Exactly why are people flocking to trading and investing apps? Allow me to share three benefits of investing using a trading and investing app as opposed to a traditional broker.
1. Trading and investing apps usually provide the most modern trading features
With regards to revenue, stock investing apps pale in comparison to big brokers.
But many of these big brokers flunk of their offerings of modern trading features, including fractional stock trading, competitive cash sweep programs and instant buying power. Fractional share trading lets you invest using a specific dollar amount, frequently as low as $1, rather than having to buy in at the company’s full stock price. Before fractional shares, many cannot purchase pricey brands like Microsoft or Google’s parent company, Alphabet.
You can also find cash sweep programs, which offer traders and investors an answer to earn money on their uninvested cash, with many platforms offering as much as 5% APY on idle cash. Meanwhile, instant buying power is a feature which gives customers access immediately to up to a specific amount of money of their deposit to invest instead of being forced to wait days for money to clear.
Some big brokers are already including modern trading features like robo-advisors and fractional share trading. But stock trading apps still appear to have the advantage in the most innovative features.
2. Most traditional brokers don’t offer immediate access to cryptocurrency; stock investing apps do
Though it’s pulled back significantly over the last year or two, cryptocurrencies’ global value neared $3 trillion in November 2021, evidence that it’s no more a dismissable fad but a much more mainstream kind of investment.
A case in point that President Biden issued a professional 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 as being a worthy investment. Roughly 34% say crypto is a great investment, up 2 percent from July, when Finder last ran its survey, or higher from 17% in January 2023.
Most traditional brokers still don’t offer usage of crypto.
If you want to invest in this nascent asset, you may need a free account using a crypto exchange or trading and investing app, generally.
3. You’d be hard-pressed to identify a more streamlined trading experience than you are on a standard trading app
While stock trading apps are playing catch-up to big brokers when it comes to available tradable assets, traditional brokers lag behind trading and investing apps with regards to offering intuitive, user-friendly mobile trading platforms. Traditional brokers offer mobile apps, though they’re clunky compared to mobile-first brokers.
Mobile-first trading platforms prioritize the aesthetics with the trading platform. The trading experience is simple and intuitive – trading apps shine start by making it increasingly easy to join a free 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 the uninvested who are afraid to invest.
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