Groww, Zerodha, Angel One, Upstox lose cumulative 6 lakh Accounts in July, Amid Further Investor Shift

In July 2025, India’s leading discount brokers—Groww, Zerodha, Angel One, and Upstox—saw a loss of around 6 lakh active clients, according to recent industry data. This follows a broader decline in the first half of 2025, with these four platforms together shedding nearly 20 lakh active investors.

Experts point to a sharp decline in futures and options (F&O) trading as a key factor. SEBI’s stricter regulatory norms introduced last year—including tighter margin rules, fewer weekly expiries, elevated capital requirements, and heavier taxation—have dampened retail interest in derivatives.

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Another factor driving clients away from active trading is a shift toward more stable investment alternatives. These include mutual funds, portfolio management services (PMS), and alternative investment funds (AIFs), which appear to be attracting investor preference.

Growth trends vary across brokerage firms. While the leading four witnessed notable drop-offs in July, some brokerages recorded gains. SBI Securities added approximately 33,800 active clients, Paytm Money gained around 22,100, and ICICI Securities added about 10,800 clients. Other firms such as Aaritya Broking, Choice Equity Broking, Moneywise Finvest, and Jainam Broking also experienced client additions during the month.

The decrease in brokerage accounts corresponds with a wider 4% drop in the total active user base of the Indian stock market, which fell to about 45.96 million in July, down from January’s peak.

Background and Context

These declines continue a reversal of the strong growth seen in 2024, when discount brokerages added millions of new investors. The first half of 2025 marks a significant cooldown, despite a positive market backdrop, with worries around global uncertainty and regulatory tightening weighing on retail participation.

Looking Ahead

Due to legal barriers, investor interest in F&O trading is still limited, which might tip the scales in favour of professionally managed investment avenues. Brokerages' adaptability—by providing a range of services and enticing investment options—may influence how resilient they are to the shifting market conditions.

Conclusion

In summary, July 2025 marked a steep retreat in client numbers for India’s top discount brokerages, driven by regulatory pressures and changing investor preferences. While some firms bucked the trend with gains, overall active engagement in the sector continues to wane, highlighting a potential turning point in retail trading behaviours.