In recent years, the number of online trading apps has increased with a large number of sign-ups. Certain trading apps recorded over 10+ million downloads. After easy accessibility to the internet, digital trading apps have revolutionized how people look at trading and investments. So, it is essential to have a look at this boom in the trading domain. In this blog, we’ll look at the top 5 factors that have led to the rise of online trading platforms in the Indian stock market.
What are Mobile Trading Apps?
Mobile trading apps are applications that allow investors and traders to manage their stock, currency, commodities, and other financial investments directly from a smartphone or tablet. These apps provide the convenience of being able to trade and monitor the markets on-the-go, without the need for a desktop computer.
Most major brokerages and trading platforms have developed their own mobile apps with a focus on user experience, allowing users to execute trades, view real-time financial market data, analyze charts, access live news feeds, and even perform technical analysis right from their handheld devices.
Such apps typically offer secure login methods, such as fingerprint or facial recognition, to ensure the safety of users’ investment information. They also come equipped with tools for portfolio management, price alerts, and educational resources to help both novice and experienced traders make informed decisions.
With the rise of mobile technology and increased demand for accessibility, mobile trading apps have become an essential tool for modern traders who require flexibility and immediate access to the markets at all times.
Reasons for the Rise in Use of Mobile Trading Apps in India
Now that you know what is a mobile trading app, it’s time to get into the actual subject of this article. Here are the top factors that you need to know about the rise of mobile trading apps in India.
1. Convenience to Trade from Anywhere
The popularity of online stock trading platforms in India can be easily linked to the sheer convenience they bring to traders and investors. Earlier people relied on traditional brokers, who charged high fees, required bulky paperwork, and did in-person dealings.
But today, these digital platforms have revolutionized the process. With their user-friendly apps, investors can execute trades, manage portfolios, and access real-time market data with just a few clicks, from anywhere in the world.
2. Easy Accessibility and Inclusivity
Previously, participation in the Indian stock market was restricted to a select few due to a lack of knowledge and the need to be physically present at the exchange markets. However, with the rise of online trading platforms, the scenarios are changing.
Now with the availability of the internet, traders can engage in diverse trading options, from market orders, limit orders, and stop-loss orders to bracket orders, giving them the flexibility to tailor their strategy.
3. Assess the Real-time Market Data
With online trading apps, investors can get access to real-time market data at their fingertips. This helps them analyse real-time stock prices, historical data, and current market trends, along with research reports effortlessly during trading.
This transparency and immediate access to market data helps them to quickly respond to market shifts, make informed buy or sell decisions, and take advantage of new opportunities.
4. Availability of Diverse Options
Indian online trading platforms provide investors and traders with diverse opportunities beyond equities. They allow seamless trading in commodities, IPOs, derivatives, mutual funds, and more, helping in both portfolio diversification and risk mitigation.
Additionally, they also offer advanced trading tools and analytics to aid decision-making.
5. Cost-effectiveness
Online trading apps in India are more cost-effective compared to their traditional alternatives. With low brokerage fees and convenient mobile app and website logins, investors get to save both time and transaction costs.
These apps prove advantageous, especially for middle-class people who aspired to trade but couldn’t afford previously high brokerage charges.
Features to Look For in a Trading App
When choosing a mobile trading app, there are several crucial features you should look for to ensure a smooth and efficient trading experience. Here’s a rundown of some key aspects:
- User Interface (UI) / User Experience (UX): The app should have a clean, intuitive interface that makes navigation easy, even for beginners.
- Security Measures: Strong encryption, two-factor authentication, and other security measures should be in place to protect your data and financial assets.
- Real-time Data: Access to live market data, news, and updates is essential for making timely decisions.
- Charting and Analytical Tools: Robust charting software and tools for technical analysis help traders analyze market trends and make informed decisions.
- Order Types: Multiple order type options, such as market orders, limit orders, stop loss orders, etc., give traders control over their transactions.
- Customer Support: Efficient customer service is crucial in resolving issues promptly.
- Educational Resources: Learning materials and resources are beneficial, especially for new investors.
- Account Management: Easy deposits, withdrawals, and account monitoring features should be available.
- Cross-platform Compatibility: Syncing with web or desktop platforms can provide a seamless trading experience across devices.
- Notifications and Alerts: Customizable alerts for price movements, trade execution, and news events keep traders informed.
A Comparison of the Best Trading Apps in India
| Trading App | Account Opening Charge | AMC (Annual Maintenance Charge) | Brokerage Fee (Equity Delivery) | Brokerage Fee (Intraday) |
|---|---|---|---|---|
| Zerodha | Rs. 200 | Rs. 300/year | Rs. 0 (Free) | 0.03% or Rs. 20/trade whichever is lower |
| Upstox | Free | Rs. 25/month (after first 6 months) | Rs. 0 (Free) | Lower of Rs. 20 per executed order or 0.05% |
| Angel Broking | Free | Rs. 450/year | Rs. 0 (Free) | Rs. 20 per executed order |
| ICICI Direct | Rs. 0 – Rs. 975 (based on plan) | Rs. 700/year | 0.55% | Rs. 20 per executed order or 0.275% (whichever is lower) |
| HDFC Securities | Up to Rs. 999 | Rs. 750/year | 0.50% | 0.05% |
| Kotak Securities | Free | Rs. 600/year | 0.49% | 0.049% |
| Dhan | Free | Free | Rs. 0 (Free) | Rs. 20 or 0.03% of trade value (whichever is lower) |
Steps to Get Started with a Mobile Trading App
- Research and compare various trading apps based on the criteria mentioned earlier.
- Choose the app that best fits your needs and download it from the App Store or Google Play.
- Register for an account by providing the necessary personal and financial details.
- Complete the KYC (Know Your Customer) process, which may involve uploading identification documents.
- Fund your account through bank transfer or other accepted payment methods.
- Explore the app, using demo accounts if available, to get familiar with its features and tools.
- Start trading by placing orders and managing your portfolio as desired.
Conclusion
Trading apps have made trading accessible, convenient and inclusive to people of different economic backgrounds. As technology progresses and regulatory support continues to strengthen, the growth of these trading apps is expected to gain greater popularity in the future.
If you are looking for the best trading app to open an account, you must consider a few things like account opening cost, features offered, app stability and optimization, app performance, customer support etc. to make sure you get the best trading and investing experience.