Mobile trading app revolution In India and their impact on the investment landscape

By TBS Team | May 24, 2024

Did you know that 22 stock traders began informal trading under a banyan tree in front of Bombay’s Town Hall in the 1850s, marking the beginning of stock exchanges in India? It is currently among the world’s most prominent mobile stock trading markets. This blog examines how mobile trading app have evolved and become more convenient and accessible. The future holds even more easily accessible and safe investing options as technology develops.

Technology breakthroughs have contributed to a notable shift in the Indian stock market. Investors may now easily trade stocks using smartphones, thanks to advancements in mobile platforms that have replaced ring-based trading systems from the early days.

The Evolution of Stock Market Trading

The first stock exchange in Mumbai created the long history of the Indian stock market, dating back to 1875. Initially, the best stock broker in India started manually matching deals in a paper system.

Mr. Harshad Mehta propelled the fantastic climb of the BSE Sensex from 1000 to 4000 during the 1990s, driven by technical improvements. Establishing regulatory entities like SEBI aimed to reduce volatility.

The market gradually changed to digital trading, quicker settlement periods, and the democratization of investment. Today, mobile apps empower investors and represent India’s economic progress.

1. The Rise Of Best Mobile Trading App In India

User-friendly, affordable platforms like Zerodha, Upstox, and Paytm Money introduced trading app in the early 2010s. Indian investors are increasingly interested in these apps, especially the younger, tech-savvy populations outside major cities.

Mobile trade applications gained popularity during the COVID-19 outbreak because millions of Indians relied on them to generate consistent revenue throughout the shutdown.

India saw a surge in demat account numbers from 4 million in FY20 to 26 million in FY22, primarily due to the simplicity of creating accounts and strong stock returns. In September 2023, there were 12.97 crore demat accounts in India, a 26% rise from the previous year.

2. The Power Of Technology

The stock market has changed dramatically due to the adoption of technology, which is advantageous to traders and investors. Here’s how:

  • Faster Trade Settlement: The switch to T+1 settlement has accelerated transactions. Purchasing shares today expedites the process by crediting them to investors’ demat accounts the next day.
  • Increased Transparency: Investors are empowered by having real-time access to news, trade reports, and market data. Making educated decisions is ensured by transparency.
  • Enhanced Security: Strong cybersecurity safeguards against fraud and guarantee transaction integrity.
  • Automated Surveillance: Algorithms actively monitor trade trends, detect irregularities, and ensure compliance with rules.
  • Mobile Trading Apps: About 20% of all exchange trading volumes in 2021 come from mobile trading. Traders are using mobile applications like Moneycontrol, Stockedge, Quantsapp, Opstra, and others in large numbers because they provide a multitude of market data and information that helps them trade profitably.
  • Algo-Based Trading: Algorithms minimize emotional biases by quickly executing established rules. Since Algo-based trading accounts for more than 60% of all trade activity, trading volumes have increased exponentially.
  • Artificial Intelligence (AI): AI performs data analysis, trend prediction, and portfolio optimization. Bot trading and trading via voice commands are coming soon.

3. The Future Of Trading

The lively Indian stock market, where fortunes are made and lost, is at a turning point. What’s next is as follows?

  • Technological Leap: Change is coming, and artificial intelligence (AI) is the signal. It automates trading techniques, forecasts market trends, and analyzes enormous data sets. AI-powered computers will completely transform the way humans trade by making heartless judgments.
  • Voice Command Trading: Imagine executing transactions with only a voice command. Intuitive interactions will become standard as technology advances. Soon, the words “buy 100 shares of XYZ” could become unintelligible.
  • Blockchain Revolution: Settlement procedures will change due to decentralized ledgers. Smart contracts will guarantee efficiency, security, and transparency. Real-time transactions could replace the days of T+1 settlements.
  • Democratization Continues: Investing is becoming more accessible thanks to best mobile trading application. Even tiny investors can participate in high-value equities through fractional share trading. There will be greater inclusivity in the stock market.
  • ESG Influence: Environmental, social, and governance (ESG) considerations will influence investment decisions. Sustainable businesses will draw funding, and investors want ESG indicators to be transparent.
  • Algorithmic Trading Dominance: The future belongs to algorithms. Machine learning, quantitative models, and high-frequency trading will dominate exchanges. Traders must change or run the danger of falling behind.
  • Global Integration: Trade across borders will grow. Portfolio diversification will go beyond domestic stocks for investors. The Indian market will entwine with global indexes.
  • Risk Management: Sophisticated risk models will reduce losses. Machine learning will forecast market collapses, enabling departures at the right moment.
  • Financial Literacy: Investors will become more potent via education. Interactive platforms, webinars, and online courses will fill knowledge gaps through engagement.
  • Regulatory Agility: Regulations have to keep up. Their tightrope dance is striking a balance between investor protection and innovation.

The Final Word

The advent of mobile trading app has transformed the investing landscape by expediting individuals’ access to financial markets and investment possibilities. Several features and advantages have attributed to the popularity of these applications, including user-friendly interfaces, real-time market data, affordable commissions and fees, and strong security measures.

Regulators, however, must ensure that these platforms respect Indian trading regulations and safeguard user cash and data as the number of apps rises. Despite these obstacles, mobile trading app have a bright future in India as technology advances and more people can trade on the financial markets.

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