Discount broker Groww clocked a surge in its active investor base over the past year, official data from the National Stock of Exchange (NSE) revealed. The data showed that the Bengaluru-based online trading platform doubled its active investor base to nearly 11 million users.
Comparatively, the company’s active user base stood at 5.65 million during the same period a year earlier, reported Moneycontrol. The overall demat accounts in June touched 160 million, as the month saw a net addition of 4.2 million accounts.
The data showed that the overall number of active users stood at a little over 40 million. Demat accounts continued to increase at a rapid pace even as the possible restrictions on futures and options (F&O) trading could impact revenue for the discount brokers.
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Groww saw an addition of 550,000 users during June, while Angel One added 220,000 active investors during the period. Zerodha followed behind with an addition of 150,000 users during the reviewing period.
Mumbai-based Angel One also surpassed Zerodha in adding more users every month in the last year. Eventually, the former is expected to surpass Zerodha altogether soon.
Notably, traditional brokers have noticed minimum growth in the last decade since discount brokers have entered the industry. These brokers are generally backed by banks. At the same time, SBICAP Securities emerged as the exception as its active investors increased by 64 per cent to 920,000 in June from 560,000 during the corresponding month a year earlier.
However, the possible F&O restrictions pose a threat to revenue generation for discount brokers. The brokers are gearing up for nearly 30-40 per cent impact on their topline following the regulations introduced over the last two weeks. Amongst the overall active client base, F&O traders account for nearly 10-20 per cent of the clients, however, in terms of revenue, these traders contribute between 60-80 per cent of the overall revenue for majority of the top ten discount brokers.
