Mobile Trading Explained

Including the significant growth in mobile trading

What is mobile trading?

Mobile trading refers to trading in a financial market, such as a stock exchange, and the forex exchange (forex) market, using a smartphone or tablet.

Terms related to mobile trading clarified

Before mobile trading is explained in more detail, the following terms need clarification:

• Smartphone

A smartphone is an electronic portable device that allows access to a cellular network and the internet, enabling people, in addition to making phone calls, to send text messages, play games, and download applications (apps) to, amongst other things, trade securities, and currencies.

A smartphone is referred to as an internet-enabled device.

• Tablet computer

A tablet computer or tablet PC, commonly known as a tablet, is a mobile computing device that resembles a large smartphone. It is also referred to as an internet-enabled device.

• Mobile technology

Smartphones and tablet computers use mobile technology to operate. Mobile technology consists of mobile networks (also called communications networks) that connect mobile devices, enabling them to communicate with other devices on networks by sending and receiving signals.

Put simply, mobile technology is the technology that is portable, or, as IBM describes it: ‘Mobile technology that goes where the user goes.’

• Wireless technologies

The mobile networks that link mobile devices are called wireless technologies. They enable mobile devices to connect to the internet and communicate with other devices in a particular area or over longer distances without using cables or wires of any sort.

Put differently, wireless technologies allow mobile devices to share data, voice, and trading applications (apps).

Common types of wireless technologies are Cellular (3G/4G/5G) and Wi-Fi, short for wireless fidelity.

A short timeline of the progress of trading – from physical trading at physical stock exchanges to mobile trading

What is trading?

In financial terms, trading refers to participation in financial markets, such as stock markets (stock exchanges), and the foreign exchange (forex) market.

People who trade financial instruments and currencies include, amongst others:

• Individual investors invest in securities and assets for their own accounts, aiming to generate income and profits in the long term. Typically, individual investors prefer a buy-and-hold strategy.

An individual investor, also called a retail investor or a non-professional investor, trades mostly part-time and does not consider trading as a career.

• Traders who execute active trading to generate profits from short-term fluctuations (upward and downward) in the prices of securities and currency pairs. Examples of traders who practise active trading are day traders, swing traders, and scalpers, to name a few.

Physical trading

Originally, shares of publicly traded companies, also known as public companies, were only physically traded on stock exchanges, allowing brokers and traders to buy and sell shares of public companies verbally and physically.

The New York Stock Exchange (NYSE) is an example of a stock exchange in which physical trading still takes place.

Electronic trading

The invention of the internet, allowing computer networks to communicate with each other, anywhere and anytime, made electronic trading possible.

It is a method of trading securities, other financial instruments, or foreign exchange electronically. Traders and investors use computers to connect to trading platforms via the internet, enabling them to trade more efficiently and much faster than on traditional exchanges.

Express differently, electronic trading is executed via electronic exchanges, which are electronic platforms where buyers and sellers can interconnect without the requirement to be in each other’s physical presence.

Nasdaq, originally an acronym for ‘National Association of Securities Dealers Automated Quotations,’ a stock exchange located in New York, is one of the most prominent electronic exchanges in the world.

Over-the-counter (OTC) trading is another type of electronic trading. OTC trading is executed electronically in an over-the-counter (OTC) market, which is a decentralised market in which shares, commodities, other financial instruments, and currencies are traded directly between two parties, without brokers acting as intermediaries.

The largest OTC market is the forex market where currencies of countries are bought and sold via an electronic network of banks and other financial institutions, instead of via other electronic exchanges.

Mobile trading

And then came the smartphone, making it possible for ‘the person in the street’ to participate in the trading of assets such as shares and currencies while they are literally mobile, i.e., on the move.

Mobile trading explained

As mentioned, mobile trading is the trading of assets, such as the shares of public companies and currencies, using a smartphone or a tablet, short for tablet computer.

It is viewed as a technology that has changed the way trading of securities and forex (to name a few) is done by traders and investors.

The features of mobile trading can be described as follows:

Mobile trading, inter alia:

• allows investors to trade with a high degree of flexibility,
• enables users to access financial markets, making it easier to place their trades,
• helps investors to keep track of their trades and investments,
• assists users to place orders while simultaneously monitoring current market prices,
• offers investors a wide variety of choices of financial instruments (like stock and derivatives), commodities, forex, and cryptocurrencies (cryptos),
• allows users to actively manage their investment portfolios even when they do not use a computer such as a laptop or desktop,
• makes it possible for individuals to trade anytime and anywhere in the world when an internet connection is available, and
• enables investors to download a multitude of mobile trading applications (apps) in order to execute trading and manage investment portfolios.

(The features mentioned above can also be viewed as advantages, which are described in more detail below under ‘Advantages of mobile trading.’)

Requirements for mobile trading systems (mobile apps)

A good mobile trading app should meet the following requirements:

• Swift to open and close trades.
• Get price alerts.
• Has access to the newsfeed.

A mobile trading system ‘is financial software for smartphones that enables investors to make their buy or sell from a mobile phone that has internet connectivity.’ This is according to doctor N Elangovan in a research paper about ‘Design quality of Mobile trading system application software for Smartphones.’

In his research paper, Elangovan mentions, inter alia, the following requirements for a mobile trading system, i.e., a mobile application:

• Minimum effort and quick response

The mobile app ‘should be able to fulfil certain tasks in a minimum number of clicks and respond in a rapid way.’

• Easy to place orders

Placing orders should be quick enough to react to changes in market prices.

• Provides the latest market and financial news and updates

• Simple and user-friendly interface

‘A user-friendly interface is not overly complex, but instead is straightforward, providing quick access to common features or commands.’

• Navigation is simple and understandable

The growth of mobile trading

The availability of mobile applications (apps), many of which are offered by retail brokerages to clients, caused a sharp increase in people participating in trading via their smartphones and /or tablets, especially in the last four to five years.

In January 2017, FXCM mentioned that ‘brokerages and dealers in equities and forex report that currently as much as 15 – 20% of all trades are made through mobile applications. Analysts believe that that number is likely to grow as tech-savvy younger generations become increasingly involved in trading.’ (Accentuation by the article writer.)

A quick look on Google Search could not provide the latest number (as of January 2025) of people who trade via mobile trading.

Notwithstanding the unavailability of the latest statistics, it is absolutely true that mobile trading has grown exponentially during the last five years.

Refinitiv, one of the world’s largest providers of financial markets data, mentioned in an article on 31 March 2025 that the fifth annual J.P. Morgan e-FICC survey, published in February 2025, ‘found that mobile trading is expected to have the biggest influence in terms of trading technology over the coming year.’

Furthermore, Refintive observed that there ‘has been a steep rise in the popularity of mobile trading across the world.’ This progress is the result of a general ‘change in mindset’ as well as the effect of the Covid-19 pandemic, forcing financial firms to adopt remote working.

Concerning forex (FX) trading, Refinitiv stated that ‘a mobile FX trading app enables banks and other market participants to address a broader range of customers,’ serving a wider group of customers than previously.

In Africa, mobile devices, such as smartphones, are mostly used to do retail day trading. The reason is, the majority of Africa’s population has wider access to smartphones, more than any other device, according to Tech-ish.com.

In a 2025 report, titled ‘The Mobile Economy Sub-Saharan Africa,’ the Groupe Speciale Mobile Association (GSMA) (an association representing the interests of mobile operators and the broader industry globally) reported ‘by the end of 2025, 495 million subscribed to mobile service in Sub-Saharan Africa, representing 46% of the region’s population – an increase of almost 20 million on 2019.’ (Accentuation by the article writer.)

GMSA projected that 615 million people in Sub-Saharan Africa will subscribe to mobile services in 2025, equalling 50% of the region’s population.

The exceptional number of smartphone users in Africa, combined with cheaper data deals offered by mobile operators and the free information about stock and forex trading readily available to internet users, boost mobile trading significantly.

There was also a surge in the number of new investors in Africa in recent years, with most of the online traders and investors accessing their trading platforms via mobile devices.

In addition, the Covid-19 pandemic has increased the inclination for online trading.

Advantages of mobile trading

• Mobile trading applications provide users with research tools like online news, allowing users to track news with regard to specific securities, such as the shares of a public company.
• Trading applications available on mobile trading provide easy access to research reports which are created by financial institutions and companies.
• Mobile trading apps facilitate live market data such as price feeds, allowing mobile traders and investors to stay up-to-date on price action and the latest developments in particular financial markets. The availability of live data helps investors to make beneficial investment decisions.
• Numerous premium mobile trading applications (apps) offer a variety of analytical tools, including historical chart analysis to indicate various types of moving averages, as well as volatility and volume indicators. Typically, graphics to illustrate price movements of securities and currency pairs are also available.
• Similar to online trading, mobile trading offers trading tools such as simulators that allow traders to explore previous trading environments using backtesting or test their trading strategies, utilising real-time market action.
• Mobile trading enables users to trade from anywhere in the world, provided that an internet connection is available.
• Trading orders can be placed swiftly and effortlessly, making trading uncomplicated.
• Investors and traders are in complete control of their investments.
• Mobile trading enables users to monitor their investments in real-time.
• Mobile trading encourages ordinary people to become investors and to participate in the economic growth of a country.

Disadvantages of mobile trading

Although mobile trading has several advantages that can improve an investor’s trading experience, there are also some limitations or disadvantages.

• One of the key disadvantages of mobile trading is the limited screen sizes of mobile devices. This drawback implies that all the detail available on a trading platform cannot easily be viewed on a small screen. Hence, a limited number of analytical tools can be used on a mobile device at any given time.

However, the development of larger screens for mobile devices has started to mitigate this limitation.

• Mobile connectivity is often an issue as the wireless signals may disrupt, especially in remote areas and hilly locations. This may lead to missed trading opportunities or losses due to failure to execute orders in time.
• The ease of trading could be addictive, enticing an investor to invest more money that he or she can afford.
• A significant number of mobile trading apps have restricted access which means a number of obstacles may occur, such as the availability of derivative instruments (like options and swaps), certain currencies, and data of particular stock indices.
• Most of the budget (less expensive) smartphones do not have fast processors. The lower processing speeds of these smartphones can cause delays in the placing of trading orders.

Best forex trading apps for South Africans

To be able to trade securities, such as shares or forex, an investor or trader needs access to a trading platform or a trading application (app) in order to place and monitor trades.

Typically, trading platforms and applications allow traders and investors to view price charts, related news, and indicators to make informed decisions before executing trades.

In this regard, SA Shares compiled a list of the ‘15 Best Forex Trading Apps.’

In its review, SA Shares mentioned that ‘most forex brokers offer their trading platforms on mobile for both Android & iOS.’

In its evaluation, SA Shares compares factors such as fees, trading conditions, trading app features, and ease of use.

The list (in ranking order) of the 7 best forex trading apps looks as follows:

*FSCA is an abbreviation for Financial Sector Conduct Authority, which is the dedicated market conduct regulator of financial institutions in South Africa. Its mission is to enhance the efficiency and integrity of the financial system and to protect financial customers by promoting their fair treatment by financial institutions.

This article does not intend to provide investment or trading advice. Its aim is only informative.