These days, many forex brokers make apps available for mobile users to trade on their Android or iOS devices. If you are thinking about trading forex on your own smartphone or tablet, it is worth thinking about the pros and cons first.
Pros of Trading on a Mobile Device
To get started, let’s go over the advantages of mobile forex trading.
1. Trade Anywhere
The most obvious convenience of mobile trading is the ability to trade forex anywhere you have a connection.
That means you can trade from home, at work, and where you can find mobile hotspots as you are on the go.
2. Trade Anytime
Being able to trade anywhere you have a connection means you also can trade anytime you have a connection.
This can be a big deal for a trader juggling forex and a full-time or part-time job doing something else.
Being able to take trading with you on your mobile device gives you the opportunity to keep an eye on your open positions throughout the day, exiting them early if needed to take a profit.
You might also sometimes spot opportunities to enter trades when you are at work or doing something else outside your home.
Even just having this freedom and flexibility with respect to where and when you trade forex might give you the chance to use strategies that otherwise would not work with your schedule.
3. Use Your Favorite Device for Trading
Finally, we are living in a mobile-centric world right now. Desktops and laptops have fallen out of favor, and most people use their mobile devices the vast majority of the time for all their computing activities.
If that is the case for you, trading on the device on which you are most comfortable may simply be easiest and most enjoyable.
In fact, you might not even own a larger device, so mobile trading prevents you from having to buy one.
Cons of Trading on a Mobile Device
Now we have gone over the benefits of trading on your mobile device. But there are some potential drawbacks to consider as well.
1. Cramped Interface
There is no denying that a smartphone screen is quite small and cramped compared to a full-size monitor on a laptop or desktop computer. There is only so much that can be squeezed into that display at any given moment.
If you are used to a cramped interface, perhaps this will not affect you. But if you usually use a desktop or laptop computer, you might find it difficult to trade on your mobile device because everything feels so compressed.
2. Hard to View Everything at Once
When you are trading forex, it can be useful to have a number of windows open simultaneously. For example, you might want to be able to easily view:
- MetaTrader 4 or another charting platform.
- Your trading platform.
- Your spreadsheet for tracking your results.
- Your trading journal.
- Your trading plan and checklist for your trading procedures.
- Any research you are currently working on.
You might also want to view multiple timeframes at once in your charting software.
Being that is the case, even a regular full-size laptop or desktop monitor can sometimes end up feeling like it is too small. In fact, traders often can benefit from a dual monitor setup.
Considering that it might be easiest to trade with a pair of full-size monitors, you can see how the tiny screen on a mobile device can be completely insufficient.
3. Trading While Distracted
Another potential drawback of trading on a mobile device concerns, not the device itself, but the environments in which it makes it possible to trade.
In public spaces, there is often a great deal going on around you. People might be rushing by and making noise, or even trying to talk to you while you are attempting to trade. There could be other distractions in your environment as well.
Whether or not this will be a problem for you may come down to your personal ability to concentrate amid distractions.
If it is easy for you to remain focused on your trading, then you might do just fine. But if all of those distractions will disrupt your activities, you might be better off just trading at home rather than allowing the convenience of a mobile app to tempt you to trade when you are on the go.
Remember, trading while distracted can lead to mistakes, and mistakes can lead to losses in your account.
Tip: To get people in public spaces to leave you alone while you trade forex, try wearing headphones to discourage them from trying to talk to you.
4. Security Issues
One more drawback of mobile trading on the go is a loss of security versus trading at home. When you are at home, you can encrypt your network to protect your data. But when you are on a public network, it can be easy for hackers to steal your data.
If your forex account is compromised, somebody could log in with your password and withdraw your funds to their own account.
Whether or not you want to take the risk of trading on public networks is up to you; maybe you will decide it is reasonably safe on some networks you are familiar with (i.e. your workplace network), but not others. Regardless, if you do trade on public networks, you should change your password regularly to stay on the safe side.
Is Mobile Trading Right for You?
To wrap things up here is how to determine whether or not it makes sense for you to trade on your mobile device.
Mobile trading may be right for you if …
- Your smartphone or tablet is the preferred device that you are used to using for most things.
- You need to be able to actively monitor and modify your trades throughout the day as you are out and about.
- You do not have a hard time concentrating in public, busy places.
Mobile trading may not be right for you if …
- You need to have a lot of windows open at once and/or you find mobile screens cramped and hard to use.
- You are easily distracted in busy settings and make mistakes.
- You do not want to risk trading on an unsecured, public connection.
Whether you want to trade on your smartphone, tablet, laptop, or desktop, our recommended forex brokers offer fast and reliable trade execution, affordable fees, and exciting bonuses. If you have no money to begin your trading, you can get a free $50 from XM bonus.