Evolvement of Financial Brokerage Market with the Inception of Discount Brokers to Raise Concerns for the Sustainability of Full Service Brokers in India: Ken Research

• Growth of India Financial Brokerage Market is anticipated to be led by growth in trading volume through improvement in investor participation, surge in FIIs investments, reduction in the brokerage rates and increasing phenomenon of online trading.
• The leading full service brokers in India are ICICI Securities, Kotak Securities, Motilal Oswal, IIFL, Angel Broking, HDFC Securities, Sharekhan, India bulls Limited, Geojit BNP Paribas, Reliance Capital, SMC Securities and others
• The leading discount brokers in India are Zerodha, RKSV Securities, Trade Smart Online, SAS Online, Trade jini Financial Services, SAMCO Securities and others.

Ken Research announced its latest publication on “India Financial Brokerage Market Outlook to 2020-Evolvement of Discount Brokers and Robust Trading Volume to Prosper Market Growth” which provides a comprehensive analysis of Financial Brokerage market in India. The report focuses on the full service brokers and discount brokers separately in detail. The report covers market size and segmentation of overall financial brokerage market by online/offline mode, FIIs and Domestic Investors, Trading exchange each by Equity, Commodities and Currencies and various segmentations on each trading segment. The report covers comparison of online trading with offline trading in India, with the consumer survey regarding the preferences for online trading by different population groups. The report put forth in depth analysis on Full Service brokers including business models, market share of major players and detailed company profile for each major full service brokers. The potential and future outlook for full service brokers has also been discussed in the publication. Discount broking market in India has been separately discussed in the report with detailed analysis of major players, their strategies relative to global discount brokers, company profiles for major players, SWOT Analysis and major issues and challenges with the discount broking market in India. The report covers analysis on the process for discount broker to tie up with technology partners to serve retail customers. The report also serves as a benchmark for every new player which is seeking to enter into financial brokerage market and what should be the focus and USP for that new player.

Full Service Brokers
The evolvement of online trading by these full service brokers has enabled the brokers to have a complete new set of traders, which prefer to trade on their own. The rising smart phone penetration and development of innovative technologies to withstand competition is likely to drive online trading further. However, for the full service brokers to grow it is crucial to have a mix of both online and offline clients. The full service brokers have been highly influenced by the discount brokers and thus full service stock brokers have been observed to move from conventional broking and are increasingly concentrating on other financial services. For instance, Edelweiss is now a well-diversified financial company. Though it is one of the largest domestic institution broking houses, the company is witnessing far superior growth in other segments of its business like wealth management and asset management.

In the short to medium term, the full service brokers have to incur higher costs upon technology and marketing as well as have to device strategies for customer retention to cater with the competition from discount brokers. These efforts are anticipated to discern a pressure on the overall costs.

Discount Brokers
The emergence of discount brokers in India has opened a new avenue of money making opportunities for traders and investors through online means. Measured against parameters like market share, client activity levels and even profitability, discount brokers have showcased enormous growth in the past by growing at a phenomenal rate during FY’2013-FY’2015. Going forward, these discount brokers could continue to gain traction, though scaling up would continue pose a challenge due to higher costs. However, all these players continue to improve their market presence largely at the expense of smaller discount brokers. In the coming years, the market for discount brokerage is likely to get consolidated, while some of the discount brokers will be acquired by few big brokerage houses. Discount brokers who could provide cutting edge technology and offer ample of services at least cost is likely to grow incessantly in the coming years. Online broking is going to be the future for broking sector. The country has 56 million internet users, while online demat accounts is just 5.6 million, which is just 10% of total target population

According to the research report, the India Financial Brokerage market will grow at a considerable CAGR rate thus reaching over INR 330 billion by 2020. “There are clients who always prefer to get research advice, even if they have to pay extra to get this advice. The discount brokers can tie ups with leading financial advisors and consultants or can outsource for trading tips, which can provide suggestion to their clients. The companies to recover costs can charge the additional cost from their clients according to the Research Analyst at Ken Research.

Key Topics Covered in the Report:
• Comparative Analysis of India Financial Brokerage Market with Global Market
• Educational Training Programs in India Brokerage Market
• Financial Brokerage Market Size
o By Revenues
o BY Transaction Volume
• Market Segmentation of Financial Brokerage Market by Online/Offline Mode, FIIs and Domestic Investors, Equity, Commodities and Currencies on the Basis of Transaction Volume, Equity (Cash and Derivatives), Cash Market (Intra Day or Delivery Based Transactions), by Major Cities and others
• India Full Service Brokerage Market Introduction and Size by Revenues
o Business Model and Issues and Challenges in Full Service Brokerage Market
o Market Share and Detailed Company Profiles for Full Service Brokers in India
o Future Outlook and Projections for Full Service Brokers in India
• India Discount Brokerage Market Introduction and Size by Revenues and Transaction Volume
o Business Models in India Discount Brokerage Market
o Strategies Adopted by Discount Brokers in Global Market
o Market Share and Detailed Company Profiles for Discount Brokers in India
o Future Outlook and Projections for Discount Brokers in India
• How Discount Brokers can tie up with major Technology companies to Serve Retail Customers
• Government Regulation in the Market
• Growth Drivers in Financial Brokerage Market
• Analyst Recommendations
Companies Covered in the Report
Full Service Brokers:
ICICI Securities
Kotak Securities
Motilal Oswal
IIFL
Angel Broking
HDFC Securities
Sharekhan
India Bulls Limited
Geojit BNP
Reliance Capital
SMC Securities Discount Brokers:
Zerodha
RKSV Securities
Trade Smart Online
SAS Online
Tradejini
SAMCO Securities
Key Products Mentioned in the Report
Equity Agricultural and Non Agricultural Commodity Currency Derivatives (Futures and Options) Intra Day and Delivery Trades Mutual Funds and IPOs Portfolio Management Services Margin Funding

Related Reports:
India MSME Finance Market Outlook to 2020 - Driven by Government's Financial Inclusion Agenda and Newfound Profitability in Segment
India Payment Services Industry Outlook to 2019 - Surging Investments in MPOS, mWallet and NFC to Drive Growth
India Online Insurance Outlook to 2019 - Driven by Internet Growth and Web Aggregators Industry