Are Stock Trading Apps Safe?
While you might not want to risk your hard-earned money, you can trust regulated stock trading apps such as TD Ameritrade and Robinhood. These trusted apps have encryption and other security measures to keep your information secure. But even trusted trading apps have their weaknesses. Listed below are some ways to avoid compromising your financial security with an app. But be warned: if you use an app without being aware of its license, it may not be safe.
Stock trading apps are not as safe as investing. Investing is a long-term approach while trading involves making in-and-out trades within hours or days. Trading involves higher risk than investing and may not be suitable for every user. For instance, you may dedicate only 10% of your portfolio to active trading and the rest to long-term investing. There are also other risks associated with trading, so be sure to choose your investment strategy wisely.
The best stock trading apps have government-level password encryption. While some may offer basic trading features, others provide advanced features. Look for apps that meet the ESMA’s 1:30 CFD trading limit. Ultimately, you can only use stock trading apps if you are familiar with how they operate. A reliable app will not cost you a penny to download. This way, you can invest in the stocks and bonds you’ve always dreamed about.