How to Choose the Right Stock Trading App – Finance Magnates

Interest in retail stock trading has never been bigger for investors than the present. With markets heating up and more demand for stocks than ever before, the need for optimized trading apps and reliable brokers has never been more important. 

2021 has seen a historic explosion in stocks, including among others now popularized companies such as Gamestop (NYSE:GME) and AMC Entertainment Holdings (NYSE:AMC). 

According to a Yahoo Finance poll conducted earlier this month, a staggering 28% of Americans traded GME over the past two months. This level of interest in retail trading is virtually unprecedented and highlights the growing interest that ordinary individuals have towards markets.

Why Staying Informed is the Biggest Edge Investors Can Have

While the stock market is hardly a novel concept, there has been an influx of new investors flocking into equities in record numbers. 

A groundswell of newer investors in turn has led to millions of new accounts at brokerages or stock trading apps globally. More than anything else investors want access to single share company stocks or CFDs.

Unfortunately, this surge in demand has stressed the brokerage system as we know it and laid bare a number of vulnerabilities, with investors left scrambling for answers.

The most visible face of these issues transpired back in January with RobinHood, currently ranking as one of the most popular trading apps. The brokerage had repeatedly throttled the trading of certain companies amid a highly controversial decision to keep its operations afloat. 

Millions of traders worldwide depended on brokers like RobinHood, TDAmeritrade, and others for their retail trading needs. 

Unfamiliar with such trading halts or clearing requirements and mobilized by the r/WallStreetBets, the level of animosity towards brokers has since been scathing.

For many, the circumstances of the scandals, with untimely trading halts preventing clients from buying GME or other stocks, helped establish notions of an uneven playing field for retail investors. 

Demand More from Your Stock Trading App

This has led investors to be turned off by RobinHood and other brokerage apps and have been looking for a new destination to trade company stocks and not miss out on the latest market trends. 

However, finding the right broker is no easy feat. Investors want more access to stocks and asset classes than ever before. This includes cryptocurrencies, forex, and commodities.

Furthermore, many newer traders have never operated in a world with trading commissions or fees. This concept was largely introduced over the past decade by companies such as Robinhood, which disrupted the retail trading market. 

At present, there are thousands of different brokers or apps that are available on the market. According to Stockapps.com, the task of finding the best stock trading app means different things for different investors.

Focus on What Matters for You

For most traders, the availability of multiple asset classes such as stocks and cryptocurrencies is enough. Always read the fine print to learn how these operations work and whether there are any specific conditions.

This includes leverage restrictions, regulatory oversight, trading hours, and other attributes that any brokerage or app uses.

The past two months has been a crash course for retail investors looking to get into the market for fear of missing out. With the hysteria unlikely to fade anytime soon, its important for investors to learn more about how brokers work.

This is where broker or trading app reviews come in, helping shed light on how certain nuts and bolts behind operations work. There are plenty of free and insightful resources available that explains in depth the strengths and weaknesses of each brokerage. 

Before putting any money into the market, it’s best to familiarize yourself with multiple options to best match your trading needs with services on offer. 

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