Who are the largest brokerage firms in India?

Groww, Upstox, Paytm money have cumulative net losses since their inception.
Groww has turned positive since FY20-21 but is yet to cover the accumulated losses. Moreover, the shareholding of groww is quite fragmented and the founders do not own a sizeable share of the company.
In Angel one, the promoter shareholding is 38.21% and the FY24 net profit is RS 1126 Crore. So, the share of net profit attributable to promoters is rs 430.2 crore.
ICICI Securities net profit for FY24 is s 1697 crore and promoter shareholding is 74.73%. So the share of net profit attributable to promoters is 1268.1 crore.
Kotak securities made 865.22 crore in FY23 and the promoter holding is 25.90%. So the share of net profit attributable to promoter is 224 crore.
HDFC Securities FY23 Net profit was 777.2 crore. Promoter holding is 20.87%. So net profit attributable to promoters is 162.2 crore.
Motilal oswal financial for FY23 is 935 crore and promoter holding was 69.68%. So share ho net profit attributable to promoter is 651.5 crore.
According to google, Nithin an Nikhil Kamath together hold close to 60% share of Zerodha. Zerodha has been profitable from year 1 of operations. FY23 Net profit is 2907 crore. Share of net profit attributable to promoters is 1744 crore.
So, the number of active users is not as important a metric as high value customers. Many brokers have been giving cash incentives to customers to open accounts because they use the number of customers metric to go and raise funds from their investors.
The cost of acquisition of many customers is not being adequately recovered by brokers because accounts are opened in many cases just to get the cash incentive by customer and to show the high number of account openings to the investors/VC.
So, think to yourself, if you own and operate a mall, do your want foot traffic where 95% of them are simply doing window-shopping or do you want high spenders who actually buy stuff from the shops so that the mall can continue to run profitably. Hopefully this will clear some misconceptions.

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In the stock broking industry, acquiring a large customer base, even with a dip in revenue, can be a strategic move for a company with a long-term vision for several reasons:

1. Customer Acquisition Cost (CAC) vs. Lifetime Value (LTV):

  • Stockbrokers typically earn revenue through commissions or fees on trades. Initially, attracting new customers with lower fees or no fees, lead to lower immediate revenue per customer. However, the goal is to convert these customers into long-term investors who trade consistently, generating a higher Lifetime Value (LTV) over time. A larger customer base provides a bigger pool to cultivate loyal, high-value clients.

2. Network Effects and Brand Recognition:

  • In the stockbroking industry, a larger customer base can create a network effect. As more people use the platform, it becomes more attractive to others seeking a vibrant and active trading community. This can snowball into increased brand recognition and attract even more users organically.

3. Economies of Scale and Diversification:

  • A larger customer base allows a broker to leverage economies of scale. They can negotiate better deals with exchanges and data providers, reducing operational costs and potentially leading to lower fees for all customers in the long run. Additionally, a large client base allows the broker to diversify its revenue streams. They can explore offering educational resources, premium investment tools, or wealth management services, generating additional income beyond basic trading commissions.

4. Data Advantage and Personalized Offerings:

  • A vast user base provides valuable data on investor behavior, trading patterns, and financial goals. This data can be used to personalize investment recommendations, develop user centric features, and ultimately improve customer satisfaction and retention.

5. Competitive Advantage in a Crowded Market:

  • As the stock broking industry is becoming increasingly competitive, focusing on customer acquisition, the company can establish a strong market position and gain competitive advantage.

Also it is important to consider, simply acquiring new customers isn’t enough. Onboarding them effectively and providing educational resources are crucial to ensure they understand the platform and feel comfortable investing. Similarly focus on Customer Retention by devising strategies to retain acquired customers and maintain their engagement is essential to maximize LTV and achieve long-term success.

Overall, for a stockbroker with a long-term vision, sacrificing some initial revenue to acquire a large customer base can be a strategic investment. By focusing on customer lifetime value, network effects, and data-driven personalization, the company can build a loyal client base and achieve sustainable profitability over time.

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could you please provide latest active client list on april.

NSE Data for April 2024 (Archived) -

Symbol Meaning | :large_blue_circle: - No change | :green_circle: - Moved up | :red_circle: - Moved down | :yellow_circle: - Newly added |

S. No Trading Member Name (aka Name of Stock Broker) Active Clients Since last month Change
1 NEXTBILLION TECHNOLOGY PRIVATE LIMITED (GROWW) 9931232 +392623 :large_blue_circle:
2 ZERODHA BROKING LIMITED 7392836 +105688 :large_blue_circle:
3 ANGEL ONE LIMITED 6302598 +190719 :large_blue_circle:
4 UPSTOX SECURITIES PRIVATE LIMITED 2555618 +38971 :large_blue_circle:
5 ICICI SECURITIES LIMITED 1862161 +16959 :large_blue_circle:
6 KOTAK SECURITIES LTD. 1248531 +39583 :large_blue_circle:
7 HDFC SECURITIES LTD. 1114215 +16468 :large_blue_circle:
8 MOTILAL OSWAL FINANCIAL SERVICES LIMITED 893218 +13589 :large_blue_circle:
9 SBICAP SECURITIES LIMITED 891155 +27331 :large_blue_circle:
10 PAYTM MONEY LTD. 797157 -4989 :large_blue_circle:
11 SHAREKHAN LTD. 671884 +7031 :large_blue_circle:
12 5PAISA CAPITAL LIMITED 550689 +1642 :large_blue_circle:
13 MONEYLICIOUS SECURITIES PRIVATE LIMITED (DHAN) 512564 +42603 :large_blue_circle:
14 IIFL SECURITIES LIMITED 444044 +4907 :large_blue_circle:
15 MIRAE ASSET CAPITAL MARKETS ( INDIA ) PRIVATE LIMITED 383186 +30249 :green_circle:
16 INDMONEY PRIVATE LIMITED 373042 +29537 :green_circle:
17 AXIS SECURITIES LIMITED 371589 +7685 :red_circle:
18 GEOJIT FINANCIAL SERVICES LIMITED 246824 +3110 :large_blue_circle:
19 FYERS SECURITIES PRIVATE LIMITED 231738 +8940 :large_blue_circle:
20 CHOICE EQUITY BROKING PRIVATE LIMITED 197727 +4182 :large_blue_circle:
21 SMC GLOBAL SECURITIES LTD. 182535 +3823 :large_blue_circle:
22 NUVAMA WEALTH AND INVESTMENT LIMITED. 174917 +1328 :large_blue_circle:
23 ALICE BLUE FIN SVCS P LTD 165397 +1955 :large_blue_circle:
24 RELIGARE BROKING LIMITED 145382 +1399 :large_blue_circle:
25 NIRMAL BANG SECURITIES PVT. LTD. 143486 +2240 :large_blue_circle:
26 MARWADI SHARES AND FINANCE LIMITED 130184 +2735 :large_blue_circle:
27 ANAND RATHI SHARE AND STOCK BROKERS LIMITED 127921 +2657 :large_blue_circle:
28 FINVASIA SECURITIES PRIVATE LIMITED 121529 +8223 :green_circle:
29 JAINAM BROKING LIMITED 104881 +3304 :green_circle:
30 JM FINANCIAL SERVICES LIMITED 100781 +4370 :green_circle:
31 SAMCO SECURITIES LIMITED 89817 -44 :green_circle:
32 ADITYA BIRLA MONEY LIMITED 82790 +2311 :green_circle:
33 SWASTIKA INVESTMART LIMITED 80765 +197 :large_blue_circle:
34 NJ INDIA INVEST PRIVATE LIMITED 80449 +2002 :green_circle:
35 TRADEBULLS SECURITIES (P) LTD. 78154 +1719 :green_circle:
36 YES SECURITIES (INDIA) LIMITED 72962 +1838 :green_circle:
37 RELIANCE SECURITIES LIMITED 72675 -301 :large_blue_circle:
38 GLOBE CAPITAL MARKET LIMITED 64035 +915 :green_circle:
39 MASTER CAPITAL SERVICES LIMITED 61273 +1209 :green_circle:
40 IDBI CAPITAL MARKETS & SECURITIES LTD. 55635 +344 :green_circle:
41 BONANZA PORTFOLIO LTD. 55083 +984 :green_circle:
42 ARIHANT CAPITAL MARKETS LIMITED 52229 +1687 :green_circle:
43 PHONEPE WEALTH BROKING PRIVATE LIMITED 49080 – :yellow_circle:
44 INTEGRATED ENTERPRISES (INDIA) PRIVATE LIMITED 48353 +685 :green_circle:
45 PRABHUDAS LILLADHER PVT. LTD. 45983 +1128 :green_circle:
46 PROFITMART SECURITIES PRIVATE LIMITED 40396 +203 :green_circle:
47 SHRI PARASRAM HOLDINGS PVT. LTD. 35439 +945 :green_circle:
48 STOCKHOLDING SERVICES LIMITED 35231 -35254 :red_circle:
49 GOODWILL WEALTH MANAGEMENT PVT LTD 34801 +151 :green_circle:
50 DHANI STOCKS LIMITED 33459 +623 :green_circle:
51 BAJAJ FINANCIAL SECURITIES LTD. 33002 +1202 :green_circle:
52 ASTHA CREDIT & SECURITIES (P) LTD 30878 +339 :green_circle:
53 FORTUNE CAPITAL SERVICES PRIVATE LIMITED 30547 +734 :green_circle:
54 VNS FINANCE & CAPITAL SERVICES LTD. 28623 -458 :green_circle:
55 EUREKA STOCK & SHARE BROKING SERVICES LIMITED 27141 +439 :green_circle:
56 SOUTH ASIAN STOCKS LTD. 20851 -76 :green_circle:
57 ASIT C MEHTA INVESTMENT INTERRMEDIATES LTD. 19483 +291 :green_circle:
58 ALANKIT IMAGINATIONS LIMITED 17406 +188 :green_circle:
59 FINWIZARD TECHNOLOGY PRIVATE LIMITED 16869 +813 :green_circle:
60 PHILLIPCAPITAL (INDIA) PVT. LTD 16300 +162 :green_circle:
61 RUDRA SHARES & STOCK BROKERS LIMITED 13345 +223 :green_circle:
62 INVENTURE GROWTH & SECURITIES LIMITED 12611 +180 :green_circle:
63 GEPL CAPITAL PRIVATE LIMITED 10678 +183 :green_circle:
64 PUNE E STOCK BROKING LIMITED 10562 +136 :green_circle:
65 STANDARD CHARTERED SECURITIES (INDIA) LIMITED 9217 +184 :green_circle:
66 SHREE BAHUBALI STOCK BROKING LTD 8710 +81 :green_circle:
67 AIRAN FINSTOCKS PRIVATE LIMITED 7985 – :yellow_circle:
68 CAPSTOCKS & SECURITIES (INDIA) PRIVATE LIMITED 7281 – :yellow_circle:
69 KRCHOKSEY SHARES AND SECURITIES PRIVATE LIMITED 7164 +70 :green_circle:
70 MANDOT SECURITIES PRIVATE LIMITED 6694 +130 :green_circle:
71 SUNLIGHT BROKING LLP 6651 +88 :green_circle:
72 RAGHUNANDAN CAPITAL PRIVATE LIMITED 6250 +116 :green_circle:
73 SHARE INDIA SECURITIES LIMITED 6011 +332 :green_circle:
74 IFCI FINANCIAL SERVICES LIMITED 5690 +136 :green_circle:
75 KALPATARU MULTIPLIER LTD. 4748 – :yellow_circle:
76 COCHIN STOCK BROKERS LTD. 4323 +51 :green_circle:
77 ATS SHARE BROKERS PRIVATE LIMITED 4034 +74 :green_circle:
78 DB (INTERNATIONAL) STOCK BROKERS LTD. 3444 – :yellow_circle:
79 FINDOC INVESTMART PVT. LTD. 2392 – :yellow_circle:
80 LOHIA SECURITIES LTD. 1947 – :yellow_circle:
81 AXIS CAPITAL LIMITED 1747 – :yellow_circle:
82 CIL SECURITIES LTD. 1713 – :yellow_circle:
83 GANGANAGAR COMMODITY LIMITED 1579 -3221 :green_circle:
84 RRS SHARES & STOCK BROKERS PVT. LTD 1564 – :yellow_circle:
85 INTERACTIVE BROKERS (INDIA) PRIVATE LIMITED 1236 -13 :green_circle:
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Lot of new entrants this month… that too phonepe with 49k new members in just a month?

They have crores of UPI users. One popup in app is enough to make people open demat, especially if they blast FREE FREE FREE

While the broking industry is experiencing unprecedented once-in-a-generation tailwinds, the only broker to loose active clients in this month (among the top 30 brokers) is Paytm money. Well done Paytm!

Well, Sharmaji also holds the distinction of perhaps being the single biggest wealth destroyer of retail investors. @ approx 1.4 lakh crores investors money down the gutter (market cap seeked at ipo v current mcap)

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