Dear Zerodha Team,
I am writing to express my concerns regarding the prolonged delays in implementing critical features that are essential for effective trading and investment management. These features include:
- MTF to CNC Conversion (Full Cash Buyout)
- GTT Orders for MTF Holdings
- Trade from Charts (TFC) for Enhanced Execution
In the context of current market volatility, the absence of these functionalities poses significant challenges for investors and traders. Despite repeated assurances, these features remain unavailable, leading to frustration and operational inefficiencies.
Specific Concerns:
- Absence of MTF to CNC Conversion – Elevated Risk Exposure
• Investors utilizing the Margin Trading Facility (MTF) are currently unable to convert their leveraged positions to Cash and Carry (CNC) by settling the full cash amount. This limitation can result in forced liquidations due to margin shortfalls, exposing investors to unnecessary risks. Notably, other brokerage platforms have already integrated this functionality, indicating that its absence at Zerodha may stem from prioritization issues rather than technical constraints.
- Lack of GTT Orders for MTF Holdings – Impaired Risk Management
• The inability to place Good Till Triggered (GTT) orders on MTF holdings hampers investors’ ability to set automated stop-loss or target orders, crucial for effective risk management. Despite being a fundamental feature, its implementation has been pending for an extended period.
- Restriction on Re-purchasing the Same Scrip on the Same Day
• The current system restricts investors from re-buying a stock on the same day if an MTF position is squared off due to insufficient margin. This limitation can lead to unintended intraday losses and hinders efficient trade management.
- Absence of Trade from Charts (TFC) – Suboptimal Execution
• Many brokerage platforms offer the capability to execute trades directly from charts, enhancing the speed and accuracy of order placements. The lack of this feature in Zerodha’s advanced charting platform places traders at a disadvantage.
- Unfulfilled ETAs and Transparency Issues
• Repeated extensions of estimated timelines without concrete updates have led to a trust deficit. Clear and realistic timelines are essential for users to plan their trading strategies effectively.
- Perceived Prioritization of Revenue-Generating Features
• There is a growing perception that features potentially increasing brokerage revenues, such as those related to Futures and Options (F&O), are being prioritized over essential tools needed by retail investors and traders. This approach raises concerns about Zerodha’s commitment to addressing the holistic needs of its clientele.
Immediate Requests:
• Implement MTF to CNC Conversion Promptly: Enable investors to convert leveraged positions to delivery holdings by settling the full cash amount, thereby mitigating the risk of forced liquidations.
• Enable GTT Orders for MTF Holdings: Introduce the functionality to place GTT orders on MTF holdings to facilitate automated risk management strategies.
• Introduce Trade from Charts (TFC): Incorporate the ability to execute trades directly from charts within the trading platform to enhance execution efficiency.
• Provide Clear and Accurate Timelines: Offer transparent and realistic timelines for the implementation of these features to manage user expectations effectively.
While acknowledging that users agree to the terms and conditions when availing MTF, the introduction of a product lacking basic functionalities and the continuous delay in rolling out critical updates can be perceived as a disservice to the user base. If Zerodha upholds a client-first approach, it is imperative to prioritize the development and deployment of these essential features promptly.
I look forward to a definitive and committed response from the team.
