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.