Selecting a broker

(Yogesh Sane) #163


I do agree that we need some of the features that you listed, few can be termed as wants rather than needs. We are forever pushing the frontier of needs vs wants so sooner than later these wants will become needs.

I am actually not as critical of the brokerage industry as you appear to be. Especially, the discount brokerage has taken care of the issue that hurts the most, trading costs. First they switched from % of trade to per order costs and now they even drove that down to 0 (thanks to all the day traders, investors get a free ride).

(Gaurav Agarwal) #164

@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.

(Nikhil.A) #165

Slightly off topic here, but we (Zerodha) have recently released ‘Rupee Tales’ - 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.

(Yogesh Sane) #166

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.

(Nikhil.A) #167


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, we’ll place the order on your behalf and send the transaction registration slip.

(Arnab) #168

I am about to open an account, leaning towards ICICI at the moment.

My main objective is to invest in SIPs, I’m 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 ?

(Nikhil.A) #169

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 you’re 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.

(manjushree) #170

Is the brokerage zero for selling transactions also - delivery based?

(Nikhil.A) #171

Yes, delivery and BTST trades attract no brokerage. Check out our brokerage calculator.

(Arnab) #172

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.


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

(Arnab) #174

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, I’ll not have any trouble, which I think is fair point and that’s why I am thinking about opening a demat account.

(Anandh) #175

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

(parthibansubramanian) #176

I know using edelweiss… i do all my trading with the mobile app… its really nice app…for those who are working and trading on the go, it’s a nice one to choose from…

(Prasad India) #177

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

(Shan) #178

Agree. The biggest issues with zerodha are 1. Major tech failures every now and then which means I can’t 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 won’t fly solo with zerodha.

(Yogesh Sane) #179

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. It’s 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 don’t spend too much time on it and can use that time for something more productive. That’s 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.

(Shan) #180

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 don’t even know where to begin…

But in seriousness on market panic days it’s 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 you’d get otherwise, you’re being penny wise and pound foolish.

(Nikhil Jain) #181

Absolutely agree with you on the subject of trading on Panic days.

What’s the point of a trading if you can’t take advantage of market’s irrationality?

On the other hand, I mostly use zerodha as a brokerage. And sbi as backup.

(Yogesh Sane) #182

@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 shouldn’t have to select an exchange. That’s 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?