In a significant shift in the Indian brokerage industry, Groww has emerged as the country's largest broker, surpassing Zerodha in terms of active investors. At the end of September, Groww boasted 66.28 lakh active investors, securing a market share of 19.9%, while Zerodha had 64.79 lakh investors with a 19.4% market share during the same period. Notably, in September alone, Groww added 3.93 lakh clients, compared to the 1.21 lakh clients added by Zerodha.
The Top Five Brokers in India
The top five brokers in September included Angel One, Upstox, and ICICI Securities, with 48.56 lakh, 21.93 lakh, and 19.12 lakh active investors, respectively. Looking at the figures at the end of FY23, Zerodha had 63.92 lakh clients with a 19.6% market share, whereas Groww had 53.73 lakh clients, accounting for 16.5% of the market share.
The Rise of Digital Brokers in the Post-Covid Era
The COVID-19 pandemic served as a turning point for digital brokers in India. Nearly 70% of the current client base was added after the outbreak, with a surge in sign-ups from tech-savvy investors in their twenties and thirties. These investors were attracted to the simplicity of online trading platforms, flat-fee structures, and swift account-opening processes.
Several years ago, brokers like Zerodha disrupted the industry with their discounting models, which continue to be a key feature of digital brokerage services. Most digital brokers charge a flat fee of ₹20 for intraday and F&O trades. Traditional brokers have also adjusted by reducing brokerage fees and adopting digital customer acquisition strategies, making pricing no longer the sole differentiator in the industry.
As of July 2021, Zerodha, Upstox, Angel One (formerly Angel Broking), 5paisa, and Groww collectively held a market share of over 50%, marking a significant increase from the 17% market share held by the top five discount brokers at the end of FY19.
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