‘We have made investing in stocks affordable for all:’ Upstox CEO

‘We have made investing in stocks affordable for all:’ Upstox CEO

•                    The internet and mobile revolution has aided participation in stock markets through online, hi-tech and low-cost trading platforms.

•                    The online stock brokers and trading platforms like Upstox neither need investments to open branches nor have large fixed overhead expenses, thus enabling them to keep brokerage costs for clients very low or nil.

The stock brokerage business model is going through a transformation, thanks to the new-age technology that enables brokers to operate without opening physical branches. Upstox, which is backed by Ratan Tata, belongs to such a generation of stockbrokers who are known as "discount broking firms.”

Discount brokers like Upstox operate online and are therefore able to pass on the benefit of low costs to their clients. It charges zero brokerage from clients if they are buying or selling shares for the purpose of investment and take delivery of shares. It charges a flat rate of Rs. 20 per intraday order for all other segments.

“Upstox is able to offer ‘zero brokerage’ to customers for stock investments because we use design and technology to cut costs at every level of operations and transfer this cost benefit to the end customer," says Mr. Ravi Kumar, Co-Founder and Chief Executive Officer (CEO) of Upstox.

It deploys intelligent technology solutions in areas where it feels add up to its operational costs and time or of its client. Thus, ensuring best user experience at the lowest of the price. The company has also been able to reduce costs by cutting out all paperwork and not opening branches with large fixed cost overheads.

The company claims that more and more people from Tier II and Tier III cities are now joining the stock markets through their discount brokerage platform. The primary reason people from small towns and cities are getting hooked on to their online platform is because their hi-tech trading platform can be supported even on low bandwidth connections. The smartphone revolution in India along with the huge surge in the number of mobile users and availability of cheap data has enabled even common people to participate in stock markets from their mobile phones and desktops.

The smartphone market in Tier II and III Tier cities is expected to have expanded by 18% in 2017 from a year earlier, at twice the pace of the urban markets. Investor profiles hence are also rapidly changing with young and salaried employees becoming more aware and informed stock market opportunities.  These new investors from across India are willing to make independent decisions about their finances and are looking towards market investments as a viable option.