New entrants 'disrupting' equity broking industry, says HDFC Securities

The equity broking industry is getting disrupted with the rapid rise of discount brokers such as Zerodha, says a note by HDFC Securities.  The trend is likely to continue with the growing customer base of discount brokers and the announced entry plan of PayTM Money.

In the next few years as the disruption picks up the pace, incumbents will be forced to reduce broking charges even for cash products, the note said.

Zerodha, the country’s largest broker in terms of the number of clients, has cornered a 15 per cent volume market share in just five years. While discount brokers have managed