Trading environment in Indian stock market

A decade ago, trading of stocks, bonds, futures and options took place on web-based platforms on stock trading websites.

Jun 17, 2018 09:06 IST India Infoline News Service

We all remember how the protagonist in the film ‘The Pursuit of Happyness’ struggles to become a stock broker and the triumph he experiences when he finally succeeds. With the advent of mobile trading applications, anyone can, and is, trading stocks from the convenience of their palms, thereby making most of the stock market in India.
 
A decade ago, trading of stocks, bonds, futures and options took place on web-based platforms on stock trading websites. Most of these platforms were provided for free or at a minimal charge by brokering companies such as India Infoline, Sharekhan, Motilal Oswal, ICICI, etc. After the advent of Android mobile phones, stock market applications/trading apps have made the process easier and convenient.
 
The market for mobile-based online stock trading on the NSE was recorded to have increased by 150% in 2014 – 2015, with transactions ranging from Rs50,800-1,16,186cr. Most of these transactions were conducted by traders with a low-ticket size.
 
The following transformations and inventions have taken place in the stock trading market in the past few years:
  • The exchange of information has become instantaneous and access to trade has been placed right in our palms
  • Anyone and everyone can become a broker and explore trading in equity, derivatives, futures, and options. They can avail intraday trading tips, which aid in decision-making.
  • It has become easier to trade as one does not have to log in to his/her desktop each time they want to check on a stock
  • Transactions have become seamless as apps allow easier fund transfer from bank accounts to trading accounts
  • Like any other application, mobile trading applications are easily downloadable on Android/ iOS phones. After the initial formalities of registration and authentication, one can become a trader within a short span. These applications are user-friendly, fast, and provide an excellent stock-trading experience
  • One can trade in stocks across multiple segments as well as invest in financial instruments like mutual funds and insurance
  • Tools like heat maps, technical indicators, and charts provide insights for personal analysis by the user
  • Apps and websites come with the provision of keeping market watch and live market information
  • Search functions that allow access to thousands of instruments and contracts across exchanges help users learn how to trade in stock market
  • Some apps allow for applications to IPOs and OFS through smartphones
  • Surety of secure transactions, on par with online trading platforms and zero brokerage charges. Integration with prominent banks for fund transfers
  • A few drawbacks, such as the dependence on the internet or mobile networks, varying speeds of performance, and slow updates/notifications do exist, but the benefits are far greater.

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