Are my holdings safe with Zerodha?

#1

I have a huge portfolio worth crores in an ICICI 3 in 1 trading account and and I am not happy with them. I want to move these holding to Zerodha demat and continue to transact via Zerodha.
I wanted to know if these discount brokers are safe? Because these brokers didn’t exist when the shit hit the fan in 2008.

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#2

Discount brokerages started late after 2008. Zerodha is a good company, I can vouch for it, been trading with them for the past 3 years and these guys are professional. Terrific customer support.

I don’t say ICICI is bad, it’s only that their brokerage depends on clients profile. They don’t have equal brokerage for all their clients. It varies between 0.03% to 0.10% on the total transacted value. Whereas in Zerodha it is only Rs. 20/- flat for Buy and Rs. 20/- for Sell, irrespective of your total traded volume.

E.g. You buy sell of 1 Lakh or 1 Crore, brokerage will be only 20 + 20 = 40 rupees.

Whereas in ICICI it will be % (percentage) of total traded value. i.e if you trade of 1 lakh and say you have signed up for 0.05% brokerage then your brokerage will be Rs. 50/- for Buy and Rs. 50/- for Sell.

Now let us assume you trade for 1 crore then it will be 1 cr x 0.05% = Rs. 5000/- for Buy and another Rs. 5000/- for Sell.

Whereas in Zerodha it will be only Rs. 20/- Buy + Rs. 20/- Sell = Rs. 40/- (only)

I hope you have got the difference.

#3

ICICI or Kotak or similar reputed brokerages do not offer the kind of charting platforms that Zerodha provides. Kotak provides the NEST Trader platfrom free of charge, but it is nothing like Pi or Kite. The convenience of algo trading in Pi is much better than NEST Trader. Moreover, if someone has a portfolio worth crores and is paying such heavy brokerages, the savings made by using a Zerodha demat account can also be used to hedge that portfolio by creating option spreads instead. That would mean higher profits as well.

#4

As long as the stock is sitting in your demat account with CDSL/NSDL, it doesn’t matter which broker you are using and even if a certain broker goes down, it won’t affect your stocks in demat as it is maintained by CDSL/NSDL.

How safe it is to trade with Zerodha, I had answered this long back here. All the reasons hold true even today after almost 3 years. Today there are over 250,000 clients who would probably vouch for the same.

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#5

Off course it is safe . The broker doesn’t matter . You can see your holding at cdsl website or app.
Zerodha is the best and very reliable broker
.
I am very much happy to have a dmat acount with zerodha

#6

Disclaimer: I am not a Zerodha customer, but avid reader of Varsity, and have been trying to understand Zerodha’s system by comparing it with my broker. I have been invested in stock market for only a year now.

As I understand, you hold 3 in 1 account with ICICI. Firstly, the difference when you move to Zerodha would be that you can retain the ICICI savings account, and link it with the Demat and Trading account which Zerodha will provide.
In the second part, you mentioned that you are worried about Zerodha in a market bottom-out like 2008. I presume you are not investing in Zerodha (as a company) which is the cause of your worry! (Although, I would definitely recommend investing in Zerodha, as they are already in the second phase of business, where they have created the pipeline which throws out cash, and are so well placed in handling business forward) :slight_smile:
No matter which way the market is moving, brokerage firms make money, hope you are aware of that, as you have mentioned that you have invested crores already! If you are not clearer on this concept, then it’s much more worth digging into Zerodha/Varsity.
If you are looking for “tip” from your broker then ICICI or other similar brokerages which have (so called) “analysts” can help you more. Zerodha can, however, educate you to take your own well-defined investment decisions. It is always said that you should be careful of the person from whom you take your recommendation. ICICI or any “analyst” for that matter will direct you in such a way that it will benefit them first. Zerodha answers your queries to the right point of view as any other investor would - try getting your luck with that with ICICI or AXIS! In fact, Nithin (the key person at Zerodha) is responding - would that happen at ICICI?
Try one more thing - google for best discount brokers in India, and you would find Zerodha on the top of the list. I have been recommending Zerodha to only two people (1) who has asked me (2) who didn’t ask me :wink:
So you might ask, why don’t I use Zerodha - because I am an NRI and the logistics of trading with Zerodha become complicated & expensive for me.
So your holdings are extremely safe as long as they are sitting at NSDL/CDSL no matter which broker you deal with.

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#7

Zerodha is also not safe
Its discount broker but the Brokerage charges go huge in huge quantities
Beware of Higher Margins you will get result like this check this out

#8

Are you drunk? What high brokerage?

#9

i think he is confused with stt and other charges which increase with increase in quantity traded

#10

Demat holding is always safe be it with a broker owned demat account or a cooperative bank or SHCL . it is held by NSDL or CDSL

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#11

Please do understand if you have no intention of selling your existing stocks, I don’t see any reason for moving your existing portfolio to Zerodha. There are probably charges levied by ICICI when you transfer stocks.

You can always buy new stocks from your Zerodha account.

#12

No im not
Check my last trade

#13

Last Brokerage they earn from me

#14

What do you want me to make of this without knowing the number of trades you have placed?

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#18

For 16 lac one way u have 32 lac turnover. Obviously STT and brokerage is high.

If u bought delivery there is no brokerage

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#19

How is this relevant here? Why don’t you check your contract note or talk to their customer care!!