Discount brokers take giant strides; now account for 57% of active clients

The majority of incremental customer acquisition is now happening from tier-2 cities

The market share of discount brokers—such as Zerodha, Groww, Upstox and Angel One—has grown 5x in the last five financial years, with more than half of the National Stock Exchange's (NSE's) active clients trading coming through them, according to a report by CLSA.

Discount brokers now (11MFY23) account for 57 per cent cumulative market share, up from 11 per cent in FY18. Further, the number of active clients on NSE with discount brokers has grown from just 1 million to 19 million during this period. Active traders are the ones who have traded at least once in 12 months. 

"Discount