Here's how investing apps encourage people to trade more often - Business Insider

  • 📰 BusinessInsider
  • ⏱ Reading Time:
  • 36 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 18%
  • Publisher: 51%

Business News News

Business Business Latest News,Business Business Headlines

If your investing app is flashing red and green, that might be a sign that it's encouraging you to trade more

and keep money growing. "The chance that you're going to observe a loss goes down dramatically over time," Egan says.Egan says that many investing apps use the colors red and green — like stoplights — to motivate quick decision-making. He says that seeing those colors flash on an investing app is a sign that the app is trying to get investors to make more frequent trades.

"Both of these things are kind of making investing much like gambling or something that's a little bit more like entertainment," Egan says. "They're making it exciting over a very short period of time." In previous experiences, Egan says he's seen this in a variety of ways at more traditional brokers. "[Investing products] almost seemed free in a lot of cases. And that was because the fees were embedded inside of the product in a way where it was kind of hard to see them," he says. Oftentimes in cases like these, the broker kept the dividends paid by investments, a practice that can lower what investors actually earn and increase the brokerage's earnings.

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 729. in BUSİNESS
 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Here's how investing apps encourage people to trade more often - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web. I like girls....
Source: BusinessInsider - 🏆 729. / 51 Read more »

3 tips for smart investing, from the head of Schwab's robo-adviser - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web.
Source: BusinessInsider - 🏆 729. / 51 Read more »

Easy access to new tech leading millennials to invest during COVID-19 - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web.
Source: BusinessInsider - 🏆 729. / 51 Read more »

My biggest financial mistake was not investing in my first 401(k) - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web. Fidelity Investing is hard to take seriously when most options contribute to an unlivable world
Source: BusinessInsider - 🏆 729. / 51 Read more »

CEO Sallie Krawcheck's best investing advice during a downturn - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web.
Source: BusinessInsider - 🏆 729. / 51 Read more »