Zerodha, Angel One, Upstox lead fall in active investors amid volatility

Retail trading activity cools as volatility and weak returns shrink NSE's active client base, with discount brokers seeing the sharpest decline

A spike in volatility and weak trailing returns have prompted many retail investors to pause their equity market participation, dragging down activity levels across several leading brokerages.

 

The National Stock Exchange (NSE) saw its active client base shrink by 3.5 million in financial year 2025-26 (FY26), with leading discount brokerages — Zerodha, Angel One and Upstox — accounting for the bulk of the decline. 

The drop coincided with a 5.1 per cent fall in the Nifty 50, marking its worst annual performance since FY20. In percentage terms, NSE’s active client base fell 7 per cent to 45.2 million, after a sharp 20 per cent surge in FY25. The pullback was most pronounced among discount brokers. Zerodha lost nearly a million active clients, while Angel One and Upstox saw declines of 810,000 and 760,000, respectively. In contrast, Groww’s active base remained largely stable at 12.94 million. 

Meanwhile, some traditional brokerages, such as ICICI Securities and SBICap Securities, bucked the trend, adding clients during the year. 

An active client is defined as a Unique Client Code (UCC) that executes at least one trade during a given period. Market participants attributed the slowdown to a combination of heightened volatility, tighter derivatives regulations, and retail losses in the F&O segment. 

“The post-pandemic retail trading frenzy is clearly cooling off. Many investors who entered during the bull run are now confronting the reality that consistent profits are hard to come by — especially in a market dominated by high-frequency and institutional players. What we’re seeing instead is a healthy shift towards disciplined investing via mutual funds,” said a brokerage executive. 

The moderation was also visible in account openings. Net additions of demat accounts slowed to about 32 million in FY26, compared to a record 41 million in FY25. 

Average daily turnover (ADTV) in the equity cash segment at NSE and BSE fell 6 per cent year-on-year to ₹1.13 trillion, down from ₹1.21 trillion in FY25. Meanwhile, the combined ADTV in the futures and options (F&O) segment across exchanges rose a modest 4.6 per cent to ₹447 trillion. However, activity on the NSE showed signs of strain, with F&O turnover declining 18 per cent.