@nithin Like US, if Paytm Money comes with Zero brokerage across all segment?
What would Zerodha do? Will Zerodha follow the Paytm way?
In the US, only stocks investing and ETF’s have been made free. Most of the large brokers also run their own ETF’s, so they anyways make money on those.
Btw, check this post I’d recently written on the same topic.
Leveraged trades - intraday stock and F&O, carry a risk on every trade. Each position can potentially lose unlimited amounts of money, which means the default risk is on the brokerage firm. It is important to earn something on those trades to net-off the risk.
Additionally in India there is also a compliance risk on all kind of trades, for example how you collect and pay GST, Stamp, STT, etc. And of course the technology risk, imagine you payout more than the client balance or credit shares to the wrong demat, etc.
There is a business risk every broker takes when clients trade on their platform. This is much lesser in case of delivery trades, but very high on the rest. So I doubt if others will go zero on leveraged intraday or F&O trades. But you never know, in today’s world there is almost unlimited VC/PE money available for a few firms, it wouldn’t be the most surprising thing. 
If it were to happen, we will figure out what to do then.
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There are actually brokers offering zero brokerage recently I had in contact with one of them . You see I pay nearly ten thousand brokerage per month to Zerodha.
If someone comes to me saying it would be free and convinces it is trustworthy maybe I should one time think to do business with them . So is Zerodha looking to expand its field in other business like asset management , funding and lending etc to diversify some of its revenue streams?
Of course we are diversifying, we should soon have investing in international markets, Loan against securities, etc. We also have partnered different type of capital market businesses through https://rainmatter.com/.
Btw, while a lot of people give credit to pricing for the growth of the business, it is in reality the product. There are many who offer trading at lower costs than us, but I guess as long as we can maintain distance from competition on product, pricing is secondary today with our deep discounted pricing model.
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Btw, while a lot of people give credit to pricing for the growth of the business, it is in reality the product. There are many who offer trading at lower costs than us, but I guess as long as we can maintain distance from competition on product, pricing is secondary today with our deep discounted pricing model.
+1
A good usable product (like Kite) with low risk of going out of business > A broker charging 0 commissions and takes on risk by offering extreme leverage to cowboys
I would prefer paying some brokerage if it helps the brokerage firm remain profitable and invest in platform.
Don’t see zerodha offering zero brokerage for now. Finvasia and wisdom capital are already offering zero brokerage trading in India and that hasn’t affected them yet. Btw, when is paytm coming, any idea? Been waiting for long time