A stock market is like an auction house that follows the principles of demand and supply. The buyers bid for different prices, also known as bidding prices. Bangladesh has two stock exchanges- Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (DSE)
Wow, I should probably invest this! - We have all probably said this at least once after saving up enough capital or coming into some money.
Whether you are a first-timer or a seasoned stock buyer, investing money in the stock market can result in an excellent return. Investing can be a great option for those seeking to fund their retirement, another source of income, or ease the financial jam. Most importantly, investing grows wealth, elevating purchasing power and supporting financial goals.
Once you have made up your mind to invest in stocks, what is the next step?
A stock market is like an auction house that follows the principles of demand and supply. The buyers bid for different prices, also known as bidding prices. Bangladesh has two stock exchanges- Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (DSE). The most common practice of trading shares in the country is by taking support from brokerage houses. However, most brokerage houses tend to fail to provide proper customer-centric services. While some primarily focus on the shares being traded, others do not give importance to the investors' trading experience.
For this reason, numerous initiatives are being taken, incorporating technology to augment the current scenario of the capital market in the country. For instance, brokerage houses are now introducing their own Order Management System (OMS), using which investors can trade from anywhere, anytime. Forced to contend with, whether it is the growing volumes, shrinking margins, customer service, or the ongoing technological and digital revolution, brokerage houses are increasingly finding that transitioning to an effective OMS is imperative. Simply put, OMS is an electronic system used by brokers and dealers to fill orders for wide-ranging securities, ultimately able to track the progress of the orders across the system. It not only saves time for the investors but also brings the opportunity to learn more information about the Bangladesh capital market. The investment process can become extremely seamless and convenient using the OMS hosted by the brokerage houses.
Broker Hosted OMS (BHOMS) can be used to trade across both DSE and CSE from a single system. In contrast, the same cannot be done using OMS hosted by the exchange as they (DSE and CSE) are not connected to each other. Dhaka Stock Exchange officials said 49 brokerage firms applied to get the application program interface (API) shared so that they can use their own OMS instead of the exchange-hosted OMS. Brokerage houses do not have control over the features and functions of OMS hosted by exchange and only offer general ones ensuring maximum protection. Brokers Hosted OMS, on the other hand, offers plenty of other features like OTP options through text or email for investors living abroad or traveling. It also allows investors, who do not follow the market actively but wish to buy or sell shares at certain prices, to trade within the continuously fluctuating prices in the market through features that are only available in BHOMSs.
BHOMS can make all investment-related processes hassle-free. A broker-hosted OMS can provide data and information which enhances overall financial literacy and investment rationale. Most importantly, it will allow each brokerage house to differentiate itself from the 300 other competitors in the market. Brokerage houses like NBL Securities are offering their own OMS in this era of digitization, introducing personalized, enhanced, and meaningful customer service. This automated process is all set to redefine trading processes with the utmost efficiency. After all, it is an investor-friendly approach that can positively affect Bangladesh's capital market in the long run.
In the world of investing, merely deciding to capitalize is not enough. One must thoroughly research how the capital market operates and think strategically. Hassle-free and sustainable investments require hard work, but above all, it needs a strong support system. Broker Hosted OMS will provide exactly that and more by bringing prosperity to the country's economy. So, when you are ready to invest, use that BHOMS and invest the right way!
The writer is the Managing Director at NBL Securities
