How safe is it to trade with Zerodha?


#1

I know we are not supposed to ask Zerodha specific questions on TradingQ&A, but with the recent scam at Unicon securities, is there anything that you can say to soothe my nerves?


Are my holdings safe with Zerodha?
Security of ZeroDha
#2
  1. Businesses that shut down usually will be loss making businesses and not profitable ones. We are probably among the most profitable if you look at earnings from pure retail broking.

  2. We have zero debt on our books, no money every borrowed. We don’t lend any money either, if anyone wants facility like margin funding, we pass the lead onto our partner IL&FS.

  3. We are usually among the first companies to file our IT returns, usually companies in trouble will delay and sometimes not file at all.

  4. We have almost zero complaints against us on the exchanges by our clients in the almost 4 years of being in the business.

  5. We are quite conservative in terms of leverage/intraday margins, changing quite fast based on the market volatility. High leverage is usually the culprit for disasters, both for clients and brokerages.

  6. We have been acknowledged by various newspapers and also awarded CII Emerging Entrepreneur award where the due diligence was done by Grand Thornton.

  7. Members of recognized exchanges and regulated by SEBI/FMC. Even if a brokerage decides to shut down the client funds should ideally be safe if not there is also an investor protection fund setup by exchanges (more than Rs 1000 crores at NSE) which can be used in such cases

  8. Constantly looking at empowering clients by sharing as much knowledge and giving access to as many trading tools as possible.

Can keep going on, :slight_smile:

Cheers,


Can zerodha sell all clients security and take out cash and shut its businesss?
How safe is it to trade with Zerodha now in 2018?
#3

before opening an account, make sure the broker does not trade using ur prices. they have the big money, which can ruin ur strategy. they chose brokerage over trading because they could not trade.


#4

Dude, @Tarzan, it’s damn safe to trade at Zerodha. No doubts about it.

Secondly, they don’t have time to trade ur strategies or ur a/c, they are not after peanuts. They are professionals of their own right.


#5

@NITHIN all is great in zerodha … except minor bugs in pi …kite is great… just to request check out my below tweet which I sent u…

I really not mean spamming however, really need it badly… and Im sure u will try or atleast ask about it to tech team… please do


#6

Zerodha is better than other brokers compare to price, but I noticed that there are some issues in accounting calculation, I noticed that their profit and loss calculation are not crediting our account properly.

Eg: If you make a partial trade today; realized profits are booking far less than original profit you earned, I contacted the support team but no proper response. Im not happy with their response if we made a realized profit, it should be booked completely as realized profit, what ever unrealized profit it should show separately. It means they are playing with numbers and we are losing some of our money.Honestly, I feel part of my money are stealing …


#7

Nithin - On a side note, can i enquire what level of encryption ( 128 bit or 256bit ) does ZT uses for communications with its servers and with NSE/BSE/MCX servers.?( I do see that Z5 uses TLS 128 bit)


#8

Great, Nithin.


#9

wow …wow…that s really good to hear, cheers…( for a hot mug of Nescafe)


#10

To add to Nithin’s answer, also check out these articles from ET:
ET Startup Awards 2016:
Read more at:
http://economictimes.indiatimes.com/articleshow/53590223.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst
10 businessmen to watch out for in 2016
Read more at:
http://economictimes.indiatimes.com/slideshows/biz-entrepreneurship/10-businessmen-to-watch-out-for-in-2016/6-nithin-kamath-ceo-zerodha/slideshow/50388294.cms?from=mdr


#11

Zerodha is better than other brokers compare to price, but I noticed that there are some issues in accounting calculation, I noticed that their profit and loss calculation are not crediting our account properly.
Eg: If you make a partial trade today; realized profits are booking far less than original profit you earned, I contacted the support team but no proper response. Im not happy with their response if we made a realized profit, it should be booked completely as realized profit, what ever unrealized profit it should show separately. It means they are playing with numbers and we are losing some of our money.Honestly, I feel part of my money are stealing …


#12

Can’t be basheernp, can you email your client id to nithin@zerodha.com, i will get someone to get back to you with an explanation.


#13

“using your prices” what’s that supposed to mean!? When you say they choose (you misspelled it) Brokerage over Trading, with just Rs 20/- flat per executed order, how much can one earn. Please do some research before commenting.


#14

@karuna
What is that you are trying to tell? Its confusing!
@Ashish
Brokerage what zerodha collects could not be a very small amount. Please check the turnovers here.
http://comparebrokerages.in/compare/zerodha/rksv/reliance
I think business models of different companies work differently, (Flat 20 rs per order in zerodha) But they all do business to get huge profits (in terms of several crores), not like you said (“how much can one earn”). I hope you will agree.


#15

@astroguru - say u trade only nifty around 5 lots, so ur slippage is say Re.1/-, but if at the same time ur broker is trading his account using ur price and punching his orders at ur price, overtime ur slippage is going to become higher, thus impacting ur profitability. secondly, it will also ruin ur strategy. pls read winner Pawan Arora’s blog, where he tells us that his strategy has lost its edge thus he cannot trade.


#16

@Ashsih - i haven’t misspelled the word ‘chose’. Chose is the past tense of choose. i’ve a question to u - if u r trading well, will u consider opening a brokerage firm?


#17

Hey Karuna, active trading is like playing a T20 everyday, fatigue sets in fast and you need to get off the table when you lose the edge. If you don’t, you can give up all that you have earned back to the market very fast. Just seeing your question, no we don’t use your prices to trade, and what you need to know is that markets in India are quite liquid (other than those B group stocks) and no one can ruin your strategy other than yourself.


#18

thanks for the clarification Nithin… I am sorry that I am writing all this stuff in public forums, its just that I ve traded 2 successful strategies in the past which fail to work now. I was told by a CMT that the brokers trade/share our prices and ruin the system, So mentally really disturbed about it. Anyway, sorry once again and thanks for the clarification.


#19

it sad to hear from karunakumari… first put the blame and then ask for apology on the matter what have you preceived can or cannot be true but before having said anything is there any pillar to the house of story cooked herein or just a dream house, horse whisper we all are playing the blame game


#20

Basheer, can you help me understand this with an example. Btw, how the realised profit or unrealized is displayed has no bearing on your total profitability, that will always remain the same (sum of realised + unrealized).