Prop trading By Zerodha

#1

@nithin

Please ref https://www.nseindia.com/membership/content/mem_disc.htm

it appears that Zerodha is having a prop positions. If so, then, it is very much possible that you could be using client’s money to take positions. Also, it seems very much possible that zerodha trades (as well as brokes), it could take counter positions easily due to the Order information available in zerodha server.

Please confirm that Zerodha is no way using client’s funds for taking prop positions as well as not using the order flow information and/or stop loss open orders for any purpose.

(From another thread which is oldhttps://tradingqna.com/t/is-zerodha-use-client-money-to-proprietary-trading/14500) it appears that you have your own under utilized funds, – But that information is 1 year old, now things may have changed.]

Thanks and regards,

Tarakesh

#3

Like a lot of brokers, we do have prop trading, most of them do it from separate entities so you’d not see them on this list. We have to report margins to the exchange on a daily basis (client and prop), so it is not possible to use client margin for this. Over 25% of total funds lying in the business belongs to the firm, so if you see 9% it means that we are utilizing less than 50% of our own funds.

Check this thread , has answers to your other question