Thinking about using a CFD trading app? Here’s what you need to know
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TradingMoon Writers Team
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Since the 1990s, contract for difference (CFD) trading has become a popular form of financial trading. CFD trading allows investors to trade multiple assets, including shares and cryptocurrencies, and today, there are several award-winning platform options for CFD trading. However, the most popular is CFD trading apps, which are rising in popularity as they provide traders with greater on-the-go control over their assets.
How do you start CFD trading?
Choosing a CFD trading platform depends on your trading style. Typically, beginners seek platforms that offer an easy-to-use interface and access to hundreds of trading options. To start trading CFDs, you will need to access a platform software provided by a CFD broker, which can be accessed either through a web platform, desktop, or mobile application.
Over the past few years, we have seen CFD trading via a mobile application becoming the preferred trading method. That is because the best CFD trading apps offer the same services with the same functionality as web platforms while also giving traders greater control and more freedom.
What is a CFD trading App?
A CFD trading app allows individuals to execute trades through a mobile device, including a smartphone and tablet. These apps are available for download through the iOS and Android app stores, and CFD trading apps offer global access to various markets. Most CFD trading apps have the same interface as desktop platforms, but they also have technical analysis tools designed for mobile operating systems as well as mobile-optimised charting.
What are the benefits of using a CFD trading App?
A significant benefit of using a CFD trading app is the ability to trade from wherever, whenever. In other words, traders don’t have to spend long hours behind trading screens anymore. That said, there are several other benefits of CFD trading apps. They include:
- Instant Notifications
- A reputable, award-winning CFD trading app gives traders the option of setting up push, email, or SMS notifications. That means they will never miss a trading moment, and these notifications can be for price or trading alerts.
- Improved Technology
- CFD brokers are constantly updating their CFD trading app software, so traders can access the same tools and charts on web-based platforms.
- Offered Everywhere
- Today, CFD trading apps are ubiquitous since most brokers have started to prioritise mobile solutions. Traders don’t have to restrict their options anymore.
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CFD trading styles on mobile vs desktop
There are several types of CFD trading, and each has its own benefits. They include:
- Day Trading: No overnight costs.
- Position Trading: Long term strategy that can lead to gains.
- Swing trading: Less time-consuming and requires less analysis
- Scalping: Reduced risk and no rollover fees.
It’s important to remember that since placing trades on a mobile app is different from a desktop platform, each trading style has to accommodate this reality. For instance, day trading involves buying and selling assets that enter and exit the market on the same day. Since day trading is a very intense trading style, traders often use both a desktop platform and a mobile application.
Why? Well, because even the best trading app has size limitations. Using both a tablet and a monitor will help ensure traders don't miss subtle details when analysing price movements. Other differences between a CFD trading app and a desktop platform include:
- Trade Time
- A desktop platform tends to place a trade in less time than a CFD trading app.
- Market Updates
- CFD trading apps provide instant notifications and help ensure traders are getting updated charts. Unexpected events happen in the market, and no trader can sit in front of their devices all-day.
- Conducting Financial Analysis
- Conducting technical analysis on a desktop platform can allow traders to see the different angles of potential trades.
What are the next steps in CFD trading?
Once traders download a CFD trading app, the process of starting to trade instruments is quick and easy. After creating and funding an account, traders can begin right away. However, that’s not always recommended. Instead, traders should take extra time building a trading plan before making real-money trades. This plan should include everything from available capital and goals to time commitment, and traders should use it as a blueprint for all of their CFD trading activity.
Not investment advice. Past performance is not indicative of future results. Trading cryptocurrency may not be available depending on your country of residence.
