Categories: FINANCE

Evolution of Trading Platforms in India

Trading platforms have come a long way in India. The emergence of electronic trading in the 1990s marked an important moment in the history of these platforms as traders moved to tech-based trading from floor-based trading on the exchanges. It introduced the concept of trading through computer networks, increasing efficiency and accessibility. 

In this article, we will learn more about the evolution of trading platform in India.

Advent of Trading

Trading in India started in 1840 when incorporated companies came into the country. At that time, securities were bought and sold at high prices that only the British or wealthy Indians could afford them. 

The first stock market boom happened during the American Civil War. It happened when America stopped the British supply of cotton. However, with the end of the war, this boom also ended. 

The result was the crash of the Indian stock market. After the crash, it was imposed that an organization needed to be regulated for trading to balance the stock market. 

The British government in the year 1875 established the Bombay Stock Exchange (BSE). The Bombay Stock Exchange Academy was also founded to train traders and brokers in India. After this, the BSE Sensex was also created in 1986. Trading through an electronic system did not start in India until 1994. 

The Emergence of Online Trading

Online trading platforms emerged in India in the late 1990s. Through these platforms, people started trading in stocks from the comfort of their homes. These platforms’ emergence opened the stock market’s doors to retail investors. This reduced the need for physical presence on stock exchanges. 

The next major evolution of trading platforms was the rise of discount brokers. These brokers started to offer trading services at a lower cost than traditional full-service brokers. Many introduced a user-friendly platform and transparent pricing, attracting traders.

Major Evolutionary Changes on Trading Platforms

Here are the top changes that have marked a new era for trading platforms and traders alike. 

  1. The Rise of Robo-Advisors

Robo-advisors are another innovation in the Indian trading market. Trading platforms use algorithms to create and manage portfolios based on a person’s risk tolerance and financial goals. 

  1. Integration of Artificial Intelligence

Artificial Intelligence and machine learning are widely integrated into trading platforms. These technologies provide users with insights, predictive analytics, and algorithmic trading strategies. They aim to enhance trading efficiency and improve decision-making.

  1. Mobile Apps

As smartphones became essential, trading platforms evolved further to become mobile-centric. Mobile trading apps allow users to trade anytime and from anywhere, providing real-time market data and easy order execution. Apps like Dhan have gained popularity due to this factor. 

Conclusion

The evolution of a trading platform in India has transformed the country’s financial market. From the early days of open floor trading to today’s modern, user-friendly interfaces, these platforms have made trading more convenient. As technology advances, we can anticipate more developments in these platforms, further empowering traders and investors. Start your trading journey today by opening a free demat account for trading on the Dhan platform.

Ethan

Ethan is the founder, owner, and CEO of EntrepreneursBreak, a leading online resource for entrepreneurs and small business owners. With over a decade of experience in business and entrepreneurship, Ethan is passionate about helping others achieve their goals and reach their full potential.

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