Internet-based banking started for the first time in India in 2000. However, SEBI allowed it in a very restricted manner, but with time and the ease of investing with an online trading app, the rise of online investment and the adoption of online investment platforms were inevitable. Online trading and investments brought a whole new change to the market and made it easy for retail investors to invest in the market. In fact, even a few years ago, the number of online traders and retail investors in the market was minimal. However, with the rise in the number of online trading applications, the number of retail investors and stock market indices is also growing.

Which factors are driving this growth?

Firstly, anything new in the market attracts people. Online trading is still picking up, and a recent report suggests that, in NSE online, the percentage of retail investors grew from 33% in 2016 to 45% in 2021. Retail investors, who invest a small amount of money in the stock market, often look for cheaper ways, and online investment applications offer the same. This is why the number of retail investors is rising.

Then comes the cost factor. With an online trading platform, one can invest directly in the stocks without the involvement of any relationship manager, asset management company, or financial advisor. This reduces the cost of investing as well. You would only need to open the Demat and trading account with a brokerage house, and by using their trading platform, you can trade online easily without paying any hefty fees for the application.

These online trading apps provide a lot of information about the market and economy, which even new traders and retail investors can understand and choose stocks according to their investment goals and risk profile. Moreover, there are educational videos and learning resources on these applications that one can use to learn about the market, trading, and investing. All these add to the benefit of the investors.

Another factor that makes these online trading platforms more popular is transparency. On these applications, you get all the data on a real-time basis that helps you make investment decisions at the right time. If you are connected to the internet, you can trade or track your portfolio from any corner of the world at any given time. This has added a lot to the popularity of the investment platforms.

Furthermore, making payments for your trades and transferring funds have not only become convenient with these trading apps but are also highly secure.

Finally, it helps you become more responsible about your own money, as you are the one who is tracking the market, investing, and trading on your own. You do not have to depend on any dealer or broker to trade on your behalf.

In a nutshell:

As technology is improving every day, investment platforms are also evolving. Whether it is the speed of the platforms, efficiency, or features, everything about trading has been improving at a rapid pace, making investing easier for all.