In today’s world, trading in the stock market has become incredibly easy, compared to when it could only be done at the stock exchange itself. In a world where everything is at the tip of your fingers, it’s only natural that something like the stock market would be. There are several apps one may download nowadays to invest in the stock market, one of the best of which is Dhan. We do, however, understand the reservations that many people may have when investing via apps. Let’s look at the various pros and cons of investing through stock market apps.
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Pros Of Stock Market Apps
- Good For Beginners
If you’re looking to start trading and don’t know much about it, a simple stock market app is a great place to start. They offer great flexibility with simple user interfaces that are easily navigable.
- Ease Of Use
Of course, the digitization of most regular things has the expected effect of making tasks easier for the user. In the same way, stock market apps are designed to provide utility and ease to their users.
3. Lower Brokerage Fee
When investing in the stock market via traditional means, one needs a stockbroker to do the trading on your behalf. The fee that needs to be paid to a broker can be a lot of money. You can save this money with an online investing platform, which generally charge less.
4. Real-Time Monitoring Of Your Investments
The stock market goes up and down daily. It is sometimes very volatile and unpredictable. Traditional trading requires you to go through your broker every time you want to check on your investments. You can keep track of your shares and investments yourself with online investing platforms.
Cons Of Stock Market Apps
- Absence of Human Touch to Impart Financial Advice
Without a broker, you don’t have anyone to advise you against a particular investment, and you don’t have another financial hand. This can be risky if you are a beginner because sound financial advice is essential for good money management.
- Higher Risk
The ease with which one can carry out new investments is almost dangerous because trading is high-speed, and with apps on our phones, it’s even faster. The wrong decision could be quickly taken, making online trading quite risky.
3. Unpredictability Of The Internet
The apps run using the internet and with technology. There’s no telling when a server could come crashing down or when an app might crash. Using the wrong app could also lead to scams, viruses, etc.
4. Risk Of Addiction
Earning brings in a high, similar to how winning at gambling does. With more money brought in through similar means, people are more likely to become addicted to its thrill, which could have adverse outcomes for the user.
All in all, there are as many risk factors to good things as there are positive outcomes. One must always be careful with one’s money, especially when using it to invest online via apps. Using the correct apps approved by the Play Store or other app stores is essential for better liability prevention. Several cons are avoidable, but the pros of stock market apps are too good to be overpowered.