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Discount brokers take giant strides; now account for 57% of active clients

According to a CLSA report, discount brokers such as Zerodha, Groww, Upstox, and Angel One have increased their market share by five times over the past five financial years, and more than half of the NSE’s active clients trade through them. The overall market share of Report Discount Brokers Now (11MFY23) is 57%, up from 11% in FY18. In addition, the number of discount broker clients on the NSE has grown from just 1 million to 19 million during this time. Dynamic dealers are the people who have exchanged something like once in a year.

“Retail investors in India have increased their participation thanks to discount brokers. According to the report, “the majority of the incremental client acquisition for them is coming from tier-2 and lower positions.”


In the market, these discount brokers now hold a systemic importance. Due to their size, trading volumes, and client funds, Zerodha and Angel One have also been added to the stock exchanges’ list of Qualified Stock Brokers (QSB). Under the QSB, brokers must always fulfill additional responsibilities.


Retail participation increased significantly during Covid-19, but it is expected to decrease in February 2023 to 40.8 percent of the NSE’s cash segment’s average daily turnover. It reached its highest point in March of last year, when it was 52%. Retail investors were responsible for nearly two-thirds of the cash market volume in July 2020.


The number of demat accounts, which now number 119 million, also indicates a significant rise in retail participation.


“In fiscal year 22, cities other than the top 50/100 cities account for 57%/43% of new investor registrations for the NSE, indicating widespread interest in equity markets.” By FY26, NSE intends to manage Rs 100 million and targets the entire customer base,” it stated. Report.


In addition, the volume of futures and options (F&O) transactions has increased from Rs 3,454 trillion in FY20 to Rs 33,268 trillion for 11 months in the current financial year, according to the report.


“The share of trading from individual investors has increased from pre-Covid levels of 25-28 percent to 36% today,” CLSA stated for participants in options. In FY2016-20, the proportion of proprietary traders decreased, but increased thereafter.”

Take Discount Brokers Retail Pie
Total NSE Active Clients (million) market share
FY17 0.4 7%
FY18 0.9 11%
FY19 1.4 16%
FY20 2.6 24%
FY21 8.1 43%
FY22 19 53%
11M FY23 19.2 57%
Source: CLSA


Active clients on NSE (million)
FY17 6
FY18 8
FY19 9
FY20 11
FY21 19
FY22 36
11M FY23 34
Source: CLSA




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