How to Trade Securely with Trading Apps

Onilne investing and trading has seen a dramatic increase since the beginning of the COVID-19 pandemic. One of the major factors for this rise is the popularity of trading apps which makes trading assets such as stocks, commodities, forex, options, and cryptocurrency more accessible. Apps eliminate the requirement of signing up with a broker before trading. This may seem convenient, but there are many pitfalls to this technology. 

Many trading apps are not legitimate but are designed to steal data from customers. Even if those behind these apps are well-intentioned, many apps do not have the same level of security as a brokerage website. In addition, apps encourage fast trading which may not be appropriate for new investors with volatile assets. Also, many of these apps are not licensed and customers who lose money trading with them may not know where to turn. 

If you have lost money through a trading app, you can seek fund recovery assistance to help you retrieve your money. ReportScamOnline is staffed with professionals who will work on your behalf to improve your chances of getting your money back. We have extensive experience with the chargeback process, wire recall, crypto recovery and intelligence reports and are experts at dealing with all types of scams and winning disputes with merchants and brokers.

Benefits of Trading Apps

Trading apps have revolutionized trading. Here are some reasons why some people are fans of these tools:

  • Convenient trading
  • No need to sign up for a brokerage account
  • Low-cost trading
  • Direct Access to the markets
  • Educational features and demo accounts

There is a reason trading apps introduced many to online trading–because they are convenient and readily available. As people were at home during the pandemic, these apps gave even those with no investing experience a chance to trade forex, options, commodities, cryptocurrencies and other assets. 

There is no need to sign up for a brokerage account or to pay their fees or commissions. Apps give direct access to markets without having to call a broker with instructions to buy or sell. Many have educational features including videos, charts, instruction videos, market-moving updates. Also, costumers can try out a demo account to try trading safely for free. 

Problems with Trading Apps

However, there are also some drawbacks to trading apps: 

  • No guidance from a broker
  • Can lead to impulsive trading
  • Some can lead to huge losses
  • Many are not secure
  • Many are unregulated

Atlhough trading apps seem to cut out the middleman, some traders value the guidance from a broker. This is not only true of novice traders but seasoned investors who seek the expertise of successful brokers and want to understand investing at the highest level. Brokers who are licensed are required to focus on what is best for their clients rather than pushing certain trades that will ultimately benefit them.

Trading apps are characterized by speed and freedom, but this can lead to impulsive trading. Apps can feel a bit like playing a video game, but the difference is that customers have their money on the line. Many apps encourage customers to trade on the margin and there are often few protections against losses because many are unregulated.

Although a large number of apps claim to have high levels of security, many fail to use encryption to protect customer passwords and other data. The most secure trading apps were found to belong to large brokerage houses that offer trading apps as a service to their clients. These apps, like the brokers, are regulated. Finding a regulated app will keep your money safe. 

Tips for Trading Securely with Trading Apps

The following are tips that will keep your money safe when trading with apps:

  • Choose a regulated trading app
  • Research an app carefully
  • Ensure that it is secured with encryption and two-step verification
  • Use the demo and learn about trading before using an app with your money

When selecting a trading app, take your time and do thorough research. Don’t be satisfied with customer reviews, but find out which publications are the most reputable in the field and give honest feedback on apps. Relying only on customer reviews can be a mistake, since many customer reviews are fake, generated either by the company behind the app or competitors. 

Confirm that an app is secured with encryption and two-step verification. It is important that any financial services company, whether it is a broker or a creator of apps, protects customer data, account information, passwords, and other sensitive information with encryption. You should be asked to verify your identity with a password as well as a code that is sent to your phone. 

Use the demo to give you an idea of what it is like to trade with the app without losing money. Research trading if you are new to it, and think carefully about which assets or types of trading are right for you. 

The most important consideration is to use an account with a regulated broker. Many people do not realize that trading apps need a license, but any financial service should be regulated. The safest trading apps are connected to a regulated broker and are used as additional services that the broker provides. 

If you have lost money to a trading app and are seeking fund recovery, speak to professionals who can help you prepare your claim and make your case to banks and authorities. Start with a free consultation and discuss thoroughly what occurred with the app. Provide documentation, including screenshots of communication. We will determine whether fund recovery is likely and can guide you when you file your claim to regulators or authorities. 

ReportScamOnline Professionals Will Help You Win Your Chargeback

You can increase your likelihood of winning a chargeback claim if you have sufficient evidence and the help of excellent financial service. ReportScamOnline professionals will guide you on preparing your case and will help you get your funds back. We have combined decades of experience dealing with hundreds of financial institutions.