The Indian economy is growing rapidly, which is only possible because Indian businesses are raising funds to innovate and expand. One of the most effective ways to raise funds for a private company is to become publicly listed by coming out with an IPO (Initial Public Offering). Many people wish to invest in IPOs because they see great potential in such new innovative businesses to scale up. At the same time, trading IPOs in bull markets has generally proved profitable. So, the recent IPOs have attracted new investors as well as traders.
A trading app is the most convenient way to invest in an IPO. Now there is no existing or upcoming IPO app to invest in IPOs. If you are looking to invest in one of the upcoming IPO, we are here to provide you with a few tips for choosing the best trading app in India.
7 Tips to Choose The Best Trading App For IPO Investing
1. User-Friendly Interface
To start, you would want to invest or trade without any hassle. No one wishes for a trading app that one cannot navigate easily. You do not want an app so complicated that you face trouble finding the IPO segment. An app with a user-friendly interface has allowed you to navigate segments, place your trade orders, and monitor your investments with a few swipes and taps on your screen. You can distinguish an excellent user-friendly interface from the rest with a glance.
Now you may be only looking to invest in IPOs, or you may also want to invest in shares already trading on the exchanges. Either way, you would want no freezes or glitches in the app to interrupt you while placing a bid for an IPO or any other trade. Along with a simple interface, having a responsive one is equally important. So, always go with a trading app powered by a leading broker who has invested in technology to keep their app snappy and glitch-free.
3. Live Market Data
If you use a good trading app, you will witness minimum lag in price fluctuations of stocks and IPOs. The data updates in real-time and this real-time data helps you to decide on a strategy to buy or sell, especially if you are a trader. When an IPO list, you can refer to the market data to see the number of active buys and sell orders for the IPO.
4. IPO Notifications
Most retail investors are monitoring the stock market 24×7, as the regular investor is predominantly occupied with their job or family. Hence, many retail investors are not actively tracking all the upcoming IPOs. So, having your trading app notify you through app notifications every time an IPO is open for subscription is a very beneficial feature. This way, you can rely on your trading app to keep you to date regarding the launch of upcoming IPOs, so that you do not miss one. Besides IPO notifications, trading apps must also provide you with other stock market-related notifications.
5. IPO Reports
As mentioned in the previous point, the average investor cannot dedicate all of their time to the stock market, which is why many investors do not get time to research the company coming out with their IPOs. As an investor, research is paramount since every company does not make a good investment. However, some apps help you with researching IPOs. The broker providing those apps gives you access to research reports on different stocks and upcoming IPOs. A team of stock analysts prepare these reports, and reading them can tell you a lot about the company while saving you time.
6. In-App Features
While selecting a trading app for investing in IPOs or any other segment, always see what trade-related features you get with the app. For example, you would not want to own a trading app that does not have basic features like watching, price alerts, and stock charts. For example, if you were not allotted the IPO shares, you can watchlist the IPO once it lists to track it closely. You could then set a price alert to buy it at a reasonable price.
7. Security Features
Last but not least, every investor, regardless of their investing approach, would only want to use a trading app that protects their investments. So, while choosing a trading app, look at its security features to help keep your investments safe. The top investing apps generally have security features like finger unlock and two-factor authentication.
Consider the above tips while finding yourself a trading app. And although there is no existing or upcoming IPO app that only lets you invest in IPOs, a good trading app should cause no trouble, even if you are exclusively looking at IPOs. The IIFL Markets App is the best trading app in India that checks all seven points. IIFL also lets you open a Demat and trading account for free, which is essential to buy and sell all shares, including IPOs.