Trading Forex on your Mobile? Think Again

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Today’s smartphones and special forex applications enable trading using a mobile phone. But do we always want to use this technology?

Internet on mobile phones is available for quite a while, but it was rather limited. Some forex traders connected to the internet in order to get a quote, but not more than that. In 2007, the technology significantly advanced:

The launch of the iPhone in 2007 was a revolution in mobile phones – WiFi abilities became common on mobile phones and specialized applications of all sorts of kinds became available in the iPhone App store, and later for other phones as well.

The forex industry is technologically advanced, and jumped on this wagon as well. Brokers such as FXCM, CMS Forex, FxPro, eToro, ForexYard launched special applications for mobile phones.

These applications often have chart that can be moved with two fingers, quick access to quotes and the ability to make trades in your account. Sounds great, right?

Well, here are some disadvantages:

The technology: Despite the big technological leap, these apps are still somewhat limited. The desktop software will always be more sophisticated and have more options than the mobile app. The mobile app might be enough for some traders, but insufficient for others.

Addiction: Many traders get addicted to trading. They stick their nose to the computer screens and watch every tick in the chart. This may lead to taking bad positions and losing control of their strategies. So, are you sure that you’d like to be connected while walking on the street? This is a chance to disconnect, relax and make a fresh start.

If you still prefer being connected while you’re on the go, I recommend limiting the usage. For example, using the mobile application only for manually closing the position but not researching and starting a new one. This way, you’ll utilize the connectivity but not the research tools that are somewhat limited on a mobile phone. This will also reduce the chance of addiction.

Do you trade with a mobile phone? How does it feel?

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About Author

Yohay Elam – Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I’ve accumulated. After taking a short course about forex. Like many forex traders, I’ve earned the significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I’ve worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.

6 Comments

  1. Agreed with the author. With technology advancement comes more convenience! However, it can lead to more bad positions created too.

    I mainly use mobile to check how taken positions are going. Never start position using mobile as you do not know the price action and volatile on it.

    As the author says, it’s always great to stay away from the market at times, get refresh and get back fighting recharge rather than stick to it 24/5.

  2. Scott Cisco on

    Nice points. I tend to agree that a phone app is really nice to check positions that are already in play, I really don’t want to be so ‘connected’ that I need to wait for a setup on my phone.

    Forex Trading is supposed to lead to more freedom not a loss of freedom.

    Thanks for the article.

  3. I also agree, I currently use FXCM on my blackberry and iPhone. And I only use it for trades I’m following in which I had put on desktop. Great tool for that but not to research and put a position in. I have the FXCM one and I just wish they had a way to change your limit or stop loss. Or maybe like me when I get sent signals from a friend of mine to allow to make entry order with stop/loss and limits. That would be great.

  4. iteresting point. I use my HTC HD with Windows mobile, so i can run Mobile Meta Trader. You have all tools you need, for my view. I trade from it, as i am at work, so no chance to have a PC. sure you must know what you are loking for to not just start to overtrade. I’m happy with it for now.

  5. I use my iPhone to check open positions when I am away from my trading desk.

  6. I do use my iPhone for a little bit more than that, I have an app that alerts me when certain PA action I predefine happens, that way I can go to my computer when a particular pattern is happening or a setup I want is getting close 😉

    e.g. I was waiting for USDJPY to break the 93.50 resistance to short it last night, got the alert at 4am, I came in and took a nice 100pip short.