Selecting a broker


(Gurjot) #451

@Nikhil.A

This should be a good continuation to my post 8 months back.

In the past 1 month, I sincerely hope that some armageddon-like earth shattering bug has hit Zerodha’s IT systems because they have caused absolute chaos for me and made it impossible to track my portfolio.

Believe it was 15-20 years back in year 2000, around when ICICIDirect started it’s online trading platform. We’re now in the year 2018 with technology advancing leaps and bounds - so what is the basic, most basic requirement we can expect from our broker???

When we make a trade, it should reflect the following correctly in our portfolio:
1) Avg Buy Price
2) Total Cost / Investment
3) Profit / Loss Amount
4) Gain / Loss %

I mean forget all fancy chart types, stock analysis, different order types, etc etc - this is the MOST BASIC of BASIC things that any broker should be able to provide.

It is absolutely SHOCKING :open_mouth::open_mouth::open_mouth: that Zerodha is unable to even meet this most basic expectation.

I’ve already highlighted in my post referenced above - Zerodha’s inability to correctly reflect holdings which have undergone corporate actions. This means, I should simply expect random numbers and figures to show up for all my holdings which have undergone stock split, issued bonues shares, rights issue, demergers etc recently.

Ofcourse, Zerodha has lived up to that expectation perfectly - my holdings in Can Fin Homes, Avanti Feeds, Sintex Plastics etc are all over the place.

Now they’ve set a new benchmark in portfolio tracking - no stock split, no bonus issue, no demerger but still they can’t reflect a simple buy trade correctly in the portfolio.

Example below for REC - I’ve calculated Avg Buy Price - 95.96, CMP - 98.2:

This is what they’re reflecting as of today

KITE

Q Backoffice

**

This is just 1 example from my portfolio recently. TV18, Innovative Tech Pack - stocks where I’ve bought more than a year back and now done some fresh buying - even those holdings are not reflected properly

It is just MIND BOGGLING how such a pathetic quality broker can be India’s no.2 broker

Below is all the list of holdings and potential reasons they’re not reflecting correctly in my portfolio

  1. Can Fin Homes - Stock split
  2. Avanti Feeds - Stock split + Bonus Issue
  3. Piramal - Rights issue
  4. ICICI Bank - bought prior to FY18
  5. TV18 - bought prior to FY18
  6. REC - transferred shares from ICICI demat account in 2014 and sold all in 2015
  7. Innovative Tech - bought prior to FY18
  8. Sintex Plastics - Demerger
  9. Secur Credential - IPO
  10. Manappuram - bought prior to FY18

I seriously have NO WORDS when half of your portfolio is not being reflected correctly for the past 1 month. I thought it may be a temporary issue, but too much water has flown under the bridge to still overlook this issue and not highlight this crap discount brokerage

They’re basically saying to long term investors - Get Out and Get Lost! We are only here to serve intra-day traders who buy and sell the same day and we are not concerned with these menial things.

Time has come to name and shame such an attitude!

PS: For those who might suggest to call them and resolve this, already tried this as well and got the response that they acknowledge this issue and are working on a new system to be rolled out soon - god knows when!


(Nikhil.A) #452

Hi @gurjota,

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.


(Nikhil.A) #453

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.


(Gurjot) #454

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

I hope this drives home the point.


(Nikhil.A) #455

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.


(Sunday) #456

It’s too sad to hear that.
Customers are taken for granted.


(Chandra) #457

Is anyone using Angel Brokerage ? How is their service and how is their trading platform. Thanks.


(Devaki Nandan Tripathy) #458

Any particular reason for choosing Angel over others?


(Chandra) #459

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.


(S_Banerjee) #460

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)


(Ravi) #461

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.


(parthibansubramanian) #462

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?

Thanks in advance!

Parthiban


(bulsie) #463

Just file income tax based on your Indian income and claim the TDS. No adjustments happen automatically.


(aswin) #464

Any idea why does Zerodha not show the average price and profit from my allotment of HDFC AMC IPO?
kite_crop_540x215


(Mohammed Rehan) #465

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.


(Shivkumar S) #466

Effectively, Zerodha has made it mandatory to open a demat account with them if we want to use them as a broker.

Is anyone holding a demat account with Zerodha presently? Reviews?


(Chandra) #467

They are now forcing clients to shift their DMAT A/c from ILFS to Zerodha!


(Devaki Nandan Tripathy) #468

Coin is now absolutely free.

A very appreciable step by Zerodha.


(vaibhav) #469

" 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…"

^^Copied from idfc-bank thread.


(vaibhav) #470

Benefits of idfcbank-zerodha 3-in-1 account
https://support.zerodha.com/category/account-opening/idfc-3in1/articles/benefits-3in1

Other Faqs
https://support.zerodha.com/category/account-opening/idfc-3in1

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.