Feature Article

October 17, 2018

5 Ways Trading Apps Are Disrupting Typical Investments



It is estimated that more than 10,000 smartphone applications are being created every month. From checking the latest weather forecasts to chatting with friends while away from home, these user-friendly systems are quite handy. It only stands to reason that their presence has likewise been felt within the world of online investing. Much like any new form of technology, trading apps have been associated with a handful of benefits and disadvantages. Let's look at five reasons why these programs have disrupted traditional forms of trading (for the better and the worse).

1. The Possible Risks of Automated Trades

Automatic trading employs the use of complex algorithms to execute a position at a predetermined time at the behest of the investor. While such methods will take emotion out of the equation and lead to a greater amount of efficiency, risks such as algorithmic failures can lead to substantial losses within a short period of time.

2. On-the-Spot Execution

On a positive note, trading applications provide the ability to execute a trade within seconds. This was not often possible when referring to traditional investments that would require the assistance of a broker. Thus, traders are now in full control of their portfolios. They can act when the time is right; increasing the chances of turning a profit.

3. 24/7 Access

Smartphone trading applications provide the user with 24-hour access to the financial markets. Not only can they follow the latest financial news while away from a static computer, but larger markets such as the Forex sector are able to be accessed at their convenience. The limitations associated with traditional trading would have precluded such possibilities.

4. Access to Social Media Trades

Obtaining the opinions of leading investors is an excellent way to gain insight and clarity in advance. Not only will the CMC Markets Android trading app Android trading app provide this feature, but other options such as real-time alerts, access to late-breaking Reuters News and more than 35 technical indicators ensure that social media sentiment can be backed up with dynamic trading options. Guesswork and "gut instinct" have therefore been replaced by a professional knowledge base that can be leveraged at a moment's notice.

5. Greater Asset Liquidity

The rise of trading applications has led to a paradigm shift in regards to market liquidity. In the past, many sectors were dominated by institutional investors and individuals who utilised the services of a third-party broker. All of this has changed due to the hands-on nature of the seemingly diminutive application. Investors from all walks of life can now gain immediate access to the marketplace.

As this demographic tends to be involved with smaller positions, the amount of open-market liquidity has increased. This is both good and bad. While it may be possible to turn a profit in a shorter period of time, this very same liquidity has led to a growing amount of volatility (and unpredictability).

Smartphone trading applications are certainly transforming the ways in which investment can take place. Although there are indeed some potential drawbacks, these are far outweighed by the number of intuitive advantages that such instruments have to offer. Please examine the utilities offered by the CMC Markets app in order to better appreciate the options at your disposal.



Author:

Craig Daniel is the CEO of Craig Daniel Marketing, a digital marketing agency. Backed up by ten plus years of experience in a variety of industries, including finance, marketing, and online technology, Craig is known for his skill in transforming company’s visions and goals into tangible revenue. As an expert in advanced SEO, paid advertising, and inbound marketing he is passionate about sharing his knowledge with others and helping businesses reach their full potential.





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