Securities trading in India via Mobile Trading Apps(MTAs), opens up a world of convenience, at your fingertips. But many would think that it may not be their cup of tea. If you are one of those, then you must hear the worldly-wise words of one Mr. Harnekar, who having a ‘rags to riches’ story from stock trading under his belt, is quoted to have said:
“Trade a demo account for as long as it takes to double it three times in a row, before making the leap to trading real money”. This is a man who proved that success for even a rookie can be assured, through consistent, disciplined trading!
Trading a demo on your own mobile app, is just the first baby step one would take towards serious trading and this can repeatedly be engaged in even more than three times in a row!
Stock trading apps are handy and scaled-down version of the larger stock trading platforms, just enough to fit your Android or ios drives mobile screens, with a plethora of functions like 24 x 7 market access, Trading on the go and interfaced settlement processes, without visiting your broker!
Commonly used features of Mobile Trading Apps
The highest priority investors place in choosing mobile trading apps, is in its User- friendliness . A User-friendly app enables the investor to feel a sense of control over his finances, trust its reliability to fulfil his financial goals without glitches and feel its intuitiveness at every click.
Mobile trading apps are Cost Effective as they attract a Low Brokerage Rates , due to straight through processing of transactions, without manual intervention.
Ease of placing orders or Efficiency is the first actionable step in mobile trading and a crucial part of the trading process. Reputed stock trading apps make this process smooth and enable it in very few clicks, requiring key details. Further, apps may provide prompts based on trading history as well, for quicker execution.
Superlative Screen displays on Indian trading apps ensure higher chance of client onboarding as, comprehensive menus do not allow redirects to external sites. Irrespective of screen size, apps offer trading without compromising on functionalities such as comprehensive reports. Most apps offer a BI dashboard upon login, which enables trader to access all services he enjoys such as, placing orders, getting alerts, streaming news and viewing and managing positions, through a main screen control.
The need for Quick access to Trader’s Current positions in stock trading gains importance, due to the dynamic nature of the market and key price movements which may make or break days of hard work. Mobile apps equip users to customise their position management screens, with just enough important info to grasp and initiate action, based on profit/loss, crisply. Further, the apps also provide the facility to place Stop loss, Limit-orders and evaluate Hedge and Execute positions.
The Live Reports feature in mobile trading, gives access to traders to scrip level information and market Indexes, on a real-time basis. Many structured reports such as sectoral, group-wise, market cap-wise can be triggered for deeper analysis on prices, turnovers and trading volumes and more. Historic reports and trends extrapolated give trading ideas which the investor may benefit by.
Real time quotes with no time lag for a variety of products, makes trading experience equivalent to being directly in the market watching for opportunities. This also implies that market support in the form of analytics (variety of streaming charts and their intervals), is made available over apps.
Watch lists for interested quotes can be a feature of merit in MTAs especially in case of research-based trading on potential stocks, put aside for a rainy day.Watch lists for interested quotes can be a feature of merit in MTAs especially in case of research-based trading on potential stocks, put aside for a rainy day.
Most mobile apps extend Trade alerts and Notifications whereby latest, market impacting news, price targets or even technical indicators (on-charts trends) are brought to the notice of the trader by way of market feeds, free intraday tips on mobile, mobile tickers, SMS, emails etc in a timely manner. The level of Professional Trading Guidance is higher as well through tutorials in basics and technical advice, at frequent intervals.
Nifty Navigation which is quick, logically simple and leading pages back to main options are handy in mobile trading. Herein lies the intuitive intelligence of the software and makes the trader comfortable within the confines of the platform, without the need to wander elsewhere.
MTAs give you Total Automation . They seamlessly interface with many other support software such as Demat accounts of trader for settlement purposes and tracking Demat holdings for credits(purchase) and debits(sale) transactions. Also, it interfaces with the Savings Account or Current Account of trader for payments for purchases(debits) and receipt of sale proceeds(credits). Hence, multiple workload is avoided and it also ensures timeliness of settlements to avoid penalties for delays or distress sale.
With financial markets functioning in very close synergy across the globe, Multi exchange watch through the Indian trading apps, gives the trader additional time to take precautions and beat the markets. Also, in case of intraday trading it helps the trader take advantage of arbitrage opportunities, augmenting profits.
Personalized trading apps give the trader ownership and relatability, which enables for him a good user experience. Most of the times, it is the slick looking apps which get frequent downloads and so in the trading world, ‘Appearances are not deceptive’ and the first look of the site can serve as a hook.
After having appreciated the cool features that have contributed to the popularity of Indian trading apps, let’s evaluate the risk factors that come into play, which makes traders cautious about these apps. What are 3 the greatest concerns of investors while using mobile trading apps?
a. Perceived risks relating to fraud and hacking compromising personal data privacy , would be a consideration when opting for mobile apps. This risk is a genuine one and must be mitigated by a series of security firewalls built into mobile apps, such as – a single touch biometric login, encryption of data, higher level of authentication and access control, strong password enforcement and robust cybersecurity measures such as use of HTTPS for privacy as well as strong OS protection mechanisms. Another key responsibility of the trading app is education of trader on the risks involved and steps to avoid any form of hacking.
b. Affordability would at one time have been a concern, but with a competitive range of smartphones available in the market, most Android and ios handsets are able to handle MTAs well, and the apps themselves are cost free downloads.
c. Skill in quick and strategic handling of digital information is not a barrier for any level of literacy for the current generation and menu driven nature of the apps, do not create a barrier in navigation and using all features within the Indian trading apps.