How Technology is Transforming Stockbroking in India
It doesn’t take a lot of thinking to realize that technology and stockbroking go hand in hand. The moment something new and interesting is presented in the field of technology, you can almost instantly see the impact it has on the stock market. Not to mention that the progress in information technology has revolutionized stockbroking in quite a direct way, many times over. So, what are the ways in which technology is transforming stockbroking in India today, and which are the technologies that are going to have the biggest impact in the following years? Well, let us take a closer look in order to answer these complicated questions.
Different ways in which technology is transforming stockbroking in India
India is a vast country that has over 1.3 billion inhabitants. Therefore, it should be no surprise that there are a lot of stockbrokers living and working in India. But this was not always so. For many years there were very few if any stockbrokers that operated from India.
So, what changed?
The biggest transformation to the stockbroking scene in India came with the internet. Once the people of India were able to use the internet, they got access to the global market, which made them capable of competing in the stock market.
And, if you want to have success in running a business or operating in the stock market, you need to know how useful and essential the internet is.
Access to information
With the internet, came the ability to access relevant information. This technology is transforming stockbroking in India as we speak, as people are getting better and better in finding out what they need.
The Internet has had such a huge effect, not only on the lives of people of India but also on our own, that we have a hard time wrapping our minds around it.
If you consider that you can try getting your moving estimate online, working online, and even buying real estate, you can easily see why the internet is the most underappreciated piece of technology.
With the internet, it is easier than ever to keep track of relevant data.
So, how did the internet help the people of India develop stockbroking? Well, through it, they were able to access the global economy and find out how to join the stock market.
They were able to learn English like never before, and join the giants of the stock trade like the US and the EU. This access to information was impossible with mere telephones and mail, which is why the internet is not only transforming stockbroking in India, but it is the key to it.
One of the problems that the internet had, especially in its infancy, was the transparency of information. How were you to know whether or not the information you were getting is legit?
Well, luckily, experts have developed different transparency technologies that have helped the stock market in India. These technologies made the internet safe and reliable, which made stockbrokers and broker interactions safe from fraud.
Furthermore, it is now quite easy to use finance software as the information on it is easily shared with your banks. SEBI regulations were implemented to ensure that any information conveyed to or by brokers is legitimate.
Internet safety technology is transforming stockbroking in India by making the internet more accessible.
Fixed brokerage fees
An important change that has to lead to a substantial increase in stockbrokers is the transition from paying 0.5 – 2.5 per cent of the transaction value to about 20 rupees, per trade. This is regardless of the transaction’s nature or value.
Any person that has a fundamental understanding of the stock market knows the significance of this game-changer. Cheaper transaction fees allowed stockbrokers to make more deals. This was especially important in India since most of their transactions are high volume.
Speed of trade execution
Before the internet came along it took a person between 15-30 minutes to execute a trade. This average was made in the US.
Therefore, you can imagine how long would it took for a person from India to trade. But, once the internet came along, the speed of trade execution increased dramatically.
We can now exchange more information in a fraction of a second then it would take old schools stockbrokers to do in a whole day. Not to mention that the translation of information is free and automatic, which makes trading with different speaking countries a whole lot easier.
Which technologies stand to make the biggest impact
Finding out all the ways in which the internet has impacted and changed the stock market is never-ending. Just take a moment to appreciate the fact that you could not be reading this article if it were not for the internet.
But, there is a new technology that we feel will have a huge impact on the stock market in India. It will, actually, have a huge impact on the stock market as a whole.
But, it can be argued that India’s economy and the stock market will take the biggest hit. This is due to the fact that they heavily rely on outsourcing. The technology we are talking about is AI.
A big part of India’s economy depends on its large number of workers.
AI technology is still alien to us. It can be assumed that we will make smarter and smarter software that will be quite efficient in dealing with the stock market. So efficient, in fact, that it will one day surpass human capabilities.
This, of course, will be a big change to India’s stock market. This is due to the fact that most of its economy is fuel by a large number of workers. The more we automatize the stock market, the fewer people in India will be able to compete. Now, this is obvious with using smart software.
Once we implement AI, there is no telling what will happen. One thing is for sure, the whole stock market scene will change. So, if you want to keep track of which technology is transforming stockbroking in India, pay close attention to AI.