While the pandemic has showcased the importance of money and investing the same at the right time for a secure future, stock trading apps are the investment platforms that can become an arguable topic.
Some people compare them to the e-commerce platform, some enhance the fact that the trading apps are designed with safety in mind. At the same time, there are questions like, what if these applications wind up.
Well, we understand your concerns as a beginner in the trading world, to make sure that you can trust an investment app with your money before you start using it. How do I know I can trust this app with my money? How do I know if the application won't collapse, and I will always have access to my money?
Are trading Apps Safe?
When buying and selling stocks is just a few clicks away on your mobile phone, trading apps are swiftly gaining recognition. These trading applications are catering to the need of the advanced users who have shifted from desktops to mobiles.
Moving from a conventional to any modern approach to trading, we have stock trading applications at our disposal today which does the same procedure which was done at the distributors physically. From filling our details in a form, cheque, and submitting documents after deciding which mutual fund type to invest in to and eventually submitting the same to Asset Management Company or AMC office.
How does this platform make money? To understand the safety level of an investment application, one must know if the application is transparent about how it makes money because if this online distributor is making money through brokerage, it's fine, however, one cannot risk the privacy of all the crucial financial details they submit online.
Usually, a risk factor in trading applications is the potential privacy issues like leakage of private information and unauthorised/illegitimate use of customer information. One must ensure that there is encryption on the website to ensure that their data is safe and so is their privacy.
What if the stock trading apps shut down?
Well, in such a case, your investment will be unaffected because you will be making the investment through the BSE. Yes, your money does not usually reach these applications as they enable the trasaction but do not actually do the transaction.
Most platforms that offer trading services online are equipped with safety features.
What are the pros of investing through stock trading apps?
The benefit of Ease: Yes, in this busy world, especially for hustlers who want to save money, the easy to use interface along with online facilities offered by mobile trading applications result in a seamless trading experience. With mobile, there is also no hassle of opening desktops again and again.
Live market data & portfolio: What’s better than knowing how your invested money is doing or how new stocks are based on live market data including stock indices, shares, currencies, commodities, derivatives, etc. Now, your existing portfolio can be reviewed with few clicks anytime and anywhere.
Notification facility: Ting! Here are what's happening to your stocks. This notification and alerts facility which works independently from the SMS alerts sent by the exchanges, brokerages and custodians is a safe and best option for mobile trading apps. The facility allows user to be updated with the latest developments in the portfolio and recommendations given by the brokerages.
From live news to reports and historical charts and analysis, the apps are equipped with many such features one can avail on these apps to ensure that you have an overall idea about the stock and invest based on the right information.
Well, we hope that this article was helpful and wish you luck with your stock trading journey online.
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