Why are people flocking to trading apps? Allow me to share three benefits of investing having a stock trading app as opposed to a traditional broker.
1. Stock trading apps usually provide the modern trading features
With regards to revenue, trading apps pale compared to big brokers.
But much of these big brokers flunk of their offerings of modern trading features, such as fractional stock trading, competitive cash sweep programs and instant buying power. Fractional stock trading enables you to invest with a specific dollar amount, often as little as $1, rather than needing to buy in on the company’s full stock price. Before fractional shares, many cannot spend money on pricey manufacturers like Microsoft or Google’s parent company, Alphabet.
Then there are cash sweep programs, that provide traders and investors an answer to make money on their uninvested cash, by incorporating platforms offering just as much as 5% APY on idle cash. Meanwhile, instant buying power is often a feature that offers customers instantaneous access to up to a specific dollar amount with their deposit to do business with as opposed to needing to wait days for his or her money to.
Some big brokers are already including modern trading features such as robo-advisors and fractional share trading. But stock trading apps still appear to have the advantage within the most innovative features.
2. Most traditional brokers don’t offer direct access to cryptocurrency; stock trading apps do
Though it’s pulled back significantly within the last couple of years, cryptocurrencies’ global value neared $3 trillion in November 2021, evidence that it’s no more a dismissable fad but a considerably more mainstream kind of investment.
Because of this that President Biden issued an executive order in March 2022 directing federal agencies to report policy tips on regulatory and legislative actions linked to developing digital assets.
Moreover, a growing number of Americans see crypto being a worthy investment. Roughly 34% say crypto is a good investment, up two percent from July, when Finder last ran its survey, or over from 17% in January 2023.
But most traditional brokers still don’t offer usage of crypto.
In order to purchase this nascent asset, you may need a forex account which has a crypto exchange or trading app, in many instances.
3. You’d be hard-pressed to find a more streamlined trading experience than on a share trading app
While stock trading apps are playing catch-up to big brokers regarding available tradable assets, traditional brokers lag behind trading and investing apps when it comes to offering intuitive, user-friendly mobile trading platforms. Traditional brokers offer mobile phone applications, though they’re clunky compared to mobile-first brokers.
Mobile-first trading platforms prioritize the aesthetics in the trading platform. The trading experience is easy and intuitive – stock trading apps shine start by making it never been easier to join a merchant account and start investing. So when 40% of non-investors worldwide choose not to invest given that they don’t discover how or find investing too confusing, simplicity is a lot more important.
Trading apps are a wonderful solution for that uninvested that are afraid to get.
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