@Yogesh_s We have a Govt in long time looking for suggestion to improve the system. I have prepared this page
Share it with you friends, tweet it to politicians/officials if you agree.
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Slightly off topic here, but we (Zerodha) have recently released âRupee Talesâ - a set of 5 story books aimed at explaining the basics of finance to children. I felt you guys may be interested if you have kids around you. Read more here.
You can order the books from the Rupee Tales website.
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@Nikhil.A
Does Zerodha allow clients to participate in buyback offers via tender route though exchanges? Is it online or by submitting paper forms?
Since many companies are replacing dividends with buybacks this is becoming an extra activity for investors. Non participating investors are at a relative loss since buybacks happen at a premium to market price.
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Sorry for the late response.
The client will have to send us the tender form which he will have received from the registrar. Send us the filled and signed scan copy of the form, weâll place the order on your behalf and send the transaction registration slip.
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I am about to open an account, leaning towards ICICI at the moment.
My main objective is to invest in SIPs, Iâm not really a regular trader. My dad is suggesting me Religare, he has an account there and his experience there has been good. Any suggestions ?
I was also seeing something called an insta account (for mf they have mentioned), any idea anyone ?
You should check out Zerodha. You have the advantage of selecting and buying funds from multiple fund houses and track and maintain your portfolio from a single account. If you wish to make the odd stock purchase, delivery brokerage is zero. Also, for long term investments, you can check out smallcase, a thematic investment platform partnered with Zerodha for execution. You also get access to good content to help you invest better on Zerodha Varsity if youâre interested.
If this is your first demat account, you should definitely consider making it an RGESS account, wherever you open it, as you get some decent tax benefits.
Disclaimer: I work for Zerodha.
Is the brokerage zero for selling transactions also - delivery based?
Thanks Nikhil.
Yes, I know about Zerodha, I have plans to open an account there later for sure, great work by the way there from you guys, kudos.
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If you want to invest in SIPs, go for the direct plan directly through the fund houses websites. No point in giving money away to anyone like ICICI or Religare
Yea, I also wanted to do that Sir.
But my dad insisted me to open a demat account so that everything will be kept centralized and less hassle (remembering all those different id, passwords etc) and also if I want to invest in stock some time in the future, Iâll not have any trouble, which I think is fair point and thatâs why I am thinking about opening a demat account.
For a balanced discussion, as a long time Zerodha client, i should add some negatives of Zerodha here. Do note it still provides great value for those who do delivery trades, but is risky for trades due to execution related risks detailed in the note
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I know using edelweiss⌠i do all my trading with the mobile app⌠its really nice appâŚfor those who are working and trading on the go, itâs a nice one to choose fromâŚ
Dear Nikhil, Is it better to have an account with ICICI Bank+Zerodha or HDFC Bank + Zerodha? Can you please give the details why also
Agree. The biggest issues with zerodha are 1. Major tech failures every now and then which means I canât have zerodha as a primary broker and 2. Back office numbers are frequently wonky which leads me to distrust them
Overall the low brokerage is worth it though, but I wonât fly solo with zerodha.
Primary function of a broker is to find counterparty and provide market access. In an exchange listed order book driven trading there is no need to find counterparty. Zerodha provides excellent market access. Itâs a no-nonsense pure trading platform. They charge discount prices for discount services. Other brokers charge full price for discount services.
For long term investors Zerodha is the best broker. Their UI is so boaring that you donât spend too much time on it and can use that time for something more productive. Thatâs blessing in disguise.
technical glitches happen only when market is in a panic mode and everyone is rushing to trade. Long term investors should stay away on such day anyway. In a way Zerodha helps you with that. I hope it stays that way. Even if you are a contrarian and providing liquidity to the market you are better off waiting a day or two.
Overall Zerodha is the best broker in India as cost advantage is more important than everything else.
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technical glitches happen only when market is in a panic mode and everyone is rushing to trade. Long term investors should stay away on such day anyway. In a way Zerodha helps you with that. I hope it stays that way. Even if you are a contrarian and providing liquidity to the market you are better off waiting a day or two.
Wow, this is really really bad advise. I mean I donât even know where to beginâŚ
But in seriousness on market panic days itâs easy to get shares at many hundreds of basis points below what you would get otherwise. And your brokers sole job is to serve you and not be the wise guy who stops you from buying when the market is falling.
If you save on brokerage but leave money on the table by buying shares far above what youâd get otherwise, youâre being penny wise and pound foolish.
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Absolutely agree with you on the subject of trading on Panic days.
Whatâs the point of a trading if you canât take advantage of marketâs irrationality?
On the other hand, I mostly use zerodha as a brokerage. And sbi as backup.
@Nikhil.A I have a question on best execution.
If a company trades on both BSE and NSE it is possible that bid and ask prices are different on different exchanges. When I place a trade, I have to select a ticker which is linked to an exchange and my order will be routed to that exchange.
Ideally, I shouldnât have to select an exchange. Thatâs the job of the broker. the broker is suppose to route my order to whichever exchange is offering best execution in terms of price and costs.
For a large order, exchange selection should be done for each lot that gets traded. e.g. part of the order is executed on NSE because NSE offered best price however, after this lot, if BSE is offering the best execution then remaining order should be routed to BSE to ensure client gets best execution across exchanges.
Can Zerodha offer this best price guarantee?
On days with huge volatility, all systems, from the exchange down to the broker, are operating at very high loads and as such, the end user may experience some issues. Since we have a very high number of active clients, all concurrently on the system, this effect seems more prominent. That said, I understand the concern that you guys have about such events. Our tech team has been working day in and day out to make the Kite backend infra a lot more scalable and Iâm glad to say theyâve made a lot of progress in this direction. In fact, theyâve upgraded about 80% of it already and so the system is that much more scalable. Weâre hoping to be able to cater to 10 times the number of active users as compared to right now even on days with high volatility without any hiccups.
The back office may show values that donât add up sometimes. This mainly happens when weâre running the trade process. Admittedly, this shouldnât be the case, but since the current system is a vendor-based product, there are a few issues. Over the last one year, weâve been working on a whole new architecture from scratch to ensure more accurate reporting by moving everything in-house. In fact, we are on the cusp of taking this new system live; we are only running tests to make sure everything works as expected.
If youâre seeing values that you feel are incorrect in the meanwhile, please let us know, and weâll have it set right for you.
As for trust, as a business, weâve enjoyed a really good response and support from our client base and so have been able to make profits consistently YoY, so any fears of fraudulent activity can be laid to rest. The back-office is merely a reporting tool, and even if you see numbers that donât add up, please keep in mind that this isnât an actual statement of your account. Being in a space that is quite highly regulated, we do maintain very