Given how good investing apps are these days, it’s a shocker to see how many investors mainly buy and sell securities on their computers.
The actual breakdown in a survey of 1,997 readers of the Carrick on Money newsletter was 84 per cent computer, 16 per cent mobile device. This skew reflects the fact that almost two-thirds of survey participants were boomers, with another 9.4 per cent from the silent generation.
Older investors are obviously big on familiarity when they trade, which is fine. You want to be comfortable when making decisions that affect your financial future in a big way. But here’s the thing about online brokerage websites – most are mediocre and some are worse. The net effect is that investors miss out on useful tools and resources because they don’t see them displayed in a prominent or inviting way. Portfolio details can be missed, and so can opportunities to dig deeper into holdings that may require attention.
I know from producing the annual Globe and Mail digital brokerage ranking that investors may be fine with antiquated website designs. Sometimes, I hear complaints about updates to websites that look to me like huge improvements. But smart design can empower investors.
You can see this in trading apps offered by pretty much all brokers now. For the most part, these apps offer a bright, streamlined and invitingly simple way to do a quick check of your portfolio, get quotes and charts and then place and check on the execution of trades. Broker websites still rule for deep research and portfolio analysis. Think of apps as a complementary, go-to way to stay on top of your accounts.
With their simplified layouts, apps work particularly well for novice and intermediate investors. Key information is generally displayed in a clear, concise way that builds confidence.
As noted in the latest Globe and Mail ranking of online brokers. TD Direct Investing and Qtrade Direct Investing are among the digital brokers that stand out for offering great client websites. There’s more parity on app design. Pretty much all players offer clients a quick, clean way to manage your accounts.
If you haven’t tried your broker’s app, download it on your phone or tablet, set up fingerprint-enabled access to your account and then see what functions are useful to you. Next, try one trade of a stock or exchange-traded fund. You may be surprised how much you like it.