Why are people flocking to stock investing apps? Here are three benefits of investing with a stock trading app rather than a traditional broker.

1. Stock investing apps tend to provide you with the most modern trading features

In terms of revenue, stock investing apps pale in comparison to big brokers.

But many of these big brokers are unsuccessful of their offerings of recent trading features, for example fractional share trading, competitive cash sweep programs and instant buying power. Fractional share trading permits you to invest having a specific amount of money, often as few as $1, instead of having to buy in on the company’s full share price. Before fractional shares, many couldn’t invest in pricey manufacturers like Microsoft or Google’s parent company, Alphabet.

Then there are cash sweep programs, which offer traders and investors a solution to generate income on their uninvested cash, with some platforms offering around 5% APY on idle cash. Meanwhile, instant buying power is often a feature that offers customers instant access to to a specific dollar amount of the deposit to have business dealings with as an alternative to having to wait days because of their money to clear.

Some big brokers have already been including modern trading features for example robo-advisors and fractional stock trading. But stock investing apps still have the advantage in the most innovative features.

2. Most traditional brokers don’t offer immediate access to cryptocurrency; trading and investing apps do

Though it’s pulled back significantly during the last few years, cryptocurrencies’ global value neared $3 trillion in November 2021, evidence that it’s no more a dismissable fad but a considerably more mainstream way of investment.

Because of this that President Biden issued a professional order in March 2022 directing federal agencies to report policy tips about regulatory and legislative actions associated with developing digital assets.

Moreover, an increasing number of Americans see crypto as a worthy investment. Roughly 34% say crypto is a superb investment, up two % from July, when Finder last ran its survey, or higher from 17% in January 2023.

But a majority of traditional brokers still don’t offer access to crypto.

If you want to purchase this nascent asset, you need a free account with a crypto exchange or trading and investing app, in most cases.

3. You’d be hard-pressed to locate a more streamlined trading experience compared to a share trading app

While stock trading apps are playing catch-up to big brokers in terms of available tradable assets, traditional brokers lag behind stock trading apps in terms of offering intuitive, user-friendly mobile trading platforms. Traditional brokers offer mobile apps, though they’re clunky compared to mobile-first brokers.

Mobile-first trading platforms prioritize the aesthetics of the trading platform. The trading experience is straightforward and intuitive – trading apps shine by making it increasingly easy to sign up for a free account and start investing. And when 40% of non-investors worldwide not invest given that they don’t discover how or find investing too confusing, simplicity is more and more important.

Stock investing apps certainly are a wonderful solution for your uninvested that are afraid to get.
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