Retail traders and investors watch out - Are brokers like Zerodha counter trading?

After being a big fan of zerodha in the initial days and recommending to so many friends and relatives, my recent experience with zerodha as an organisation has been terrible. Added to this I stumbled on this which if true we all have to take it very seriously.

The above snapshot is from :

Is zerodha counter trading there by zerodha earning big money at the cost of retail investors ?
Is loss of retail investors is gain to zerodha?
Are practices like counter trading allowed by SEBI ? Does SEBI has any guidelines to monitor?
Do retail investors have to start a campaign against this ?



I have often wondered this too. I think this happens very often in illiquid scrips where relatively small quantities can cause big movement in price and big players/prop desks take opposite position and eat into retail traders’ stoplosses. An experienced trader once told me to not keep any stoploss (but keep a mental stoploss) and not trade in illiquid scrips for this very reason. Don’t know if Zerodha does this but it would be highly unethical if they do.

Assuming Zerodha has close to 1 million client. Even we consider 15% are derivative trader is it possible to monitor each and every position initiated by traders. Even if it is still manageable how many accounts would be needed to initiate such humongous multiple counter positions . No offense intended but it seems to be uphill task to me.

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Yes, not only loss but also profit of retail investors is gain to Zerodha.
Yaa, Zerodha is getting brokerage and its a gain.
Just for Fun…

Rest all… Just fictitious…

Why please?

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You can have algorithm trading set up for this.

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Don’t think Zerodha has 1.5 lakh derivative traders. And nobody mentioned that they take opposite position of each and every client. If you are trading in Nifty or BankNifty contracts there’s not much that can be achieved with counter trading but doing it to the minority of traders who trade in stock futures offers a lot of opportunities for prop desks especially with some of the lesser traded stock futures. This counter trading concept is very common in US but we Indians choose to remain ignorant and laugh at anyone who raises a genuine suspicion.

Just because you use big-boy words like “Algorithm” doesn’t make your argument true.

Dude…don’t spread rumors without basis. The reason I asked your age is because you are posting screenshots from “Quora” of all places. That’s like taking a screenshot from Tinder and showing it to your friends and telling them that you found the mother of your children.

Do you have even a basic idea of how the markets work? As soon as you place an order, you will get an “Exchange order number”. Now I am 100% sure, you geniuses wouldn’t have seen it.

In India there are no dark pools, or selling order flows. As soon as you hit buy, the order hits th exchange. Why would you take my word? Well another thing that you geniuses probably don’t know is NSE has something called as a Trade verification module, where you can actually verify the trades you place. Don’t ask for the link, Google it like the grown up’s do,


@Neostar brokerage firms are restricted by sebi and finance ministry regulations.

No broker will blindly take counter positions. This is non sense. If they say algo trading high frequency servers hni preference it makes sense. These are just fictions

No! It doesn’t!!!

Why not? Can we not check all the stop loss, target of Bo , co orders etc & enter trade? Zerodha or icicidirect etc not have access to these details for the orders placed through them?

I am not and don’t intend to. I am genuinely concerned and curious. It’s an opportunity for the learned babas to clarify in positive, constructive manner without being rude!

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Why that’s relevant or proves that counter trading can’t be done by the brokers only who have the insight of collective orders placed through them? Larger the client base, better they are placed at counter trading. Wasn’t Goldman Sachs doing it in USA or is it fake too?

Really? Can the order details not be sold to institutions?

Doesn’t broker have access to this order and can it not dump it in his database for algo trading order set up to counter trade? How NSE verification code is relevant here? I can’t connect your answers. Please elaborate. Thanks.

Why? Please.

Hi everybody, I want to share my experience with unethical practices at brokerage house/franchises. In the year 2007, I opened an account in Reliance Money at Bangalore. I assume now that this was a franchise office although I never went to that office personally. Interestingly, I have learnt that Mr @nithin was also operating a reliance money franchise at Bangalore at that time. I assume that must be an another franchise.

One day I placed some buy order of Ansal property and Nagarjuna construction and trades executed. These scrips jumped 15-20% on T + T1 days and retraced little bit. I was planning to square off these on T2 when I found that there are no such shares in my holding, infact the ledger is showing a credit entry of amount equal to total buy value plus Rs.100-150 more. When I enquired, I was told that this is a case of short delivery so, money has been returned with some charges ( meagre 100-150). Now please guess what were crooked doing either at Reliance Money head oofice or in Bengalore franchise office and what was the fate of my rarest of rare profit, in the tune of Rs 24,000 approx😂. Rest in second post.


In fact T2 day is for delivery and if not received by buying broker T3 day is for auction .square off credit is given only if even on t3 day auction the shares are not coming /selling broker fail to purchase. the square off price can be up to 20% higher than T2/ T3 day closing price .this applies to all normal group shares wherein there is no auction but only square off in T2T group.

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brokers can go to any extent as they are running a business though i’m not sure if zerodha would resort to such a thing as i feel Nithin & team are doing a good job so lets not insult zerodha. i hear that other brokers are feeling the heat as lot of clients from icici, motilal, hdfc sec, reliance etc are moving to zerodha & hence these companies are planting such fake articles in blogs, whatsapp etc.
@nithin may want to clarify…

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Exactly, but what happens when no shares was tendered in the auction.