India Financial Brokerage Market Outlook to 2020
Evolvement of Discount Brokers and Robust Trading Volume to Prosper Market Growth
Region:Asia
Product Code:KR396
May 2016
271
About the Report
While offline clients are typically large ticketsize customers who track the market closely and want a physical interface with the broker, online clients are predominantly retail investors who trade on their own. Over the medium to long term, the outcomes of various impending structural changes in the broking industry such as outlook and potential of discount broking is likely to have crucial bearing on broking profitability.
The concept of discount broking in India was fetched from US, where 70% of retail volume happens through discount brokers. In India, the trend has caught up well, with discount brokers contributing ~% of the total market turnover currently. The cost of running a broking business in terms of technology, real estate, compliances and marketing has gone up drastically and at the same time, the revenue from brokerage has come down. In such a scenario, the discount broking space was poised to record growth in the market. The market for discount broking has showcased a phenomenal growth by growing at a CAGR of ~% during the period FY'2013-FY'2015. It has been witnessed that more than ~ customers have moved to discount brokers over the last 3 years. This is backed by the fact that in FY'2013, the discount brokers contributed around ~% of the total revenue of the broking industry which had increased to ~% in FY'2015.
As technology is growing and increase in use of internet, smartphones, and mobile apps as well as the evolvement of lower brokerage has led discount brokers to gain momentum in the market in the coming future. Volumes are going to be on the higher side. However, it is likely to take time before it could be witnessed the kind of volume that are required for discount brokerage model to succeed. Projections for the future suggest that the discount broking market is anticipated to witness a phenomenal CAGR of ~% during the period FY'2016-FY'2020. This will lead the market to over INR 20 billion by FY'2020.
- Comparative Analysis of India Financial Brokerage Market with Global Market
- Educational Training Programs in India Brokerage Market
- Financial Brokerage Market Size
- By Revenues
- 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
- Business Model and Issues and Challenges in Full Service Brokerage Market
- Market Share and Detailed Company Profiles for Full Service Brokers in India
- Future Outlook and Projections for Full Service Brokers in India
- India Discount Brokerage Market Introduction and Size by Revenues and Transaction Volume
- Business Models in India Discount Brokerage Market
- Strategies Adopted by Discount Brokers in Global Market
- Market Share and Detailed Company Profiles for Discount Brokers in India
- 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
Products
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
Companies
Zerodha Securities, Zerodha Commodities, RKSV Securities, Trade Smart Online, SAS Online, Tradejini, SAMCO Securities, ICICI Securities, Kotak Securities, Motilal Oswal, IIFL, Angel Broking, HDFC Securities, Sharekhan, India Bulls Limited, Geojit BNP, Reliance Capital, SMC Securities
Table of Contents
1. Executive Summary
Positioning of India Broking Market with Global Market
Investor Education and Training In India
Potential of India Financial Brokerage Market
Major Target Group for Online Trading
Major Segments that has Driven Changes in Financial Brokerage Market
Trends and Government Role in India Financial Brokerage Market
Potential of Full Service Brokerage Market in India
Which Trader group Prefer Discount Brokerage over Full Service
Major Strategies adopted in Global Discount Brokerage Market
Overview of Online Discount Brokerage Market
Online Discount Brokerage-Should it be Tech Focus or Zero Operating Cost Focus?
Process to Tie up with Technology Partners by Discount Brokers
Is it really a Good Idea to Start Discount Broking Business in India?
2. Research Methodology
2.1. Market Definitions
2.2. Abbreviations
2.1. Market Size and Modeling
Consolidated Research Approach
Market Sizing – Overall Financial Brokerage Market
Market Sizing – Discount Brokerage Market
Limitations
Variables (Dependent and Independent)
Multi Factor Based Sensitivity Model
Final Conclusion
3. Comparative Analysis of India Financial Brokerage Market with Global Financial Brokerage Market
Historical Overview
Present Scenario
4. Educational Training Program in India Brokerage Market
Training Program for Stockbroker
Training program for Investors
5. Number of Trading Terminals in India by Major Cities, FY'2015
6. India Financial Brokerage Market Size, FY'2010-FY'2015
6.1. By Revenues from Brokerage, FY'2010-FY'2015
6.2. By Overall Transaction Volume, FY'2010-FY'2015
7. India Financial Brokerage Market Segmentation
7.1. By Online and Offline Mode, FY'2010-FY'2015
7.2. By FIIs and Domestic Investors Transactions in Equity Market, FY'2014-FY'2015
7.3. By Proprietary Trades, Retail and Institutional Investors, FY'2015
7.4. By Equity, Commodities and Currencies on the Basis of Transaction Volume and Brokerage Revenues, FY'2010-FY'2015
7.5. By Equity (Cash and Derivatives) on the Basis of Transaction Volume, FY'2010-FY'2015
7.6. By Cash Market (Intra Day or Delivery Based Transactions), FY'2015
7.7. By Equity Market (NSE and BSE), FY'2010-FY'2015
7.8. By Commodity Market (MCX, NCDEX and NMCE), FY'2010-FY'2015
7.9. By Agriculture and Non Agriculture Commodities, Cy'2010-Cy'2015
7.10. By Non Agriculture Commodities (Precious Metals, Non Precious Metal and Energy Products), CY'2010-CY'2015
7.11. By Currencies Exchange (NSE, BSE, MSEI and USE), FY'2010-FY'2015
7.12. By Major Currencies Traded, FY'2015
7.13. By Full Service and Discount Brokerage, FY'2015
7.14. By Major Cities (NSE and BSE Cash), FY'2015
8. Comparison of Online Financial Brokerage Market with Offline Market
8.1. By Equity, Commodities and Currencies on the Basis of Transaction Volume, FY'2010-FY'2015
9. India Full Service Brokerage Market Introduction and Size by Revenues, FY'2010-FY'2015
9.1. Business Model in Full Service Brokerage Market
9.2. Issues and Challenges in India Full Service Brokerage Market
Reduction in Brokerage Charges
Compliance Regulations
Hurdles in Client Retention
Attracting Talents
9.3. Company Profiles for Full Service Brokers in India Brokerage Market
9.3.1. ICICI Securities
9.3.2. Kotak Securities
9.3.3. Motilal Oswal Financial Services Limited
9.3.4. India Infoline Finance Limited (IIFL)
9.3.5. Angel Broking
9.3.6. HDFC Securities
9.3.7. Sharekhan
9.3.8. India Bulls Limited
9.3.9. Geojit BNP Paribas
9.3.10. Reliance Capital
9.3.11. SMC Securities
9.4. Market Share of Major Players in India Full Service Brokerage Market, FY'2015
9.5. Potential of India Full Service Financial Brokerage Market
Service Portfolio of Full Service Brokers
Strategies and Potential for the Future
9.6. How will Full Service Brokers will compete with Online Discount Brokers
9.7. SWOT Analysis for Full Service Brokerage Market
9.8. India Full Service Brokerage Market Future Outlook and Projections, 2016-2020
10. India Online Discount Brokerage Market Introduction
10.1. India Online Discount Brokerage Market Size by Revenues, FY'2013-FY'2015
10.1.1. By Brokerage Revenues, FY'2013-FY'2015
10.1.2. By Transaction Volume (NSE Equities), FY'2013-FY'2015
10.2. India Online Discount Brokerage Market Segmentation by Equity, Commodities and Currencies Transaction, FY'2015
10.3. Comparison of Pricing Packages for Discount Brokers in India with Global Market
10.4. Business Model in Online Discount Brokerage Market
10.5. Client Preferences for Online Discount and Full Service Brokerage Firms
10.5.1. Consumer Profile in Online Financial Brokerage Market
10.6. How will Discount Brokers Will Cost Efficient and Sustain Profit Margins With Growing Competition
10.7. Strategies Adopted for Online Discount Broking in the Global Market
10.8. Comparison of Online Discount Brokerage Industry with Offline Brokerage (Full Service Brokerage) Industry
10.9. SWOT Analysis for Online Discount Brokerage Market in India
10.10. Is Online Discount Broking Companies are Technology focus or Zero Operating Cost Focus
Strategy for New Player
10.11. How Online Broking Firm Technology Partners Tie Up For Better Technology To Serve Retail Customer
Analyst Take on Developing in-House Technology Development Team
10.12. Process to Outsource the Technology
Decision Making Process to Shortlist Technology Company
10.13. Major Technology Platform in India
Presto (Developed by Symphony Fintech)
Omnesys Nest (Omnesys Technologies)
Financial Technologies
10.14. Back Office Operations
Class (Marketplace Technologies)
D-Mat DP Back Office Solution (Marketplace Technologies)
Esigner Bulk Mailer Solutions (Marketplace Technologies)
10.15. Issues and Challenges in India Online Discount Brokerage Market
Limited Options to the Consumers
Educate the Beginner Clients who are Dependent on Research
Lack of Marketing Efforts
Challenge to Convince Clients
10.16. Company Profiles for Major Players in India Online Discount Brokerage Market
10.16.1. Zerodha
10.16.2. RKSV Securities
10.16.3. Trade Smart Online
10.16.4. SAS Online
10.16.5. Tradejini
10.16.6. SAMCO Securities
Indian Trading League (SAMCO Securities)
10.17. Market Share of Major Players in India Online Discount Broking Market, FY'2015
10.18. India Online Discount Broking Market Future Outlook and Projections, FY'2016-FY'2020
11. Government Regulations and Initiative in India Financial Brokerage Market
Conditions and Procedure of Non-Registration for Stock Broker in India
Registration Process
Documents Required for Capital Market Segment
Government Trading Charges
Role of Government in Discount Brokerage
12. Growth Drivers and Trends in India Financial Brokerage Market
12.1. Increase in Investment Through Foreign Portfolio Investment in Indian market
12.2. Surge in Online Trading
12.3. Rising Trading Turnover and other adjoining Factors
12.4. Decrease in Brokerage rate and Expansion of Financial Services
12.5. Imposition of Commodities Transaction tax
13. Analyst Recommendations
13.1. Process to Start Discount Broking Firm in India
Apply for Registration from Multiple Exchanges
Development of Trading Platform
Website Designing
Customer Acquisition through Effective Marketing
Offer Cutting Edge Technology with Support Sale Service
13.2. Focus and USP for New Entrant in Discount Broking
14. Macroeconomic Factors in India Financial Brokerage Market
14.1. Number of Demat Account Holders, FY'2010-FY'2020
14.2. Number of Listed Companies, FY'2010-FY'2020
Disclaimer
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