Stock brokerage income from online trades surges 57% in FY15

Mumbai: With digitalisation becoming an essential part of capital market trading, most stock brokerages’ income from online transactions surged 57 percent last fiscal over the year-ago period, says a report.

As per Dun & Bradstreet’s (D&B) latest survey, equity broking houses’ income from e-broking transactions “rose by a sharp 57.1 percent in 2014-15 compared to a year ago” while the share of income from such online trades in total income from equity segment stood at a high 74 percent”.

“These trends indicate that equity broking has truly evolved and e-broking is rapidly replacing the traditional call-and-trade mode of stock broking,” D&B said in the report.

The report observed that while a large chunk of the brokerages expanded their client base last fiscal, the number of company-owned offices — excluding sub-brokers — of equity broking houses declined 3.1 percent, indicating a shift towards an online business model.

About 77 percent of the stock broking firms were able to secure new client acquisitions and the number of active customers rose by 8.5 percent in 2014-15, D&B said.

As per the findings, the number of mobile-trading clients had risen by an estimated 65 percent to 9 lakh in 2014-15 for the period under review.

The proportion of clients using mobile trading facility is 6 percent, substantially higher than the 3.9 percent levels recorded by these equity broking houses in 2013-14.

According to D&B, mobile and online trading platforms enable market participants to stay connected with the stock market real time while on the move.

It also noted that the technology facilitates access to real-time research, analyst views, funds transfer, secure trading and monitoring.

These platforms provide live rates, last trade price and clients can view market statistics such as top 5 gainers/ losers, order book, trade book, net positions, among others.

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Source:zeenews

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