Should You Start Trading via Your Smartphone? Find Out

Share market trading has been there since long and has seen evolution with the development of technology. Initially, it was carried out in the form of online trading call and later it could be handled digitally through computers and laptops with the help of internet. Today, Mobile trading is favoured by retail investors. This is basically for the ones who have a low investment ticket size.

Affordable smartphones and economical internet plans have been very helpful. This proves very useful for people who are at work or travelling and don't have the correct infrastructure to carry out trading. This helps working professionals to not miss out on an opportunity to trade due to hectic schedule. For a stock market trader, trading is all about getting the timing right. In today's volatile times of the share market, an opportunity spotted could diminish or disappear in seconds. This can be a major issue for those working on limited access terminals. This has led to the solution of using mobile phones.

With the advent of smartphone-based platforms, stock trading is now accessible at your fingertips. How can you obtain the power of these platforms efficiently?  Let's find out!

How it works

India has become the fastest growing market globally for mobile based stock trading. It was launched in 2010 and today on the NSE, the turnover of mobile transactions has risen by nearly 130% over the past year. These figures are predicted to double in the next two years as smartphone sales surge. All market investors need is a Web-enabled smartphone and a trading account with any broker.

Benefits
Mobile-based trading has also made the stock market accessible to investors in small towns. Live share market changes every minute and mobile trading helps people to trade even from remote areas through their handsets. Mobile trading is also famous among women traders.

What it offers?

The brokers who offer Internet-based trading facility are highly eligible to give mobile trading facilities also. All leading brokerages tend to offer mobile trading platforms. But the apps offered by most brokers are mostly 'white-label' platforms or generic apps that are made by a third party and taken up by the broker. Some brokers have launched their own apps, that give new features to the users, and some are making their own software platforms for the mobile. Most of the discount brokers have now adopted mobile technology for the advantage of their users.

Mobile platforms allow trading in the delivery based trades that are also called as cash segments. Most of the applications enable trading in both the commodities and currency markets. They also include trading and investments in mutual funds and bonds. Some brokers also allow users to set up e-SIP in blue chip stocks on the mobile phone. In this case, you can place orders for a pre-specified amount and quantity in the scrips of your wish. This is done at regular intervals over a certain period of time.Besides, these mobile trading sites provide streaming quotes of your desired scripts to track moves in real time. This feature could be accessed without the need of having to log into the trading portal.

Transfer funds to the trading account

Seamless transfer of funds from bank account to  trading account, and vice versa, is possible through smartphone apps ensuring  that one never misses a trading opportunity. Most mobile apps offer charting tools too, especially for users that depend on these to complete their intraday online trading.

Should you migrate to mobile?

• Pros
  Is there a potent reason why one should not switch from offline trading to mobile trading? Those who utilize computer terminals for trading purpose do so because of the extended facilities they have. These include sophisticated charting tools and much more.  As mobile devices see major upgrades and technology advances, it will now be possible to give them more sophisticated tools even on a smartphone.
  
  

• Cons
  The smaller screen size of the device might also be inconvenient to use. While mobile platforms do offer charting tools, it is not actually possible to open multiple charts together on the mobile screen.
  
  

Precautions to keep in mind

Certain users might have concerns over security. But such concerns may be unwarranted. These platforms utilize the same security protocols that are adopted by Web-based portals. This includes online retailers. Security is not a problem for all for mobile trading. It is like using other apps where you access the trading platform with specific unique credentials.However, users must not take things too lightly and should avoid storing the security numbers on their mobile device to avoid misuse in the event it gets robbed.

With the increasing demand of smartphones and mobile data consumption, it does seem like mobile trading will get more suitors especially those people who are always on the move. But the flipside of this convenience of access is that it might tempt some people to trade too often. This could lead to usual churning adding more transaction costs. It is up to the users to avoid over-trading just because they literally have the market on their fingertips.