Evolving from the online stock trading system that was based on Computer and Internet, Mobile trading system is the next technology that has changed the way the stock trading is done by the investors. From the broker based physical trading of trades, initially the electronic trading systems made a breakthrough and today stocks are traded in Demat form electronically. Retail investors were able to trade from their own convenience using a personal computer connected to Internet. Web based software applications and packaged software applications help investors to do many tasks related with stock trading. Investors could buy or sell stocks, manage their portfolio, transfer funds from bank account to trading account, check company profiles and do technical analysis by charting.

One of the challenges of the personal computer based online trading system was the cost of the technology that is the Computer hardware and the software. It would cost a minimum INR 25000 for the personal computer and the operating system. In addition, Computer or Laptop computer are heavy and has restricted mobility. Desktop top computers had zero mobility and investors have to be present in a place either home or office to carry out the stock trade. In addition, the investors need to have knowledge in operating a computer system. Affordability, mobility and skill were the biggest challenges in penetration of the technology.

A Smartphone is a cellular telephone with an integrated computer and other features not originally associated with telephones, such as an operating system, Web browsing and the ability to run software applications. Smartphone runs on a recognized mobile operating system, such as Google's Android, Apple's iOS, Windows OS or the BlackBerry OS. (WhatIs.com, n.d). Under these mobile operating systems there are many apps available from what is called as app store. These app stores have thousands of apps in various categories which users can download and use them on their Smartphone. User’s experience of the apps is influenced by the design quality of the apps. Since too many apps are available for similar tasks, users are not able to find out the best app. User will have to download install and uninstall each app to find which is a better app. Due to a variety of reasons, such as bandwidth, data limits, limited space on the phone and a plain bad installing experience, users don’t like installing apps they aren’t sure about. Though users depend on the reviews, it is deceiving and quality of the app is not assessable. This paper however focuses on one type of app, ‘financial app’ and specifically the Mobile trading systems.

REVIEW OF LITERATURE:

Statistics from statista.com projects that number of apps available in leading app stores as of July 2015 is 4 million across the different app stores. Android is the leading app store with 1.6 million apps followed by apple store with 1.5 million apps. Since mobile apps are easy to create and is less costly, development of new apps and its penetration is growing very fast. But not all apps are of quality or useful to the people. Statistics show that apps from the Apple App Store were downloaded a cumulative 100 billion times, were not used more than once in the first six months (statista.com). Apps are available across many categories for different tasks. Some tasks are very vital such as medical and financial. Quality of such apps is very critical.

Buijink, Visser, and Marshall (2013) are concerned about the increasing numbers applications (apps) used in daily clinical care and the possible dangers associated with their use. There is a need for establishing appropriate regulatory procedures to ensure the safety of the patient. Huckvale, Adomaviciute, Prieto, Leow, and Car (2015) in a similar study on medical apps highlighted the risks associated with apps intended for patient use. Apps that lead to self-medication errors because of application that do dose calculations like insulin will require accuracy and clinical suitability. The prevalence of errors attributable to incorrect interpretation of medical principles underlines the importance of clinical input during app design. Based on the pressing needs of quality of health apps, BinDhim, Hawkey, and Trevena (2015) developed quality criteria for evaluating the quality of smartphone health-related apps.

Finance apps include, banking apps, insurance apps, recharge apps, buddy apps that involve transactions. Many other apps like tax, EMI and premium calculation apps, accounting apps etc are also included. Financial apps also have such critical quality implications because of involvement of money. When the quality of the app is poor, it can lead to loss of money. Since proper review are quality criteria are not available for such apps, users install and uninstall the apps and leave residue or corrupt the OS. Kuehnhausen and Frost (2013) argued that from plenty apps available there is no easy way to differentiate one that put users at risk or worse and are directly distributing malware or spyware. One attribute that is often used in distinguishing “good” Apps from “bad” ones are their ratings which are unreliable when number of reviewers are very low. Some time fake reviews also create problem. The authors presented a trustworthiness assessment model for Apps. Ruiz (2013) have shown that the rating of an application reported by Android Market is not solely a reliable quality measure. They found that 86% of the five-star applications throughout the Android Market in 2011 are applications with very few raters (less than 10 raters). Security of user data in unreliable apps is very important because of vulnerable information being provided through the app. Research on security aspects of apps are also done. Enck (2011) provide insight into the smartphone security research and also explore studies that include efforts in designing new OS protection mechanisms, as well as performing security analysis of real apps. Gilbert, Chun, Cox, and Jung (2011) discussed on the automated security validation of mobile apps.

Flora, Wang and Chande (2014) proposed that “In order to build high quality mobile applications, it is imperative to understand the key characteristics that define mobile applications, which if wisely considered and implemented, can facilitate the delivery of truly exceptional, valuable and user friendly mobile apps that satisfy users’ needs”. They conducted an online survey from the mobile research and development community online and measured the key characteristics of mobile application covering all lifecycle stages of app development. The key characteristics are classified into three categories: Hardware, Software (application interaction, application development, and application security) and Communication. Similar to web quality (Barnes and Vidgen, 2000; Loiacono, Watson, and Goodhue, 2002) a scale for app quality was developed by Elangovan and Dyuti, (2015). This scale was developed as a general tool. However, the functions of each category of apps and user expectations are also different. Therefore there is a need for developing an app quality scale for finance apps particularly that are used for stock trading.

METHODOLOGY:

This study uses an analytical method for development of an instrument for measuring the design quality of the mobile trading system applications for Smartphones. The scale will be a self reported instrument where app users will evaluate one type of app on the items that characterize the quality of apps,. First the concepts related with design quality of the apps are understood. Based on the basic concepts, an item pool is generated. The item pool is validated for content validity by experts from the relevant field and academics. Next the items are matched with a measurement scale and the final scale is presented.

Stage 1- Understanding the concepts and item pooling: Mobile Trading System (MTS) is Smartphone application software that utilises wireless technology in securities trading. They allow investors to access trading platforms from their telephones without the use of computer rather than being confined to traditional trading methods via computer. Apart from comprehensive trading it provides market monitoring and back-end functionality. Sondalini (n.d.) presented that as per ISO 9000 quality is the degree to which a commodity meets the requirements of the customer at the start of its life. Quality is an experience of the customer and they judge quality through their perceptions. Product quality perception comes from the design specifications and manufacture standards achieved. Service quality perception comes from the service process design and the customer contact impressions. Android developer is the official site provides the SDK, Developer's Guide, Reference, and Android Market for the open source project. Under the essentials of successful apps, Android developer proposes that focus on quality should be part of the entire app delivery process: from initial concept through app and UI design, coding and testing and onto a process of monitoring feedback and making improvement after launch (Android, n.d.).. The following criteria are provided by Android developer for quality of app.

Table 1 Quality parameters specified by Android Developer

Visual Design and User Interaction	These criteria ensure that app provides standard Android visual design and interaction patterns where appropriate (Navigation and Notification), for a consistent and intuitive user experience.
Functionality	These criteria ensure that app provides expected functional behavior, with the appropriate level of permissions, Install location, Audio, UI and Graphics, User/app state etc.
Performance and Stability	These criteria ensure that apps provide the performance, stability, battery, media, visual quality and responsiveness expected by users.
Google Play	These criteria ensure that apps are ready to publish on Google Play and provide parameter on policies, App Details Page and User Support
Test Procedures	These test procedures help to discover various types of quality issues in the app. Specific tests include the Core Suite, Install on SD Card, Hardware acceleration, Performance Monitoring, Battery, Google Play, Payments etc.

Flora, Wang and Chande (2014), in their investigation on the Characteristics of Mobile Applications found that key characteristics and features that differentiate mobile apps from conventional desktop applications can be classified into three categories i.e. Hardware, Software and Communication. Software part is further developed into Application interaction, Application development and application security. Since this study focuses on a particular App (MTS) only the application development dimension is framed. Other dimensions are common to all categories of apps. Flora, Wang and Chande (2014), had proposed 7 items under this dimension. Further looking at the various features described in the app page of MTS in the app stores Google play Finance apps another 12 items were added making a total of 19 items.

Stage 2- Expert validation: Generated items are validated with experts to check the coverage of the features of MTS. Experts include, agents, investors and academicians. Agents and investors mainly looked if the items generated are relevant to the context and if there is exhaustive coverage of the characteristics of the app. Academic experts validated the items as well as the wordings of the items to check if they convey the intended meaning. Four new items were added to the item pool making the total item to 23. An item taken from www.sersart.com proposed about the coordination of computer based system with the mobile trader is modified into synchronizes with the web based system.

Stage 3- Adding response scale of the assessment scale: To the items a five point likert scale of agreeableness is added. Further to this all the items are checked if the statement matches with the response scale. Items were re written if they did not relate with the response scale.

DISCUSSION:

Use of Mobile trading system has many advantage compared to the online trading system based on computer. Analyzing the relative advantage based on the dimension of Rogers Diffusion of Innovation, the following benefits highlight the importance of the mobile trading system adoption.

Table 2 Relative advantage of Mobile trading system

Degree of economic profitability	MTS has lower transaction cost in terms of power and internet usage compared to other devices
Low initial cost	Mobile phones with trading capacity are cheaper and are affordable an individual will buy
Decrease in discomfort	MTS is comfortable to work with than other devices. Using mobile stock trading would increase the convenience of stock trading
Social prestige	Using the MTS is welcomed by family and friends
Saves time and effort	MTS can be learned and adopted with less effort and less time than other devices. Using mobile stock trading would enable to accomplish stock trading more quickly. MTS helps in trading/checking prices/positions from anywhere and anytime.
Immediacy of rewards	Benefits of using MTS are quickly realized than other devices. MTS helps execute trades instantly than in other devices.

Similarly, the penetration of Smartphone and internet will help the exchanges to encourage any common person to become an investor and participate in the development of the economy of the country. To provide a better experience to the users of the mobile trading system the quality parameters need to be understood and taken care by the developers and the agencies. The following paragraphs describe the quality aspects of the mobile trading system.

Required options for trading are available (Application Focus):

Mobile app should serve the purpose for which it is intended. It should focus on specific features relevant to mobile application rather than replicating a desktop application. The app should be able to fulfil certain tasks in minimum number of clicks and respond in a rapid way.

Easy to place order:

The task of placing order should be quick enough to react to the market changes. The task of ordering requires selection of name of the stock, target price, quantity and the exchange. Stock will require codes and investors should have easy means to enter the code by prediction services, where by keying in key characters or company name should fetch the stock code. Orders Screen displays all entry (pending) orders, and allows the trader to individually view each order details, such as Open price, Current Market price, and Time/Date etc. Traders can also place (Stop), and or (Limit) orders to their entry (pending) orders. Other features for the entry orders are (Change order rate), and (Remove order).

Crisp Intraday and technical Charts:

Intraday movements should be presented in a higher time frequency. The charts should be able to show even the small changes in the price during intraday price movements.

Real time streaming quotes:

Real times quotes of the stocks are provided with feature-rich, easy to use interface by the app. Streaming charts with analytics are also available. The charts allow traders to choose from chart types, intervals, and provide real time streaming charts for each instrument.

Provides dealing rates:

Dealing Rates screen displays streaming (live) quotes produced by the dealing desk and users should be able to add or remove the instruments that they want to appear on the dealing rates screen board. All trades such as market orders and entry (pending) orders can be executed from the dealing rates screen menu.

Provides current positions:

Positions Screen displays all open positions, and allows the trader to individually view each position details, such as gross profit/loss, commission, net profit/loss etc. Traders can also place (Stop), and or (Limit) orders to their open positions. Other features for open position are (Hedge position), and (Execute position).

Watch list of stocks is available:

Investors doing research on potentially good stocks have a useful device available in the form of a watch list. A watch list is a roster of hopeful candidates that haven't yet made the final entry to one’s portfolio.

Provides trade alerts:

Mobile Trading System should allow traders to place alerts on any preferred prices. Traders can also receive price alerts while being logged out of the Mobile Trading System.

Provides latest market news and updates:

Forex news and other financial news should be available on the Mobile Trading System.

Interface is simple and user friendly:

A user-friendly interface is not overly complex, but instead is straightforward, providing quick access to common features or commands. User-friendly also means that it is not difficult to learn or understand. The user interface is well-organized, making it easy to locate different tools and options. Different interface are capable of responding to device movement, numerous gestures, global positioning system, cameras and multiple networking protocols.

Menu covers all tasks:

Menu system covers the basic tasks a user may carry out when using the built-in menu editor. Menu should address the basic opening, closing, and workflow management and automated tasks.

Navigation is simple and understandable:

Main navigation as simple and understandable and as possible is vital.

Multi-exchange Streaming Market Watch:

India has two main exchanges and investors trade on both exchanges. A market streaming of multiple exchanges gives a single place to follow live updates of markets moves and commentary.

Provides Live Reports:

It provides overall real-time picture of the Equity Market. The scrip related information like prices, Turnover, No. of shares traded is provided. Three different views are available viz. All Market, Groupwise and Index Wise Spurt in Volumes - Provides a list of scrips, where the day's traded volume is in the multiples of the preceding two weeks average volume.

Transfer Funds from your Bank to the trading A/C:

There are easy steps to transfer funds into the trading account using from the linked bank account.

Track my Demat Holdings:

It is necessary to check the Demat statement to ensure that purchased shares have been credited to the account.

Application has quick Responsiveness:

User Interface (UI) area, functionality, and databases access and make sure that an application remains responsive when running long operations such as database access, network access, and I/O.

Market indices of popular exchanges across world are available:

One countries market may react to the market indices of other countries. Investors take caution from other poular exchanges across the world. App should be able to list the market indices of them.

Can be personalized:

Creating individual content and role based on personalized context or usage is another characteristic especially when BYOD (Bring your own device) is considered. The survey respondents believe that users desire that the concerned app should fit their needs and perform the way they want. This specific attribute not only covers custom-made content but also controls over data that is stored, shared or used for more actions.

Synchronizes with the web based system:

The app should fully synchronized with the web based or to the desktop based trading system so that trader can seamlessly continue trading from various platforms. It should automatically share charts, notes, settings, notes, instruments displayed and more across the devices.

Trading in other instruments:

Traders will be interested in trading in many other instruments of the exchange like derivatives commodities, debt and mutual funds. The application should provide options to trade on various instruments.

Have offline tasks:

Option for storing information so that it is available offline will provide benefit of checking them without the expense of internet. Though trading and streaming prices may require internet connective, checking portfolio or calculation of profits can be done offline.

Provides supporting tools like notes / calculators:

Application provides Currency, Profit, Pip and Margin Calculators! It should offer a selection of simple tools, accessible in a few clicks. The items developed in this study are summarized in Table 3.

Table 3 Design Factors - Application Development

1	Required options for trading are available (Application Focus)
2	Easy to place order
3	Crisp Intraday and technical Charts
4	Real time streaming quotes
5	Provides dealing rates
6	Provides my current positions
7	A watch list of stocks is available
8	Provides trade alerts
9	Provides latest market news and updates
10	Interface is simple and user friendly
11	Menu cover all tasks
12	Navigation is simple and understandable
13	Multi-exchange Streaming Market Watch
14	Provides Live Reports
15	Transfer Funds from your Bank to the trading A/C
16	Track my Demat Holdings
17	Application has quick Responsiveness
18	Market indices of popular exchanges across world are available
19	Can be Personalized
20	Synchronizes with the web based system,
21	Trading in other instruments.
22	Have offline tasks
23	Provides supporting tools like notes / calculators

CONCLUSION:

This paper has presented a measurement scale for design quality of one of the financial software application used for stock trading using the mobile device such as Smartphone. The items were developed through a analytical study by review of various technical literatures and other scale development literature. A content validity is done through expert validation. Further the scale need to be empirically validated by including it with other related scales.

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Received on 14.05.2016 Modified on 28.05.2016

Asian J. Management. 2016; 7(3): 207-212.

DOI: 10.5958/2321-5763.2016.00031.7