Forex is a fast-paced market that requires traders to be always on top of news and ready to take advantage of market movements. However, it’s not possible to be constantly at your desk looking at charts and developing strategies. Many traders wonder if they can trade forex on their phones.
You can trade forex on your phone. Forex trading apps allow traders to check their accounts, read the news, and place trades on the go. However, due to the small screen size and limitations of mobile apps, experts recommend using your phone only to check your account and not work on strategies.
In the rest of this article, we’ll elaborate on the use of mobile apps in forex trading, their advantages, and disadvantages. We’ll also offer some tips to use these apps in the best way.
IMPORTANT SIDENOTE: I surveyed 1500+ traders to understand how social trading impacted their trading outcomes. The results shocked my belief system! Read my latest article: ‘Exploring Social Trading: Community, Profit, and Collaboration’ for my in-depth findings through the data collected from this survey!
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Trading Forex on the Phone
If you’re always on the move, you may need to contact trading platforms and place trades using a device other than the PC. With the forex market running 24/7, a trader can’t stay in front of the PC all the time. Plus, with all the improvements in technology, people expect to have the option to access their trading accounts anywhere, anytime.
That’s why brokers decided to respond to this need by developing platforms that are accessible through smartphones. You can trade forex on any device with an internet connection. Most reputable brokers have developed mobile apps that allow you to do just about anything on your smartphone, from checking the trade status to viewing your account, placing trades, and even doing analysis.
Mobile trading has become so popular among traders that brokers have to offer this option to avoid losing their clients. You can trade on all android and iOS devices.
Pros and Cons of Mobile Forex Trading
Trading forex on the phone has many advantages that help you catch up with the ever-expanding market that never sleeps. You’ll never miss a trade because you’re stuck in a traffic jam or can’t access your PC. You grab your mobile phone, open the trading app and open or close the position. You can see real-time prices and changes and respond to them accordingly.
Many different apps help you analyze data and make more informed decisions. You can stay updated and track every single development that happens on the market. Most apps send instant notifications when a new position opens, so you can place your trade right away.
However, there are some disadvantages to using mobile phones for forex trading.
Physical Limitations
Forex trading requires spending hours in front of screens tracking prices and trades and analyzing market developments. You want to have a screen that allows you to see the charts clearly without straining and tiring your eyes.
Many professional traders think that one device isn’t enough to carry out all the forex trading steps. They use at least two devices of decent size to analyze data and one device, such as a tablet, to check economic news. They’re constantly juggling between these devices to stay productive and informed.
These are the primary tools a professional investor needs and may be more beneficial than the convenience that mobile trading offers.
Physical Distractions
While mobile trading allows you to place trades on the go, it may not be the optimal approach to trading, given all the distractions. Like any other profession, trading needs a dedicated physical environment to bear the best results. You need high levels of concentration to be “in the zone.”
Having a home office with minimal visual and sound distractions is one of the most important requirements for trading. Analyzing the charts and tracking market developments aren’t things you can do effectively and error-free anywhere and anytime.
Not So Good for Beginners
The other problems we mentioned as cons of mobile trading are more serious for beginners. They don’t have enough experience to perform many steps subconsciously. Physical distractions increase the likelihood of making errors for beginners.
Newbies need to spend some time on big screens to get the hang of the whole thing until they get comfortable with trading on the go. One small mistake due to the distractions can wipe out their whole accounts.
Limited Options
Depending on the type of app you use, you may not have access to all the trading platform options. For example, automated trading strategies or some indicators may not be available on the mobile interface. That’s why it’s better to use a mobile app only for checking your status and account balance.
Tips for Mobile Trading
Despite all the disadvantages, it’s inevitable to avoid mobile trading given the fast pace of today’s life and the indispensable role of mobile phones in our everyday lives. If you choose to trade forex on your mobile phone, keep these tips in mind:
Type of Mobile Phone
The most important specs of a mobile phone for trading are screen size and battery life. The screen has to be large enough to let you see the charts clearly. Get at least a 5.5” (13.97cm) screen like Galaxy note S9 plus or Moto G6. Besides, if you spend lots of time outside, make sure the phone has a long battery life, or it’ll leave you high and dry in the middle of trading.
Security
Make sure the app that you use has enough security measures in order to avoid cyber-attacks and unauthorized access. You should install security software to have extra safety measures in place due to the sensitivity of the issue.
Internet Connection
You should always have access to a fast internet connection over cellular or wireless networks. Spotty receptions may cost you your whole account if you lose connectivity. Never trade on public transport and especially subways where you don’t have good connectivity. And make sure not to trade on unknown access points or open-access wi-fi.
Reduce Mobile Trading
Try to resist the urge to constantly open and close your trading app and place trades on the go. Reserve it for really urgent times when you may miss a great opportunity to trade. You could choose higher trading time frames, like four hours or one day. This way, you don’t need to check the charts several times a day.
Setting a hard stop-loss order is another safety measure to protect you against unfavorable market fluctuations. This way, if the market goes against you, the platform automatically closes your position.
What Do Mobile Apps Offer?
Some of the best forex trading apps include:
- MT4 and MT5 apps
- Forex Calendar, Market & News app
- Forex Hours app
- Bloomberg Mobile Forex News
One of the best forex trading apps is the MT4 app. If your forex broker offers MT4 trading, you can download the MT4 mobile app and log in by searching the name of your broker. Or, you could make an anonymous account in which there’s no need to enter personal info, and it’s quicker to set up.
You could also create a demo account if you’re a beginner or want to test out new strategies.
The app has a quotes interface that displays currencies and their bid/ask prices. You can see the charts and different time frames as well as existing trades and your account balance.
You could also use the app that your broker has developed. Some of these apps are customizable and allow you to set customized parameters such as traded units, risk and profitability degrees, and instruments.
Author’s Recommendations: Top Trading and Investment Resources To Consider
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Conclusion
Using your mobile phone for trading forex is an excellent idea because it helps you stay posted on market developments. You can get notifications on open positions and take action quickly.
However, they may not be the best option for analyzing strategies due to the small screen size, physical distractions, and the app’s limitations.
So, it’s better to use your phone as a tool to check your account balance and status and do more serious jobs like analyzing and placing trades on your PC.
BEFORE YOU GO: Don’t forget to check out my latest article – ‘Exploring Social Trading: Community, Profit, and Collaboration’. I surveyed 1500+ traders to identify the impact social trading can have on your trading performance, and shared all my findings in this article. No matter where you are in your trading journey today, I am confident that you will find this article helpful!
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