New Brokerages Are Launching Every Month

Markets Discussions
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The pace at which new brokerages are opening every month and such high demand for SEBI licence these days, I literally wonder how on Earth do they think they can compete with established players?

Some new players like Rupeeze, Lemonn, Punch, Ventura, and what especially caught my eye is the ex-CTO of Swiggy launching SAHI - www.sahi.com

Now SAHI says their order execution is in single ms, how is that even possible? Good thing is these brokerages are only focusing on mobile-only platforms, as if traders trade from mobile exclusively.

Every new month. A new self-proclaimed best brokerage.

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Yes, there is a (bit funny) history to all of this. Back in 2020/21 when we were raising capital for building Dhan - almost all venture capital firms passed on us, saying its too difficult to compete and there is no scope for a new entrant + there is nothing left to innovate.

Now coming to 2024 - Dhan made a small dent by featuring in the top 10 brokers, I have said it that this is incidental and even now Dhan is very very small compared to the large brokers. They are 8 to 16 times bigger than us., so you can imagine how small Dhan is. However, everyone who passed backing us started looking for ventures they could invest in and that’s how many broking firms backed by venture investors are coming arround.

However times now are very very tough, market volumes are down by 60-70% and many traders moved to crypto, forex and other things as well due to high margins. Cost of business is extremely high, there is no way apart from spending money on Google or Facebook to acquire customer and ofcourse the minimum ask for feature, tech and capabilities for broking firms is extremely high, at its peak everyday. Given that, existing firms find (including us) find it very competitive, and folks specially like us - we fight very very hard to keep our competitive edges.

Now when it comes to Order Execution speeds, folks can say anything as they already have been saying.. Dhan introduced ‘lightning fast’ and seems every other broking platform started claiming the same :innocent:. We stopped using the same and started mentioning order execution speeds, and every other platform is following this.

We also noticed folks saying 1 ms as well, just that it take tech and engg folks to understand the possibilities of this + the problems that come with scaling tech & infra + a bit of common sense that the entire industry uses about 3-4 trading systems and the performance will be a function of underlying trading system. So platforms with same trading systems should have similar speeds and the variations would be based on their network, infra and optimisations.

Dhan is only one among the top 25 broking platforms to built its one trading system - DEXT from scratch on the latest tech stack with lots of optimizations on underlying infrastructure to achieve these numbers. Like y’day, the volumes for Friday were lower across exchanges and we processed 96.85% orders under <25 ms.. our best performance till date!

Coming back to the topic… Broking is tough, and Dhan just got lucky :pray: . We hope many more do :slight_smile:

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@PravinJ hello
Last year you released the upcoming features for 2024, I was expecting something similar for 2025.

Like the one I know which is most wanted feature - MF Pledge. Though not needed for me (i am investor), almost 70% people here need that feature.

Among many other features.

My speculation on not releasing upcoming features could be that competitors may copy some features and steal the first mover advantage. Still Dhan does it way better than those competition.

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Hi @Pradumya Yes, being small makes us vulnerable and that is only reason we did not publish the upcoming features for 2025.

We drop enough hints to our users, and those who very actively engage with our teams also get access to the features well in advance before we release to all for their feedback and suggestions.

MF in demat format is in works. We are first changing the underlying systems & payment infra for Mutual Funds, post that MF in demat format and then we will enable Pledge. It’s already on our list of things to do and we are building it - the development effort is massive, as good as rebuilding Mutual Funds platform from scratch.

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What if I know atleast 10% of it? :smiling_face_with_tear:

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Please enable mutual funds for HUF, preferably in demat form. If this in works, I could take part in beta.

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Thank you for keeping us in the loop on this.

I remember when I used to search online exploring stock brokers, trying to find the ones with the most interesting features.

Nowadays, it seems like almost every broker provides all the advanced tools you might need. You sign up with one broker and realize there’s no need to search for another.

Whoever is the first to sign up a new participant into the capital market can keep them for life.

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These days brokerage ads are being shoved down my throat on Instagram reels and Twitter and YouTube.

Not to mention, Dhan ads on Swiggy everytime I order. :laughing:

I have tried out several brokerages, but the only one that works for me is, AngelOne and Dhan. No need to look any further.

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I’ve been hearing similar things from an article by another CEO in the broking field. They talk about how the new rules from SEBI and Clearing Corporations demand that brokers keep more funds than they did before, which makes it really hard for them to survive.

However, with so many new brokers popping up in the industry, it raises the question if these claims about the high costs of doing business are just a way to scare off newcomers and limit competition, rather than reflecting the true situation.

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Well, this usually works in a monopoly or duopoly where the top players make it difficult for others. Not for a industry that has 300+ players. You will soon have Jio coming, PhonePe & CRED have deep pockets.

Revenue streams, few have vanished and what remains are down, volumes are down - as a result many brokerage firms are now charging for equity delivery. The ones who were offering for free are now charging.

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There’s a quote quite famous with our land - Free mein mile, toh zeher bhi pile.

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So I was exploring Sahi.com and their option based charting is quite helpful, fyers also have similar feature where if you select any stocks (lets suppose HAL) their OTM CE & PE are automatically added in 3 window split,

any thoughts on adding this on Dhan as well? @PravinJ

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Hi @puneetpushkar Welcome back, good to see you after a while.

Yes, we have see versions of this. These seem heavily inspired by Dhan Scalper, we show it on mobile on multiple windows and its brought it on 3 windows.

Sure, we will evaluate if this is required on Web / Charts.

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Waiting for straddle option chain on dhan web and mobile app from many months.

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This is a great discussion. With the introduction of more brokers, at least the focus will be on customer retention rather than customer acquisition. Also, I don’t think the claim of the 3 window is inspired by Dhan Scalper correct. The 3 windows are a basic need for traders who look at Straddle option charts, and many have been doing it for years using a 3 window layout and manually adding the Spot in between and ATM CE and PE on the left and right, respectively. Sahi and Fyers just listened to what customers said and implemented it quickly.

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Hi @sri1647, straddle option chain is already available on options trader web, you can surely check.

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Hi Supreeth, for a single feature, it is not possible to switch. Already we have many platforms like web, tv.dhan, mobile app etc., It is not possible for a trader to use separate platforms for each single distinguished feature.

This is the major drawback with @Dhan i.e., lack of uniformity across the platforms, atleast for the salient features. The straddle option chain is the basic one which you should have across all your platforms.

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@sri1647 I think for options, it’s better to use the Options Trader platform as it has better tools to help with options. The Multi-Strategy Chart is properly placed to analyse the strategy before execution as well.

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But many latest features launched by dhan are missing in it. Also, I am using dhan web from the last 2 years, sudden shift is not feasible.

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Hi @sri1647 Features are available across Dhan’s platforms based on the usage and use-cases. If all platforms of Dhan have all features, the experience will be super complicated while are attempting to simplify things for our users.

Charting - everything is available via tv.dhan.co
Options Trading - everything is available via ot.dhan.co
Screening - everything is available via scanx.trade
APIs - everything via dhanhq.co
Web - simple execution platform also flagship web on web.dhan.co

We ship incrementally and serve multiple use-cases across platforms, however the execution capabilities continue to be in all platforms. Hope this helps.