Authors:
V. Greeshma, U. Sreevidya
Addresses:
Department of Commerce and Management Studies, The Zamorin’s Guruvayurappan College, Kozhikode, Kerala, India. Department of Commerce, Govt College Malappuram, Malappuram, Kerala, India.
The stock broking industry in India has experienced significant growth, evolving through distinct stages from traditional floor-based trading to highly digitalised platforms. Initially dominated by a few close-knit broker groups, the industry has evolved into a transparent, compliance-driven sector that offers a wide range of financial services, extending beyond equities to include derivatives and mutual funds. The emergence of various types of brokers—full-service, discount, and online-only—has broadened investor access and choice. Recent developments, particularly the adoption of financial technologies such as algorithmic and mobile trading, have democratized market participation and enhanced efficiency, attracting a surge of retail investors and increasing overall market liquidity. In 2025, the number of stockbrokers decreased from 8,269 in 2000 to 5,091, representing a decline of approximately 38%. The broking industry is transforming, driven by the rise of online brokerage platforms, stricter regulations surrounding derivative trading, and increased taxation. This shift is leading investors to move away from their traditional stock broking firms to discount brokers, creating more flexibility. This paper examines the historical evolution, key growth drivers, types of broking firms, their features, challenges, and prospects of the industry.
Keywords: Stock Broking Industry; Financial Services; Future Prospects; Retail Investors; Algorithmic Trading; Mobile Trading; Financial Technology; Market Liquidity; Digitalised Platforms.
Received on: 22/09/2024, Revised on: 08/12/2024, Accepted on: 25/01/2025, Published on: 05/03/2025
DOI: 10.69888/FTSTPL.2025.000398
FMDB Transactions on Sustainable Technoprise Letters, 2025 Vol. 3 No. 1, Pages: 50-58