Over the past couple of months I’ve been experiencing a lot of lag & downtime in Zerodha, and am not very comfortable continuing.
I’ve evaluated several other options, and have run into a major roadblock.
Say you’re holding a stock in your Zerodha account, and you’ve purchased it on 5 different dates, and at 5 different prices, and some of the purchases are earlier than 1 year making them LT, while some are within one year making them ST.
Now, if you transfer the holding to another broker, then the new broker will permit either of the two:
It will let you add one average price, but will take the transfer date as the buying date. Here, you can only maintain your avg price, and all your holdings will show as bought on the transfer date, making them all ST.
It will let you manually add one average price and one date.
There is no broker that I have come across, which will let you add the 5 different dates & 5 different prices, thereby making the holding reflect the factual and same data as it would have in the original demat account.
This means one has to maintain everything on excel for the CA, for ST/LT gains, and one cannot rely on the new brokers auto-reports which will be generated from the dashboard.
Funnily, Zerodha is the only broker that does actually permit manual addition of individual quantities/dates/prices.
Has anyone successfully migrated out of Zerodha? Please do share your experience.
How about stop adding to the existing positions and build new positions with the new broker, if the existing positions are not big and maintaining own records is a hassle.
How many transactions do you do each day, and if these are investments, are the lag and downtime really affecting your investing?
I think it is Best to sell everything in old account and buy in new account most easy and hassle free, no calculation required. (In case your investment is small )
Just additional brokerage is to be paid, which is almost similar to share transfer charges.
Sell the stocks with LTCG and give tax on it. Rest stocks you can transfer to another broker.
By the time you ponder on how to do this, PF will drop by 5%. Instead just give the 5% extra tax.
Zerodha is not having so much downtime, atleast I have not experienced it. We are long term investors…so forget about down time, Warren Buffett says we should be prepared, if stock market is closed for next 2 years, not allowing any market transactions.
My understanding, if you transfer shares in your DEMAT from one broker to other, it has no relation to ST/LT. actual shares are maintained by NSDL/CDSL , so your actual buy dates should hold for taxation purpose. if broker unable to maintain dates, you need to keep past records.
For 20% of the users (served from the same cluster), there was downtime 3 times b/w Sep-Dec.
Also we are still facing issues with ChartIQ, and delay in order getting placed where it got stuck in validation phase. I don’t see it with other brokers.
I have started making new investment into zerodha since a month. Atleast they are focusing on doing one thing and they don’t want to get our data to lend us. They are also building more useful features related to stock market than any other player out there.
Earlier I used to use Groww. I have not shifted my existing investment out of groww but for new money I am investing through zerodha.
Groww is simple and good but there intentions are not pure and also they seem to be going in wrong direction. They are not serious about being a stock broker it seems as they are not building things useful for investors like zerodha does.
Once they made the upi tab default in the stock broking groww app for some days.
They have enabled the loan section and also the upi(to get spending habits to lend) in their apps.
I don’t think it is a good idea to have loans and investment in one app.
In fintech, it is assumed that mutual fund investors are good borrowers. As they directly can not compete with the banks due to banks low cost of borrowing. Fintechs are into building their own proprietary tech having less dependence on CIBIL(commoditized tech as customers having high score will most probably take loan through banks) using customer spending habits, his investment habits and lot more.
It might help them to lend to NTC customers and also get good customers having less credit history(customers that have not taken any loans as they make only investments through stocks and mfs).
Any app interested to lend you like groww, will want to get to know you better, like really better. They might analyse and store your sms, emails, etc.
Hence, I think zerodha is currently the safest option if you prefer your privacy.
Also, someday one might fall into temptation of taking unnecessary loan because of the below reasons
The friction is too less as both are in same app
Constant registering of their loan product when you open the app for investment.
I am using Zerodha for trading but the problem I am facing is they don’t allow deep OTM buying. So I am also thinking to shift or open a new account with some broker which can allow deep OTM buying. Can anyone suggest some good brokers which don’t have any restrictions on Deep OTM buying.
Its not really about brokers allowing or disallowing OTM options. The restrictions are as per SEBI rules as in limits are set at each broker level for a share of total OI on those contracts.
As of today, there is a 15% limit set at broker level for each contract. Zerodha by being the largest broker ( by volumes in F&O space ) is usually breaching those levels quite regularly.
Yes, the workaround is to move to a different broker but then you’ll run into the same issue if volumes grow at that broker.
So this limit is same for all brokers, example both Zerodha and some less known XYZ broker can allow only 1 million OTM position, and for Zerodha it gets filled quickly.
Or SEBI gives more allotment to Zerodha ex. 1 Million for zerodha and 10K for a less known broker ? If former is the case (equal allotment to all) than I think opening one more account with a less known broker just to buy OTM for hedging makes sense. Please let me know if you know about this.
I have tried to fully migrate out of Zerodha - but have not been able to due to the following 2 reasons.
Say you’re holding a stock in your Zerodha account, and you’ve purchased it on 5 different dates, and at 5 different prices, and some of the purchases are earlier than 1 year making them LT, while some are within one year making them ST.
Now, if you transfer the holding to another broker, then the new broker will permit either of the two:
It will let you add one average price, but will take the transfer date as the buying date. Here, you can only maintain your avg price, and all your holdings will show as bought on the transfer date, making them all ST.
It will let you manually add one average price and one date.
There is no broker that I have come across, which will let you add the 5 different dates & 5 different prices, thereby making the holding reflect the factual and same data as it would have in the original demat account.
This means one has to maintain everything on excel for the CA, for ST/LT gains, and one cannot rely on the new brokers auto-reports which will be generated from the dashboard.
Funnily, Zerodha is the only broker that does actually permit manual addition of individual quantities/dates/prices.
