Delays and disruptions during trading, the mandatory entry of complex passwords for every stock, and the lack of many necessary features – all have been the source of tech-savvy stock market investors’ irritation with trading apps. purses.
The problems of trading stocks directly from smartphones should go away as two of the leading stockbrokers have launched alternatives to exchanges’ mobile trading apps and they have solved the problems well.
As everywhere in the world, the Dhaka Stock Exchange (DSE) today allows interested brokers direct access to its main trading system, technically called the Matching Engine, from the Broker Order Management System (OMS ), bypassing that of the stock exchange. .
Having already shared the DSE Active Program Interface (API), brokerage industry leader LankaBangla Securities and another top firm City Brokerage successfully launched their own OMS on Monday on a limited scale and expect full adoption. by this month.
TradeXpress, the OMS of LankaBangla Securities, is sure to change your online trading experience, says its Director and CTO SAR Md Muinul Islam.
City Infinity is the OMS of City Brokerage Ltd.
Both companies told The Business Standard that they have introduced world-class OMS platforms.
Unlike the DSE Mobile app, the brokers’ own OMS, which investors can use from both their personal computers and smartphones for direct trading, are highly transparent and have no lag regardless of the number of active users at a time.
CSE Chitra, the OMS application of the Chittagong Stock Exchange (CSE), has not yet gained popularity due to the exchange’s low market share in securities transactions, while the DSE Mobile application is overloaded by too many users at once.
Muinul Islam said his system can be used by up to 1 lakh of LankaBangla Securities clients, while he currently has 60,000 clients. Three redundant servers and a decent investment to keep everything running fast will change the experience.
The company will continue its huge investments for a technological advantage in the brokerage industry, he added.
The OMS of the two brokers will have their modern back-office system integrated which will ensure the management of the buy-sell risks. For example, clients can only execute their legitimate buy and sell orders and no orders beyond that will be accepted by the system.
DSE Mobile and CSE Chitra are doing the job well right now, however, the best parts of TradeXpress OMS are its direct and seamless market access, simultaneous trading in the DSE and CSE via a single app from anywhere in the world, said LankaBangla Securities. CTO.
Md Muinul Islam said that many advanced features in their trading app will make life easier for investors.
Alongside traditional orders to buy or sell securities at a target price, investors can choose entry orders that would allow their predefined orders to buy and sell if the market otherwise changed.
For example, like the rest of the world, investors can stop loss orders which will only sell their maturing securities if the market price falls below the preset price to match their allowed loss tolerance limit.
Also, a scrip will only be bought after its price breaks through a predetermined range.
Both characteristics are important for investors who prefer market timing to take advantage of trends.
Additionally, strategic orders would allow investors to depend on the OMS algorithm to decide their buy-sell orders, a must for modern high-frequency trading.
Advance ordering features will allow investors to place their buy-sell orders at a convenient time while DSE-CSE applications do not accept orders for the next day.
“Decide your orders when you are calm,” Muinul Islam said.
Both companies have equipped their OMS platform with these advanced features.
LankaBangla Securities will gradually open the features only to interested clients, depending on their readiness, its CTO said.
DSE COO Mr. Shaifur Rahman Mazumdar told TBS that broker-owned OMS will reduce trading hour surcharges on DSE’s OMS.
Other brokers are in the works to introduce their own OMS, he added.
Although the technology requires high capital investment, it can reduce the operating costs of brokerage firms as desktop versions of brokerage OMS would turn every client PC into a workstation which combines a cost of maintaining terminals and deploy brokerage employees there.
LankaBangla has invested heavily in data security in its OMS and back-office platforms, its CTO said.
Now, the true spirit of digitization is to be enjoyed as their customers can do anything online from anywhere, anytime.
Online services will be free, both brokers confirmed.