Before the introduction of the digital means of stock trading where you can even operate a mobile investment app without any commission or a minimum balance, trading in stocks was such an expensive investment as you had to part with a huge commission to be able to trade through platforms such as E*TRADE and Scottrade. These trading platforms could only be accessed through an internet browser which was slow most of the time or inaccessible due to poor internet connectivity.
With the emergence of mobile trading apps, a huge difference is notable with more people now able to engage in the stock market. Some of the benefits of these mobile apps are:
- Ease of accessibility to the 24-hour market: A person who has a mobile investment app can be able to access the stock market at any hour of the day or night and conduct business at any time. This is unlike the traditional apps which could only be accessed through desktops which could not be carried around with ease.
- Low or no commission when using the apps: While the other trading apps charge as high as 6.95% for using the platform to trade, mobile apps are charging as low as 1% as commission on trading while others like Robinhood is offering a free trading platform. This is one of the main reasons why investors are shifting from the traditional methods and adopting the new mobile trading apps.
- Increased interest of millennials in the stock market: In the past, most of the young people were not interested in the stock trading and viewed this as a backward trade. Today, many young men are learning the trade and adopting the new mobile trading apps to conduct their business. This has brought a shift from the traditional method to the new improved technology.
- The minimum capital requirement to start trading: Mobile trading apps have offered a platform where you can start of with as little as a single share’s capital. For instance, with Robinhood app, you are good to go if you can open an account and afford to pay for a single share.
- Ability to invest ‘spare change’: A mobile app like Acorn enables an investor to round up the change from a debit card which could be as little as $0.50 and deposit it into the account, which leads to accumulation of capital. By doing this one is encouraged as you will discover that you are accumulating wealth without putting a strain on your budget.
- Incentives offered by some mobile investment apps: Some mobile investment apps will offer a free random share if you refer someone else to install the app. If you refer more people, it is a great way of getting more shares and by doing this, these apps are pulling people away from the traditional apps.
Mobile investment Apps have offered a platform where a majority of the people who as a result of their busy schedules cannot get time to use the traditional investments app to invest. A person who is away on a business trip will be able to get info about a certain investment that will earn him a lot of profit, pull off from the road, and conduct his business through the mobile app and he will have earned himself money. Some mobile apps will also offer free random shares to a person who refers a friend to install the app which is also a great way of accumulating wealth.