Traders Union research: Trading apps trigger unplanned trades
Trading apps make investing faster and more convenient, but they can also influence user behavior. Traders Union research found that notifications and other app features can push investors toward trades they had not planned to make.
In the study “When Do Trading Apps Trigger a Trade?,” Traders Union analysts examined how notifications, price alerts and other app features affect how often investors check the market, make unplanned trades and how quickly they make decisions.
Apps make investors check the market more often
Around 44% of participants said features in trading apps often or sometimes prompt them to check their investments even when they had not planned to do so. Another 24% said this happens rarely, while 27% said apps do not affect how often they check the market at all.
Notifications also regularly bring investors back into the app. After receiving a market-related alert, 17% open the app almost immediately, while another 24% usually check it soon afterward. Around 31% react depending on the content of the notification.
More than one-third have made unplanned trades
Around 38% of investors have bought or sold an asset at least once after seeing a notification or another app prompt, even though they had not planned to make the trade beforehand. Of these, 14% had done so several times and 24% once or twice. Another 18% could not say for certain whether the app had influenced their decision.
Price movement alerts were the main trigger, cited by 35% of investors who had made unplanned trades. Another 22% reacted to lists of top-moving or trending assets, while 17% responded to breaking market or company news. Personalized asset notifications were the main trigger for 11% of participants.
Half make a decision in less than 30 minutes
Among investors who had traded after an app prompt, 22% typically acted within five minutes. Another 29% made their decision within six to 30 minutes. This means more than half of such trades were made less than half an hour after the prompt.
At the same time, 31% of participants later felt at least sometimes that they had acted too quickly. Around 8% said they often felt this way, while 23% said it happened sometimes. Meanwhile, 37% said they had never felt their decisions were too rushed.
The Traders Union research shows that trading apps can influence not only how conveniently trades are executed, but also when investment decisions are made. Features that draw attention to sharp price movements appear to have a particularly noticeable effect, allowing users to move almost immediately from an alert to buying or selling an asset.
Earlier Traders Union research found that trading signals can also influence the decisions of retail traders.
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