There are brokers that I see now who are charging less than Zerodha, why shouldn't I shift to them, especially for F&O Trading?

There are brokers that I see now who are charging less than Zerodha, why shouldn’t I shift to them, especially for F&O Trading?


How many trades you do per day and what is your trading capital ?

How much profit you made in the last month.

How much will you save if you switch to that broker.

Tell me all those details, I am ready to help you to take the decision to switch to THAT broker or not.

Enjoy your Trading…

Disclaimer - I have a vested interest in you not shifting :)…

You shouldn’t shift because of all the work we are doing on tech and education. I doubt if anyone will match upto the platforms that we are providing. We also have a bunch of surprises lined up for this year in terms of both our trading and reporting platform.

For equity delivery trades we are already Zero brokerage, so donno if anyone can give you a better deal than that.

For Intraday and F&O, there are some brokers who are looking at offering at lesser rates, but below is something really important you need to know:
Unlike equity delivery trades where clients bring in 100% of money, F&O and intraday trading is leveraged business. These come with risk. A default/bad debit risk (clients losing more than what they have), if IDEA went up 25% on Vodafone news, a lot of people who had short calls/futures would have lost more money than the margin in their account. When clients lose more money than what they have, many of them switch of phones and recovering money is like recovering from a bad loan. But exchanges will want this money immediately, they won’t give broker the time to recover. Have you thought what could happen if the broker is not liquid enough to make up for the losses of this (or group of ) client. This is similar to how IDBI is in trouble for loan to Kingfisher, except in case of brokers government doesn’t come to help.

We run a very strict risk policy by ensuring we never provide excessive leverage, cut it down completely when we expect volatility, completely automated square offs when clients have no margin etc. But with all of this also I understand that there is no way to cover this risk completely. On the day when IDEA went up, even after all this we had bad debits from clients who had short calls and there was nothing we could do to exit since the contracts were completely illiquid.

So what we have done from the start is provisioned 20% of our brokerage revenue for such bad debits (which today is quite a big number, an insurance policy of sorts that we run for ourselves). What this means is that if in future if there was a 2008 kind of a market crash year, even a big group of clients defaulting won’t put systemic risk on the system.

Why did I tell all of the above?
I know the competitors you are referring to, almost all are sub 5 crores in revenue after being around for a while, and no one is profitable as a business. The business networth is also quite low. What will happen tomorrow if a small group of clients take a big position which goes bad and client defaults. If the broker is not liquid enough (since he doesn’t earn enough), your capital would be at risk. If a brokerage is in business for a while, has clients and still doesn’t have any revenue, it is a big capital risk to take by trading with that broker.

So yeah, I think you should think of shifting if you find a platform technologically superior (this will keep us on our toes as well), not because someone offers a few rupees lesser than us.



As of now i think small traders are facing the problem at Zerodha is Pi,Kite browsing and Kite mobile application, IPO application. That is why they thought to shift at other broker !

IPO can be applied only on your banking portal very easily by mentioning your 16 digit CDSL DP ID. Check this link. Kite web/mobile, Pi are extremely popular, we haven’t had any complaints. If you are facing, can you email [email protected] and mention the ticket number here.

1 Like

my ticket no. is #257935. i requested to solved the same to [email protected] on 3/3/17. i faced such problem many time but not able to resolved it. hope you can help me to sort out.
Pi is popular but traders expectation are more :slight_smile: In conversation with Nithin Kamath

Will reach you on that.

Thanks… Support was taken by zerodha team but quarry is still remain UNSOLVED. they try to find the solution let’s see what happen !
Waiting for next update of Pi. :watch:

I personally support Zerodha because of new innovations that they are bringing in…Never forget Zerodha is the first Discount broker in India…before them it was very difficult for small retail traders to take part in FNO trading and make serious profits…Although I know still there is a lot that We expect from them but ultimately it is our moral as well as financial support that will encourage them to reach to next level…!!!:+1:
I am sure sooner of later Zerodha will be able to compete with international brokers in terms of everything…!!:slight_smile: