I just saw a video by PR Sundar who says he has been cheated multiple times in F&O trades and his tone suggests this malpractice is common and that Brokers are largely dishonest.
Things like.
Not crediting cash (he gave cheque)
Charging brokerage 30,000 per Lot on a trade (attributed to computer glitch when confronted)
Varying transaction charges.
Do you micromanage your trade costs, and ensure your settlements are correct or largely just hope your broker does it right.
This topic is more general in nature. Personally, seeing that Zerodha runs a largely uncensored public forum, I am inclined to think they have their heart in the right place.
Been with Zerodha for 1 year ,till now i only faced very small discrepancy in Zerodha which is of Rs 9+Gst the account transfer fee. Zerodha has policy if you transfer back the quarterly settlement money back in 3 working days you would get the transfer fee 9+GST reverted. But i had to raise the ticket ( after 6 months) to get the charges reverted. I will not see as cheating but might be some system issue which i think Zerodha should fix( if its really a issue)
You should really check the contract notes and ledger. I do the same. Zerodha is really honest I feel. But I have noticed that they too charge more money in terms of STT and stamp duty.
What Zerodha does is this: in every contract note, they round off the STT and stamp duty charges. First of all there is no need to round them off. Everything is digital but they still do it.
But when you check the PNL TAX statement you will see that they report the total STT and stamp duty in three or four places of decimal. Now why is this so?
Why report in decimal in TAX statement but in round off way in contract notes?
I feel so what Zerodha is supposedly doing is that they are collecting higher STT and stamp duty from customer by rounding them off. But at the time of depositing the STT and stamp duty to government, they are depositing the lower but correct amount of what they should have charged in the very first place to their customers.
This is a minor issue I guess and I have noticed that all brokers round off the STT and stamp duty but not the other charges like GST, exchange charges etc so I guess all brokers are exploiting some loophole in our laws I guess.
I have only noticed that IBKR doesn’t round off the STT and stamp duty in their contract notes. I am not recommending Ibkr here but just stating the facts. In fact I love Zerodha and use their platforms for 90 percent of my trading.
The value of taxable securities transaction and the amount of securities transaction tax, interest and penalty payable, and the amount of refund due, under the provisions of Chapter VII of the Act shall be rounded off to the nearest rupee and, for this purpose, where such amount contains a part of a rupee consisting of paise then, if such part is fifty paise or more, it shall be increased to one rupee and if such part is less than fifty paise it shall be ignored.
As a matter of fact, Zerodha receives client-wise STT and Stamp duty files from the Exchange and merely applies the value as mentioned in the file. From the 1st of April 2020, the Stamp duty rates were revised and made the same across all states and the Exchanges were entrusted with the task of collecting the Stamp duty.
Zerodha merely acts as an agent and collects the applicable duties on the trades carried out by its clients and passes the exact same rupee value to the Stock Exchange.
@VenuMadhav Thanks for taking the time to really explain the thing. You guys are really transparent and honest. I love Zerodha. Sorry if you felt bad upon reading my comment.
I will suggest that in the Tax statements we download from console, you use the round off numbers as well for STT and stamp duty, so as to avoid this misunderstanding.
Pr sundar says if not for @nithin and Zerodha, traders would have continued to be taken for a ride… Calls zerodha honest and that their honesty has been rewarded.
He goes on to say, broker community in general are dishonest and peak margin penalty is a ruse to steal money from time to time… And faulty charges attributed to bugs are purely a cover…
Watch ur accounts like a hawk.
He says he has been scammed of 9.5 lakhs by his broker… A HNI who has 0.5 million YT flowers and appears on TV is not off limits for these brokers… I think his broker is Zebu… Can’t say for sure, as he uses multiple brokers.
I disagree with him on many things but agree with this : "Broker community is the most dishonest in the world "
Zerodha is one of the few who are honest about the pricing and charges. They have some tech issues and outages but they dont cheat and are completely transparent ! I need to give credit to @nithin@VenuMadhav and team Zerodha for this.
The amount of scam other brokers do is unbelievable .
I have seen some brokers who charge for interest even when we pledge the cash holdings like Liquidbees . Its like free money from them - They are not funding any margin as its given by pledge holdings but still they charge on behalf of NSE/BSE and eat that money !
Some charge for value added services which are nothing but bullshit.
Some charge extra for clearing and other charges.
Some charge extra for bonds ! - they change their charges if we buy NTPC-N7 which is NCD v/s normal share like SBI
Some charge % as demat charges for sell/pledge transactions
Amount of malpractice by brokers makes me disgusted ! Have closed various accounts just due to this.
if someone has to check ledger everyday, better to move out from that broker.
At 10.00 in the video he mentions that CDSL pledging charges are only Rs 5 per pledge regardless of amount.
While some brokers charge a percentage based while some have a flat pricing but no-one charges Rs 5.
Zerodha charges Rs 30. 6 times the actual cost.
Isn’t there any regulatation on such pricing?
Personally what I feel is, if the charges are made transparent(high or low) , it’s business. What’s not business is putting on fraud penalties. Hidden charges are also bad.
I have been with zerodha for 3yrs now… I check everyday contract notes. All going well for 3yrs…
There was only one instance some 2yrs back when stamp duty for my state was increased 10times on government circular and then reverted next day. I got frustrated as it was heavy amount charged and called zerodha, but it was all useless. A month later i was checking ledger and to my surprise, extra stamp duty charged was reversed to my account.
I expect they will keep this kind of trust ahead too…
It is Business if it is providing some unique value add. Pledging here or anywhere is the same. Nothing special about it. Also, it’s all done by CDSL. So adding a layer of extra (read significant higher) cost on top of what CDSL charges without any vaue add, is not business to me.
Nice video, glad I chose Zerodha instead of some other discount broker… I initially gravitated towards Wisdom Capital but their website was a big red flag, so dropped the idea of opening an account with them.
Also, what are “lots” mentioned by Sundar in his video? Is it a unit for shares?
It is really up to the business. This doesn’t mean that just because CDSL is involved in pledging, there is no effort from our side. CDSL is just the underlying infra, and all the operational burden and risk is on us.
There are some words that sound good in English but offensive in Hindi. Agent, Broker sounds sophisticated and classy in English. But the same word in Hindi if you hear दलाल it turns out to be offensive. It originates from the oldest profession/ business of humanity - prostitution, where women’s bodies were the assets and the pimps were the brokers. Times change, businesses change, assets change. Nomenclature changes.
Brokers are just below drug dealers in the evil list , but they try real hard to go one up.
@rupeshmandal I was just having fun with that comment. The exaggeration was so monstrous and ridiculous that I thought it was obvious. Im sure you get the joke too
and that their honesty has been rewarded.
, but they try real hard to go one up.
, but they try real hard to go one up.
I was just having fun with that comment. The exaggeration was so monstrous and ridiculous that I thought it was obvious. Im sure you get the joke too 