According to Business of Apps, investment app usage rose from 35.6 million in 2017 to over 130 million in 2021. This statistic tells us there’s a burgeoning market for such products, with an incredible number of investors drawn to their easy accessibility.
Investing must have seemed like the perfect solution, and investment apps only made it more appealing. In this article, we look at how they’ve helped make the markets more accessible for ordinary people and their enduring impact.
This is the demographic investing apps primarily cater to. Because of the sheer number of people who use them, they can facilitate lower trading amounts and more easily absorb these than a traditional broker. This ability to invest less means it’s not only high earners who can gain access to the markets and try their hands at investing.
This goes hand-in-hand with low-cost trading, but apps also allow retail investors to play around with lower volumes than they’d traditionally be able to. Naturally, transaction fees reflect this, and investors are not charged an exorbitant rate for low-volume trades. This takes the power out of the hands of brokers and places it into those of ordinary people.
Less reliance on professionals
The easy availability of apps means modern investors are less reliant on banks and/or brokers to act as middlemen. However, it also means professional financial advice is not as readily available to traders.
You might assume this would negatively impact their success, but this isn’t the case. Rather, apps take knowledge out of the realm of an elite few and make it more easily accessible. Many come complete with extensive tools to educate users, which they can put to good use when planning their trades.
When it comes to opening the markets up to ordinary people, investing apps have already gone a long way toward doing this. By reducing costs and commissions, placing educational resources in the public domain, and supporting lower-volume trades, they’ve made large amounts of capital less necessary for those who would like in on the action. Is this something you’ll be taking advantage of?