The Future of Trading Apps and What to Expect

If you ask someone who participated in the securities market in India before the system became electronic, you are likely to be surprised by how different the process was from trading as we know it today. Not only has the application of technology and dematerialisation made investing in the stock market easier, swifter, and more transparent, but it has also made it more democratic and accessible. Nowadays, anyone can open a trading and demat account and access a trading app to participate in the stock market. In this article, we shall discuss the benefits of trading apps and what their future may look like. 

What Are Trading Apps?

Trading apps are the official trading platforms of authorised market intermediaries. When you open a trading account or a trading and demat account with any authorised market intermediary, you can access their trading app. Through such apps, you can place buy and sell orders in the market, have complete visibility over your investment portfolio, and access important market reports and information. Trading apps are marked by a user-friendly interface and a clear layout with options for support available via chat, phone, or email. 

Benefits of Trading Apps

There are several benefits of using trading apps to participate in the stock market and manage your investment portfolio. 

• Elimination of middlemen: Since trading apps offer investors direct access to market information and stock exchanges, there is no need to rely on middlemen to participate in the market. Investors can analyse the latest market prices of various financial assets and make informed and unbiased investment decisions. 

• Complete control over one’s trading and demat account: With a trading app, an investor can access their trading and demat account at any time and check the gains and losses for individual assets in their portfolio as well as the allocation of various assets in the portfolio. The centralised availability of such information can help an investor assess and recalibrate their portfolio as required. 

• Access to important analytics: In addition to an interface with stock exchanges, modern-day trading apps also comprise important market reports created by analysts. Investors can access such reports and potentially make better informed decisions. 

• Lower cost of investment: One of the most prominent benefits of trading apps is that their usage entails a reduction in the overall cost of investing in the stock market. Due to the elimination of middlemen, charges such as brokerage and commission get minimised or removed. 

Artificial Intelligence – the Next Catalyst in the Evolution of  Trading Apps 

With the evolution of technology, trading apps have been constantly evolving. The latest addition to trading apps is Artificial Intelligence. Although still in their nascent stage, AI-powered trading apps are more than likely the future of trading. Such apps are characterised by high speed processing of market data and the generation of actionable reports and insights. Furthermore, trading apps fuelled by AI can potentially offer investment recommendations to investors based on their investment profile and user behavior on the app. 

Not only can AI-powered apps help investors with the research and analysis phase of their investment decisions, but they can also inform investors about important changes in the market. However, there can be several risks associated with the usage of such apps. For instance, AI cannot replicate human emotion and sensitivity – elements that play a critical role in investing. 

The Bottomline 

Trading apps have become central to securities trading in the twenty-first century, and their role in the stock market is expected to follow an upward trajectory. With the application of Artificial Intelligence and algorithms, the features and benefits of trading apps can become more diverse. However, trading driven completely by such apps shall carry its fair share of risks.