If you see many discussions around the broking industry, they usually revolve around acquiring new clients.
Sharing Nithin’s tweet:
One of the biggest challenges of the broking industry is that retaining users is really, really hard. The reason is that most users eventually end up blowing up their accounts. And this isn’t limited to F&O; it happens in equities as well.
So, you have to keep running just to stand still, to maintain the number of users on the platform and ensure that the business remains steady.
We were looking at some statistics, and one of the surprising things we found was that roughly 55-60% of our users are still active. By active, I mean people who have holdings in their accounts.
The best proxy we have for the broader industry suggests that this number is much, much lower elsewhere.
This may be partly due to the fact that we have never advertised and don’t have a lot of new users who typically don’t trade and invest much.
