We have seen a dramatic upsurge in the statistics of millennial investors entering the trading landscape in recent years, and we understand that this reformation is tech-driven. What exactly among the features of these trading or investing platforms online is compelling these young investors to hop on to the bandwagon?
Gamification of these stock trading apps is the appropriate answer to this question because the app developers and market researchers have left no stone unturned in creating these mobile-based applications that incorporate all the elements of a perfect game-play mechanic to provide an intuitive and interactive experience to their users while they trade.
What is the gamification of stock trading apps?
The whole and sole purpose of introducing the concept of gamification in any trading app is to entice the users with an engaging and interesting interface and provide incentives and rewards to keep them hooked on these apps. Some examples of gamification are:
- Leaderboards that display the names of top-performing investors and their ranks elevate the competition spirit.
- Option of accumulating virtual currencies and tokens that can be earned and spent within the app.
- Digital badges and rewards for completing a milestone through some actions in the app.
- The ability to socialize and connect with fellow app users can be friends and family. In this way, it creates a social circle that trips and trades together.
- Usage of games like graphics and language while sending alerts and push notifications so it becomes compelling for new-age investors.
The growing number of users of these apps has raised the alarm among seasoned investors and market analysts about the potential threat of addiction or misinformation these apps may be undermining. However, a responsible section of users has been gaining profits consistently, accounting for more than a 100% increase in app downloads. Let us understand the reasons behind these apps’ growing popularity and how they compete with great financial corporations and investment organizations.
- These apps are leveraging the advanced form of technology to provide a seamless experience to their users at much lower operating costs. With time they have successfully instilled trust among their users, who are optimistic about promised returns and low-cost barriers for getting started. Fee-free trading is something that has drawn a large number of potential investors who otherwise remained on the sidelines due to high minimums and trading fees.
- Keeping your users engaged is the new mantra to stay relevant and on top of the fame game in the digital landscape. Some of these app developers specifically focused on creating a super interactive and highly engaging interface where the users could learn the nitty and gritty details of online investing and trading in “not so boring” ways. Additionally, features like a stock screener, trading-view charts, etc., have contributed to the simplified usability and massive popularity.
- Gamification of these apps was like opening the door to a world of endless possibilities because, through these features, there are multiple ways to establish a personal connection with the users and keep them engaged in several ways. Some apps provide free stocks to novice users before they begin their investment journey. Once the user makes a first trade, there is a confetti blast on the screen. The leaderboard keeps flashing the most popular stocks on a particular day, depending upon the share market news. These are some ways in which gamification influences the psychology of these investors and traders.
These apps’ impact on industry standards is commendable, as they were initially tagged as “industry disruptors.” But the norm of fee-free trading and prioritizing customers are some of the features widely accepted as the reformed policies of many conventional investment organizations.