Trading the capital markets with a mobile app provides you with the freedom to execute trades and analyze markets while you are on the go. Some of the best mobile applications trade in conjunction with a web-based or downloadable trading application.
A good trading application is easy to use and has a robust execution module. There are several apps that you can use that do not have execution capabilities. These are great apps to use in conjunction with your brokers CFD Trading App. There are several items that you need to focus on when you are evaluating a mobile app. You want to make sure that your costs of trading and the breadth of assets to trade meet your expectations.
Cost of Trading
When you trade CFDs, the trading costs include a bid-offer spread, as well as, commissions, and possible holding costs. Make sure your brokers outline the costs. As long as you know what you are charged for, you can make a good business decision. If a broker hides a cost, that would be a red flag.
The bid-offer spread is the difference between the buying and selling price. In theory, your broker can generate gains by purchasing on the bid and selling on the offer. Some brokers provide very tight bid-offer spread and add a commission.
The narrower the bid-offer spread, the less the price needs to move in your favor before you start to make a profit. A holding cost is a cost your broker might charge for owning positions for more than 1-day. These charges could include interest charges or forward rate rollover charges.
Many Tradeable Assets
You want to use a broker that provides you with a wide array of tradeable assets. Some underlying assets you can trade include currencies, commodities, stocks, stock indices, stock ETFs, and cryptocurrencies. A broad number of tradeable assets open up several different types of trading strategies. Additionally, the ability to trade many assets, allows you to reduce your risk profile, by diversifying your portfolio.
Straight Forward Trading Platform
You want your mobile trading platform to be sophisticated but not complicated. You want it to be easy to use, allowing you to potentially use gestures to execute trades and evaluate market prices. Look for a trading platform that offers intuitive software, and robust trading tools along with an order management system.
If the navigation of the mobile app is complicated, you could lose out on trades as you clumsily open the trading app. You also want your app to provide you with multiple ways to execute trades.
Deposit and Withdrawal
You want to make sure this process is straight forward. The more funding options your broker offers, the better. Before you deposit money into your account, make sure you know exactly how you can withdraw it and how much time that process usually takes. You also want to make sure your broker is regulated. Regulation ensures the safety of your funds. Make sure the broker you’re considering is regulated by the authority of their domicile.