigger screen in order to fix the connectivity. Until the infrastructure is not going to be present one will be stuck with dodgy connectivity. It is also worth noting that it’s not recommended to trade on public Wi-Fi due to security issues.
Most of the budget smartphones also do not present a viable option as the speed can mean profit or loss during the trade. Older mobiles with slower processors may not fair well against constantly updating charts and overall slow down the whole process. This can lead to the delay in placing the order or opening and closing the trade.