What the Future of Online Stock Broking Look Like?
Online broking has taken off in a big way in India among the retail traders and investors. Most traders find the empowerment of online trading quite compelling. Stock Brokers in India are working to make the online trading facility as delectable as possible and that has seen the introduction of many shifts in the last few years. But how will the future of internet broking like? There are a few key trends that look likely at this point of time.
Focus on convenience, navigation and execution
We are moving towards a situation where information and analytics is increasingly becoming a commodity. The big challenge is how do brokers distinguish and differentiate themselves. One of the ways to do it would be focus on ease of execution. How would that work? Remember, information on the web is accessible 24/7, buyers around the world can view the latest prices and put in purchase and sell orders when they want. You are really not bound by time zones or geographies. The really challenge will be provide an incomparable navigation experience. Can the trader or investor move from ideal to execution in just 3 moves? Can there be a seamless experience that integrates research, investment decision and execution? Can a smart and intelligent monitoring system be built into the trading engine to provide appropriate alerts to the customer? Can these alerts be customized to the specific activity chart of the individual? These are the questions that the online stock broking platform will have to answer.
A super-efficient communication channel with buyers and sellers
The market is already doing a wonderful job of giving you the best execution possible at the best price possible. What are most brokers doing right now? Currently, buyers can access a web-based platform whenever they want and see updated information in real time. And every time a price changes or some other significant event occurs, buyers can receive a direct and instantaneous alert via email or text. But the real challenge is customizing the information and ensuring that the platform is able to set up a three way communication with the customer. For example, can a buyer get alerts on stock ideas suited to his unique needs, feed on volumes and spreads in the market, quick chart of past performance of similar such stories etc. if a similar story can be put up transparently in front of the seller too, then we have an unbeatable platform. That is what online broking will come to in the future; actually the not too distant future.
Multiple platforms for execution
The future of online trading will not lie in providing a single execution platform. You need multiple platforms and they should be seamless. For example, can you access the platform from your mobile and if you are facing problems can you directly be sent to the call-n-trade centre. That is where the robustness of the platform comes into play. Today broking platforms permit execution through PCs and mobiles via apps. The future could also see integration of offline methods for order placement. For example, some of the popular online syndication services offer an option where the entire trade process can be also accessed offline. That will be a major boost.
Extensive use of technology for solutions
One of the big changes that online broking will see in the coming years is the extensive use of algorithms, customized algorithms for execution, use of big data, use of artificial intelligence for solutions etc. Technology will make it possible to combine big data and AI to exactly map your trading patterns and customize trading and investment solutions uniquely for you. Technology will also leverage on chat bots which will enable clients to get almost a real life experience through these trading platforms. Above all, the future of the online trading system could lie in the extensive use of block chain technology. This is the technology that underlies Bitcoins and is considered one of the most robust and foolproof methods of handling indelible data. This creates smart audit trails and makes the job of the broker and the customer a lot easier.