<for all the zerodha users>is it safe to keep large margin fund with zerodha or any non bank broker?

hello,
i am trying to trade stock for shorter periods in cash market on intraday or delivery basis.for that i am keeping large cash margin in my account which is more than 14 lacs.i don’t know anyone in my personal capacity who use non bank broker and keep this much funds in account.so anyone who keeps large funds as plain cash in zerodha account tell me that is it safe to keep it or should i buy liquid bees and sell them every day in the morning for margin and later buy them in the evening before closing.i can’t pledge them as i don’t know which day i am going to take delivery position.

thanks,

You are just paranoid, for no particular reason. Because 14 lacs is something that you cannot afford to lose. First rule of Trading, you should not be trading with something that you cannot afford to lose.

Why create all this mess, when there is no need for it?

Not a Problem with zerodha right now because they have a very large client base of 747501 as on sep 2018 and it is getting good profits.

Exchanges have setup IPF (investor protection fund) which guarantees Rs 15lk per investor in case something goes wrong with the broker. The IPF size is over Rs 1000 crores.

You can invest 50 - 75% in overnight liquid fund as no one is ready to invest 100% of cash in one scrip or one day.

I had answered similar question last year

All the data has only improved from when I wrote it last.

@chandru.vks i do my trades in only top 35 large cap.as i don’t trade futures so not really paranoid or anything about losing.i am just paranoid that something might happen like 2008 or anything and i am not able to access my money.if people can lose money in debt funds than anything is possible.

Same here… I plan to keep my margin around 20 lacs and even with all the investor protection fund , I can’t be bothered chasing someone for my money just in case the broker went bankrupt !!!

Any way to insure the trading capital by paying some premium or something ? Just in case the broker went bust as a worst case scenario?

Hey buddy, why not keep 80pc margin in savings account. When you decide to punch in trade, just do NEFT.

Same thing I am also wondering about any insurance policy to safeguard money in bank account as well as trading account which will insure me from losses like theft ,fraud ,entity getting bankrupt etc.
@nithin are there any products available to hedge against above risks.

I personally opine before any well established bank going bankrupt in India I think insurance companies will, no point to worry about this. In case if that situation arises then nothing will come at rescue, everything will go down. Atleast upto 15 lakhs is secured with trading accounts by SEBI but only 1 lakh by RBI in banks.

Zerodha is one of the safest, if not the safest broker.
One of the reasons being that they don’t provide margin funding for overnight holding as their order placement is totally online and there are no sub-brokers who can place unauthorized trades to churn your account.
And their leverage provided Intraday, that too with a fixed stop loss.
Also SEBI insures upto 15 lakh of your funds lying in a brokerage account but the RBI only insures till 1 Lakh combined both FD+Savings.
Still you can place your funds in LiquidBees when not used for best security.strong text

Not a bad idea

Can you please elaborate on liquid bees?
Absolutely ignorant about it.
Thanks

It’s like a ETF who’s price stayed locked on 1,000. But pays Interest for holding it.
Just like a Liquid FD, which can be redeemed anytime. And there are no brokerage or charges for buying it.