NEW DELHI: Discount brokers continue to chip away market share from traditional/full-service brokerages, with top five of them raising their market share to 64.6% in July, up from 58.1% in the year-ago period.
Meanwhile, brokerages added 4.5 million new demat accounts in July, taking the total to 167 million in the month, up 35% year-on-year at 123 million and 3% jump on a monthly basis. This has the average monthly account additions of 3.9 million so far in the current fiscal, as per the data from traditional brokerage Motilal Oswal sourced from the exchanges and NSDL and CSDL.
Top five discount brokers accounted for 64.6% of total NSE active clients in July, up from 58.1% in July 2022, increasing the number of active clients on the NSE by 3.2% to 45.7 million in July, the brokerage said.
Groww toppled Zerodha to become the top brokerage in terms of clients in August 2023, and continues to add more clients and market share in July, recording 4.9% month-on-month rise in its client count to 11.5 million, and increasing its market share 40 bps to 25.1%. In July 2023, Groww had 18.8% market share and toppled Zerodha next month with 19.9% market share.
On the other hand, Zerodha continued to lose share as it added only 1.7% more clients to 7.8 million in the reporting month, and lost 25 bps to 17.1%. Zerodha at its peak had a market share of 19.8% in July 2023 and since then has been losing.
Angel One saw a 3.8% growth in its client count to 7 million, adding 10 bps to market share to 15.3%, Upstox clocked a 2.7% rise in its client count to 2.7 million, and controlled 6% market share and 5Paisa lost 44 bps of its market share to 1.2%.
On the other hand, traditional brokers led by ICICI Securities, which is being delisted, reported client count at 1.9 million, and lost 10 bps to 4.2%. IIFL Securities added 0.5 million clients and had 1% market share.
While the proposed F&O curbs has had its impact on NSE volume, it did in fact help BSE raise its volume share. The market share of BSE in the total cash segment came in at 7.1% in July, up from 6% in July 2023.