Share Market: Nse Report Said, Young Generation Showing Interest In Mobile Trading After Pandemic
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Kovid-19 has changed the way we work in the country and the world today. Since the pandemic, many areas have seen wide-ranging changes. A similar change has been seen in the stock market as well. Today new generation of young investors are entering this market with enthusiasm. They are taking share trading to new heights through their smartphones. According to BSE data, mobile phone trading in cash market turnover increased to 18.7 per cent in June 2022 from 5.3 per cent in June 2019. While the share of mobile trading on NSE has been 19.5 per cent in June 2022.
According to a recent NSE report, Internet-based trading in the country has gained momentum faster than before. Since March 2020, people have seen more tendency towards it. Such trading has increased due to increase in retail participation since the lockdown. Retail investors and traders have started using online platforms to trade equities directly from their homes. Most of the young investors are becoming active traders. They are strengthening this market through smartphones and cheap internet.
70 to 75 percent of customers belong to the new generation
Anish Jain, CA, Arihant Capital Markets Limited, in a discussion with Amar Ujala says that today 70 to 75 percent of the clients in trading are of the new generation. All of them are doing online trading only. Easier account opening today than ever before is considered one of the most important factors in the growth of mobile trading. Aadhar card has also simplified the process of opening demat account without any hassle. Earlier it used to take two to three days to open this account. Account opening through Aadhaar has been a catalyst for the kind of growth we are seeing today. Prior to this, customers have to put at least 25 to 30 signatures on the application form to open the account and self-attest all the documents to be attached with the form. Today, these procedures do not have to be followed when opening an account through Aadhaar. Now the account is opened in just half an hour.
Online trading reduced the number of employees
Experts related to the stock market business said in a discussion with Amar Ujala that after the Corona epidemic, many changes have been seen in the market. First, investors have increasingly embraced the digital medium. Second, people in the broking sector have invested more in new technology. In such a situation, the volume coming through dealers has shifted towards mobile. Because due to corona virus infection, the availability of employees in the dealing room has become very limited.
Today the expenditure on technology has definitely increased. But the salary paid to the employees has also been saved. Due to this, the number of employees in the market has come down to 10 percent in the last 10 years. While the volume has more than doubled. Companies have been able to do all this only through a large network of relationship managers. Because today all the big companies have new technologies. This has made the job much easier than before. Earlier, clients used to place orders using the broker’s computer to computer link system. In this he had to take help of dealers.
Benefits of mobile trading
Mobile has helped in reducing the cost of trading significantly. Because it has completely done away with the necessity of relying on a person for the order. Since there is a limit to the amount of work an individual can perform, the chances of getting a wrong trade are high when orders are placed through a brokerage worker. Also since dealers recommend trades, there is a high chance of losses for the clients. But now customers trade on their own mobile.