Discount broking is here to stay. Retail clients have just proved that like all Indian consumers, they are price sensitive
Discount brokers, who were laughed at as a passing fad by the established brokers, are now having the last laugh. Discount broker Zerodha is now the largest broker in the country with 8.47 lakh clients, overtaking ICICI Securities with 8.44 lakh clients.
Discount brokers or no service brokers have done to the broking industry what no-frill airlines did to the airline industry. Conventional brokers tried to protect their turf by claiming they were providing quality research and thus deserved higher brokerage. Ask any retail client and you would know the quality of research and market calls provided by these broking firms.Discount broking is here to stay. Retail clients have just proved that like all Indian consumers, they are price sensitive. The big broking houses will have to spruce up their act to stay in the race.