Nearly every share market app in India has traditionally relied on a commission-based business model. The concept remained simple – let retail and professional investors make trades through the app and take a small percentage of their investment under the mask of brokerage charges.
While being charged brokerage fees might have felt like unfair to investors, most share market investment app owners long believed that it is the only way of generating revenue. This notion was subtly disrupted with the introduction of mStock, a zero-brokerage share market trading app.
mStock can easily win the title of the best online trading app, given its track record of providing users with a smooth brokerage-free trading experience for years. Similar accolades can be achieved by other brokerage free trading apps as well. There are three main reasons why we claim this.
1. Improved trust and customer retention:
Any mobile trading app that offers a zero brokerage promise to the investors, positions itself as a reliable and fruitful investment companion. That’s what mStock is for investors who use it. Investors are presented with transparent trading terms in addition to the assurance that all of their investment will go directly to the company they’re investing in. This transparency forges trust and remains the chain that keeps investors coming back to the investment platform.
However, it’s also important to note that a single differentiating feature may not contribute to customer loyalty if the user experience and interface of the stock trading app are not at or above par with those of its competitors. mStock has realized this early on; thus, has offered an intuitive dashboard that’s easy to navigate and customize.
2. Rapid user acquisition:
Another transcending effect of offering no brokerage fees is the increased access to investment platforms for investors who are short on budget. While SIP investments are an offering that can suit investors who rely on their paychecks to make regular investments, it may not always be practical, considering that commissions can increase their initial cost of investment. By eliminating commissions, apps can easily acquire a larger audience pool. Rapid user acquisition helps apps build greater authority than their competitors. That’s quite the rationale that mStock must’ve had, which led it to have more than 5 million downloads as of 2024.
3. Marketing edge:
When share market apps India eliminate brokerage fees from their platforms, they position themselves as user-centric. Zero brokerage fees are one of the most sought-after features that investors look for. Thus, when an app offers this feature, the news spreads like wildfire and attracts users from successful word-of-mouth publicity as well as from paid advertising campaigns.
Nonetheless, a core concern remains – how will the app generate revenue?
There are several ways to achieve this. What mStock utilizes are add-on features like a free lifetime AMC for a small additional cost that needs to be paid only once. Share market apps can offer similar additional features for a subscription or a one-time payment, whatever aligns best with their business goals.
Final thoughts
Offering zero brokerage charges can be a game changer for share market apps. They wouldn’t just attract more users but would also retain them, alongside getting organic marketing through word-of-mouth promotions.