Retail investors are buying and selling shares through their mobile phones like never before. The average daily turnover through mobile trading in shares on the NSE jumped to a record 10.15 of the total turnover or nearly Rs 3,700 crore a day in March 2019 from 3.6 two years ago and 1.1 per cent five years ago.
The ease of punching trades through a brokerage’s mobile application, affordable smartphones
“Our overall mobile app revenue has grown considerably in the past two years,” said Jaideep Arora, CEO, BNP Paribas’ Indian retail broking arm Sharekhan.
“Mobile retail broking has a great future. Among our new customers, more than 65
For instance, 33
“Mobile is one of the
This ensures that our customers are able to capitalise on all trading and investment opportunities.”
Such trades now account for anywhere between 30 per cent and 50 per cent of total orders at the top broking firms.
The Securities & Exchange Board of India (Sebi) had allowed brokers to launch mobile trading in August 2010. Till then, a majority of the trades used to happen through brokerages’ relationship managers. Clients used to call up their brokers or relationship managers, who in turn would punch in their trades. These days, relationship managers get in touch with clients to only ensure timely payments. This arrangement works for brokers as mobile trading has helped them keep costs under control.
The pick-up in trades through smartphones in the past two years can also be attributed to the stock market bull run between September 2013 and January 2018.
“About 70 per cent of our customers are first-time investors while 90 per cent are under 40 years,” said Arindam Chanda, CEO, IIFL Securities. “Majority of our new customer acquisition in smaller cities and towns is through mobile app.”
The bigger growth in trading through mobile phones has been in equity futures and options. The NSE does not publish official data on derivatives mobile trading but broking officials said
Broking firms expect the share of mobile trading volumes in overall activity to rise to around 50
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