The Simple Way: Stocktrading on the Go
Private investor’s trade shares have dramatically changed in the past decade. Previously, trading was left to the domain of banks and traditional stockbrokers. But now, the internet has created a new forum for retail customers where they can execute trades quickly, much less expensively and without the need to call a stockbroker. Furthermore, execution-only firms are thriving in a volatile market in which investors now tend to buy and sell shares quickly.
One of the key growth areas for stockbrokers is the mobile internet channel. Generally speaking, in a world with more than 4 billion mobile phone users and only 1.6 billion bank accounts, mobile financial services offer a market opportunity with long-term growth potential. Mobile devices are near constant companions to consumers, who are also increasingly more comfortable with their phone fulfilling more than one function. Smartphones that are multi-media and multi-application devices are now standard, and providers are keen to exploit the opportunities that have been created and offer mobile-based services, such as mobile trading.
Many private investors are looking for a transparent and flexible pricing structure for trading shares and securities. Against this background, SimplyStockbroking developed a platform to support a new share trading initiative. A quick registration process makes it easily accessible and private investors can immediately start trading online – no confusing forms and no need for individuals to meet with a stockbroker. In order to provide investors with a secure and reliable system, Simply Stockbroking asked peterevans to develop an online platform, which was launched in September 2009.
SimplyStockbroking began with certificated trades, but now offers a full range of services. With client demand for real-time trading being made even more immediate, SimplyStockbroking turned to peterevans to develop a new application for the iPhone, iPod and iPad. “We have seen that our clients demand a shift from fixed internet-based trading towards mobile-based trading. Therefore, an easy-to-use and secure mobile application which enables them to trade whenever and wherever they want became a major need for us,” says Stephen Pinner, chief executive officer (CEO) of SimplyStockbroking.
To satisfy this requirment, peterevans developed xanite Wave that allows traders to manage their financial portfolio through an app that has been authorised with their stockbroker. SimplyStockbroking now offers a real-time share trading and execution iPhone application in called ‘Simply’. The application can be downloaded from the App Store and is available for free to all SimplyStockbroking clients.
‘Simply’ enables clients to view their current portfolio, buy and sell shares in real time, and place and manage limit orders on the go. The mobile application links directly to the back office of stockbrokers, which updates the portfolio in real time, and traders can transfer instructions to their broker immediately. The app itself does not hold any sensitive data and communicates via a secure encrypted connection, providing a contemporary mode of trading shares without compromising security.
Since ‘Simply’ went live in April 2010, on average 37% of logons to the SimplyStockbroking platform are executed via the app, with peaks of more than 80%. Over the past couple of months, the overall trading volumes handled through the application have risen to 10%, with peak times values of up to 27% and a corresponding dramatic reduction in telephone trading. When developing an app, especially in a sensitive area such as finance, there are a couple of key aspects which need to be considered, such as secure access, ease of use and functionality. peterevans worked closely with SimplyStockbroking, defining its requirements and then proceeded to manage the App Store approval process, so that the app could not only be launched on time, but would also be as user-friendly as possible.
The platform at the core of SimplyStockbroking’s offering is xanite OSB, which allows clients to operate a complete front-to-back online stockbroking portal. xanite Wave, a white label solution that can be adapted to any broker who wants to offer mobile services, establishes an additional direct link from the client’s mobile device to the portal, maintaining all security mechanisms.