India Securities Brokerage Market Assessment, By Service [Order Execution, Advisory, Others], By Type [Full-service Brokers, Discount Brokers, Robo-Advisors, Brokers-Dealers], By Mode [Offline, Online], By Trading Type [Short-term Trading, Long-term Tradi

India Securities Brokerage Market Assessment, By Service [Order Execution, Advisory, Others], By Type [Full-service Brokers, Discount Brokers, Robo-Advisors, Brokers-Dealers], By Mode [Offline, Online], By Trading Type [Short-term Trading, Long-term Trading], By End-users [HNIs, Retail Investors, Institutional Investors], By Region, Opportunities and Forecast, FY2018-FY2032

India Security brokerage market is projected to witness a CAGR of 7.24% during the forecast period FY2025-FY2032, growing from USD 3.15 billion in FY2024 to USD 5.51 billion in FY2032. Factors such as the rise in demand for trustworthy, fast, and efficient order execution, the rise of favorable government regulations, increasing demand for demat accounts, and the need for market supervision primarily drive the growth of India security brokerage market. On the contrary, the emergence of AI and algorithms in financial services is expected to provide profitable opportunities for market growth during the forecast period.

India security brokerage market is a financial industry segment focused on facilitating the buying and selling of stocks and other securities on behalf of investors. The market involves various participants such as high net-worth individuals, retail, and individual investors. Securities Brokerages act as intermediaries between the buyers and sellers of stocks. They execute orders on behalf of clients, providing access to stock exchanges and other trading platforms. Regulations set by the Securities and Exchange Board of India (SEBI) regulate the operations of brokerage firms, including accreditation requirements, compliance standards, and investor protection strategies. The security brokerage market plays a crucial role in the functioning of financial markets by facilitating capital formation, price discovery, and investment opportunities for individuals and institutions alike.

Increasing Demat Account and Brokerage Business Drives Growth

National Security Deposit Limited (NSDL) regularly standardizes all the electronic Demat accounts operating in India for buying and selling securities through brokerage websites online. The total number of demat accounts increased to INR 15.14 million in March 2024. According to Motilal Oswal Financial Services, new account additions soared to INR 31 Lakhs in the previous month. These developments indicate an increase in the purchase of stocks by retail investors and an increase in the stock broking market in the issue and sale of securities. The major depositories, CDSL and NSDL experienced an 11.9 percent YoY surge, bringing the total tally to INR 15.14 crore from INR 11.45 crore.

Investments in Real Time Promotes Growth

Utilizing an online security brokerage platform makes real-time monitoring of investments much easier. Users have access to a strong set of tools and resources made ready for use by various online trading organizations. These resources provide users with information that can be used to make their trading transactions more successful. online trading platforms could easily monitor the performance of their assets, owing to real-time stock data. Traders can keep a record of their portfolio performance and determine the necessary changes required to get a suitable outcome. Traders can generate real-time trading notifications to implement their strategy. Software trading helps to keep a record of storing and making trading records accessible. Through digital data, traders can study their previous businesses, learn from their mistakes, and find the best solutions. Thus, this factor drives the growth of India security brokerage market.

Western India to Dominate the Market While Northern is the Fastest Growing

According to region, the stock broking market is divided into four regions – North, South, East, and West and Central. Mumbai, in the west region, comprises the well-known stock markets in India – the National Stock Exchange and the Bombay Stock Exchange. It is the biggest hub for traders and accounts for 50% of volume in NSE and BSE. The north region is the fastest-growing region. Region-wise, North India is on top with a registered investor base of 31 million as of January 2024, followed by West at 28 million, South at 18 million, and East at 10 million which involved buying and selling securities, such as stocks, bonds, and derivatives, on behalf of investors.

Order Execution Segment Dominated the Market

Based on services, India's security brokerage market includes order execution, advisory, and others. The order execution segment dominated the market in FY2024. This is attributed to the fact that the popularity of online Securities Brokerages has significantly brought down the cost of buying and selling stocks. Order execution is greatly dominated by liquidity and financial market structure. It is typically faster and more successful in highly liquid marketplaces with more buyers and sellers. On the contrary, illiquid markets can cause execution to slow down or price slippage. They do market analysis and risk calculations and recommend investment decisions to their clients according to their needs.

Online Segment Dominated the Market

Based on the trading mode, the online segment dominated the market in FY2024. The dominance is due to factors such as technological advancements, investor education, user-friendly trading platforms, and the demand for fast and effective order execution. Users can get real-time data on the transactions in online trading. It enables traders to book profits in small price changes easily rather than in the traditional method. It allows individuals to trade in stocks and securities with convenience from their homes. It offers enhanced transparency and speedy execution of orders fostering a dynamic trading environment. Online trading has lowered the risk of entry barriers attracting investors from broader demographics. The trend in online trading is going to soar heights and will boost the economy of the country.

Future Market Scenario (FY2025 – FY2032)

Integrated investment enables businesses to offer customers routes to funds and stocks. It allows companies to merge stock market investing capabilities into their existing product offerings. API-based brokerage firms are trending by providing APIs to manage end-to-end flows such as opening demat accounts, trading, management, and market data.

API-based trading is converting the way clients convey with brokers and bolsters other fintech companies to build products on top of these APIs. AI algorithms and ML will help computers action the real-world data by inputs through social feeds, photos videos, text, and voice.

Key Players Landscape and Outlook

The top security brokerage firms in India are growing and adapting to the fast-paced environment by diving into advanced technology in the trading field. They are using API, AI, and ML tools to provide a user-friendly environment in trading and instant access to market data and everything for individuals and investors. With the increased use of AI, the decision-making facility has increased a plethora.

In a recent development within the discount brokerage sphere, Nextbillion Technology Private Limited’s fintech startup, Groww has become India's leading brokerage platform, by the number of active investors. According to NSE, Groww bragged an impressive 6.63 million active investors at the end of September 2023. It uses Google Kubernetes Engine to manage unpredictable spikes happening at unpredictable times. The company uses Preemptible Virtual Machines which reduces hardware costs by one-third.