Because of their advanced technology and zero or flat fees, new-age discount brokerage platforms have dominated the industry during the last two years. Today, the top five discount brokerages represent for about 59% of total NSE active customer share, with Upstox, Zerodha, Groww, and Angel One dominating top positions. The epidemic boom, however, appears to be wearing off due to rising market instability, saturating new user addition, and fierce competition.
FYERS, a rapidly expanding discount brokerage service, anticipates a consolidation phase and an eventual rise in brokerage rates in the near future. FYERS, founded in 2016, is one of the fastest-growing online discount brokerages in recent years, with 1,66,077 active clients as of January 2023.
An online discount brokerage firm often gives customers a DIY trading interface and the option to create a Demat and trading account in order to trade shares. With respect to the number of active traders on exchanges, FYERS has managed to catch up with VC and big brokerage house-backed online firms, placing itself in the best and top 10. FYERS has also attained profitability at a young age. In FY22, FYERS had costs of Rs 78 crore and a total income of Rs 108.65 crore.
Its sophisticated internal goods, which active stock market traders may employ, are its main defence. The company just released a 2.0 version of its software, which it says is speedier and has more sophisticated features, such analytics for traders.
In addition, it included a facility for investing in themes and password-free access for traders. As the first broker in India to introduce drag-and-drop trading in 2017, FYERS also provides traders with free trading APIs. To combat trading-related social media forgeries, FYERS, a financial platform, has unveiled Verified PnL, a function to confirm trader or trade legitimacy. The firm asserts that it spends less on outbound lead creation and has cheap marketing costs. In order to compete with other full-service brokerage firms, the business is now aiming to offer portfolio and wealth management services.
The brokerage company, which now employs 300 people across three locations in Bengaluru, expects top-line growth of 70% in FY23. In order to diversify its income streams while maintaining low brokerage fees, traditional broking companies like Take Axis Securities, IIFL Securities, and ICICI Securities have expanded beyond pure-play broking activities. Khoday doesn’t see any justification for this as the latter is as well stepping up its game by providing the same services along with improved technology and customer service.
He continues by saying that while conventional brokerages may possibly have caught up in terms of low prices, they have lagged behind in terms of product offerings and their capacity to meet consumers’ actual demands.