Surge in Groww’s Active Investors
Discount broker Groww has experienced a significant increase in its active investor base over the past year, according to data from the National Stock Exchange (NSE).
The company’s active users have doubled to approximately 11 million, compared to 5.65 million a year ago, as reported by Moneycontrol. This surge contributes to the overall 40 million active users in the market.
Demat Account Growth
Demat accounts continue to expand rapidly, reaching 160 million in June with a net increase of 4.2 million. Groww added 550,000 users in June, while Angel One and Zerodha gained 220,000 and 150,000 active investors, respectively.
Notably, Angel One has surpassed Zerodha in monthly user growth for the past year and is expected to overtake it entirely.
Traditional Broker Stagnation
Traditional brokers have faced minimal growth since the advent of discount brokers, which are typically backed by banks. However, SBICAP Securities has emerged as an exception, increasing its active investors by 64% to 920,000 in June.
F&O Trading Concerns
The potential restrictions on futures and options (F&O) trading pose a financial risk for discount brokers. F&O traders constitute 10-20% of their client base but contribute 60-80% of revenue for many top ten brokers. The anticipated impact on topline revenue is estimated to be around 30-40%.
