Predicting And Explaining The Adoption Of Online Trading

Online stock trading has become a topic of interest in the last few years, although demat account-based trading system has been around since 1996. In this era of the internet and continual tech innovation, current online trading platforms have made it easier than ever for retail investors to access financial markets and invest in financial assets. You need not hold piles of paper-based securities in their homes. Such convenience is the result of the demat account introduce in 1996 to facilitate the electronic trading system. More and more retail investors are rushing to the stock markets after covid-led uncertainties.

What has really transformed recently is the level of convenience for investors, with eTrading services provided by stockbrokers. eTrading is much faster-using smartphone apps. Brokerage firms are investing large amounts in technology to facilitate their clients to trade with a single click at their convenience. Gone are the days when investors were worried about ‘how to invest in an IPO’. The online trading system has made it easy.  Security is also an important aspect of online trading, leading to confident online trades by investors.

Key Insights Predicting Online Trading Adoption 

Experts forecast high growth in the online trading market over the next few years. The online trading platform market size is anticipated to reach $30,813.84 million by 2028 at a CAGR of 7.62% from 2021 to 2028. It was $15,354.83 million in 2020. It can give you an idea of the popularity of online trading. Top key players offering easy-to-use trading interfaces with increasing improvements are expected to significantly fuel market growth.

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Factors Affecting the Adoption of Online Trading

The adoption of demat account based online trading depends on several factors. Among them, performance expectancy is the most influential factor.

  • When people realise that online stock trading is more efficient than offline trading, the intention to utilise online stock trading increases.
  • The investors find 24*7 help from the stockbroker, the intention to use the online stock trading increases.
  • Investors assured about the security of their trades and demat and trading accounts, they get attracted more towards online trading. Therefore, leading stockbrokers keep investing in security measures. Most stockbrokers provide information about their safety measures on their official web portals so that their clients can be confident to trade online.

Key Benefits of Online Trading System

Following are the advantages that the online trading system offer you:

  • Convenience

Online trading based on demat and trading accounts is convenient to make investments in the stock market. You need not yell in the physical stock exchanges to buy or sell securities. You need not go to the stockbroker to collect purchased securities as all financial securities issued in electronic format only.

  • Automatic receiving of corporate benefits

When you invest using your demat account, it facilitates quick and automatic receiving of corporate benefits. It can be interest, dividends, bonuses, stock split, right issues, etc. 

  • Faster Transfer and Trade settlement

Your demat account opening process is entirely paperless with leading discount brokers. With the reduced steps in the trading system, online stock trading has become faster. The settlement period of transactions for all the securities has reduced from months to two days only. Your securities reflect in your demat account within two days, i.e., Transaction day+2 days.

  • Flexibility

Online trading is flexible enough. You can place a trade from any corner of the country using your internet connection and smartphone or laptop. Unlike the offline trading system, you can also trade securities in odd lots.

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Thus, on a positive note, the emerging innovations carry enormous transformation for the brokerage and online trading industry. Online trading platforms are innovative platforms allowing investors to trade online using smart devices. Regardless of your location, you can benefit from real-time financial market information provided by your online stockbroker and quick account reports.


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