While reading through your post, I see that you’ve had to endure a significant amount of pain owing to these issues, and there’s nothing that I could say that would assuage that. So, let me explain the situation instead.
All the reporting that happens is currently powered by a vendor platform we’d tied up with back in 2010 when we started off. This platform was not built to scale. Something we only realised when we were at scale. Ever since we’ve been working on a back-office platform in-house. This project, however, is huge. At the scale we are at, with the amount of data we need to process for our clients, there just isn’t a solution out there that has been already built or infra that we can build upon. As such, it has taken us a long time to build our own platform. We’ve underestimated the scope and the scale of this project before and promised timelines to our users that we’ve not been able to meet. This project, however, is nearing completion. We have a beta available here. In the coming weeks, this platform should be completely operational that should resolve all these issues with reporting.
This, I think, is a bit unfair. As a business, we’ve been doing all we can to cater to long term investors. From waiving of brokerage for delivery, to letting go of regular mutual fund commissions in favour of selling direct funds, to investing in platforms like smallcase, the focus has been on investors. Yes, the reporting was a bit lacking, but we’re working day in, day out to resolve that.
Thanks for the explanation on the scale of project being currently worked on. But everybody can be given the benefit of doubt for only a certain period of time, after that everybody wants results - and in this case, no way near enough has been done to communicate to clients about these issues.
The least that should have been done is to send out a Memo to clients informing them of these issues and letting them know of a timeline by when the new platform would get implemented. Customers cannot be taken for a ride like this.
Agree that waiving of brokerage for delivery has been a revolutionary unprecedented step - so hats off on that. As for coin - I’m not able to invest because back in 2014 Zerodha didn’t have its own demat account. And as for the reporting we all know it’s a massive pain-point. Seems like 1 step forward and 1 step back kind of approach to me.
The current problem for me is - Basic Expectations. No matter what large scale project you might be doing, basic expectations must always be met. Let me use some examples to help you better understand what kind of trouble you’re giving:
1. It’s like a bank showing your transaction statement with all sort of incorrect entries every day
2. It’s like an organisation’s Daily MIS report being generated incorrectly every single day
3. It’s like continuously bowling no-balls in a cricket match, giving your competitor free hits (ICICI, etc.) to take advantage of
As I said before, we’ve underestimated the scope of the project and given ETAs to clients that we weren’t able to meet. Hence the decision to make an announcement only once we’re ready.
No specific reason. I have zerodha / icici / kotak account already. icici / kotak both are expensive.
Though I am happy with zerodha brokerage/trading platform , but yet times zerodha trdaing system fails to serve.( when there is major market up/down movement, looks Zerodha trading platform fails. I dont know the exact reason for these outages) Someone suggested me Angel Brokerage , so just want to get some review on them. zerodha Annual Tax Gain reporting is also not good.Thanks.
Better to avoid Angel broking. They have highest customer complaint registered to BSE, and it is consistent over the year. Try exploring Sharekhan. I recently opened one parallel account and they provide customized brokerage plan if you increase your total holding(just assured,not done it yet)
I have been using IIFL for over 5 years. Recently I have decided to move over to Zerodha. I find Zerodha’s application more agile and easy to use. Unlike that in IIFL, money transfer to bank is instantaneous. Reason for the change was primarily “breach of trust” with respect to brokerage for one of my family member while the broker charged higher brokerage. Another negative I found was a large number of calls to sell high commision oriented products.
I have an NRI trading account in zerodha and linked it to my yes bank NRO account. I have a doubt on the TDS deduction…
When I sell a stock on profit automatically tax is paid. What happens if I sell the stocks in loss?
At the moment I have book profits of about 1L and the respective tax is also paid through TDS… now, if I sell the stocks in loss with 1L in loss, will I get all the already paid tax credited to my account?
ADJUSTMENTS HAPPEN ONLY WITHIN THE SAME SETTLEMENT.
So if you have made profit on one trade and loss on the other within the same settlement or on the same day of sale, the profit for TDS gets reduced by the loss amount. So if u want to save TDS u need to plan and sell.
If TDS is more than actual tax, then one has to file ITR and claim refund which takes time.
" IDFC Bank has partnered online-broking firm Zerodha to offer three-in-one accounts to its customers. The newly-licensed private bank has decided to abandon its own securities firm and take the partnership route to leverage the fintech’s discount brokerage platform.
The tie-up also enables Zerodha to compete head-on with HDFC Securities and ICICI Securities, which allow customers to seamlessly transfer funds whenever they trade rather than parking funds with the broker…"
Zerodha could become the no. 1 stock broker of India in fy19, beating icici securities n hdfc securities, based on cagr of active customers in last 3 years.
^^Copied from idfc-bank thread because this seems relevant to both threads.
The outcome may vary by few quarters but it is a foregone conclusion. Simultaneously, growth of Zerodha along with its focus in direct MF investment can drastically change the landscape for financial intermediaries, both online and offline, like MF distributors in next few years.
But, a more radical change will occur when passive/index investment becomes popular like in the west and its impact on the likes of HDFC AMC will be a thing to watch.
