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by kosmischemusik 2209 days ago
The capital markets in India (and elsewhere in the world) is highly regulated. It will take you at least a year to get a brokerage licence.

How do I know? I work in the space. It is dominated by traditional brokerages who are now facing the heat from discount brokerages, the largest of which is Zerodha.

In order to make any real money, you'll need to operate at scale. The cost of customer acquisition is very high and the average revenue per user very low which makes it impossible to get far without raising significant money. There are enough quality brokerages in the market and I don't see VCs backing another one.

I'm only sharing my insights, not discouraging you. But I'd highly recommend you look at building something with lesser regulatory overheads. You could even explore building on top of the brokerage layer - Zerodha has exposed their APIs and a number of startups have been built on this.

1 comments

An idea for the meantime: OP could paper trade for early users. Prove the concept, improve the UX, and be ready to partner or have investment to manage the brokerage licensing etc.