Why Are Indians Moving Towards Online Apps For Trading?
In earlier times, stock market trading was limited to select individuals with knowledge, resources and access to the tools of stock trading. Hiring a broker to start trading didn’t always come easy to everyone since brokers could charge a lot for their services.
However, since a trading platform is now accessible to people online, it has significantly changed the way people trade today. The stock market and investors using digital tools to earn dividends have benefited both parties in many ways. Following suit, many young Indians are moving towards online trading applications. Here are some of the reasons for this.
Ease of access:
Today, trading is as easy as searching for ‘app for trading’ on the search bar and being flooded with numerous options to help you get started with trading. You just need a mobile phone or a laptop and an active internet connection to buy and sell stocks or invest in bonds, mutual funds, securities, etc. This ease of access to trading and online brokerage services has increased the number of investor enthusiasts in India.
Elimination of geographical barriers:
In modern times, if you want to invest in stocks of an American company, you don’t need to be physically present in New York City. An investor from India can easily trade in various US stock exchanges by simply sitting at home using an online trading app.
Modern financial technology has made trading a global and secure experience for traders from all the corners of the world.
Financial literacy:
Earlier in India, financial literacy among the masses mostly consisted of traditional saving methods like gold, property, land assets, etc. Few were equipped with the knowledge to increase their wealth through share market trading. Since this market has been digitalized, many people, including absolute beginners with no background in finance, are learning new ways to become financially secure.
An online trading app today educates the traders on the best practices to trade, invest and how to look out for market indices and analyse them. Financial literacy is spreading faster with technology.
Empowerment of underrepresented groups:
As mentioned above, brokers were not accessible to people from all walks of life because of their exorbitant fees. You can find a stock trading app today which allows you to open an account with zero brokerage. This is a huge change for people who have very limited resources to start their wealth building journey.
People from lower economic strata, women and youth are today being motivated to become financially independent and the advent of online trading, banking and other financial applications is helping them achieve this goal.
Thus, even though traditional trading routes still exist, Indians are moving towards online platforms to invest. The ease of access and entry to international markets is an attractive benefit of online trading apps. They have also helped increase financial literacy and empowerment of people from all different strata of society.
With SEBI ensuring the safety and security of all the players involved and NSE and BSE enabling a free and fair market, India’s financial pattern is changing and improving.