The market crashed in March and has recovered quite a lot in May and June.
The top brokers in India have shown phenomenal gains in the number of active users. The highest growth has come from smaller cities and towns of India.
Industry-leader Zerodha was the biggest gainer for the last three months – March, April and May 2020.
The company gained nearly 5 lakh new customers.
Growth-wise too, Zerodha was ahead of everyone else.
Check out the table below:
|Broker||Feb 2020||June 2020||Growth %|
When it comes to market share, Zerodha continues to lead – followed by ICICI Direct and HDFC Securities.
The second largest discount-broker, Upstox is emerging as the top contender to beat both ICICI and HDFC.
The company is likely to beat HDFC this month and challenge ICICI for the second spot in July or August.
The competition could soon be between Zerodha and Upstox. It’s becoming quite clear that customers are now preferring discount brokers over full service brokers.
- ICICI became the second stock broker in India to cross 10 lakh active clients.
- Zerodha is likely to cross the 20 lakh active clients mark in the month of July.
- Upstox has shown outstanding growth rate of 32% over a 3-month period. It has added 1.75 lakh clients in just 3 months – which is nearly 2000 new customers per day.
- Zerodha continued to grow the most, even though it has the highest number of customers. It has added 5 lakh customers in 3 months – which is more than 5500 clients per day.
- Angel has entered the Top 5, beating a much-bigger company like Kotak.
- Axis was the slowest growing brokerage in the Top 10.
- The Top 5 could look a lot different in the next few months with 5 Paisa likely to enter the Top 5.
- Full Service Brokers like ICICI, HDFC, Kotak etc have been losing market share in the last 5 years. Zerodha has disrupted the market and given something that most Indian love – quality service at low costs. Something that Reliance Jio did in the telecom space.
- This disruption by Zerodha has resulted in emerging companies like Upstox and 5Paisa that have shown phenomenal growth over a short period of time.
- There are reports that people who have lost jobs are entering the stock market to become full-time traders. While higher participation in the market, especially from smaller cities, is a good sign. Trading is an extremely difficult profession, which requires a lot of experience.