The advent of mobile applications on smartphones has ushered in a new era. A mobile app can save you time, reduce effort, and enhance your quality of life, and the domain of finance and trading has not lagged behind. As the digitisation of trading has made the financial market more accessible to the masses, the days of stock trading being restricted to the wealthy are far behind.
Nowadays, anyone equipped with a smartphone and internet services can download a share market investment app to start trading, monitor the market with a few taps at their convenience, or check on their investment shares.
Overall, the ease of trading in the market has greatly improved, making everyone a potential trader or investor. With the means to invest in the palm of your hand, let us look at a few things you must know before using a stock investment app. Firstly, we will elaborate on the various benefits of using a share market investment app to understand why more individuals are joining the fold of investments. Then, we will delve into the crucial factors you must keep in mind to maximise your returns.
Benefits of a share market investment app
Here are some major benefits of using a share market investment app:
- Cost-saving: A digital platform can save you a significant amount of money in terms of commissions and consulting fees.
- Convenience: To start trading with a share market investment app, you only need your smartphone and an internet connection. This means that you can continue trading despite your travel plans or busy schedule.
- Constant monitoring: Most trading app dashboards are designed to clearly display relevant information so investors can make timely decisions. Mobile apps are a great way to constantly monitor your investments and the markets to make buying and selling decisions.
- Fewer intermediaries: When trading through a share market investment app, your interaction with the brokers and middlemen will be limited. Most of the time, you can easily trade and make your own choices.
- Swift transactions: A share market investment app is equipped to receive payments from multiple online sources, expediting the payment and transaction times.
- Control and flexibility: With a share market investment app, you can trade without hassle. Whether it be small-cap stocks, mid-cap stocks, or stocks of any other type, you can buy and sell as you like, understand market sentiments, and monitor your investments at any time without waiting for a broker’s response.
Things to remember
While you can enjoy several benefits with these apps, you must also be mindful of using share market investment applications. While the apps allow you to rake in quick profits, you also stand the risk of incurring significant losses.
If a market enthusiast decides to become an investor, mobile applications may be the first platform they turn to for trading. For this reason, while choosing a daily stock investment app, several factors must be considered, including the ease of creating and closing an account, the app’s features, and the corresponding fees. We will look at each of them in detail in the following sections.
Account opening and closure
On a smartphone, whether it is on an Android or iOS platform, a share market investment app will typically have a seamless signup and account creation process. What you must know, however, is the process of closing your account and the associated terms and conditions. As a smart investor, you should ensure that the account closure process is seamless and that no surprise additional charges would be levied when you are inactive or want to close your account.
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Know the features you need
A good share market investment app will have all the trading essentials and features that enhance your experience. This includes daily recommendations, swift IPO applications, customised watchlists and alerts, and advanced analysis tools. You must choose an application with an intuitive and user-friendly interface, along with providing real-time market data and customisable charts. Furthermore, try the demo version to gauge the app’s responsiveness and performance.
Fees and charges
Most trading applications you find on the App Store or the Google Play Store are free to download. However, you must note two major charges: transaction charges and Account Maintenance Charges (AMC). These are pretty much unavoidable, so make sure you do your research and pick an app with plans that fit your requirements and goals. For example, if you plan to be in the market for the long term and be a passive trader, then an app with lower AMC will be better for you. On the other hand, if you want to be an active trader and engage in intraday trading, lower transaction costs would take precedence over AMC.
Also read: Dividend stocks
Conclusion
Share market investment apps have democratised trading, offering convenience and control to everyday investors. While they provide numerous benefits like cost savings and swift transactions, it is essential to be aware of potential risks and fees and to devise customised strategies according to your needs, risk appetite, and financial goals. By understanding these factors, you can make informed choices and effectively manage your investment share.
