Role of Fintech in the growth of Indian stock broking industry with special reference to Algo trading & mobile trading

Abstract

The Indian Stock Broking Industry has witnessed a remarkable transformation in recent years, largely driven by the rapid advancements in financial technology (Fintech) particularly in the domains of Algorithmic (Algo) Trading and Mobile Trading. Algo Trading, enabled by sophisticated algorithms and high-speed data analysis, has redefined trading strategies and market execution in India. As a result, algo trading enhanced the efficiency, precision, and automation, reducing trading costs and liquidity in the market. Furthermore, Mobile Trading has democratized stock market participation by making it accessible to a broader audience. Mobile trading apps offered by both traditional brokerages and standalone Fintech startups have empowered retail investors with real-time market data, research tools, and seamless trade execution. This has resulted in a surge in retail investor participation in the Indian stock market. The present study is based on investors behavior towards trading platforms available for Algo trading and mobile trading in Bhubaneswar and Cuttack cities. It also tries to evaluate how introduction of Fintech solutions influenced the behavior individual traders in particular and stock broking industry as a whole. It explores the significance of mobile trading applications, its advantages and challenges faced by investors.