Interactive Broker New price structure matches with Zerodha

Interactive Broker have released new price structure that matches with Zerodha. How Zerodha is planning to tackle it?

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Last week Even Fyers have matched up with Zerodha.

With competition high , The brokerage charges are likely to go down even further.

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Good that Zerodha is looking at competition’s price model. Lot of them are quoting a brokerage of 9, 10, 15 and 20. How soon Zerodha will be executing it to beat the competition. This will make ZERODHA a true ZERO WARRIOR.

I’ve been fortunate enough to have closely worked with Nithin and on several occasions I’ve heard him say that while building Zerodha, the focus was never on the brokerage of Rs.20. It has always been about empowering the retail trader/investor to considerably increase one’s chances of winning the markets, being the kind of broker that he did not have as a trader himself. He always believed that costs were something that could be replicated by anyone, the stand out factor for Zerodha would come in terms of the technology, services and the products that were offered to it’s customers. The business has been grown with a lot of love, dedication and hard-work, where else would you see a CEO of a broking firm reply to client queries on a public forum, in the middle of the night :slight_smile: True to his words, there have been several initiatives we’ve taken as a business apart from the very introduction of the concept of discount broking to the Indian Capital markets in the year 2010, a few of them that I’ve highlighted below:

  • 60-day-challenge: Unheard of in the history of capital markets, a broker rewarding clients with brokerage refunds for staying profitable. The motive behind this was to ensure that a trader/investor concentrated on trying to stay positive whilst trading instead of worrying about the brokerage he would pay.

  • Z-Connect: Another one of our initiatives which is aimed at making markets simpler to the retail investor. Complex concepts such as Auction settlements, Short deliveries, Power of attorneys, taxation for stock markets made simpler. Interviews with top traders to gain insights into their trading so that the eager learners could benefit.

  • Zerodha Varsity: Probably the best content out there pertinent to the Indian Stock markets, all this content for free, without the need for any login etc.

  • Advanced trading platforms like Kite/Pi.

  • Access to Q: A backoffice made to generate advanced trading reports. We’re making some developments to this in the coming days, through the release of ‘Crux’.

  • Coin: The convenience of being able to place orders for Direct mutual funds at the click of a few buttons, transacting in demat mode.

  • Access to platforms such as smallcase/ Balance

  • This very forum tradingqna.com that allows one to post questions & interact with fellow traders about anything related to stock markets :slight_smile:

We were never in a price war with anybody and would never want to get into one. It’s been 7 years since the launch of Zerodha and we’re still charging Rs.20/order. Factor in inflation and you’re already paying much lesser for the same service that you got 7 years back (no, we aren’t thinking of increasing brokerage :)).

While we have a long way to go in terms of the products & services that we’d like offer our customers, I can’t help but thank all of them for the kind of support they’ve given us in helping us grow to the spot that we find ourselves in.

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@VenuMadhav :kissing_heart:

@RS3625, competition keeps everyone on their toes. It is good for clients. I don’t know if prices can come lower from Rs 0 that we charge (maybe someone will start paying u to trade with them). But what all of this will do is that for sure you will continue to see people try to innovate in terms of products. Which is good for the ecosystem. We are working on ensuring that we keep improving on our product offering, a bunch of very cool surprises lined up for this year.

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IB charging Rs. 20 is like all froth and no beer. I have used Interactive Broker mostly for foreign investments,ended that as well. Dont think they are suited at all for the Indian market. Just by reducing brokerage, will not give any edge. Their call and trade is Rs. 2000 per call!! That is, if you are fortunate to get them on the phone. Also there is a monthly fee that is paid in dollars, (it was reduced on brokerage I generate… but when I was inactive it was an additional expense every month). You also need to maintain 2000 dollars in account to trade with them…so had to stay invested in ETFs and all, Moving funds in and out is a pain…is the biggest pain! You would expect an instant gateway but no luck… only NEFT and RTGS, takes 1-4 business days and is annoying to track!! Even their platform is no shakes, Kite’s better. Congos to Zerodha, I think you guys are doing good, keep up the good work!

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I have no doubts that you people are doing great job, only intension was to understand Zerodha’s take on this. Reducing price further is not something I am expecting rather would like to see better features than IB. It’s always good to see an Indian company doing better than US. Kite is already a grt platform, pi seems to have fallen behind.

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I am sorry VM1 but I dont agree with you on “It has always been about empowering the retail trader/investor to considerably increase one’s chances of winning the markets, being the kind of broker that he did not have as a trader himself” and “stand out factor for Zerodha would come in terms of the technology, services and the products that were offered to it’s customer” and “Advanced trading platforms like Kite/Pi”. If it has been about empowering retail trader considerably increase ones chances of winning the markets then how come Zerodha has not enabled the feature of trend line replication in Zerodha Pi till now. Advance trading platforms like Kite/Pi? Do you realise how incomplete Pi and Kite are? Pi and Kite platforms are not even close to being professional platforms as both the platforms are incomplete. In Kite it is not even possible to save templates to cloud, or save saved views to cloud. There is no save option for saved views other than typing the name of the saved view over and over again to save them. It is very difficult to use drawing tools in Kite as drawn objects are immediately highlighted as soon as mouse curse goes closer to the vicinity of the drawn objects. Once the history and cache are deleted, all the drawing objects disappear and traders have to redo everything from scratch which is a pain. There a lot of drawbacks in both the platforms Pi and Kite which Zerodha is not at all interested in addressing them. Many retail traders have requested on a number of features repeatedly and Zerodha has ignored or delayed their requests.

I think think ignored or delayed is not a suitable word choice. Inefficient and incapable workforce with arrogant front desk runners/ customer support workdesk is suitable choice.