Pros and Cons of Forex Mobile Trading
Think about it. You can now use a mobile phone to trade forex anywhere, anytime: at home, at work, on the train, in a restaurant, the possibilities are endless. With the latest generation of smartphones you have a raft of tools for technical analysis, market information from brokers, and access to your trading account, all from one slim but oh so potent platform that also fits neatly in your pocket.
Why would you ever go back to a PC for trading? Actually, for a number of reasons. As powerful as smartphones have now become, they can’t yet do everything that you can do from your PC. Take a look at pros and cons of mobile forex trading below, so that you can see for yourself whether trading from a handheld device will suffice, or you still need to stick with your PC.
Advantages of forex mobile trading
- Accessibility. Anywhere you can get a network connection for your mobile, you can trade on forex. You no longer have to be glued to your PC. You don’t even have to hunt out an Internet cafe. Open one trading position in an elevator, close another one in a taxi, open a third one in a bar, and so on.
- Existing accounts. Trade with your current broker, there’s already a good chance that you can login over your handy to the trading account you have today. More than 500 forex brokers support access from mobile devices.
- Train trading skills. Tired of playing “Angry Birds” on your mobile? Open a demo account and train your trading skills (analyzing the market, using technical indicators).
- Market analysis. Trading platforms available for mobiles often offer a wide variety of tools and indicators (30 or more) to let you analyze and predict what the market is going to do. Yes, the screen on your smartphone is smaller than the one on your PC, but it still has excellent resolution for zooming in and out, and tons of colors for picking out your favorite chart patterns.
- Mobility. It’s not called a mobile “for nothing.” Not only does it beat PCs in terms of compactness and lightness, but it often has 24 hours or more battery staying power that many PCs can only dream of.
Disadvantages of forex trading on mobile
- Dropped connections. Sometimes (like in the elevator) your mobile connection just gets lost. If you’re in the middle of a critical trading maneuver, this can be a source of intense frustration, and potentially of loss of profit.
- Mediocre execution time. Platforms for mobile access are often generated from platforms written for PCs. You might get the functionality, but you don’t always get comparable performance, especially if the platform developers have not properly optimized their software for use with cell phones. Likewise, PCs still have the edge overall when it comes to convenience in opening a trade. With a mobile, you may have to learn a little patience.
- Additional costs. Depending on the phone plan you’ve chosen and the type of Internet access that’s available, you may find connection costs running up to more than you imagined.
- Lack of EAs. Those Expert Advisors, or similar trading automation tools, that you can use from your PC may simply not be available on your mobile. Your trading will therefore have to be manual, without the extended “set it and forget it” possibilities that you can have on your PC.
It’s clear that these disadvantages have not deterred a considerable number of traders from adopting the mobile platform for trading on forex. After all and notwithstanding a lack of Expert Advisors, you can still do a lot with the functions of opening and closing trades, and setting Stop Loss and Take Profit for orders from your phone. Just be prepared psychologically to deal with the higher (compare to PC-based trading) probabilities of delayed price feed updates, order execution, and duplication of order submission.
Where does all that leave us with forex trading on mobile phones? In my opinion, the trading software for mobile phones still needs to be improved in terms of stability and functionality to catch up with platforms available for PCs. Although, it can be convenient for analyzing the market and practicing on demo accounts. I think you have to wait a little before scrapping your PC in favor of trading purely by cell phone.
P.S.: Have you ever tried mobile forex trading on iOS or Android devices? Share your experience and advices.