There is no doubt that technology can provide you with tools to improve your finances, and make it easier to access your money than ever before. But does it really matter? Are you really ahead if you use your mobile phone to trade? According to a Fidelity study published in October, those who use mobile financial apps to make trades at least think that they are doing better, thanks to their mobile apps.
Do You Use Financial Apps on Your Smart Phone?
I use financial apps on my own smart phone. I regularly check my bank balances, and even transfer money using my smart phone. Not only that, but I can deposit checks using my cell phone. I can even invoice my freelance clients using the PayPal app on my smart phone. However, I haven’t quite got to the point where I’m making investment trades using my cell phone. In fact, I don’t even have an investment app on my iPhone.
I’m in the minority when it comes to this, though. According to the Fidelity survey, 56 percent of mobile users complete investing tasks using mobile financial apps. Of course, not all of them are trading. Only 41 percent of those actually trade at least once a month. However, many of them conduct research using financial apps on their phones. Keeping track of performance, from fundamental research to charting, from anywhere is one way that investors feel as though they have a leg up when it comes to investing.
It’s worth noting that it makes sense to take these findings with a grain of salt. The Fidelity study probably only provides insight into a specific subset of Americans. The results are still somewhat telling. This access to information no matter where the respondents are located, encourages them to think that they have an advantage over those who don’t use phones in trading. Indeed, reports Fidelity, 69 percent of the respondents who trade using mobile apps feel as though they have an edge.
Better ROI with Mobile Trading?
So, even though those who use smart phones to trade feel as though they have an advantage, it doesn’t mean that they actually do have a leg up. The Fidelity study indicates that 41 percent of frequent users of financial apps saw a ROI that exceeded 20 percent in the past 12 months. This contrasts with the fact that only 22 percent of less frequent users saw those kind of results. So, there is a chance that mobile trading can lead to better ROI.
Having a cell phone can provide you with chances to improve your knowledge, since you are able to access research while on your commute, or even while you are watching TV. Not only that, but you have the ability to take advantage of opportunities almost immediately, thanks to having access to real-time information, and the ability to make trades based on that information.
The downside, though, is that you might get too involved in trading when it’s so easy. Be careful about how you use your smart phone with your finances. Just because you can make more frequent trades with the help of an investment app doesn’t mean that you should. And, if you are wrong about your move, you could wind up losing more than you thought.
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