The most important trend of the past decade in technology has been, without a doubt, the smartphone revolution. Billions of people use connected phones, tablets, and phablets nowadays so it is natural that forex trading expanded into the segment.
With all the advantages and dangers of being exposed to the market continuously, it is crucial to have in-depth knowledge of the matter for every serious trader. You might be surprised that there are disadvantages, but believe us it is not at all evident that being involved with the market all day is beneficial.
If your approach is day trading or scalping, for example, you should probably want to have a dedicated time-window to trade even you trade for a living. Why? Because markets behave differently in various parts of the day so a strategy that is successful in active trading might be negative in illiquid times. Also, keeping up the level of concentration that is needed for good scalping is not easy—it is likely that after a few hours of intensive trading you will “burn out” for the day.
For longer-term traders, it is probably more useful to have the opportunity to glance at prices all the time or have pre-set alerts for certain price levels. If you don’t look at the market in every two minutes (as some people do) the benefits can be great. Just have the patience to let alerts do the monitoring for you; this way you just need to make a decision if a level triggers your strategy.
With this capability, you can leverage your time and still have the power to make a decision yourself. Of course, you can fully automate a strategy too, but for some styles of trading “human” judgment is still essential.
All in all trading on-the-go is an amazing thing—just remember to use it wisely!
What are mobile devices good for?
Apart from the obvious connectivity, the trend in screen sizes (most new phones are now at or above 5 inches in diameter) has changed the purpose of them. Charting, as an example, is now a viable option and with the easy-to-use accessories, such as a wireless mouse, a tablet or even a phone can be a real emergency substitute for a notebook or even a desktop. Of course, a multi-screen trading workstation is not the same as a 5-inch phone, but still it can save you a lot of time and money if you can efficiently use them.
We at FxUniversal believe that the most useful roles for these devices are the following:
- Visual screening, “At a glance” eat maps
- News flashes
- Price and trade alerts, modifying stops and targets
- Emergency trading
The technical background
Today’s mobile devices have so much computing power that they can serve advanced applications, like charting and analytics, easily. Those were privileges of rich companies with vast resources just a decade ago.
The three prominent platforms are
- Apple IOS for the iPhone and iPad
- Android for smartphone and tablets
- Windows Phone for smartphones and tablets
Most brokers have some kind of solution for all for all three standards but not all of them are perfect. Always make sure to test the broker you choose on the platform that you intend to use regularly.
Having a smartphone or a tablet has more perks than just the comfort. You can also enjoy the advantages of a second internet connection. Redundant connections are also a great thing if you don’t use a fully automatic trading system. As a day-trader losing your connection when you are in a leveraged trade can be disastrous, especially around news announcements.
MT4 is a special trading platform that is supported by a lot of brokers and it is a really mature and stable system. Having it as an option is always a good choice—and this is true for mobile applications as well. MT4 is well optimized for all three Oss with a devoted development crew optimizing and fixing bugs, keeping the software safe.
Own solutions are somewhat of a mixed bag. There are good examples like eToro and Plus 500, but also some weaker implementations. And because of fragmentation usually, the mobile platforms are those who suffer first—the insufficient resources don’t last for the development of three (or sometimes even more) standalone versions.
Not all mobile platforms are equally popular in different parts of the world. This translates to unique priorities for some brokers. Most notably U.S. companies tend to lean towards implementing an IOS solution before anything else as the smart device market is dominated by Apple products. So be aware that if you have an Android or Windows Phone device you might be at the end of the row when receiving updates and functionality.
European and Asian brokers are well balanced in this regard and you shouldn’t have too many problems with mobile platforms. Windows Phone versions are generally speaking the least developed everywhere so sticking with MT4 is sometimes the only choice—on the plus side changing brokers is also easier if you are used to MT4.
As with a lot of new things the smart device phenomena has its ups and downs—but it is here to stay and people will just get more connected as wearables and other smart devices get more common. If you trade for a living or part-time you will find the ways how this trend can help you.
Just be aware of the dangers, don’t get obsessed with every little move in the market, and try to avoid overtrading. Let us know what you think about trading on mobile, and what your experiences are in the comments section!