How to choose a trading app in India: Features, costs and trading tools

When choosing a trading app, brokerage is often the first thing people compare. It is easy to see why, but there are a few other questions worth asking before opening an account. Can you place the order types you need? Are the charts easy to use? Does the app provide enough market information? What does MTF cost?

Then there are the less obvious things, such as customer support, account security and how easy it is to complete the account-opening process.

What should you check for in a trading app?

Trading apps can differ quite a bit in the way they work and the tools they provide. Before opening an account, it helps to look at the features that you are likely to use and the costs that come with them. A few things are worth checking before you make your choice.

• Check the brokerage and other charges
  Brokerage is one of the first things to see when choosing a trading app. Check what you will pay for equity delivery, intraday trades and derivatives.
  
  You may also have to pay account maintenance, transaction and other applicable charges. Zero brokerage offers can look attractive, but check where they apply before making a decision. What you actually pay will depend on the trades you make and the charges that apply to your account.

• Look at the order types available
  Not every trade needs to be placed in the same way. Look for a platform that allows you to place different kinds of orders. These order types give you more control over how a trade is executed.
  
  The price you want to trade at and how quickly you want the order executed can help determine which order type you use. The same applies if you want to set a limit on the loss you are willing to take. A trading app should have the commonly used orders such as market, limit and stop-loss, as well as advanced options such as Good Till Triggered (GTT).

• Check the charts and trading tools
  Today, trading apps offer more than just placing orders. If you plan to trade actively, you may also spend a fair amount of time looking at charts, tracking prices and studying stocks before taking a position.
  
  Look at what the app provides for this. Basic charts and indicators may be enough for some users, while others may want screeners, option-chain tools or more detailed analysis.

• Check the research and market information
  Research reports, news updates and market data can be useful when you want to understand what is happening in the market before placing a trade. Some apps provide all these details within the same platform along with trade execution.

• Check the Margin Trading Facility (MTF)
  If you are planning to use MTF, do not look at the brokerage alone. The interest charged on the amount you borrow becomes an additional cost for as long as you hold the position. A higher rate can eat into your returns, particularly when you keep a position open for a longer time.
  
  Also check the stocks covered, the margin required and any other conditions. Kotak Neo, for example, offers MTF at a flat interest rate, so you can check the cost based on how much you borrow and how long you hold the position.

• Check API and Algo trading features
  Technology is becoming a bigger part of trading apps, especially for users who want to automate their trades. If this is something you may explore, check whether the app supports APIs and what you can do through them.

• Do not overlook customer support
  A trading app can work well most of the time, but problems can still come up with an order, account or transaction. When that happens, being able to reach the support team without too much hassle can make a difference. Check how you can contact the broker and how easy it is to get help.

• Look at security and the account-opening process
  Opening a Demat account should not feel unnecessarily complicated. Check how much of the process can be completed online, how the KYC verification works and what documents you need to provide. A simple account-opening process can save time, especially if you are opening your first account.
  
  Security matters just as much once the account is active. Your account should have proper login and authentication measures. You should also be able to see when there is activity on it. These things can help you spot anything unusual with your account.

Which trading app features matter to you?
The features you should prioritise will depend on the kind of trading or investing you do.

Here are a few features that take priority for specific kinds of users:

• Long-term investors: Delivery brokerage, account charges and research tools
• Active traders: Good charts, different order types and reliable market data
• F&O traders: Options chains, analytics and other derivatives tools
• MTF users: MTF interest rate, margin required and the stocks available for MTF
• Algo traders: API access and automation support

A trading app should make it easy to do what you need, whether that is investing, placing regular trades or using more advanced tools. The charges, order types, research tools, MTF rates and overall platform experience can all matter, depending on how you plan to trade.

Take some time to explore these features before opening a Demat account. The app you choose should have the tools you need today and, ideally, enough flexibility if your trading needs change later.

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