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Last Updated : Jul 16, 2019 12:57 PM IST | Source: Moneycontrol.com

Discount brokers see surge in client additions: Report

Zerodha, which has a market share of 11 percent, currently has around 9.8 lakh active clients.

Discount brokers such as Zerodha, Upstox and 5Paisa  are adding more clients than many full-service brokerages, according to a report in Business Standard.

The platforms are gaining popularity among first-time investors, who are typically in their 20s and 30s.

In fiscal year 2018-19, discount brokers accounted for 60 percent of client additions in the sector, the report said.


In June 2019, the web-based brokers gained the highest number of clients. Upstox added over 25,000 clients, Zerodha added over 20,000 and 5Paisa gained over 36,000 clients.

Upstox and 5Paisa gained more clients than Reliance, Edelweiss and Religare, the report added.

The report cited data from SBICAP Securities and the National Stock Exchange (NSE).

Zerodha, which has a market share of 11 percent, currently has around 9.8 lakh active clients. This takes it ahead of its traditional counteraprts such as ICICI Securities (8.8 lakh active clients) and HDFC Securities (6.5 lakh clients).

“About 70 percent of our monthly client additions are first time investors, mostly in their 20s and early 30s. The product experience and low transaction cost appeals to them, compared to what is offered by traditional brokers,” Zerodha founder Nithin Kamath told Business Standard.

Zerodha charges a fee of 0.01 percent or Rs 20 (whichever is lower) for an equities trade, irrespective of the value.

For a trade in equity options, the platform charges a flat fee of Rs 20 per trade. Delivery based trades are free on Zerodha.

5Paisa charges a flat brokerage of Rs 10, while Upstox too ask clients for a flat fee of Rs 20 per trade.
First Published on Jul 16, 2019 12:56 pm