When it comes to stock trading, there are a lot of possible ways you can enter the market. The easiest way is to use the so-called stock exchange apps.
These apps make it a lot easier to buy stocks. Now it is only true that there is a wide variety in the field of stock market apps† This makes it a bit difficult to make a choice.
To fix this problem, we'll get you started today. In this article we will show you everything about choosing the best stock market apps. By reading this article carefully you will never be faced with surprises again and you can be sure that you can start trading all possible types of stocks as soon as possible!
What is a Scholarship App?
Before we go into the question of which stock exchange apps are the best, it is useful to first consider the app itself. You must know what we are talking about in this article. A free stock market app is very similar to a traditional stock market application used for trading all types of stocks.
However, these applications charge a fee for every trade made on the platform. This used to work, when the economy was just that little bit different. Now younger people, the millennials, don't have that much money to invest.
In order to still engage these age groups in the market, free stock exchange apps like eToro removed this commission fee. This makes it possible for everyone to also enter the market.
The best stock market apps
You now know what a stock market app is. What you just don't know yet is which types of stock exchange apps are currently available.
Soon we will show you step by step what you should pay attention to when choosing a stock market app† But before that, we have listed the best stock market apps below for all impatient people.
When you choose one of the following stock market apps, you can be sure that you too will be able to trade optimally in all possible types of stocks. We have also listed the advantages and possible disadvantages under each app.
This makes it even easier to make a choice when choosing a good stock market app:
78% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can take the high risk of losing your money. Your capital is at risk. Different rates apply. For more information, visit etoro.com/trading/fees.
eToro
This platform was founded in 2006. Today, eToro is now the leading social trading application. It has more than 5 million users in more than 60 countries.
In addition to stocks, users can also trade indices, ETFs, cryptocurrencies and CFDs† It is famous for being the first online stock broker to offer its traders a social trading app where they can copy the portfolio and trading strategies of the best traders on its platform.
The free stock trading app is available on Android and iOS. Similar to eToro's web trading platform, the app is easy to use† If you ever have a problem with the app, you can always contact customer service.
It speaks a total of five languages and is available 24/5. eToro users don't have to pay anything to buy stocks and ETFs† If traders have leveraged positions, eToro will only charge them the 'spread' that relates to the difference between the bid (sell price) and ask (buy price) prices.
This makes it a super accessible platform for all people who would like to use it when trading all kinds of stocks.
Benefits
- Offers a social trading platform
- Wide range of financial products
Cons
- Minimum deposit amount is quite high
78% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can take the high risk of losing your money. Your capital is at risk. Different rates apply. For more information, visit etoro.com/trading/fees.
Libertex
eToro is of course not the only platform you can use for trading all kinds of stocks. There are many more options to choose from† For example, it is possible to opt for Libertex.
Launched in 1997, Libertex is a well-known CFD and Forex broker serving more than 2 million traders in 110 countries. Like eToro, it also offers a free demo account for new users.
They can also practice their trading skills by using the $50.000 virtual money that comes with their demo accounts† The basic functions of the Libertex mobile app are easy order placement, stop loss, pre-order, live quotes, trading signals, technical analysis, real-time news and fast account management.
This app is less accessible, but a great alternative if you don't want to or can't create an account with eToro.
Benefits
- 5000 euros virtual money for the demo account
- Easy order placement
- Easily switch from a demo account to a real account
Cons
- The cost is quite high compared to eToro
- The interface is sometimes a bit difficult to see
78% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can take the high risk of losing your money. Your capital is at risk. Different rates apply. For more information, visit etoro.com/trading/fees.
AvaTrade
Ava Trade's mobile app is known as one of the best exchange apps for trading CFDs in Europe. This app provides a user-friendly and elegant interface.
The mobile app offers 2.500+ trading instruments† Creating an account via the app is simple and only takes a few minutes. Users who are not ready to deposit can try the free demo account.
Unlike other trading platforms, the demo account will not expire if you decide to use real money. After obtaining an account, users can access the exchange-based real-time charts.
Ava Trade users praise the high level of support they receive when they encounter certain issues. This is because the customer service team provides professional support 24 hours a day, 7 days a week and can speak multiple languages.
This app is very similar to eToro, however the prices at eToro are really lower than at Ava Trade.
Benefits
- Has a user-friendly mobile app
- Offers a free demo account
- Offers 1.000+ asset types to choose from
Cons
- Costs are on the high side
- There are few options for professional investors
78% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can take the high risk of losing your money. Your capital is at risk. Different rates apply. For more information, visit etoro.com/trading/fees.
How do stock apps make money?
Stock exchange apps charge commission fees so that they can make a profit. But if apps don't do that anymore, how do they make sure they can earn from trading? There are a few different ways this can be done.
We will use Robinhood as an example. When launched in 2014, Robinhood boomed due to the lack of commission on trades. Many stock exchange applications charge $1 to $7 per transaction.
That said, these alternative platforms provide a ton of information related to the stock market, such as news, charts, research, and more. Robinhood failed to do this at the beginning of the platform† While this as something negative, but this is not.
Because the platforms have less information, they are also a lot cheaper to use. This results in lower costs. However, there are even more ways in which.
We've made it a little easier by putting these ways together below:
78% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can take the high risk of losing your money. Your capital is at risk. Different rates apply. For more information, visit etoro.com/trading/fees.
Stored amounts of money
Cost per dollar
In addition, the company earns discounts for every dollar traded. This is best explained by a quote from Robinhood co-CEO Vlad Tenev:
“The income we receive from these discounts helps us to cover operating costs and allows us to provide our services on a commission-free basis. Robinhood earns ~0.00026 in discounts per dollar traded.
That means if you buy a stock for $100,00, Robinhood will earn 2,6 cents from the trader's placer. Other brokers deserve this too, we are not the only ones".
78% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can take the high risk of losing your money. Your capital is at risk. Different rates apply. For more information, visit etoro.com/trading/fees.
Order flow
A third way is through the order flow. This process is based on small orders that are difficult for a broker to fill† The application sends this order to a dealer, who pays the application a fee for this privilege.
The dealer then takes commission from the order. Bloomberg reported last year that Robinhood makes more than 40% of its sales thanks to the order flow. This is a controversial method that is by no means used everywhere.
This process is therefore not completely transparent† Most stock exchange transactions are processed in a public format, but if this is done privately, people are going to ask questions.
Premium services
Finally, you may find premium services on the stock exchange app† These are special services that give investors additional benefits for investing.
The premium service provides additional purchasing power in tiers of $1000, $1.500, and $2.000. These come in at $6,00, $9,00, and $10,00 per month.
You can find a lot more information regarding the different packages on the eToro site.
We certainly recommend that you read this carefully before making a choice to create an account. Before you know it you will arrive at the package that suits you.
78% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can take the high risk of losing your money. Your capital is at risk. Different rates apply. For more information, visit etoro.com/trading/fees.
Tips for choosing the best stock market app
As we briefly mentioned, there are various types of factors that should be considered when you decide to look for a good stock market app. These factors are crucial for the quality you will find on the platform.
Because not everyone knows what to pay attention to, we have listed the most important factors below† By looking closely at this you will have more certainty about the quality that you can find on the relevant platform:
Types of investments
There are all kinds of different types of investments for the average trader. These include but are not limited to traditional stocks, exchange-traded funds (ETFs), cryptocurrencies and options.
Depending on what you're looking for, you may want an app that offers these types of investments. It's also not a bad idea to start with such an app and move on to a more advanced application later.
If you choose eToro, you can be sure that there will be plenty of options. This app has over 2500 asset types to choose from.
78% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can take the high risk of losing your money. Your capital is at risk. Different rates apply. For more information, visit etoro.com/trading/fees.
Ease of use
Of course, an app is of no use if the user interface barely works. When you look at the different applications, really look at the way the process goes. Pay attention to what works and what doesn't and make sure you don't waste time looking for the menu process.
A good app like eToro knows that everything should be easy to find and that you as a novice trader should be able to get started in no time. This is also the reason that they always attach great importance to ease of use.
Reputation
As with any investment you put money into, you need to think about reputation and reliability.
Are investors generally satisfied with the services provided? Has the group ever been involved in legal issues or lawsuits??
Looking at the reputation of the company is really necessary if you want to end up with a good stock market app for trading all kinds of stocks. Always check whether the reviews have been given independently, because you want to be sure that you are dealing with reliable online reviews.
78% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can take the high risk of losing your money. Your capital is at risk. Different rates apply. For more information, visit etoro.com/trading/fees.
Automation
If you're just starting out in the stock market, an automated process may be a good option to consider. Even with regular software, it's hard to take that first step in investing your money.
You don't really know what to do. Apps like eToro can help you with this. This makes it possible for everyone to start trading quickly and easily.
Minimum deposits
While some stock exchange apps don't require a minimum deposit to get started, those that do can charge a lot of money. This upfront payment is usually worth the investment, but only if you can afford it at all.
M1 Finance and Fundrise charge a minimum of $100 and $500, but are known for the many services they provide. This is also the case for eToro.
FAQ
When it comes to online trading, one of the most important things to consider is the security of the platform. We do not recommend that investors trade on unregulated platforms as this can involve serious risks.
Many unregulated cryptocurrency exchanges are hacked weekly, most recently Binance with more than 7.000 stolen bitcoins on May 7, 2019† However, these security concerns are not limited to crypto exchanges. Brokers are also sensitive to such hacks or data breaches.
While most registered mobile apps have a good variety of security measures in place, security risks remain. For this reason, we recommend a platform that contains multiple financial rules.
Think eToro here. This platform has a good reputation and a considerably large user database. We therefore recommend all stock traders to get started with the eToro app to have a safe experience.
With no commission charged on trades, it is much easier for investors to diversify their portfolios† Without these costs, you will be much more willing to invest in various stocks that you normally would not have done.
Some applications such as eToro may submit certain preferences. For example, it is possible to follow certain portfolios to start trading yourself.
In some respects, there are indeed drawbacks to using a stock exchange app. This way you often do not get a handy overview for trading. That said, these app are a great way to get started with stocks.
Mainly due to the fact that you can save money when trading. If you want to become a professional trader later, you may need to choose a more professional service.
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