Why Did Top Online Trading Platforms Lose Nearly 20 Lakh Active Users in the First Half of 2025?
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Synopsis
In a surprising turn of events, the top four online trading platforms in India have lost nearly 20 lakh active investors in the first half of 2025, despite a firm market. Discover the reasons behind this significant decline and its implications for the trading landscape.
Key Takeaways
- 20 lakh active investors lost in the first half of 2025.
- Top brokers include Groww, Zerodha, Angel One, and Upstox.
- Loss attributed to SEBI regulations on F&O trading.
- Demat account growth has slowed significantly.
- Investor sentiment is cautious amid corporate earnings uncertainty.
Mumbai, July 10 (NationPress) - The leading four online trading platforms have collectively seen a drop of nearly 20 lakh active investors during the first half of the calendar year (2025), as per data released by the National Stock Exchange (NSE) on Thursday.
This decrease occurred even as the markets remained stable for four consecutive months.
The initial six months of this year have proven challenging for Groww, Zerodha, Angel One, and Upstox, the top four brokers in India based on active investors. In June alone, they collectively lost around 6 lakh users.
The primary reason for the decline in active users among these major brokers is the strict regulations for trading in the Future and Options (F&O) segment, implemented by the Securities and Exchange Board of India (SEBI), the market regulator.
Since these regulations were tightened last year, there has been a noticeable decrease in investor interest in the derivatives sector.
Since the start of the year, Groww, which has the most active investors in the country, has experienced a loss of six lakh active investors. Zerodha, which leads in revenue, followed suit with a loss of over 5.4 lakh active investors during the same period.
Angel One saw a decline of more than 4.5 lakh active investors, while Upstox lost over 3 lakh active users during the stated timeframe.
These four firms had added nearly one crore new active investors in 2024, when F&O trading reached unprecedented levels. However, their user base has seen a slight decrease this year.
Similarly, the growth of demat accounts has slowed to its lowest rate in eight quarters. Only 6.91 million new demat accounts were created in the first quarter, compared to 6.93 million in the previous quarter. By the end of June, the total number of demat accounts with NSDL and CDSL reached 199.14 million, up from 196.62 million in May.
The nervous reaction from investors has been intensified by uncertainty surrounding corporate earnings over the past two quarters. Amid the unpredictability of tariff agreements, the domestic market has adopted a cautious trading approach in recent weeks.
Point of View
It is crucial to recognize the challenges faced by India's top trading platforms. The stringent regulations imposed by SEBI have undoubtedly impacted investor confidence, leading to a significant loss of active users. It is essential for these platforms to adapt and innovate in response to market changes while ensuring the interests of investors are safeguarded.
NationPress
05/09/2025
Frequently Asked Questions
What caused the decline in active users on trading platforms?
The decline in active users is primarily attributed to the strict regulations imposed by SEBI on trading in the Future and Options segment, which has led to decreased investor interest.
Which platforms were affected by the loss of active investors?
The top four trading platforms affected are Groww, Zerodha, Angel One, and Upstox, with significant losses in their active investor base.
How many new demat accounts were added this quarter?
Only 6.91 million new demat accounts were added in the first quarter, marking the lowest growth rate in eight quarters.
What is the total number of demat accounts in India now?
As of the end of June, there were approximately 199.14 million demat accounts with NSDL and CDSL.
How did the market react to the current situation?
Investor reactions have been cautious due to uncertainty surrounding corporate earnings and tariff agreements, resulting in a careful trading approach in recent weeks.
