Introduction
The advent of financial technology has warranted a seismic shift in the world of finance, facilitating growth, new opportunities for wealth creation and overall inclusion. A major transformation that is evident today highlights the growing popularity of online stock trading platforms that have revolutionised investing and trading for the population, while democratising the entire space to allow unhindered entry and participation for everyone. Zerodha, Shoonya by Fivasia, Upstox, Groww, and Angel One are some notable examples that have digitised the sharemarket investment experience, opening up the world of stock trading for the masses.
As India stands on the cusp of a digital revolution, we take a look at the potential disruption of finance that online trading platforms present:
Increased Access To Financial Markets
An increasing use of digital technology and widespread fintech adoption has democratised financial market participation, and online stock trading platforms are leveraging these mediums to ease the entry of individual investors to the world of stock trading. Financial markets have never been more easily accessible, as in the past, investors had to rely on traditional brokers, which could be expensive and time-consuming. Today, online trading platforms like Shoonya by Finvasia offer zero-brokerage and instant access to indices.
Cost Efficiency
Online trading’s impact on the investment landscape goes beyond simply facilitating entry to the financial markets. The Indian broking industry has witnessed a massive disruption with the rise of discount brokers such as Zerodha, Upstox, Shoonya by Finvasia, amongst others. These platforms offer low-to-no brokerage, allowing investors to retain more of their returns, which directly results in greater wealth accumulation.
Real-time Market Insights
The increasing digitalisation of the world around us has rendered it more connected, and online trading platforms of today offer investors access to real-time market data and news, enabling informed decision-making. Reducing information asymmetry, this has led to greater market efficiency and time saving.
Liquidity
By facilitating greater participation in the sharemarket, online trading platforms have significantly increased market liquidity, as more number of people engage in buying and selling activities. This further ensures that assets can be bought and sold without impacting their prices.
Promoting Transparency And Efficiency
In the past, financial markets have borne a reputation for being opaque and complex. Online trading platforms promote transparency in the financial sector, allowing investors greater access to information in the market. Furthermore, these platforms have also adopted the power of automation, making processes highly efficient and less error-prone.
Conclusion
With technological innovation, India’s financial landscape has transformed over a short period, and online trading is making financial markets more accessible, affordable, and efficient for both investors and businesses. Today, people have access to a wide variety of investment options including stocks, IPOs, mutual funds, F&O, and others. As we move towards becoming one of the fastest growing economies in the world, online trading platforms carry the potential to speed up financial inclusion in the country by providing greater possibilities and opportunities for wealth creation.
