# Why should we stick with Zerodha? **URL:** https://tradingqna.com/t/why-should-we-stick-with-zerodha/68153 **Category:** Brokers **Created:** [January 6, 2020, 1:07am UTC](https://tradingqna.com/t/why-should-we-stick-with-zerodha/68153 "2020-01-06T01:07:52Z") **Posts on this page:** 1 **Showing post:** 10
### Author: ![nithin](https://tradingqna.com/user_avatar/tradingqna.com/nithin/32/5_2.png) [@nithin](https://tradingqna.com/u/nithin) #### Post date: [January 6, 2020, 7:16am UTC](https://tradingqna.com/t/why-should-we-stick-with-zerodha/68153/10 "2020-01-06T07:16:14Z")
> [@varun\_g](#): > > 1. If leverage is scrapped for good, no real incentive to stick with zerodha. pros of IB outweighs pros of Zerodha. > 2. Yeah earlier they used to do that. Now IB is closed in India only on New Year. Besides I take off on New Year. So no worries. > > PS: Zerodha guys have unlisted the topic. So this topic won’t be visible to public. > PPS: Not here to defame zerodha or fame IB. I am a zerodha fanboy and want zerodha to be better than IB one day. > PPPS: It would be nice if @nithin just sees this topic and acknowledge. I don’t know why you think I am against the leverage, > [@Why did the exchanges publish a clarification on no additional intraday leverage?](https://tradingqna.com/t/why-did-the-exchanges-publish-a-clarification-on-no-additional-intraday-leverage/68007/3): > > Firstly, the upfront VAR+ELM margin requirement for trading stocks that was introduced is new, but the upfront margin for F&O had always existed. Just that brokerage businesses including us had taken a view which was business-friendly. Let me explain - For those who didn’t know - when a client buys 1lot of Nifty with only Rs 25k using an intraday order type (BO/MIS/CO) when the NRML (SPAN+exposure) margin is Rs 1lk, the exchanges block Rs 1lk from the broker. What this means is that the broker… > We have the largest community of retail traders, we will probably be the most affected brokerage in terms of revenue. But if you go through the explanation above, there is no real way to oppose it, is it? Also once it is put out as a rule, the penalty for breaking rules for brokerage firms is quite high. Us discussing it openly is atleast getting all brokers to put an effort to see if the rule can be changed. Keeping quiet isn’t a solution, it would eventually end up being stopped without anyone getting a chance to protest. > > One of the things that SEBI has done with the recent [circular on margin collection](https://zerodha.com/z-connect/queries/stock-and-fo-queries/why-the-new-sebi-circular-on-margins-in-cash-segments-wont-affect-you) and through this clarification from the exchanges is to ensure that a client can only trade with his/her own funds only to the extent allowed. Forget other client funds, but the broker can’t put his own funds to fund the client as well. Maybe the broker should be allowed to intraday fund using their own capital if they are ready to take the risk and that is something we have been asking for. But this requires changes in derivative product design at SEBI, which is extremely tough, especially in an environment where the industry is hurting due to regulatory pressure after the incidents at Karvy and BMA. Hopefully we will soon have the good news of margin requirement dropping drastically for F&O positions that hedge each other. We are fighting to have some sort of leverage, but keeping quiet about it like other brokers isn’t the right thing to do. I use our competitor’s products. The better product will eventually win, I don’t think businesses can hide behind regulatory arbitrages for too long. So yeah, we are also working to make sure our products can stay ahead of the competition. --- _[View the full topic](https://tradingqna.com/t/why-should-we-stick-with-zerodha/68153)._