The significant increase in the number of people choosing to trade with mobile phones has peaked in the last three or four years. The driving force behind the shift from computers and trading terminals to mobile applications is, above all, the ease with which orders are placed, also with a view to the portfolio. Nowadays, all brokerages have mobile trading applications that are monitored by technical teams. There are many brokerages who integrate artificial intelligence into these applications to potentially reduce the human interface. However, this transition from mobile trading platforms is not flawless. Read on to evaluate the various benefits and limitations of mobile trading.
What is Mobile Trading
Before we delve into the benefits and limitations, let us take a look at what mobile trading is. Mobile trading is trading in stocks and derivatives such as futures and options with the help of a mobile phone. It is more advanced, quicker and easier than traditional trading. In mobile trading, a trader can buy and sell stocks and manage the portfolio through applications. Almost all stock brokerages offer iPhone and android apps for those who want to trade from their phones.
Benefits
Easy Order Placement
Traders can easily order in mobile applications compared to a desktop computer. No need to reboot over and over again.
Access to Live Market Data
Mobile trading apps provide access to live market data including stocks, currencies, commodities, derivatives and stock indices. The trader can also review the portfolio at any time, helping him to get an idea of its performance and the underlying assets.
Live Updates
Mobile applications help a customer to access all live news about a particular development or action.
Notifications
Mobile applications have the notification facility which works through SMS alerts send by brokerages, custodians and exchanges.
Charts and Analysis
Mobile trading applications provide facilities such as stock prices, analysis tools and index data.
Research Reports
Mobile applications provide easy access to the research reports generated by the brokerage houses and firms.
Limitations
Restricted Access
Many mobile trading applications have restricted access. This means there are many obstacles such as the non-availability of derivative products, currency products and data on international stock indices.
Smaller Screen
A smaller screen size is a huge setback for traders as a trading platform typically contains a huge amount of detail that is not easily seen. However, this problem is being addressed with the introduction of larger screen size phones and tablets.
Slower Speed
If it weren’t for high-end smart phones, most budget smartphones lack a fast processor which makes the phone run slow. This less processing can result in a delay in ordering compared to a desktop computer.
Disrupted Mobile Connectivity
Connectivity on a mobile trading platform can be disrupted as wireless signals can be disrupted in remote or mountainous areas. A small disruption to the time the order is placed can result in funds being transferred to the brokerage firm or exchange.
While not flawless, the limitations of mobile trading applications are often outweighed by their benefits. It made trading effortless with user friendly interfaces and 24/7 access.
