What is trading?
Currency trading is when two or more parties are involved in the selling and buying of a foreign currency with the purpose of benefiting from the profits that might result from this process.
This exchange is also known as Forex Trading. The Forex market is available to anyone who wants to start trading, but not everyone is made for this kind of trade.
In order to ensure some form of success in this industry, you need to have some particular set of skills, as attention to details, willingness to take risks and a good understanding of the trading mechanism.
Pros of using trading apps
1. Easy access
According to Nachgefragt.net, creating a profile on a trading app or platform was never as easy as it is today! Just choose the platform you want to use, create and account, connect your payment method and start trading, all in a matter of only a few minutes.
2. The possibility of saving money
Trading on apps or platforms are much more affordable when it comes to costs, compared to the traditional form of trading, when you have to pay fee every time you need assistance from your broker.
3. Nobody will stay between you and your investment, no middleman
This goes hand in hand with number 2, saving money is as important as investing is.
4. Always easy to keep track of your investments
For a good evaluation of your evolution, keeping track of your investments is essential if not mandatory. Trading on a trading app gives you the flexibility to check your overview anywhere and anytime.
5. Faster transactions and money transfers
There are multiple platforms where money withdrawals are faster than they have ever been, almost instantly. Deposits are also easy to be made and buying currency doesn’t take more than a few moments.
6. Complete control
As we said above, not have a middleman can bring multiple benefits. Apart from everything already mentioned, being able to manage your trading offers you another level of control on your finances.
7. Opportunity to learn about the trading market
Giving your money to be invested by a broker can take away from your learning experience, while as you do it by yourself, you start learning how trading really works and succeeding in this field can give you a high level of satisfaction.
Cons of using trading apps
1. Risk of overinvesting
This is something that might concern the beginners in this field, but nonetheless applies to everyone that trades using online platforms and apps. There is always a risk of making investment errors or overinvest for the traders that got too excited, and they invest before learning how trading works. Best way to avoid making this mistake is to calculate your budget as much as possible, start with little amounts and see what happens.
2. No relationship with a broker
Even tough not working with a broker brings multiple advantages, there is also a disadvantage. Not working with a broker means that you are more or less on your own and when you hit a bump it might make it a bit harder to navigate, but not impossible. Is recommended to study the market and take very thoroughly tough decisions.
3. It might become addictive
Trading might feel at times like gambling, especially when you see that your investments do good, but do not lose your perspective. Keep track of the time and money you spend daily and try to draw a clear schedule.
4. Depending on your Internet connection
When you begin trading, is important to make sure you have a very strong Internet connection to avoid being disconnected in crucial moments, like when you are making a trade or investing in shares.
Just because you can, doesn’t mean you should. This applies very well when trading online. Just because your trade does well and the market is still open, doesn’t mean you still have to keep it active. Do not take unnecessary risk and learn when enough is enough.
In conclusion, the Forex Trading market became more and more popular in the times we live in. No doubt that the pandemic had a lot to say as well when it comes to the speed that the FX trade evolves. If you are a beginner or already have some experience in trading, please apply what you have discovered in this article, in order to avoid big loss and unnecessary risks, otherwise, happy trading!