Why is zerodha shutting down the Opentrade? It was an innovative concept !
Open Trade was a brilliant Idea and a new concept to India.
Just like Google’s business strategy, Zerodha is always enthusiastic to spend money to try out new products, Which I think is brave for an Indian Enterprise.
Also to mention, If they dont find the idea working out, they wind it up before it ends up eroding away more capital and resources.
With respect to OpenTrade as a daytrading product, been a subscriber myself, and as far as I have analysed Open Trade and the Indian Consumer Mindset.
I have observed 3 reasons.
Firstly, Such social sharing platforms does not work for the Indian Consumer Market. Specially if it means someone else is likely to gain from another persons effort, which was the logic behind Open Trade.
Someone does all the hard work and the subscriber pays a few pennies to get a piece of that cake. In this scenario, People who were consistently profitable were not ready to share their efforts with their fellow Indians.
Secondly, Been in continuous interaction with day traders in India, I have noticed something interesting, all the day traders in India are searching for something, be it a trading strategy, technology, etc etc but they do not want to settle with one thing for long.
Majority of them hopping from one thing to another, be it a strategy or a trading platform. The other side is always greener for the Indian day traders. In this scenario, for a platform like OpenTrade to be successful, the subscribers need to stick to it for a reasonable period of time, this does not happen in India.
Thirdly, Right from the start, the OpenTrade Team was not open to suggestions for improvement from its users. Someone gets an idea while they are in their bed and spend all their savings into making it into a reality.
Spending money to make a product exactly the way they want it or how they want to use it for themselves. Which does not mean, this is what will appeal to a majority of the final users. The same reason why many of the Indian Technology related startups do not grow after the initial hype, failing to adapt itself to changing consumer demand.
It is possible, you may not agree with some of my observation or may not fit into the above consumer type . Hope you will take it in the right spirit and do not start trolling on me.
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I feel there are some regulatory restrictions to this kind of platforms in India as indian regulator is not so open to such kind of platforms …so developing this platform would always face a hurdle of regulations
Insightful points. May b zerodha will come up with something much more better.
Ya…let’s hope…I have used this platform by spending 2 credits. I followed one of the star Aurgia…The call accuracy was good except INDIACEem.But I think for retail investors/traders who want to make money in FNO ,this was really a good platform at reasonable prices.Zerodha should come up with some Innovative way I’m place of this.
Yep, regulatory issues. We were never able to push this the way we wanted to in the first place because of it.
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and why are regulators causing issue in this matter?
Who are the losers here and who the winners?
So generally the grey areas were
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Do the people who share the trades need to be RIA’s? This could be potentially used to circumvent those regulations.
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Can these people front run, if yes - is the liability on the platform?
We asked for approval, but didn’t get.