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Mobile Trading Apps and the Rise of DIY Investing

Harness the power of financial markets in the palm of your hand. The world of investing is at your fingertips, enabling you to mold your own financial future. Welcome to the era of Mobile Trading Apps and the Rise of DIY Investing.

DIY investing

Traditionally, the world of investing was dominated by the affluent and the well-connected, who had the means and access to expert advice. However, in the past decade, a seismic shift has occurred. The advent and growth of mobile trading apps have democratised the financial markets, bringing Wall Street to Main Street. Today, investing is no longer the preserve of the elite, but a global phenomenon accessible to anyone with a smartphone and internet connectivity.

One driving force behind the more recent uptick in DIY investing is the Covid-19 pandemic. When people suddenly found themselves confined to their homes in 2020, they turned to their phones and trading apps. The numbers speak for themselves. In the first six months of 2020, 19,5% of all stock market shares traded was traded by retail investors according a study from Bloomberg Intelligence. That is an increase of 4,5% over 2019 and almost double from 2010. In an investor study by Charles Schwab from 2021, they state that 15% of all current stock market investors say that they started investing in 2020. About 6 million Americans downloaded a retail broker trading app in January 2021 alone.

Retail investors accounted for 52% of global assets under management in 2021, which is expected to grow to over 61% by 2030.” – World Economic Forum

Understanding Mobile Trading and Its Evolution

Mobile trading apps have emerged from the confluence of technology and finance, evolving rapidly in line with the smartphone revolution. These apps offer platforms where one can trade various financial instruments, such as stocks, commodities, and cryptocurrencies, with just a few taps on a mobile device.

The first generation of these apps was a simple extension of online brokerage platforms, offering basic features for buying and selling assets. However, the second wave of mobile trading apps, buoyed by advances in technology and user interface design, has created a more engaging, intuitive, and educational trading experience, paving the way for a surge in DIY investing.

Features and Benefits of Mobile Trading Apps

Modern mobile trading apps are much more than mere transactional platforms. They offer real-time market data, news updates, analytical tools, and even social trading features where users can follow and emulate the trades of experienced investors. Moreover, these apps provide educational resources such as tutorials, webinars, and blogs to guide novice investors.

In terms of benefits, mobile trading apps have dramatically reduced the barriers to entry for investing. With low or zero-commission trades, individuals can start investing with relatively small amounts of money. Moreover, the convenience of trading on the go, 24/7, enables individuals to manage their investments around their schedules, an unthinkable concept in the era of traditional brokerages.

Challenges and Risks of Mobile Trading

While mobile trading apps offer tremendous advantages, they are not without risks and challenges. The volatile nature of financial markets can lead to significant losses, and the ease of trading can sometimes encourage impulsive decisions. Security is another concern, with cyber-attacks and data breaches posing a constant threat. Hence, it’s essential for users to understand these risks and adopt safe practices while trading.

Role of Mobile Trading Apps in DIY Investing

The rise of mobile trading apps has been instrumental in fueling the trend of DIY investing. With easy access to financial markets and a wealth of information at their disposal, individuals are now empowered to make their own investment decisions. Furthermore, the interactive nature of these apps, with their gamified interfaces and social trading features, has made investing an engaging and fulfilling activity, rather than a daunting task.

The Future of Mobile Trading and DIY Investing

Looking ahead, the growth trajectory of mobile trading apps and DIY investing seems poised to continue. Technology will play a pivotal role, with advancements in artificial intelligence and machine learning offering personalised investment advice and automated trades. Blockchain technology could further enhance the security and transparency of mobile trading.

Moreover, with increased financial literacy and a cultural shift towards self-reliance, more individuals are likely to join the DIY investing bandwagon. Hence, the mobile trading revolution represents not just a technological shift, but a societal one, shaping the future of investing.

Conclusion: Embracing the Mobile Trading Revolution

In conclusion, the rise of mobile trading apps has ushered in a new era in the financial world, breaking down barriers and opening up opportunities for DIY investors. While challenges remain, the future looks promising. As technology continues to advance and evolve, so will the world of mobile trading and DIY investing, offering exciting possibilities for those ready to seize them.


Luke is currently a student in his final year studying A levels in Economics, Maths and Physics at The Bishop’s Stortford High School. He has a strong interest in economics and financial markets,... Continued

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