Why do trading apps collect more data than they need?

Experts warn of potential data misuse, profiling and consent manipulation via dark patterns

- Sashind Ningthoukhongjam

On the surface, all stockbroking apps look similar. They help you trade for a fee, and users normally do a cost-benefit analysis before choosing one that suits them. However, what very few people realize is how much data—and what type—these apps collect.

Mint went to the Google Play Store and checked what permissions 16 popular stockbroking apps request from Android users. What we found is that different brokerages ask for different kinds—and numbers—of permissions.

Consider Angel One, India's third-largest stockbroker by active clients. The app asks for permission to read the user's contact list, and to know which other apps are installed on your phone. Such access, which can be used for various purposes (for instance, antivirus apps need to know which other apps are installed on the phone so it can scan them), is hidden behind technical lingo—“query all packages”. The Angel One app has been downloaded more than five crore times from the Play Store.

Incidentally, the HDFC Securities app also requests permission to 'query all packages'. Angel One did not respond to the queries sent by Mint, while HDFC Securities declined to comment.

For context, Google Play regards the list of installed apps on a user's device as personal and sensitive information, and using this permission is only permitted if the app in question needs this for its core functionality. "If your app does not meet the requirements for acceptable use, you must remove it from your app's manifest in order to comply with Play policy," Google says on its support page for Android.