How Traders Can Choose Trading Apps to Maximise Success

Apr 24, 2024

How Traders Can Choose Trading Apps to Maximise Success

SRV Media
New Delhi [India], April 24: Financial brokerage services in India have evolved tremendously in recent years. As the Securities and Exchange Board of India (SEBI) and the two major stock exchanges continue to prioritise transparency and convenience in trading, brokerage service providers are also stepping up their offerings.
A survey by the Association of National Exchanges Members of India (ANMI) revealed that around 80% of brokers in India were actively focusing on integrating technology into their services back in 2019. Now, five years later, India's leading stock brokers continue to remain invested in leveraging technological trends to improve the customer experience -- with over 80% set to invest in cybersecurity for safeguarding user data.
However, the average retail trader or investor still primarily focuses on only one key aspect when choosing brokerage partners and trading apps -- which is the brokerage charged by the service provider. This can be a costly mistake in the long run, because such customers lose out on the enduring benefits of new-age trading apps.
Beyond Brokerage: What Traders and Investors Need to Look for in a Brokerage Partner
Stock trading apps have evolved beyond mere order placement platforms. With leading brokerage service providers in India now committed to bringing a 360-degree overview of live market conditions to users' fingertips, the sky's the limit for retail traders with the right tools. Nevertheless, the selection criteria for trading apps and brokerage partners still focus heavily on the brokerage fees levied.
Understandably, for beginners who are new to the financial and securities market, it may be natural to gravitate towards the cheapest option. However, this can often be a futile choice because brokerage only plays a small and often insignificant part in the selection process.
Nilesh Sharma, ED & President at leading technology-driven stock broking firm Samco, tells us why such a narrow approach may do more harm than good.
"In today's competitive market, brokerage charges are nearly the same across all leading brokers. However, choosing a broker based solely on marginal savings in these fees can be shortsighted. Many traders opt for discount brokers to save money, but they often overlook the critical aspect of whether these brokers provide the advanced tools and features necessary for capitalising on market movements. This oversight can lead to missed opportunities and, worse, significant losses -- negating the initial savings from lower brokerage fees.
On the other hand, brokers who offer a comprehensive suite of services and advanced trading features present a different scenario. With these tools, traders can easily identify and act on market opportunities, which can lead to better financial outcomes. Therefore, the extra amount paid in brokerage fees becomes insignificant compared to the gains from utilising a full-service platform."
This is why it is vital for traders to look beyond just the brokerage charges and evaluate the overall value provided by the broker -- so they can have access to the necessary resources to successfully navigate the markets. Today, many leading stock brokers are launching revolutionary features that are helping traders and investors experience success in the markets.
Two such features come from Samco Securities. The first is a comprehensive post-trade analytics tool that gives traders insights into the hidden truths in their trading history and the other is Options BRO, a pioneering options strategy builder that makes F&O trading more effective for traders in the derivatives market.
Post-Trade Analysis with 'My Trade Story': An Industry-First Feature in New-Age Trading
The average trader may execute hundreds to thousands of trades in a year. This historical trading data holds a wealth of information about several aspects of a trader's journey in the markets. It can offer insights into their trading patterns, strengths, weaknesses, profitable market segments and segments in which they are susceptible to losses.
Samco Securities has integrated 'My Trade Story' into the Samco trading app. This revolutionary feature analyses millions of data points from a user's past traders to create usable information about what works and what doesn't for that trader. Here is a closer look at the hidden insights -- or Andekha Sach -- that 'My Trade Story' in the Samco trading app offers traders and investors:
* Strike Rate: The strike rate in the Samco trading app lets traders know the percentage of their trades that are profitable or loss-making. This helps traders understand their success ratio by showing the proportion of trades that ended profitably versus those that did not. Traders can use this insight to evaluate how effective (or not) their trading strategies are and refine their approach to enhance the overall success rate.
* Average Profit and Loss Size: This feature in Samco's 'My Trade Story' reflects the average size of the profits and losses per trade in a given period. It helps traders gauge the impact of their decisions across different transactions and makes it easier to identify if their winning trades are sufficiently offsetting losses. Traders can then adjust their risk management strategies for better financial outcomes.
* Average Holding Period: With this insight, traders can understand the average period over which they held onto their winning and losing trades. It can be instrumental in helping users assess the effectiveness of their trading timeline, so they can tweak their holding periods to optimise profitability and minimise losses over time. In other words, it helps them let their winning trades run and cut their losses short.
* Samco Trade Score: The Samco Trade Score is a proprietary insight offered in the Samco trading app that measures a trader's overall success in the market. Samco Securities even has a scale to interpret this score, with anything less than 1 meaning poor trading outcomes, and any score over 3 indicating good trading performance. By tracking this score consistently, traders get a clear graph of their trading performance over time.
* Actionable Insights: Based on numerous hidden insights, the Samco trading app also offers actionable insights as a part of the 'My Trade Story' feature. Traders can rely on these helpful tips to finetune their strategies, strengthen vulnerable areas and capitalise on their existing strengths. This is evidence that Samco goes beyond merely offering useful data from various trades and even helps users improve their trading performance with time.
Agile Strategy Building with Options BRO: A Game-Changer for F&O Traders
For F&O traders, strategy selection and building remain one of the most insurmountable challenges. To resolve this pain point, Samco Securities has stepped in with Options BRO -- an effective strategy builder that offers the top 3 options trading strategies for any trader, no matter what their risk profile is.
Samco's Nilesh Sharma tells us why Options BRO is a must-have tool for options traders in India.
"Options BRO from Samco Securities combines strategy building, research and optimisation in one tool. It does the heavy lifting by analysing over 2,000 contracts and 1,000 strategies in seconds -- and provides the top strategies based on the trader's outlook and risk preference. This tool also makes options trading accessible and less risky, especially for those who might not have deep expertise in the options market."
With real-time data and a user-friendly interface, Options BRO ensures traders can easily build and fine-tune strategies. This improves their chances of success in the dynamic options market. In addition to this one-of-a-kind strategy builder, traders can also access other advanced analytics and insights for free in the Samco trading app, making it indispensable for traders looking to make informed decisions and maximise their trading potential.
Choosing a Suitable Brokerage Partner and Trading App
While it can be tempting to narrow the focus down to brokerage charges alone, traders and investors must go the extra mile to analyse other crucial aspects like trading tools, analytics and trading platforms.
Samco Securities stands out in this regard for various reasons. For one thing, the brokerage firm offers all these advanced tools and insights free of cost for users with the Samco trading app. Additionally, even for traders who prioritise affordable brokerage, Samco's brokerage charges may be suitable as they are affordable and easy to track with the Samco brokerage calculator.
About SAMCO Securities
SAMCO Securities was incorporated by Mr Jimeet Modi, Founder & CEO of SAMCO Group in 2015. As the country's leading flat-fee brokerage and wealth-tech platform, SAMCO Securities provides retail investors access to sophisticated financial technology and makes their wealth-creation journey simple, informed, and cost-effective. SAMCO Securities' mission is to eliminate the existing challenges faced by traders and investors and democratise access to the wealth management process for every Indian. With customer centricity at SAMCO's core, we implement a quantitative approach to provide differentiated solutions that empower our customers in acing the capital markets.
SAMCO Securities is pioneering the stock market trading by introducing industry-first features like My Trade Story, Personal Index and Trade Spread Sheet to name a few under its CRP strategy.
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