Discount broker Groww has overtaken Zerodha to become the largest broker in terms of active investors in India.

As of September, Groww had 66.28 lakh active investors, accounting for a 19.9% market share. Meanwhile, Zerodha had 64.79 lakh investors, with a 19.4% market share during the same period. In September alone, Groww added 3.93 lakh clients compared to Zerodha’s 1.21 lakh clients.

In addition to Groww and Zerodha, the other three brokers in the top five in September were Angel One, Upstox, and ICICI Securities with 48.56 lakh, 21.93 lakh, and 19.12 lakh active investors, respectively.

Zerodha had 63.92 clients at the end of FY23, with a 19.6% market share. On the other hand, Groww had 53.73 lakh clients with a market share of 16.5%.

The Covid-19 pandemic was a turning point for digital brokers, with nearly 70% of the current client base being added after the outbreak. Investors in their twenties and thirties, who prefer a DIY approach, have flocked to online trading platforms due to their simplicity, flat-fee structures, and quick account opening process.

Zerodha, Upstox, Angel One (formerly Angel Broking), 5paisa, and Groww together now hold a market share of over 50% as of July 2021. This marks a significant increase from the 17% market share held by the top five discount brokers at the end of FY19.

A few years ago, brokers like Zerodha disrupted the industry with their discounting model, which has become a staple for digital brokers to this day. Most digital brokers charge a flat fee of ₹20 for intraday and F&O trades. Traditional brokers have also reduced their brokerage fees and are increasingly focusing on acquiring customers digitally, rendering pricing less of a differentiating factor.

Published on October 12, 2023

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