This article has been contributed by Trivesh D, COO Tradejini
It’s a strange reality in India’s discount broking space that millions of users are signing up, but a large number never place a single trade. India’s demat account count crossed 15 crore at the start of 2025, according to SEBI data. Nearly 4.6 crore new accounts were opened in FY24 alone. But beneath these big numbers is a quiet reality. Why does this happen? The reasons are not surprising if you see how investors explore investing today. Opening a trading account has become hassle-free. But placing a trade is still an emotional step. It means moving real money, trusting in analysis, buying stock, and taking a risk. Many people stall at that very point.
The Gap After KYC
The silent drop-off is so common that people in the industry often say getting the customer to complete KYC is only half the battle. Here, a gap usually appears after KYC, where some clients are left without clear guidance on what steps to take next. And the real test starts when the customer is asked to place the first order.Even a short delay between KYC completion and account activation can cause the initial excitement to fade. If a broker doesn’t engage fast, the user simply moves on. Therefore, it is crucial to activate their account and respond quickly.
Exploring Without a Plan
For many first-time users, signing up for a demat account is just a way to look around. They want to see what the platform feels like. They want to check out stock prices, watchlists, or IPO tabs and explore tools. This is especially common for those who have heard about the app but have no clear plan yet. Often, they stop at this curiosity stage. The app looks confusing to many new users. There is nothing wrong with exploring, but without any clear hand-holding, the initial spark fades. A good nudge for this is simple onboarding. Some leading fintech apps guide new users step by step. A discount broker can do the same by showing how to place a safe trial order. A simple walkthrough, or offering a free trial stock worth a few rupees, helps turn curiosity into a small action. Small actions build confidence.
Muskaan Kapoor
Charges Still Confuse People
Zero brokerage on delivery trades sounds great in ads. But the real picture is more layered. Many first-time investors realize that intraday, futures and options, and call-and-trade services still cost money. Clearing charges, stamp duty and taxes come on top. Suddenly, the math feels unclear. Questions like ‘Will I lose all my gains in hidden fees?’ pop up. If the answers are not clear, the user freezes.The solution is radical clarity. Brokers should show simple calculators with real examples. Suppose someone buys shares for INR 10,000 and sells them after a month. A small tool can show exactly how much the taxes, exchange fees, and other charges will be. A clear picture beats a catchy zero-fee line every time.
When Support isn’t Supportive
For beginners, placing a first order is not always obvious. Many try to reach customer care but find only bots or canned replies. Technical issues such as failed order placements, stuck fund transfers, or sudden app crashes often take too long to resolve, which frustrates first-time users.
A practical fix is a special beginner’s help desk. A simple helpline or priority chat for new users during the first month can keep them from dropping off. Some brokers also use video calls to guide first-timers through their first order. Small gestures like this build faith.
The ‘Perfect Time’ Myth
Many people open an account when markets are making headlines. But when it is time to place an order, they tell themselves they will wait for a better price. This wait can stretch for months. NSE data shows that during bull runs like 2020 and 2021, millions of new retail investors jumped in quickly. In quiet markets, that same crowd prefers to watch from the sidelines.This is where brokers can help by nudging gently. Explain SIPs, highlight long-term investing, and share small insights that reduce the pressure to time the market. Tools like price alerts, IPO trackers, or starter portfolios can keep users engaged.
Too Many Options, Too Little Loyalty
Opening an account costs nothing, so many people open two or three at once. They test the apps, compare features, and see who offers better perks. Many new brokers use free trades for a month or cashback to pull users away before they even place the first order with their first broker. This is normal in a hyper-competitive market, but it means losing users is easy if they do not feel any attachment. Retention perks help here. A simple loyalty program or extra research tools for funded accounts keep a new user from drifting to a rival. Some brokers offer small rewards for making a first trade in seven days or give free webinars to funded users only.
Peer Push, But No Plan
Many people open an account because a friend, family member, or influencer told them to. Often, they get pulled in by stories of a stock giving 30% returns and a brokerage app making trading look easy. This creates excitement and a fear of missing out. But when it is time to put in real money, questions like whether the market will go up or down stop them. Without clear guidance on what to do next, the account stays empty. A fix here is to keep the buddy system alive. Give a small bonus to the friend who referred the user, but only when the new user makes their first trade. This keeps the conversation alive and gives the friend a reason to help them cross the first hurdle.
Larger Problem Hidden in the Metrics
India’s new investors are smart and eager to learn. But they are also cautious and price-sensitive. They expect clear answers and fast help. They hate hidden charges and slow replies. They want to feel safe before taking a risk. Opening the door for millions is a big achievement, but getting people to step in is the real challenge. Every unused account is wasted effort and money for the industry. Turning that quiet drop-off into an active first trade needs trust, clarity, and a nudge at the right time. Solving the KYC drop-off is not just about better technology or catchy offers. It is about showing first-timers that the market is not just for experts; it is for them too, one clear, confident step at a time. Tradejini takes care of everything a client needs, whether it is adding funds, placing a trade, or getting timely support. Everything is set up to ensure customers do not get stuck. Tradejini is a one-stop solution for smooth and confident investing.
