HDFC Bank backed HDFC Securities will launch a discount broking platform to directly compete with major discount broking firms such as Zerodha, Groww, Upstox and Angel One.  Dhiraj Relli, chief executive of HDFC Securities, said in a statement to ET that a large and growing customer base is looking for a different set of HDFC product offerings and services. "To cater to this segment of customers, we are launching an entirely new product," he added.

In terms of number of active clients four major discount broking firms are enjoying 53% market shares. Zerodha, Groww, Upstox and Angel One have 18%, 13.58%, 12.05% and 11.50% market share respectively.

On the contrary, HDFC Securities has just 3.7% market share. It has managed to maintain its market share this year while many full service broking firms have lost their market share. 

Relli said the new platform will focus exclusively on customer delight and value proposition. "As of now, we are playing our cards very close to the chest, but I am confident that our market share will have its own story to narrate," he said.

As per NSE data, between April 2020 and October 2022, the number of active investors jumped 240% and looking at the data, all these new customers chose primarily discount broking firms. Zerodha, the market leader, has reported 52 lakhs increased in its client base from 14 lakhs in March 2020 to 66 lakhs in October 2022 followed by Groww, Upstox and Angel One respectively.

While traditional brokers like ICICIdirect, HDFC Securities, Kotak Securities, and Axis Securities have just seen marginal growth in their clients.  Relli said the latest technologies will be at the core of HDFC Securities' new offering, and it will have very competitive and transparent pricing.

"There will be multiple value-add services like research, option strategies, portfolio optimiser and basket investing," he said. "This would be a fintech super app offering capital market instruments and multiple other products like loans, insurance, and global investing."