Evolution of trading platforms and future to come


With the advent of the Internet and technological solutions, capital markets have undergone a paradigm shift. Over the past few years, trading platforms have improved accessibility to financial markets, with around 29 lakh new Demat accounts opened on average every month in FY22. The digitization of stock markets began with the introduction of the Screen Trading System (SBTS) over a decade ago. It has evolved since then with new era technologies such as artificial intelligence (AI) and machine learning (ML).

Before trading platforms, stock markets were only accessible to a few. However, rapid digitization and smartphone penetration are gradually making trade and investment accessible even in Tier 2, Tier 3 cities and beyond.

Digitization of trading platforms

Digitization has been at the forefront of the gradual evolution of trading platforms. With the launch of app-based trading platforms in 2010, brokerages began to go digital to provide services to more investors. Essentially, they were introduced as an online platform to monitor market prices and therefore help investors buy, sell and hold stock options. Since its introduction, the trading platforms have become a one-stop destination for multiple investment options, including bonds, currencies, stocks, commodities, and other financial assets.

From opening a Demat account and making trades to managing an investment portfolio, web and mobile apps have made trading convenient for today’s tech-savvy individuals. This has led to increased participation from Millennials and GenZ.

Technological solutions promoting participation

The gradual adoption of new era technologies has dramatically improved the user experience and hence the participation of retailers in the stock market. AI-powered digital trading platforms enable retail investors to research, explore, understand and make informed investment decisions. More and more trading platforms are deploying AI to help users execute trades at an optimal price. Technological advancements and API integration of trading platforms are some of the factors that are continuously influencing the retail participation of new era investors. The size of the global online trading platform market has grown significantly, surpassing $8 billion in 2021.

Additionally, trading platforms today offer advanced trading features that allow for a seamless wealth creation journey.

The road ahead

Growing participation in financial markets is further fueling the growth of digital platforms that are rolling out new products and services to make investments accessible to otherwise underserved markets. These days, more and more new-age investors are looking for platforms that offer a single platform for all financial services. This paves the way for great apps that provide users with multiple services ranging from stock trading, FDs and mutual funds to finding loans.

As we move forward, one of the emerging trends in digital trading platforms is the integration of AI-powered chatbots that facilitate new and seasoned investors with financial market updates. With the continued evolution of digital trading platforms, the online trading platform market is expected to reach over $12 billion in 2028, at a CAGR of 5.1% from 2021 to 2028 according to some market estimates.



The opinions expressed above are those of the author.



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