How online brokers promote financial inclusion and sustainable growth for investors

Introduction

The entrance and participation of new entrants in India’s financial markets has been one of the most significant impacts delivered by an ever-evolving FinTech space in the country. Today, platforms such as Shoonya by Finvasia, Upstox, Angel One, Groww, Zerodha and others have revolutionised stock trading, making it widely accessible for a larger audience by eliminating entry barriers such as high brokerage charges, high account minimus and high fees. Such online brokers have leveraged digital technology to democratise stock trading, bringing the underserved segments of the population to the financial fold, ultimately promoting financial inclusion and enabling access to sustainable investment options for young investors, retirees, housewives, and many others.

Here are a few common yet disruptive ways that online brokers have improved financial inclusion and sustainability:

Reduced Costs

Traditional broking has remained inaccessible and unviable for many people as a consequence of high brokerage and high fees. Online brokers like Shoonya by Finvasia, Zerodha, and many others that have emerged over the past few years typically charge fees considerably lower than traditional brokers, expediting access to financial markets and making stock trading much more affordable. This has drastically improved access for a larger population to invest their money across various exchanges within the country, providing them with an opportunity to save and grow their wealth.

Greater Access

Via their digital platforms and the internet, online brokers enable 24×7 access to financial markets from anywhere. This feature helps various people who lack the resources and means to visit a traditional broker. The platform also avails all share trading activities including research, analysis of stocks, and conducting actual trades.

Educational Resources and Tools:

To facilitate a better understanding of the financial markets, online stock broking platforms provide educational resources and tools for users, allowing them to make informed investment decisions. This particularly can be advantageous for inexperienced traders, and further promotes financial inclusion by empowering people to take control of their financial future.

Automation & Portfolio Management

Online broking platforms like Shoonya by Finvasia, Zerodha, among others provide advanced AI-powered features and portfolio management tools that help investors make the right decision with deep insights and analytics, and lead to better financial sustainability by making it easier for individuals to create and manage diversified investment portfolios, without a large amount of capital.

Enabling Transparency

Online trading platforms of today have enabled transparency into financial markets like never before. By providing access to real-time market data and trade execution, these platforms have increased trust in financial systems for users. 

In a densely populated country as India, online brokers are revolutionising the trading arena, providing easy access, technical features and extensive resources to help traders make the right investment decisions, at the right time. The numerous opportunities availed by these platforms are creating a fairer future for everyone, democratising stock trading and facilitating wealth creation in an unprecedented manner.