Trading environment in the Indian stock market

A decade ago, stocks, bonds, futures, and options used to be traded on web-based platforms on stock trading websites.

With the advent of mobile trading applications, Online Trading can now be done from the palms of one’s hands. Most of these platforms are free or have predefined amounts, while others, like 5Paisa, charge a flat fee (brokerage) on any and every trade. The market for mobile-based stock trading on the NSE was recorded to have increased 150% in the year 2014–2015, from transactions worth Rs50,800cr to Rs1,16,186cr. Moreover, most of these transactions were done by traders with a low-ticket size.

Following were the benefits of ‘digitizing’ share market trading:

1)    The exchange of information has become instantaneous

2)    Anyone and everyone can become a broker and explore trading in equity, derivatives, futures, and options. Intra-day trading tips, available directly through emails, text messages, etc., also aid decision-making

3)    One does not have to log in to their desktop every time he/she wants to view his/her portfolio or make a trade

4)    Transactions have become seamless, as apps allow easier fund transfer from your bank account to your trading account

5)    Applications are user-friendly, fast, and provide an excellent stock trading experience

6)    One can now trade in stocks across multiple segments and invest in financial instruments such as mutual funds

7)    Tools like heat maps, technical indicators, and charts, directly available on the apps, provide insights for personal analysis

8)    Provision to keep a market watch and live market information

9)   ‘Search’ functions allow access to thousands of instruments and contracts across exchanges, thus helping users to learn to trade

10)    Some apps even allow one to apply to IPOs and OFS through smartphones

11)    Assured secure transactions on par with online trading platforms

A few drawbacks, like the dependence on internet or mobile networks, varying speeds of performance, and incessant updates/notifications do exist, but the benefits are far greater.

The 5paisa app is considered to be one of the best stock trading apps in the market. It allows users to trade, invest, and even get insurance from the convenience of their smartphones.