How Smartphones Have Made Investing More Simpler Than Ever
With the advent of internet and smartphones, nearly every industry has evolved to offer digital services. The financial investments sector is no different. Nowadays, many financial technology companies in the market provide you easy access to digital services. These services include everything online which was earlier done using pen-paper or material methods.
India has become the world’s fastest-growing smartphone based stock trading market. Since the launch of its mobile trading services in 2010, the NSE has consistently seen significant growth in its mobile transactions – with growth as high as over 130% in mobile transactions in periods between 2014-15 (from 50,800 crore to 116,186 crore).
For mobile investments, all you need is a smartphone, an internet plan and a trading account with a broker. Once you download the broker’s app, you are all set to invest. Just log in with your ID and password to access all the facilities.
How smartphones have made investing simpler
1. United platforms: A single registration with a smartphone-based broker will provide you with a variety of investment options. You can typically invest or trade in multiple securities – stocks, commodities, currencies etc. under one platform using your smartphone.
2. Opening an account: Opening an account on a smartphone-based investment app is fairly straightforward. You can open a trading account online by uploading your documents for KYC verification without having to deal with any hard copies. Some even allow Aadhaar-based registrations, skipping you the trouble of uploading multiple documents. Once your KYC is verified, you are all set to invest.
3. Investing on the go: You can easily pull out your smartphone and trade whenever you want. It is as easy it sounds. Calling your broker to place trades is a relic of a time gone by. And it’s the right direction smartphones have moved us in. Trading is all about timing the market, and smartphones make sure you’re minimizing the lag between deciding to place orders and actually executing them In a volatile market, you’re not going to get many opportunities to capitalise on your strategies, and you don’t want to miss out by waiting for your order to be executed by someone else.
4. Increased market size: Thanks to the smartphone, investments are becoming accessible to people in remote and typically disconnected areas well, such as small towns and villages. A large number of people from tier 2, 3 and 4 cities are getting involved in smartphone-based investing and bringing in more liquidity to the market.
5. More choice: An increase in the number of investors in the market naturally leads to more companies competing and innovating for a share of the pie. For example, some offer their customers investments in direct mutual funds with no commissions.
6. More data: Many brands offer their customers to smart tools and data analysis to assist them with their investments. As a result, investors make smarter decisions. You can also transfer funds from your bank account to your trading account seamlessly and vice-versa. This will ensure that you do not have to lose any opportunity to trade if your trading account doesn’t have enough funds.
7. Cheaper charges: Smartphone-based services cost far less to operate than traditional services. Companies pass on this advantage to their customers, allowing for a steep fall in brokerage rate and other commissions that ultimately result in investors keeping more of their money with themselves. Some online trading platforms also offer zero brokerage trading and zero commission mutual funds investments.
8. Variety: Thanks to the smartphone bringing so many people online and into the financial markets, there’s been an explosion in the variety of investment options available. Take mutual funds. As recently as 2016, there were already nearly 2600 mutual fund schemes in India, with more than 200 schemes from Reliance Mutual Fund alone.
9. Security: Smartphone-based apps also offer a higher level of security compared to traditional means of investing. With encryption-backed information exchange, secured with personalized PINs and passwords, your investments and data remain in your own hands. Owing to the sensitive nature of the services they provide to their customers, these apps are obligated to use tamper-proof security protocols to ensure maximum security and safety for their users. Many even have two-step authentication processes. First, investors enter their user ID and password, followed by a PIN, OTP or birth year to access these trading/investment portals.