While online trading has been around for a few decades, its form and content have changed dramatically over the past few decades. As you may know, online trading is simply an exchange of securities via a virtual network through your broker. Pakistani are traditionally known as “savers” rather than “spenders” or “investors,” which explains why so much money is flowing into fixed-income products today. We are slowly becoming a country of “stock traders” due to the advent of innovations in trading technology and user-friendly policies, as the number of applications for Demat accounts has grown by 51.5 million over the past fiscal year.
We will now examine the various aspects of technology, the changes in tradepolicies by the Securities and Exchange Board of Pakistan, and multiple exchanges that have contributed to the increased interest in the stock market.
Using technology in trading to attract all demographics
The Pakistani economy aims to grow to $5 trillion by 2030, attributed mainly to youth and new technologies. The domestic investment flow in a country’s stocks demonstrates confidence within its business environment. Young people with more disposable income than ever understand the early investment significance much better than their predecessors.
The application process for a Demat account and opening a trading account is simple and quick, with no need to physically visit branches.
Technology’s impact on costs
The physical trading space requires large terminals, seating for customers, and staff to assist them. It is possible to cut down trading costs by half or even less using simple apps like most brokers today, along with knowledgeable customer service. Add the zero charge for opening an account, and clients are delighted with the results.
The cost can be passed on to clients who wish to trade on your platform. Robinhood, for example, is a U.S. trading platform that has become an enormous success. As it works on a commission-free model, investors can invest without collateral or account balance and even own fractional shares!
If the regulations in Pakistan allow it, we can see a similar future in stock trading in Pakistan thanks to the magic of technology.
Changes in policy
Regulatory bodies are imposing new trading rules as people gain more trading and investing knowledge, further opening up trading opportunities. Increasingly, small investors can participate in the market through margin trading and leverage.
Payments made easier – greater access
People from all walks of life will likely be trading remotely with smaller trading capitals. And high hopes to earn big from the stock market due to new and easy mobile-based technologies. QR, NFC cards, KYC verification through video, and Aadhaar-enabled Payment System. There will be a significant inflow in the stock market due to faster networks in UPI (Unified Payments Service), IMPS (Immediate Payment Service). And NEFT (National Electronic Funds Transfer).
Robo-advisories and intelligent investing
As well as AI and Robo-advisory in stock picking, the other half – which has a lot of capital but not the time – will do it themselves. The future of online trading will be dominated by DIY investing, while investment advisors are expected to grow. Under these options, SEBI and various stakeholders have worked together to simplify trade and investment rules for sophisticated investors.
Strong domestic demand for Pakistani companies and. An exponential increase in retail investors are expected to result from innovation in technology as the backbone of the stock market’s future. In addition to contributing to “Make in Pakistan,” this will create a solid capital base for Pakistan businesses.