Selecting a broker


(Nikhil.A) #491

This may feel like the only thing I keep saying on the forum, but these reports will be part of the new backoffice, Console. In fact, a few of these reports are already like on Console. Do check it out.


(Nikhil.A) #492

When you do this directly with the AMC, they simply need to allot you units. With any other platform, the platform needs some buffer time to ensure the availability of funds to process the order, check that all is fine, and also to be able to retry in case something goes wrong with order placement. We use BSE StAR MF to power the order execution and sometimes the exchange platform may reject some orders and we’d need some buffer to address all these exceptions.


(srikanthg) #493

Hi, per my knowledge the nav prices are updated based on daily closing (per last traded price of underlying assets)and allotment should be made on that day closing nav. Do you thing NAV’s are updated real time ?


(Devaki Nandan Tripathy) #494

Now Zerodha is offering its customers Thomson Reuters Stock Reports+ at a highly subsidized price of Rs 120 per month.


(spachiap) #495

Having read this news about the free US brokerage RobinHood ripping off customers https://seekingalpha.com/article/4205379-robinhood-making-millions-selling-millennial-customers-high-frequency-traders

With such things in mind, please suggest the best broker:

  1. Who provides best service for Individual Investors (without such ripoff in bid/ask spread)
  2. Which broker makes purchase at the best price quoted.

(Devaki Nandan Tripathy) #496

Both the questions would remain unanswered for a long time as Indian regulatory authority (SEBI) does not have the skillset to run these kind of analytics.

Earlier NSE/BSE membership used to be the gold standard, but after surface of the NSE server colocation issue, it seems even there some members are more preferred over others.

Best option would be to place limit orders in stead of market orders and as such, its the investors who determines the trend of the market, not the speculators, IMHO.


(spachiap) #497

Agree, Limit Order helps. But it still doesn’t prevent preferential bad treatment, say when prices dips in short volumes only, on those low price orders get executed for “Special Customers”.


(Devaki Nandan Tripathy) #498

Orders at a price point gets executed on FIFO basis. There is no special or odinary customer there.


(Nikhil.A) #499

This simply isn’t possible in India as all orders are directly placed on the exchange here and are executed on a price-time priority.


(Gaurav Agarwal) #500

I received a mail from Zerodha. Please find screeshot below

I keep my shares in separate demat account and transfer them to Zerodha demat whenever I need to do a transaction. This model was suggest by @Yogesh_s and was widely discussed in the forum. This model was developed because of the following reason

  1. Online brokers take blanket power of attorney from clients and can sell any share held in demat.
  2. Zerodha is new broker with no institutional backing.
  3. Zerodha trades in derivative and cash market both in equity and commodity markets. Fine print from bottom of contract note.

I opened the account with Zerodha with this explicit understanding that my shares will be transferred to account of my choice. I appreciate that they have given sometime, if I wish to move-on to other broker.

I wish to know the thoughts of fellow boarder.

P.S - Zerodha employees or anybody taking any monitory benefit from Zerodha please refrain from commenting.


(Devaki Nandan Tripathy) #501

My two cents…

The mail by itself seems normal as they want to consolidate their businesses under one roof. Infact, my other brokers, HDFC and SBI, strictly refused when I asked them about possibility of linking third party demat accounts with their trading accounts. So, I believe its an industry wide norm, not an isolated one.

Proprietory trading by Zerodha raises certain issues, especially how they put a wall between prop accounts and client accounts. A clarification in this regard by @Nikhil.A is warranted.

One more thing, when we do a google search with zerodha + fraud, we see technical issues like lack of proper trade execution, incorrect tax P&L as major issues. I have to yet find a customer complaining about mysterious disappearance of shares from demat or any trade execution without prior consent, which may be considered as major red flags.

P.S. - I am not on Zerodha payroll; but as Zerodha subsidizes my trades by foregoing the brokerage for delivery based trades, my views may be biased.


(Deepak Venkatesh) #502

Hi Gaurav

I recently requested zerodha to link my trading account to another demat and no longer wanted to continue with their demat to which they refused. Was trying a setup like what Yogesh has suggested

I think I will have to only do demat transfers now. Was doing this for the coffee can equivalent portfolio of mine.

Rgds


#503

I received a similar email and have written to them requesting not to make this change. I will have no use for Zerodha if they go ahead with this.


(Gaurav Agarwal) #504

I found this circular on Sebi Website. POA by stock broker should comply with this.

SEBI circular on POA.

POA always make me uneasy. Can we think of any solution/tech solution where need for POA is eliminated?


(Devaki Nandan Tripathy) #505

You can consider NSE Alpha membership, if the portfolio size is big enough and/or you trade a lot. It’s not feasible for individual investors, IMHO.

https://www.nseindia.com/membership/content/fees_depst_n_net_req.htm

The most important thing is peace of mind. If you are comfortable with a broker with institutional parentage, better to switch to it. At this stage, I don’t think there is any way to bypass the POA if one trades through internet.


(Nikhil.A) #506

When we started the business, we were just trading members, so had partnered with IL&FS for DP. Our first 30k to 40k customers had opened an IL&FS account. Most of them have now migrated to Zerodha, only a few thousands left and we have sent a reminder asking them to move it to us. The reason for asking them to move is, operationally it is extremely tough to support both now. The complaints on P&L that you would have seen is mostly around corporate actions, stocks being transferred from another DP to us, or people not understanding how FIFO affects holding price calculations. Most brokers (I think we are the only one) don’t even support P&L on transferred in stocks or corporate cations for P&L/holding calculations.

Console reports have ensured most of the loose ends are covered. But it is almost impossible to support two demat accounts.

About the prop trading, almost every other broker does it - either through the broking entity or through a subsidiary. As a business, we have zero debt, so there is no kind of leverage here. Unlike many brokers we never keep client stocks in our pool account. Also, the enhanced supervision circular that SEBI issued last year ensures that brokers can’t do any trading outside their own capital or stocks.


#507

Zerodha kite tick speed is a joke. We are talking about speed bumps and delays measuring in seconds.
Prop trading can easily take advantage of retail order flow who have been fed delayed prices on kite.

Is this delay intentional? Zerodha earns 120 crores net profit. Don’t tell me we cant afford bandwidth costs of tick refresh…

People can see the comparison video for themselves


(Gaurav Agarwal) #508

It will be helpful, if you could expand on this. Thanks

Of course you may zero-debt but that is as of today. Debt can build anything and people have no way of knowing when that is happening.


(Mayank) #510

Hi all,

Is zerodha safe? I mean they are providing almost all the services for free, like delivery, mutual funds(coin), for intraday also they are charging very small amount.

If we compare zerodha with any other brokerage services, its very cheap. So that’s why my doubt came. Can anyone clear this for me. Thanks in advance.


(Dr Kurian Joseph) #511

I am with Zerodha for last 4 years. They are very safe. Nothing to complain.