Investors from non-metro cities flock to online brokerage

A wave of young investors from non-metro urban areas are increasingly trading in stocks and buying cryptocurrency online, industry chiefs told ET, a development that agreed with the Covid-19 outbreak and subsequent national lockdown last year.

Crypto-selling platforms and wealth management players have drawn in these first-time investors on the back of increased awareness about financial products, a blast in the stock markets, listings by new age start-ups and targeted advertising aimed on this group, the leaders said.

As indicated by state-wise user registration data from the BSE, client signups in Uttar Pradesh have expanded by almost 60% as of August 23 compared with the previous year.

It has grown by 70% in Odisha, 191% in Assam, 85% in Bihar and 80% in Madhya Pradesh in a similar period.

Generally, there has been a 45% increase in registered investors to in excess of 70 million, compared with the previous year.

The trend has come as good news for online financial investment organizations, who are doubling down on content in regional dialects, local partnerships, and tapping regional influencers.

As indicated by Paytm Money, investor signups from the best 30 non-metro cities, like Varanasi and Warangal, developed at a 30% higher rate than the comparable growth seen for metros this year.