A business research report on

“The growth in the use of online trading

platforms”

Submitted by,
Kevin Mehta
Salil Mahamunkar 20BSP2063
Sharique Zama
Saloni Chalke 20BSP2068
Raskha Agarwal 20BSP1815

Submitted To
Prof. Anand Desai
(Faculty- IBS Mumbai)
A report submitted in partial fulfilment of the
requirements of PGPM Program of ICFAI Business
School Mumbai.

FACULTY GUIDE
PROF. Anand Desai
(Faculty- IBS Mumbai)

Date of Submission: - 12th January 2021

 AUTHORISATION

This is to confirm that this project report titled “The

growth in the use of online trading platforms” is an
original research work done by our Group of Business
Research Methods, PGPM Batch of 2020-2022, ICFAI
Business School Mumbai.

This report is submitted towards the partial fulfilment of

the requirement of the PGPM Program of ICFAI
Business School, Mumbai.

The results embodied in this report have not been

submitted to any other University or Organization for
assessment or award.
 ACKNOWLEDGEMENT

The Assignment we got during the first year of PGPM

Program for the subject “Business Research Methods”
was a great opportunity for learning and professional
development.
We would also like to express special thanks to our
faculty guide, Prof. Anand Desai, for his valuable
guidance and support throughout the project. We
sincerely acknowledge him for extending his valuable
guidance and critical reviews on the project and above
all, the moral support he provided during all the stages
of this project.
We extend my gratitude to ICFAI Business School,
Mumbai for giving me this excellent opportunity.
 Business Research Methods

Research Report on
“The growth in the use of online
trading platforms”
 Index
Sr. No Topic Page
no
Introduction

Nearly two billion people are connected to the Internet. During the
last twenty years, the technology revolution has had an intense and
irreversible impact on the world and Indian stock market has also
witnessed these changes. From its formal inception in the 19th
century, the Indian capital market has come a long way and can be
said to be in a maturity stage, backed by a developed legal system.

The internet has made financial products and services available to

more customers and eliminated geographical barriers. Earlier
investors were solely dependent on their brokers but nowadays they
are participating more in buying and selling of shares with the help of
internet. E-trading has saved time, energy and money as it helps to
access the market from any where at any time. The primary objective
of this research paper is to analyze the impact of internet growth on
the stock market transactions. The paper also discusses the current
state of internet trading in India and particularly the scope of online
trading market available in India.
India was introduced to the Internet in the early 90's and the use
started to increase rapidly. India stands 5th in the list of countries by
number of internet users. The Stock markets introduced Internet
trading (online-trading) in February 2002 which has brought a
tremendous change in trading.
The National Stock Exchange started the first form of online trading
wherein user/investors can buy/sell stocks in a day without much
paper work. Earlier it used to take around 60 days to buy/sell stocks in
stock markets and the investor also had to go though loads of paper
work. But thanks to Internet the wait has curbed and in the last ten
years, Indian capital markets have recorded 1488% of growth in
exchange turnover.
History

In India, the Securities Exchange Board of India(SEBI) has allowed

internet trading of stocks in a limited form. In internet stock trading,
the net is used as a medium to communicate orders to the stock
exchange through the broker’s website. The user cannot directly trade
in the exchange because trading is permitted only for registered
brokers. The user can, however, place orders through a broker’s site.
These e-broking sites also provide the client with an opportunity to
buy and sell securities from the confines of one’s home or office. The
client is able to track the fluctuations in a particular stock and the
market as a whole while deciding to execute the order and also while
the order is being executed. The confirmation of the executed order
will be available in real time. Depending on the supply and a
comparative list of similar products, the customer will be able to
choose the best stocks available in the market.
Internet trading started in India on 1st April 2000with as many as 79
members seeking permission to do so. Geojit Securities was the first
to go online. On February 1, 2000, the National Stock Exchange
(NSE)opened up the internet-based trading system for its members,
the first stock exchange in India to do so. However, after two years of
trading, only a dozen brokers continue to remain ahead in offering
online service. According to NSE data, there are around 2.3lakh
registered online traders. The SEBI Committee on Internet-based
Securities Trading and Services has allowed the net to be used as an
Order Routing System(ORS) through registered stockbrokers on
behalf of their clients for execution of transactions. Under the ORS, a
client enters his requirements (security, quantity, price, buy/sell) in
the broker’s site which are checked electronically against the client’s
account and routed electronically to the appropriate exchange for
execution by the broker. The client receives a confirmation on
execution of the order. At the same time, the customer’s portfolio and
ledger account gets updated to reflect the transaction.
What is Online Trading?

Online Trading of Shares means you have an online platform where

you can buy or sell shares. So, Online Trading Meaning is as simple
as it sounds. You buy and sell the securities online and the fund is
also transferred online.

Online Trading
With the online trading platform, you can trade different types of
investment vehicles. There are stocks – equities, commodities, mutual
funds, and other investment vehicles as well.

Online trading facilitates the trading process by bringing the complete

trading setup at your convenience. You can trade anytime and from
anywhere using the online platforms.

There is no paperwork involved, no need to go to the brokerage house

or the stock exchange to trade shares. It is all there on the device
which you use – laptop/tablet/desktop or mobile.

With a good internet connection, you can check your investment all
the time. You can monitor and place your bids and trade shares
anytime.
Working of online trading system

How to choose the right broker for Online Trading?

To Trade Online in Shares, you need to have a trading account and
Demat account. These accounts are provided by the brokerage houses
(DP) and they charge for their services.
This is why you need to choose brokerage houses/brokers very
wisely. There are various parameters you need to check before you
click on the application for the Demat account with one of them.

The parameters can be jotted down to the following ones –

 The experience of the brokerage house is a crucial factor. You

need to see for how long they are in the business. Whether they
deal with the products you want to trade online or not.
  Charges come next on the list. Check and compare the charges
for a few of the brokers whose services meet your requirements.
If will be foolish to choose one randomly without comparing a
few. Often, we check the brokerage charges and forget about the
hidden and other charges. Always check for the other charges if
any and how much.

 Then you need to see whether the brokerage house is a full-

service broker or discount service broker. This will determine
their range of services. If you need only trading and Demat
services, then you can go for the later one. However, if you need
research and advisory services, then it is better to go for the
traditional brokerage houses.

 Finally, you need to see how much is the minimum amount you
need to invest to start trading with the broker of your choice.
You need to check whether it fits your investment budget or not.

How to choose the right Trading Platforms for Online Trading in

India

For online trading, trading platforms are indispensable. Trading

platforms have opened a whole new world of opportunities and
possibilities for traders and investors.
However, choosing the right kind of Online Trading App for your
trading requirement is a tricky job. That is why we have come up with
a few criteria that you need to check while choosing the best Trade
Online App and platform for your trading needs.

 Options for investment

You need to check the range of investment options available on the
trading platform. Whether the trading platform has commodities,
forex, and currencies for trading or not besides the basic equities. If
you want to trade mutual funds, you need to check for that as well.
 Support for different devices
Make sure your brokerage house provides a trading platform for
different devices. Online trading doesn’t get restricted to desktop-
based trading, so, you must have access to the trading account on
mobile and other devices.
 Analysis and trading tools
Check whether different trading and analysis tools are available on the
platform or not. You must check whether the platform has technical
analysis tools like charts, heat maps, trading indicators in abundance
or not. These are required for informed and profitable trading.
 User Interface
One of the crucial factors that you need to keep in mind while
choosing the trading platform is its user interface. It needs to be user-
friendly so that it eases your trading process. The platform must have
easy access to various reports, and tools. There must be short-cut keys
to place orders easily.
 Updates & News Feed
This is another important part of a trading platform. There have to be
news updates feeds from the market to keep you updated. This, in
turn, helps you to make the right investment decision while trading.
 Customer care support
Finally, the trading systems must have direct customer care support
services. There has to be a chat option as well as calling.
Top Brokers who offers Online Trading Facility
 Zerodha Trading
 Angel Broking Trading
 ICICI Direct Trading
 5Paisa Trading
 Sharekhan Trading
 HDFC Securities Trading
 Upstox Trading
 IIFL Trading
 Axis Trading
 SAMCO Trading
 Motilal Oswal Trading
 Kotak Securities Trading
 Mastertrust Trading
 Karvy Trading
 IDBI Direct Trading
 Fyers Trading
 SMC Global Trading
 Yes Securities Trading
 Alice Blue Trading
 Edelweiss Trading
 Standard Chartered Trading
 Paytm Money Trading
 Aditya Birla Trading
 SBI Trading
 Profit mart Trading
 Anand Rathi Trading
 Reliance Trading
 Geojit Trading
 Tradebulls Trading
 Indiabulls Trading
 NJ Wealth Trading
 Ventura Trading
Advantages of online trading
 It is simple:
It enables a trader to have a hassle free trading experience. Anyone
can use these platforms as specific skill is not required to carry out
trading online.
 It is less expensive:
It is less expensive as compared to traditional mode of trading.
Brokers also promote online trading as it reduces maintenance and
other costs incurred by the broker.
 Quick and less time consuming:
Trading can be done in a seamless manner and in less time. Before the
advent of online technologies, trading was a cumbersome process as
you had to visit the broker or call your broker for placing or
cancelling trade orders. Now, you can carry out trading even through
a smartphone in the simplest way.
 Complete control:
It allows you to have complete control over your portfolio. You can
place trade orders from anywhere anytime. That is the kind of
flexibility you get due to online trading.
 Chances of error are less:
In case of traditional offline trading, there were more chances of
errors due to miscommunication between the traders and brokers. But
in online trading, you can place trade orders or cancel without
broker’s interference and hence can manage trade transactions by
yourself.
 Monitor investment at all times:
You can monitor investments anytime. There are mobile trading apps
that can be downloaded in your smartphone which help you stay in
touch with the markets and also monitor your investment anytime and
take proper strategic moves accordingly. Loss making stocks can be
removed and profit making stocks can be added to your portfolio by
observing the way the market moves.
 Access to research reports:
You can get access to top research recommendations, reports, analysis
on stock price based on various charts. There are various brokerage
websites through which you can have discussions with research
experts as well. You can take the best move with the help of financial
advisors too.

There are certain things you need to keep in mind before you start
trading online.

 Check whether your stockbroker has Online Trading Licence or

not.
 Do not ever trade from a shared computer or laptop or on a
shared internet connection.
 Always make sure that your device is protected from virus
attacks via anti-virus strong software.
 Do not ever forget to log out of your account once the trading
session is over as it can lead to misuse of your account
information.
 Never select the option “Remember me” for any password or
username of any of the accounts for online trading.
Research process
Management objective:
To study the reason behind the increase in the growth of online
trading platform users.

Management Decision Problem:

Why there is increase in the use of online trading platform?

Research Problem statement:

What factors lead to an increase in the users of online trading
platforms?

Objectives of study:
 To study and analyse the growth in the users of online trading
platforms.
 To understand the preferences of customers
 To study the customer choices of brokers and the factors that
influence online broker selection
 To understand the reasons for switching from traditional to
online trading
 To evaluate the services offered by online brokers.

Research objective:

To study the factors the lead to the growth in the users of online
trading platforms during the period January 2019 to December 2020
in India
Research Design:
Nature of Research: Descriptive design

Data collection Source: Primary as well as secondary sources

were used to conduct the study

Data collection method: Quantitative method

Data collection tools/technique:

Technique: Survey
Tool: Questionnaire