Investing in the share market can be a lucrative way to build wealth over time, but it can also be risky and unpredictable. In the past, investors had to rely on traditional brokers to buy and sell stocks and shares, but with the rise of technology, a new option has emerged – share market apps. In this article, we’ll explore the pros and cons of investing in the share market with apps.
Pros of Investing with Share Market Apps
Cost-Effective
One of the most significant advantages of using share market apps is that they are typically more cost effective than traditional brokers. Most apps charge low or no commissions and fees, making it cheaper to begin investing in the stock market. Furthermore, some apps offer fractional shares, which allow investors to purchase a portion of a stock, making it affordable to buy shares even of companies that have high stock prices.
Convenience
Investing with share market apps is incredibly convenient. With the rise of the mobile age, trading is now possible at the touch of a button. With an app, you can buy and sell shares on the go, track your portfolio’s performance in real time, and access a host of research and data. It is more convenient than traditional brokers since you can carry out trades any time of the day or night. Regardless of what you’re doing, you can invest, monitor, and make changes without having to visit an office or make an appointment.
User-friendly
Most share market apps are user-friendly, which is ideal for beginners in investing. The easy-to-use interface simplifies the process of buying, selling, and monitoring investments. Besides, most of these apps offer tutorials that walk you through how to use the platform. This makes it easy to navigate and become acquainted with the app’s features, trading tools, and data on the investor’s own schedule.
Diversity in Investment Opportunities
Share market apps open up a wide range of investment opportunities. Traditional brokers typically offer limited options and require a minimum investment. With apps, you can choose from a wide range of stocks, exchange-traded funds (ETFs), mutual funds, and sometimes stocks that are not typically available on regular exchanges like Robinhood.
Cons of Investing with Share Market Apps
Limited Expertise
While share market apps offer expert insights and analysis on the stock market, they do not provide personalized investment advice like traditional brokers. The advice on these platforms is computer generated, and therefore there is no human interaction, its one-size-fits-all advice and may not reflect the experience of a seasoned investor who can offer tailored advice to a particular investor’s financial situation and goals.
Limited Research Capabilities
While apps can provide valuable data and analysis, they can’t offer the same level of research capabilities as traditional brokers. The research capabilities of apps are usually limited to data like stock prices, news, and analysis. In contrast, traditional brokers will do extensive research on a wide range of investments, including individual stocks, bonds, and mutual funds. This research enables the broker to offer personalized advice to their clients.
