Online trading has evolved in recent years as technology has changed and more people have come online. Nowadays, all forex brokers allow you to trade on the go via smartphone apps. A trading app makes it easier to manage open positions from anywhere as long as there is an internet connection.
This guide looks at the features required from the best forex trading app for beginners in 2021, and it suggests some apps to choose from.
Our List of the Best Forex Trading App for Beginners
Here is our list of the best beginner-friendly forex trading apps:
What Is a Forex Trading App for Beginners?
Some time ago, when smartphones were not so popular, forex brokers developed their own desktop trading software or licensed some third-party software. As internet and mobile communications developed, brokers first developed web interfaces to their platforms and then mobile apps for Android and iOS (Apple) smartphone operating systems.
Mobile forex trading apps are targeted mainly at beginners who may only ever interact with a broker via the app. For them, and even experienced traders, a forex trading app provides a simple yet effective way to place trades and monitor open positions on the go.
How Does a Forex Trading App for Beginners Work?
Just like a desktop trading platform, a forex trading app is either built in-house or licensed from a third-party software company. For example, a broker may offer the MetaTrader app to its customers, in which case the trader must download the MT app and search for the name of the brokerage house they are signed up with. Then, choose a server and enter login information to get connected.
Alternatively, and more intuitively for beginners, many brokers offer their own smartphone app along with tutorials for how to use it.
Key Features To Look in a Forex Trading App for Beginners
Ease of use is the name of the game. All forex trading apps for beginners should have a simple tutorial explaining the basic features.
Ideally, the app will offer many of the same technical indicators that the broker’s desktop or web interfaces offer, and this is possible now that high resolution smartphone screens have become so big.
Push notifications are another feature to consider. They make the trader’s job much easier, especially if the notifications show relevant price changes.
Pros & Cons of Using a Forex Trading App for Beginners
How To Choose the Best Forex Trading App for Beginners?
A forex trading app is usually not the decisive criterion when choosing a broker, but it certainly is desirable. The most important thing is for the trading app to be reliable, and a quick look at the reviews on the app store should tell you if this is the case. Another good indicator is the app's ranking in the app store.
How To Safely Use an App to Make Money Online Trading?“ A broker is responsible for providing the best trading conditions and routing the client's orders to the market efficiently, and it charges a fee (one way or another) for this service. However, unless it’s a full service broker, the trading risk — deciding what to buy and sell, and when — lies with the trader. It’s up to you to put sufficient risk management and money management procedures in place, such as using protective stop-loss orders and never allocating more than 1% of available funds to each trade. ”- Mircea Vasiu
In this guide, we’ve introduced beginner-friendly forex trading apps, discussed their features, and suggested some such apps for you to try.
Frequently Asked Questions
No. Regulation comes with extra costs that typically hurt the profitability of a brokerage business, so a few brokers are reluctant. However, brokers often have no alternative but to get a license from the financial regulator if they want to cater to clients in a certain region. Unregulated brokers are typically registered offshore.
MetaTrader. It comes in two versions, MetaTrader 4 (MT4) and MetaTrader 5 (MT5), which many seasoned retail traders are familiar with. One of the benefits of this third-party software is that a trader can easily switch from a broker to another and import all the analysis onto the new broker’s trading platform.
Yes, they do. Traders have access to commodities (e.g., silver, gold, oil, etc.), indices, individual shares, and sometimes even cryptocurrencies. Usually, these markets are offered as leveraged contracts-for-difference (CFDs) that can be risky for beginners.
Very. It usually takes a few steps to open a trading account with a broker and less than a business day. In some cases, it takes only a few hours. The most time-consuming phase is the document verification phase, for obvious reasons.
Risk management means managing the risk on individual trading positions, usually by placing a protective stop order that will get you out of an unprofitable position at a small loss before it becomes a big loss.
Money management and risk management are related, but money management is more about protecting your account as a whole from drawdowns. Most experts advise not allocating more than 1% of available funds to any one trade.