India Security Brokerage - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)

The India Security Brokerage Market size is estimated at USD 3.94 billion in 2024, and is expected to reach USD 5.75 billion by 2029, growing at a CAGR of 7.89% during the forecast period (2024-2029).

Before the emergence of new startups in India, only large banks like ICICI, Kodak, and HDFC offered security brokerage services. As a result of the growth of these startups, many discount brokers have emerged in India and are now offering their services to an expanding clientele.

With COVID-19, several registered brokers in equity derivative segments observed a decline in registration at the National Stock Exchange and Bombay Stock Exchange. In line with this trend, the average annual performance of the S&P BSE index observed a continuous increase as COVID-19 cases started getting reduced. With the advent of COVID-19, as speculation in the market arose, there was an increase in retail buyers of security and an increase in the demand account growth rate, which was at a level of 13% in 2019 and reached 35% during the previous year, showing the change in people's expectations towards increasing the value of their money.

Post-COVID-19, banks are adopting contractionary monetary policy globally, with an increase in the interest rate and a declining stock index globally having to make retail investors spend less on buying new shares with an increase in market fluctuation, resulting in a decline in shares sold by brokers.

India Security Brokerage Market Trends

Increasing Demat account and brokerage business affecting Indian Security Brokerage Market

National Security Deposit Limited regularly regularizes all the electronic Demat accounts operating in India for buying and selling securities through brokerage websites online. The value of assets held under custody increased for debt, equity, and other securities. Last year they observed 24.96 lacs new Demat account openings, with a growth of 54% as a result of an increase in retail investors' surge for profit. Of the total depository participants, stock brokers occupy the largest segment, with banks coming next, and corporate actions consisting of the distribution of securities arising out of an IPO, Right Issue, observed a growth of 12%.

These trends signify an increase in the purchase of stocks by retail investors and an increase in business for brokers in the issue and sale of securities.

Trend in Stock Indices affecting Indian Security Brokerage Market

Two main stock exchanges operating in India are the National Stock Exchange and the Bombay Stock Exchange, which provide indices over the overall trend of different market segments. This trend helps retail investors form their speculation and decide whether to buy more stocks or sell existing shares. Both indices observed a bullish run, leading retail investors to buy shares with the expectation of increasing the price and gaining a profit.

This leads to increased business activity done by brokers as intermediaries for providing securities and gaining profit. With an increase in the global interest rate for controlling inflation and the contractionary policies of major central banks, stock indices turned down with a large sale of securities in the brokerage market.

India Security Brokerage Industry Overview

A broker is an individual or firm that acts as an intermediary between an investor and a securities exchange. In India, with existing Bombay and National Stock Exchanges, the leading online security brokers are Zerodha, Upstox, Angel Broking, SAS Online, Indian Infoline, Trade Smart Online, Flyers Securities, and Trade Plus Online. Brokers charge different prices for ETF and option trades, and depending on different services, they secure a margin for themselves and help retail investors access company shares.

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