5 Tips for Choosing a Trading App

Trading apps have changed the way thousands of people trade. There is no need to sign up for a brokerage account or call in instructions on executing orders. Anyone can trade directly from their phone and on the go. However, there are a few negative aspects to using trading apps. Not all are secure and regulated and some customers have had their data stolen through third-rate trading apps. 

The answer isn’t avoiding trading apps, but to use caution before selecitng the right technology. By doing research and due diligence, customers can be safe whilst using trading apps and see a healthy return on their investments. 

If you have lost money using a trading app, you can seek fund recovery assistance from professionals who will consult with you and help you formulate your claim.

FundRecovery UK will help prepare your case and be your advocate. Our professionals have expertise and strategies that will improve your chances of getting your funds back. We consult with clients, assist them with intelligence reports and negotiate with banks and other institutions. Ask us about chargebacks, wire recalls intelligence reports, and crypto recovery.

The Pros and Cons of Trading Apps

Trading apps are a welcome innovation, but many feel that they are risky. There is good reason to be cautious about them and at the same time, to acknowledge that trading with apps is a convenient way to execute trades directly. 

Those who like freedom, convenience and are risk-averse may enjoy trading apps. They are well-suited for quick trades that can be made on the go. Some markets, such as forex, fluctuate quickly and acting instantly can mean the difference between profiting from a trade or experiencing significant losses. Apps often have lower fees and often no commission, unlike a brokerage service. 

However, critics of these apps point out that many of them are unregulated. This puts the customer at risk and in some cases is even illegal. Experts have found that many of these apps lack basic security features, such as encryption for passwords and sensitive customer information. 

Others are critical of the speed at which trading occurs using an app. People often are tempted to make snap decisions, even if they have little experience with trading. This can lead to huge losses before the customer even realizes it, particularly if the app has no stop loss protection and encourages the trader to use leverage. 

How to Choose the Right Trading App

Despite disadvantages, there is no reason to avoid trading apps. You can enjoy the benefits of trading with an app by following certain precautions before using them. 

  1. Look for a Licensed Trading App
  2. Research the app thoroughly
  3. Confirm that it is encrypted
  4. Use the demo account
  5. Check for Stop loss protection

The most important thing to look for in a trading app is if it is registered. For UK users, this means a license from the FCA or the Financial Conduct Authority. For instance, the highly popular Robinhood trading app with no commission has had a license from the FCA since 2019. 

One misconception about trading apps is that they do not require licensing. Some traders have a false sense of security with trading apps, many of which are unlicensed and may simply be a front for financial fraud. Just as with brokers, a license from a regulator provides oversight and allows customers to have recourse if something goes wrong. 

Before using a trading app, research it thoroughly. This means looking at who is behind the app. If you can’t find a brokerage or actual people responsible for creating the app, avoid it. Any reliable app should have creators that are proud of it and want to claim it. 

Read reviews, but not just customer reviews. These are often inaccurate and are created frequently by the company itself or competitors. Look for reviews and guides in tech journals by experts who understand both trading and the tech behind apps. 

For instance, one review by IOActive includes an in-depth examination of security and trading apps comparing which are the most and least secure. This review reinforces the importance of ensuring that a trading app uses encryption and two-step verification. It is important that the app secures customer information with encryption to protect it from hacking. 

Check for features, such as top-loss protection that will prevent you from losing huge amounts of money. Most regulated apps, like licensed brokers, will include stop-loss protection anyway. This feature will create a floor that places a limit on losses. 

Most apps also have educational resources and demo accounts. Learn about trading before you start investing your money and try out the service with a free demo account to familiarize yourself with the service. 

Even if you take all of the precautions and do research to choose the right trading apps, problems may arise. In addition to losses that may naturally arise from trading, particularly with high-risk assets, there are unfortunately many fraudulent trading apps that can steal money and data from customers. In addition, disputes can arise with those behind the app just like they can happen with brokers. 

If you have lost money unfairly using a trading app and feel that you have been mis-sold investments, speak to fund recovery experts about fund recovery strategies. 

Time is of the essence when trying to retrieve your funds from trading apps and brokers. It is important to file a claim promptly and gather evidence that will support your case. It is essential to seek the advice of experts in fund recovery to improve the odds of retrieving your funds. 

How to Improve Your Chances of Fund Recovery Success

The keys to success in fund recovery are understanding the claims process and working with fund recovery experts.  Consult with Fund Recovery UK if you are trying to retrieve your funds. Talk to us and we will map out a strategy with effective tools and methods. Our professionals have a strong working relationship with banks and regulators and understand how to make a claim persuasive and successful.