FnO Play: Best App to Trade Fast and Easily
- 11 September 2020 | 3859 Views | By Abhinav Mishra
There are approximately 275 stockbrokers in India. They all claim to provide you the best platform. If you are new to trading and want to start trading, how will you decide which one to register with?
How do I choose the best stock trading app?
The first thing you need to know is that trading app is not just about trading. There is much more you can and should do on the app. Trading apps are also about charting, learning, finding trading ideas, market data, and news. Not all stock trading app provides these features but most do. As a trader, you have to look for a platform that provides the above features and also good customer support and low brokerage charge.
How do beginners trade stocks?
If you are completely new to the fascinating world of stocks and for some reason inclined to trading, you better prepare yourself and then start trading. You need to have a basic understanding of stocks, how the exchange works, what factors govern the market, and the price of the individual stock. You need to understand the difference between investing and trading and have a clear mindset, whether you want to be a trader or investor.
Once you are ready, you need to come up with an approach or strategy to start trading. Trading is less about learning but more about executing your learning because when actual money comes into the picture, it comes with an emotional factor and you can only learn controlling of emotions with time and experience.
We have earlier compared some popular trading platforms and in this article, we are going to talk about one more trading platform – FnO Play.
What is the best stock trading app for beginners?
FnO is an innovative trading platform with a focus on risk management so that users can take on the capital markets with confidence. FnO provides a fair chance to you to trade with managed risks with a portfolio of products suited to your trading experience. It has a curated list of multiple investment options in stocks, currency pairs, and indices which lets you invest and trade in different instruments based on your risk appetite and trading preferences. They are a member of NSE and registered with SEBI. You can access the platform only through the app – FnO Play.
What are the features of FnO?
Build-in Risk Management – They provide a risk management system that offers a unique book profit and the stop-loss mechanism that actively manages your trading risks. With FnO you will never lose more than the risk level you set in a particular trade.
Account opening and other charges – There are no account opening or annual charges which you have to pay to use this app.
Fees on profitable trades only – With most other brokers, you have to pay a brokerage charge every time you do a trade irrespective of the end result – you make a loss or a profit. FnO only charges you a fee when you make a profit from the trade.
Real-Time Withdrawal Tracking – FnO gives you better transparency with real-time tracking of withdrawals. You can monitor your funds in real-time from the point you place an order until it reaches your bank account.
Only app – You can download the FnO Play app from the Google Play and monitor the markets on the go to make quick trading decisions.
How to start using FnO?
You can register on the FnO app by providing your mobile number. Once you log in, the app walks you through the features of the app and also gives you 3 practice trades. The first is on INR/USD, the second on BANK NIFTY, and the third on the stock of your choice. Once you are done with three practice trades, you can open your account.
To open your account, you have to verify your account and then set your account PIN. You then need to provide your DOB, name and Email address, PAN card, and bank account.
How to Trade using FnO Play?
Trading on FnO is very simple, the first thing you have to decide is whether you want to trade on currency, indices, or stocks. Once you pick the instrument you want to trade on, you have to decide whether the price of it will go up or down. You also have to set a time frame for which you want to keep your trade active. It can be as less as 5 min or can go up to a month. You will also see different charges that will be charged once you pick up an instrument and decide the amount you want to trade with. The different charges are SEBI Fees, Stamp Charge, and Exchange Fees. Then there is the auto-stop level. The auto stop level is stocks and index dependant.
The trade will auto close if there is a profit of 90% or there is a loss of 50% or at the time of market close. Just before you confirm the trade you will see a summary of your trade. Now let us say, you start a trade on ICICI bank and placed the trade with UP option. If ICICI stock goes UP you will have profit, if it goes down you will lose money. You can either stop the trade when you feel like or it will auto-complete if one of the above 3 criteria are met.
How does it actually work?
If you place any bet you will see within seconds you get a 5% loss or 5% profit or very high percentage change. You only have invested 5000, so how can you lose 5% in a second, the stock does not move so rapidly? If you are a beginner you must be wondering how it happens?
FnO Play app works on leverage. So even though, you have placed a trade of Rs 5000, the app gives you are auto leverage of X times. So let us say you took ASIAN PAINTS and placed a trade of Rs 1000 and leverage was 100 times on this stock. This means you have bought the shares worth Rs 1,00,000 (1000*100). If the stock goes 0.25% down as soon as you place the trade, meaning your 1 lac is now less by Rs 250. Since your actual investment was Rs 5000, your loss will show as 5%. The same applies when you make a profit.
User Experience – Good and the bad
If you talk about user interface and ease of using the app, it is a very neatly designed app. All the features are available on a single screen. There is a real-time chat option, which you can use if you face any difficulties or if you have any questions related to trading on the app. Adding money in your trading account is very simple, you can use GPay, UPI, or any other banking method to load money in your account. Withdrawing money is also real-time, if you place the request in the morning for withdrawal, the amount will reflect in your bank account by end of the day. There are no fees for either adding or withdrawing funds.
If you are beginners and use this platform, you have to be extra cautious. Since every trade comes with leverage, you can lose half of your capital in no time. Instead of auto stop-loss, the feature of putting manual stop loss would have been a lot better. Secondly, every time you try to close your trade, it asks for re-confirmation which takes an additional second or two and it may significantly change your overall profit or loss. Even the leverage is pre-defined and cannot be altered, so every trade is a high-risk trade.
TRADX – It is an upcoming feature for experienced traders custom-built with professional tools to take advantage of mid to longer terms market opportunities.
INTRA – This is a tool for intraday traders crafted for them to trade more efficiently and focus on what they want to: charts and numbers.
Can foreigners trade stocks in India?
Foreigners cannot do day to day trades in India but yes SEBI has permitted Qualified Foreign Investors to invest in India. This allows them to invest in secondary market shares, FPOs, IPO, and also in mutual funds. There is a cap or limit which is laid down by RBI and SEBI which changes from time to time and different instruments have different caps.
Is copy trading legal in India?
Copy trading is completely legal in India and a lot of brokers and platforms are providing this service to users. Copy Trading is a great way to learn to trade for beginners, where risk is less and rewards are good.
Which is the best investment App in India?
We have talked about trading in so far, if you are looking for long term investments in stocks and mutual funds, you have to choose an established player which offers you all possible option of investments be in stocks, ETFs or mutual funds. You can choose one of the below apps:
- Zerodha Coin
- myCAMS Mutual Fund App
- Paytm Money