Discount brokers may be a small tribe, but going by the trend, this new category of brokerages has attracted a sizeable number of clients, with plans in place to rapidly scale up operations across the country.
With an estimated 15 per cent of the total stock trade, they charge a reduced commission compared with full-service brokers, but provide no investment advice.
“In the US, 70 per cent of retail volume happens through discount brokers. In India, the trend has caught up well, with discount brokers contributing 15 per cent of the total market turnover currently,” Shrey Jain, founder and CEO of SAS Online.com, a discount broking firm, told PTI.
“Seasoned investors are slowly shifting from traditional brokers to discount brokers to save up to 90 per cent of their brokerage costs,” he added.
Launched in April 2013, SAS Online has seen more than a 100 per cent growth year on year in both top line revenue and customer base, with more than 10,000 clients in over 600 cities across the country.
