How Investing and Stock Trading Apps Work?

In this article, we will discuss

• How Investing and Stock Trading Apps Work?
• What is a Stock Trading App?
• How to Choose the Best Stock Trading App?
• Benefits of Using a Stock Market Trading App
• Conclusion
• FAQ’s

How Investing and Stock Trading Apps Work?

Mobile apps have, in the true sense, brought everything to our fingertips. If you want to start investing or trading in the stock market, you don’t need to sit in front of a computer screen for hours. With stock trading apps,you can easily explore the stock market on your Android and iOS smartphones.  All you just need is a few documents to register, and you are good to go. However, have you ever wondered how these apps work? Or the factors to keep in mind before you register? Let’s take a look at them.

What is a Stock Trading App?

In simple terms, a stock trading app is a mobile application where investors can buy and sell securities listed on the stock market. These apps can only be offered by registered and authorised stock brokers. The list of securities you can trade on these platforms includes shares, bonds, currencies and even commodities like minerals and metals. However, you must remember that not every stock trading app might offer facilities to trade all these securities. While some stock brokers would charge you a commission for every transaction you make through their app, some might also offer it for free. 

How to Choose the Best Stock Trading App?

In the last few years, the need to shift to virtual services has increased significantly. Resultantly, the number of stock market trading apps has also increased. Now, with so many options available, it can get confusing for an investor to find an app suitable to them. Hence, there are some specific features of a trading app you must keep in mind before you open your account on one of these apps.

• Speed

The speed of a stock trading app is one feature that can change your entire trading experience. Prices of a stock can fluctuate really fast and if you do not act quickly, you may end up losing a good opportunity. Hence, the speed of your app is of extreme importance. Before you decide to register on an app, make sure to find out about the speed of its interface. This will ensure a seamless experience for you while placing your orders and monitoring the market. 

• User Interface

You can find some trading strategies quite complicated, but your stock market trading app must be very simple to use. Right from the account opening process to navigating throughout the app and even the account closing process, everything must be simple for you to understand.  If your application does not have a user-friendly interface, you might get stuck in the hassles of the app and end up missing some great openings to make money in the market.

• Fees and Charges

Most stock trading apps charge fees on two fronts, i.e. the account maintenance charges and transaction charges. If your app is charging a very high fee for these services, it can eventually zero down on your profits. While these charges are not entirely unavoidable, you must make sure they are not too high. Especially if you are someone who trades very frequently or in high volumes, you can end up paying a big portion of your capital in the name of such fees.  However, with some research and comparison, you can always find apps that offer a competitive fee structure. 

• Real-Time Market Data

You can never make a solid trading strategy without analysing the current market trends and data. Additionally, due to the complexities involved in the process, it would be very difficult to switch back and forth between your trading app and another platform to seek market updates.  Hence, a good stock trading app must have an integrated feature to give you access to market data such as price, market volumes, ask/bid quotes, etc., to assist you in making informed trading and investing decisions.

• Charts and Analysis

Charts are one of the most crucial tools to aid investors. Almost every investor uses them to interpret the direction of stock movement, to understand the pattern and to also formulate their strategy. Hence, it is very crucial for your app to provide charts and other relevant analytics tools that can help you improve your trading game. 

•  Deposits and Account Opening Charges

Depending on your choice of stock trading app, you may be asked to pay a specified sum of money as a joining fee. Some apps also ask you to deposit a certain sum of money as a minimum balance.  While these are some common expenditures, you can always explore them to make sure the fee you are paying for such expenses is not very high. Depending on your need, you can also find apps with zero balance facilities. These apps do not require you to maintain any minimum balance.

• Payment Gateways

While almost all stock trading apps have a payment gateway which supports all major payment methods, it would never hurt to confirm it in advance. Even though it's a small detail, it is still crucial for a seamless trading and investing experience. If your app does not support your preferred mode of payment, you can end up losing some good trading opportunities due to this completely avoidable issue.

• Alerts and Notifications

It's not possible for anyone to monitor the markets constantly for every passing minute. Hence your stock trading app must offer a feature of alerts and notifications. This feature would alert you of any major changes in the market and let you make the best of the given situation. It would help you in monitoring the markets without having to keep your eyes fixated on your app all the time.

Benefits of Using a Stock Market Trading App

Some of the key benefits of using an online trading and investing app include:

• These apps are designed to make investing and trading more convenient. With these apps, it has become extremely convenient to open a demat account and trading account. 

• The apps have brought the stock market to our fingertips. Irrespective of your location, you can easily access the stock markets with a smartphone and an internet connection. 

• Stock trading apps come with different features integrated into one app. You don’t need to visit multiple platforms for different needs. From conducting your research to placing your orders and monitoring them, you can do it all in one place. 

• With consolidated markets, you can use a single app to invest in mutual funds, trade into futures and options, and if it permits, you can also trade into commodities - all from the same application. 

• To make the apps more user-friendly, they are developed in a manner that allows customisation. You can easily customise it to your needs and preferences.

Conclusion

With so many stockbrokers offering their own stock trading apps, choosing the right app can get slightly confusing. However, with some research, you can easily find out the compatibility of the app and the services it offers to its customers.  If you are new to the stock market, you might not know your needs in the beginning. However, as you venture deeper into the markets, you would easily figure it out.  If you are still looking for an app or are dissatisfied with your existing stock market trading app, the new-gen Samco trading app may be the perfect choice for you. With its numerous trader-dedicated features, you can easily ace the index in the stock markets.

FAQ's

Q1. Can someone who is under 18 years of age register on a stock trading app?

Ans. There is no law which prohibits anyone from trading in the stock market if they are under 18 years of age. Hence, even if you are a minor, you can open a demat and trading account on a stock trading app by asking your parents to open it under your name. 

Q2. Is it safe to use stock trading apps?

Ans. It is very important to be cautious while using a trading app. Hence, to make sure your data and money are in safe hands, always use a trading app offered by a trusted user. For additional security, use strong passwords and do not use them on public wifi or unsecured networks. 

Q3. What are the documents needed to open a demat account?

Ans. You would primarily need your PAN card, bank account statements, passbook, id proof and address proof to open a demat account. For KYC, you would also need your photo to successfully complete the verification. 

Q4. Can I use the same PAN to register on more than one stock trading app?

Ans. Yes, you can. There are no limits on the number of demat or trading accounts a person can open. However, they must be linked with your PAN card, and you can’t open more than one demat account with the same broker. 

Q5. What happens if I don’t use a stock trading app for a long time?

Ans. If you don't use your demat or trading account for over one year, most stock brokers deactivate your account. In this situation, you will have to redo your KYC process to activate your account.