In the past, if you wanted to trade stocks, you had to use a broker, which meant either finding one locally or using an online broker. Today, dozens of stock trading apps allow you to buy and sell stocks with just a few taps on your smartphone.
The key things to consider when choosing a stock trading app
With so many choices, deciding which is the best stock trading app for you can be challenging. Here are some crucial points to think about when making your decision:
Some stock trading apps charge fees for each trade, while others don’t charge any fees at all. If you plan on trading frequently, you’ll want to find an app that doesn’t charge fees to save money in the long run.
Ease of use
How easy is the app to use? Some apps are very user-friendly, while others can be more complex. If you’re new to trading, you’ll want to find an app that’s easy to use to learn the ropes without getting frustrated.
Some stock trading apps offer more features than others. For example, some apps let you set up alerts so that you’re notified when a stock reaches a specific price. Others give you access to research and analysis to make informed decisions about which stocks to buy and sell, consider what features are important to you and find an app that offers them.
If you have any troubles with the app, you’ll want to be able to get help from customer service, and some apps have better customer service than others, so it’s worth considering this when making your decision.
The best stock trading apps
Now that you know exactly what to look for in a stock trading app, here are some of the best ones available:
The Robinhood app is entirely free to use and offers a user-friendly interface. It’s a good choice for beginners who want to start trading without fees.
Acorns charge a monthly fee but don’t charge any fees per trade. It offers features such as automated investing and fractional shares and is a good choice for people who want to invest long-term.
TD Ameritrade offers advanced features such as real-time quotes and analysis. It also has a large selection of commission-free ETFs and stocks. It’s a good choice for experienced investors looking for a more comprehensive app.
E*TRADE offers everything from basic trading to more advanced features such as options trading. It also has a wide selection of commission-free ETFs and is a good choice for investors of all experience levels.
Fidelity offers research, analysis, and advice from professionals. It also has a wide selection of commission-free ETFs. It’s a good choice for investors who want access to professional advice.
What are the risks of using stock trading apps?
While stock trading apps offer a convenient way to trade stocks, there are some risks to consider before using them.
First, you should be aware that some apps require you to deposit money into an account before you start trading, which means that if the app loses money, you could also lose money.
Another critical point to note is that not all stock trading apps are created equal. Some may not be as reliable as others and could cause you to lose money. Always do your research before choosing an app.
Finally, stock prices can go up and down, so there’s always risk involved in trading stocks. Traders are advised only to invest money they can afford to lose and never put all their eggs in one basket.
The bottom line
No matter which stock trading app you choose, make sure it offers the features and services you need. And don’t forget to consider fees and customer service when deciding. Also, use a reputable and experienced online broker from Saxo Bank before using a trading app.