Is Online Trading Changing Due To Millennial Investors?

The Indian stock markets have witnessed a surge in trading activities due to millennials. The markets witnessed a further surge in trading activities during covid lockdowns and quarantine. As a substantial subset of millennials is driving the markets, they are contributing toward shaping online trading platforms. Here is a study of how online trading is changing due to millennial investors

  1. Smartphones handle all the tasks

Smartphones are now built with superlative features that provide comprehensive tools for various tasks. Individuals have the luxury of using their smartphones to perform simple tasks such as ordering items online and complex activities such as digging deep into research and conducting online trades. As the Millennials have been introduced to the stock markets through the era of online trading, they seem to be more easily involved with its features. With millennials increasingly indulging in trading activities, there has been a global rise in the apps available to support such actions. Many new platforms have been introduced to help investors’ journey in the stock markets. Such user-friendly apps not only cater to market enthusiasts but also support newbies in their trading activities. Investors must sign up for a Demat and trading account using their smartphones and are all set to enter the markets. 

  1. Trading communities are built to support investors and attract new ones.

Many millennial investors focus on making money in the stock markets, from online forums to WhatsApp groups. With the growing increase in demand for trading, there is a substantial growth in the number of communities formed to support trading. Reluctant or risk-averse newbies enroll in such forums and have a glimpse of the reality of the trading world. Experienced investors who have been trading in the markets and are comfortable with the ins and outs of trading benefit from such forums. Such communities also help gauge market sentiments. As investors communicate through such portals, they get an idea of the general view that others have on the markets and can design strategies accordingly. Newbies benefit the most from such platforms, as it is best to know about the markets a little before you put your money into them. Such investors new to the trading world witness the ups and downs of the markets, the chatters, interpretation and analysis, discussion, strategies, and much more. This helps the new investors get a general idea of the markets before they make their first trade. 

  1. The power of gamification

With many online-friendly millennials accessing trading on their smartphones, increasing apps and events are being organized to enhance the user experience by developing games that involve a large investor base. Turning trading into a game keeps millennials more interested and curious about the market changes and developments. With a lot more interest being sparked into the youth through gamification, markets are witnessing a rise in trading activities. There are awards, prizes, and contests conducted by millennials that keep investors engaged in the markets, expand their holdings and generate more efficient returns. As a result, a broader investor base has been seen glued to the stock markets. 

  1. Technology is not limited to stock portfolios.

With Millennials taking a large part in the stock markets, numerous activities are being made available online in a user-friendly way. These comprise conducting trades that are not limited to stocks. Investors can choose to enhance their portfolios by trading in futures and options as well in the simplest way. This has even paved the way for a more extensive investor base for investing in cryptocurrency. 

  1. In-depth research and analysis

With the millennials fuelling the stock markets, many trading apps and platforms have started providing in-depth research and analysis to support investment decisions. Among the numerous tools being provided, the apps generate 

-Technical stock analysis to generate investment charts, build and analyze patterns and 

signify worthy investments. The apps provide extensive features for investors to make 

their decisions. 

-Online platforms provide sell-side research for investors to understand expert opinions 

before investing their money. 

-Latest news is provided to track the investments.

-Events such as corporate changes, annual reports, company filings, investor 

presentations, and earnings are made available to investors through such apps, giving a 

detailed view of the investments.