Criteria for Choosing a Stock Trading App on Mobile - A Guide for Investors

Investing in stocks through mobile applications has become a popular trend in recent years, especially from 2024 onwards. This is an optimal choice for investors who want to monitor the market continuously, avoid direct contact, and save time. However, there are many reputable stock trading apps with different features available on the market today. How to choose the right app for your needs?

Benefits of stock trading on mobile applications

Before exploring the types of apps, let’s review the main advantages of using reputable stock trading apps:

✅ No need to visit physically - You can trade anytime, anywhere without going to a traditional trading floor

✅ Save time - No need to travel, execute orders directly on your phone

✅ Continuous monitoring - Real-time market price updates help you seize trading opportunities

✅ Easy risk management - Set automatic stop-loss orders and account protection tools

Types of stock trading applications

There are three main types of apps that investors need to understand:

1. International derivatives stock trading apps

These platforms allow trading contracts for difference (CFD) on international exchanges. Apps of this type typically offer:

• Trading over 300 asset types (US stocks, indices, forex, gold, cryptocurrencies…)
• Leverage support from 1:1 to 1:200
• Low trading fees (mainly spread costs)
• No commissions, VAT, or taxes
• Flexible leverage and margin conditions

Advantages:

• Profit from both rising and falling markets (via short selling)
• Low initial capital, only 50-200 USD
• Access to global company stocks like Apple, Google, Microsoft
• Very low trading fees compared to traditional trading methods

Disadvantages:

• Do not own the actual securities
• High risk with leverage
• Require good risk management skills

2. Domestic stock trading apps

These are platforms developed by Vietnamese brokerage firms, allowing trading of stocks on domestic exchanges (HNX, HOSE, UpCom).

Advantages:

• Direct ownership of stocks
• Voting rights at shareholder meetings
• Lower risk than derivatives
• Periodic dividends

Disadvantages:

• Higher initial capital requirement (minimum millions of VND)
• High minimum trading volume (e.g., 100 shares/order)
• Higher transaction fees (0.15% - 0.35% of transaction value)
• Limited trading hours
• Longer settlement time (T+2)
• Profitable only when stock prices increase
• Complex account opening procedures (taking 2-5 days)

3. Stock analysis and news apps

These tools support technical analysis, market news updates, and trading data. Highly rated on both iOS and Android, these apps feature:

• Real-time quotes
• Advanced analysis tools
• Detailed price charts
• Financial news updates
• Trader communities for sharing strategies

These apps are very useful for technical analysis before making trading decisions.

Comparing the two main trading methods

Suitable choices:

• If you want short-term investment with little capital → Derivatives stocks are more suitable
• If you want long-term investment with more capital → Underlying stocks are a good choice

Criteria for choosing a reputable stock trading app

When selecting an app, consider the following points:

1. Safety and registration

• Check if the trading platform is managed by reputable international securities authorities (such as ASIC, CySEC, FCA, SEC)
• Is your money kept in a separate trust account?
• Does the app have high security from the provider?

2. Trading fees

• Compare the spread (spread) across platforms
• Check for hidden fees, commissions, or additional taxes

3. Leverage and margin

• Is the leverage level suitable for your trading goals?
• What is the minimum margin requirement?

4. Interface and features

• Is the app user-friendly?
• Does it have risk management tools like stop-loss, automatic take-profit…(
• Does it include technical analysis and market news?

5. Asset portfolio

• Does it support the asset types you are interested in )US stocks, indices, cryptocurrencies…(

6. Customer support

• Is Vietnamese language support available?
• How responsive is the support team?

How to start trading stocks on an app

After choosing the suitable app, you can start with three basic steps:

) Step 1: Register and open an account

• Fill in personal information in the registration form
• Provide necessary verification documents
• This process usually takes from 10 minutes to a few hours depending on the platform

Step 2: Deposit trading capital

• Transfer funds into your trading account
• Minimum amount varies by platform ###usually 50 USD for derivatives, from millions of VND for underlying stocks(
• Some platforms offer demo accounts with virtual funds for practice

) Step 3: Execute trades

• Look for trading opportunities on the app
• Place buy or sell orders
• Use risk management tools

Important notes when trading stocks

Risk management is a top priority:

• Use stop-loss orders to limit losses
• Avoid excessive leverage ###recommended 1:1 or 1:2 for beginners(
• Do not trade too many positions at once
• Only use money you can afford to lose

Learning and preparation:

• Use demo accounts before real trading
• Study technical analysis and risk management
• Regularly follow market news
• Do not trade based on emotions

Choose reputable stock trading apps:

• Prioritize platforms managed by international securities authorities
• Avoid platforms with unclear origins
• Check reviews from the trading community
• Start with small amounts to learn

Conclusion

Trading stocks via mobile applications offers many benefits but also involves risks. The key to success is selecting a reputable stock trading app suitable for your goals, managing risks effectively, and continuously learning.

Whether you are a beginner or experienced investor, always remember that the stock market requires discipline, patience, and a clear trading plan. Start small, utilize risk management tools, and develop your trading skills step by step.