The tech turn in trading: Why discount broking is just the beginning of a retail investing revolution

When discount broking first made waves in India, it was often dismissed as a mere pricing play. “Cheaper trades,” many said, as if lower costs were the entire story. But cost was only the spark. What’s unfolding now is a far more fundamental shift: a deep, technology-powered reset of how everyday Indians approach investing.

Discount broking was never the destination. It was the on-ramp, a means to an end. The real transformation lies in access, intelligence, and inclusion. Technology, especially AI, automation, and mobile-first platforms, is dismantling long-standing barriers that kept millions out of the markets. And its reshaping expectations: who invests, how they invest, and what they expect from the investing experience.

This isn’t just about ease of trading. It’s about enabling wealth creation for individuals who were previously excluded. From students managing SIPs on smartphones to first-time investors accessing real-time insights, India’s financial ecosystem is evolving to meet people where they are, and take them where they want to go.

Discount broking: A catalyst, not the destination

Looking back, I wouldn’t call discount broking a revolution in itself. What it did was light the fuse. It cracked open the doors of the Indian capital markets for millions who, for decades, stood outside locked out by high costs, jargon-heavy processes, and, frankly, a system that didn’t feel built for them.

Initially criticised, discount broking quietly responded to an emerging need: a new generation of investors demanding simplicity, fairness, and accessibility. The low-friction entry point resonated deeply.

Today, discount brokers account for more than 60% of India’s active retail investor base. That statistic tells a very human story of small-town investors, gig workers, young professionals, and students taking their first steps toward financial independence.

Still, it became clear fairly quickly: cost alone isn’t enough to sustain this engagement. While affordability opens the door, retention hinges on the quality of the experience. This is where technology has stepped in, not just as a backend engine, but as a force for clarity, empowerment, and intelligence that was once reserved for institutions.

Fintech x retail behaviour shift

Now, if you want to understand how far we’ve come, look at who’s investing today — and how. It’s no longer just the cautious investor tracking Sensex on TV or the corporate employee filing SIPs on Excel sheets. Today, it’s a 23-year-old setting up options alerts on their phone. It’s a young couple planning a home down payment via mutual fund ladders. The entire rhythm has changed.

This shift didn’t happen in isolation. It has been fuelled by the broader fintech explosion — mobile wallets, UPI, instant onboarding, and DIY apps. All of it has conditioned people, mainly digital natives, to expect fast, frictionless, intelligent experiences from every service — including investing.

And let’s face it — Gen Z isn’t waiting around for a call from a financial advisor. They want to explore, compare, learn, and act, often within the same app. That explains why equity and SIP adoption is surging and why even advanced products like derivatives are seeing younger users dip their toes.

The numbers back it up: just a few years ago, the industry as a whole had around 4 crore Demat accounts. Today, that number has crossed 19 crores and climbing. That’s not just adoption; that’s a cultural shift.

From brokers to investment ecosystems

There’s been a subtle but powerful shift in what people expect from a trading platform — and I say that not as a bystander but as someone who’s watched it unfold from the inside. Not long ago, being a stockbroker meant providing a clean interface, a few charts, and a place to buy or sell. That’s it. But today’s investor isn’t just looking for a place to trade. They’re looking for a place to belong financially.

This shift has led to the rise of comprehensive, intuitive ecosystems offering more than just equities. Simplified onboarding processes like e-KYC have replaced paperwork and physical verification with quick, digital alternatives. Platforms are also expanding beyond equities into options trading, IPOs, mutual funds, commodities, and more all housed under a unified interface.

The goal is no longer limited to functionality. It’s about creating continuity, helping investors manage, grow, and understand their money in one place.

AI & automation: The new investing brain

Now, here’s where things get exciting.

If discount broking was our way of getting people in the door, AI is what’s making them stay. And not just wait — grow. We’re seeing a quiet revolution, one line of code at a time. Algorithms that used to sit in the hands of hedge funds are now guiding first-time investors on their lunch breaks.

AI tools are guiding new investors, offering personalised insights, and creating experiences that are adaptive and context-aware. This technology is no longer optional, it’s essential in helping users make informed, confident decisions.

Mobile-first &  cloud-native architecture

Let’s face it — when it comes to digital platforms in India, there’s no room for “almost fast” or “mostly secure.” For millions of users — from college students to business owners in Kolkata — the app is the market. They expect it to load instantly, respond seamlessly, and never crash at the wrong moment. And honestly, who can blame them?

To meet these expectations, modern trading platforms are being built mobile-first and cloud-native. A modular, API-first architecture ensures rapid feature deployment and responsiveness. Microservices allow different functions to scale independently. A cloud-native backend provides the elasticity to handle everything from 5 lakh trades to 50 million price refreshes per hour.

In a world where trust is easily lost, these foundational capabilities are non-negotiable.

Data-driven insights & financial literacy

Here’s a truth that often gets overlooked: access without understanding can be overwhelming.

And in the world of investing, that overwhelm can lead to hesitation — or worse, costly mistakes!

Leading platforms are now focusing on translating data into actionable insights. For users unfamiliar with concepts like P/E ratios or derivatives, educational content from blogs and videos to structured learning platforms — is helping bridge the knowledge gap.

The goal is to move users from passive participants to informed investors, giving them the confidence to make decisions and understand the rationale behind them.

Security, scalability & regulation

If there’s one thing I’ve learned in all my years in financial services and the fintech world, it’s this: trust is earned in layers — and lost in seconds. Trust is paramount in financial services. With the increasing digitisation of investing, platforms must maintain the highest standards of security, regulatory compliance, and operational resilience.

India’s regulatory framework, led by Securities and Exchange Board of India (SEBI), is robust and platforms are aligning their architecture accordingly. Real-time risk management systems, encrypted data flows, and multi-factor authentication are essential.

As more users come online, systems must scale securely while remaining compliant. In this ecosystem, innovation and regulation are not at odds — they go hand in hand.

The road ahead

The future of investing in India is one where digital investing is as commonplace as UPI payments or e-commerce. Investors will expect unified platforms offering domestic and global opportunities ETFs, REITs, equities, all under a single, intelligent interface.

AI will continue to personalise the journey not through buzzwords, but via goal-based guidance that empowers rather than overwhelms.

Open financial ecosystems will become the norm, encouraging collaboration through APIs and enabling third-party innovations to plug into core platforms. Concepts like voice-led investing, gamified learning, real-time nudges, and even augmented reality for wealth planning are within reach.

A revolution in motion

Discount broking cracked open the door. It challenged the old guard, questioned legacy pricing, and gave people a reason to enter the market. But let’s be clear: it was never the finish line.

The true revolution — the one unfolding now — is about depth, not just access. It’s about helping every Indian go from “I have a Demat account” to “I understand my investments.” From being a passive participant to an informed, confident decision-maker.

Technology is not just powering this shift. It’s translating finance into something human.

This is not just a transformation of systems — it’s a shift in mindset. Financial empowerment is about giving individuals the tools, the clarity, and the control to chart their own futures.

And that, more than anything else, is the revolution in motion.