I see… I mean that’s very bad… Have you tried reaching out to banks to fund your leverage? You know, maybe you could partner up with them. This partnership is very dominant in the US. I have some Hedge Fund & IB friends. They made it very clear how things work with brokerages there… They fund them for leverage and in return they get access to the complete back-end of the brokerages. God forbid! those poor retail traders.
They do not offer margin on pledge.
The main cons of IB are
-
Margin on Stock pledge not available. (if you are only a option writer / or depositing only money to your stock broker then it is not an issue at all)
-
Funds transferred for trading gets locked for 5 days. (again if you leave funds with your broker for a longer period then it is not an issue at all)
Reviews mentioning that million vs thousands, it actually is the opposite. They have a world wide RMS/OMS.
If these two cons are reviewed by IB, most of the indian brokerages have to shut shops or review their business models.
2000 for an api is way too high at zerodha. IB offers it for free!
System is totally different in India, it won’t work that way.
Also in India there are no dark pools as such, I mean all orders have to go to exchange and execute there itself, so no one buys order flow and brokers won’t make anything out of it in India.
Ok…so now i‘ve read the circular and the crux that i got is:-
- Margins as determined by sebi have to be collected UPFRONT and SOLELY from the investor/trader.
- No part of the margin requirement can be fulfilled by the broker. The reason for this change is to ensure that a broker does not use one client’s fund to finance other clients. Thus ensuring transparency and stability.
Correct me if i am wrong here.
Now as i’ve understood zerodha uses its own funds for leveraging. This is done by means of the fund it maintains with the exchange, out of which money(real not notional) is blocked when used for leveraging. Upper limit of which is 90% of zerodha’s corpus parked with the exchange.
Since zerodha can no longer provide leverage can u tell Whether there will be any need for you to maintain a large balance with exchange? If not can these untied funds be used in a different (yet legal) way to finance clients?
@nithin
No, there is no way going forward for brokers to fund customers for intraday trades.
For instance would it be possible to finance clients for a period of say one week, for nominal interest. Here the money is transferred from broker to client, and this money when used by the trader gets collected upfront from his account(and not partly from zerodha’s account as done earlier)…since this is not leveraging, and this is not using one client’s fund for others, would it be against the spirit of the circular?
@nithin
no, like I said, none of that is possible.
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Alright…
Are you sure about this?
Dark pools you’re referring to most of the times are prop traders at investment banks who are often called Market Makers. As per my knowledge, how they work is they execute orders on behalf of their clients. If a client wants to buy million shares of AAPL at let’s say $500 that’s around $500M, these prop traders take up some percentage of commissions for executing the orders it is around 5bps I guess, basically for doing nothing quite literally. These orders are then executed by automated algorithms. The idea is to buy shares at lower prices than $500 on an agreed time frame. 90% of the time these traders spend time just managing these algorithms to ensure they are working as expected. But if they manage to get shares at a lower price which most of the times they do you see the amount of money they make… If they manage to get shares at $499 they quite literally made $1M just in executing the order, unlimited profits. But if they go above it losses are unlimited. And these losses are recovered by trading and that is where they spend 10% of the time.
It is kinda like shorting but here you get commission instead of paying the client who you kinda burrowed from. No wonder why banks are one of the most dominant industries in the world. They somehow find ways to make money. Anyway, coming to the point, I am sure there are dark pools in India as well. I mean, if i tell an Investment Bank to buy on behalf of me what’s wrong in that?. They buy and then transfer the shares at a price point they agreed on i.e. $500. There is nothing so dark about these ‘Dark Pools’. They must be there. Maybe you guys can substitute some of your lost revenue from leverages by doing just this, but there is definitely some risk but it depends on the capabilities of your algos and traders if you’ve got them there.
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I thought hedge funds themselves go to banks for leverage, I mean banks do finance these funds as per their trading requirements.Correct
Of course they do, if you are a billion dollar hedge fund and you work on huge scale then you need someone to finance leverages at huge scale and huge banks can do that. But in the case of brokers they don’t really need huge leverages at that scale so big hedge funds can finance a brokers leverages as well. But most of the times it’s investment banks that do the financing though.
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Why should we stick with Zerodha… bcoz this thread exists 
:
Nope. You can trade only in NSE with IB India account.
no idea.
Sure. if you want EURUSD, then IB overseas account is the only option available.
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Unfortunately Zerodha has fallen in terms of customer services very badly, it has gone literally to dogs now. With other discount brokers closing in terms of cost…the high handedness attitude and arrogance has gone to their/Zerodha’s head. This is no more a reliable broker at value wise, other guys are moving fast. I won’t be surprised if Zerodha will lose its no 1 by this year. You can’t wake up those guys who pretends to be sleeping!
Hey @Suvi, sorry to hear this. What seems to be the issue? Could you please DM me more details along with your Client ID? Will have this checked.
I understand you are under a responsibility to follow MORSE code from a SOP. So I don’t blame you anyway. If people start writing issues of Zerodha it will be the longest UNHOLY BOOK. Rather than asking an individual customer…classify your millions of customer service problems…classify them and please solve them.
I am done and dusted with Zerodha almost, in process of leaving whatever account I can. I posted publicly as people notice and smell the coffee! And I am not wrong factually difference between Upstox and You is closing in faster than light, so is Groww. I know Zerodha is still in la la land to pay attention. Lets reconnect in six months,…two year and assess where is Zerodha is against competitor!
Good luck guys --both clients and zerodha
Here is latest cackle joke…Zerodha support replies to your ticket in a highly knowledgeable manner except in the beginning, middle and end …yes of course without a resolution. If you want to reply them and counter their falsehood this is what to they do…
Something
went wrong
400 BAD_REQUEST
Ha ha,you can’t reply even. Of course in 3 days they will say we are having technical glitch in support website. This is like switch off the website if news are bad about you.
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Sometimes i feel brokers have no voice 
against SEBI .
intraday margin is removed good but what about exposure margin for fully hedged option no body talks about it.
every 1 just want to get rich quicker but there is no respect for systematic trader who caps risk system wide.
Everybody wants to funds intraday trader but no body sees the discrimination for the party who is ready to pay MAX RISK AMOUNT IN ADVANCE .
Just saying what if client sells one
leg we are exposed.in usa spreads are in basic margin account,retirement account
Why cant exchange recognise same as a single trade cant sebi force that on exchange
All the time sebi screaming retail participants are too high lets increase the margin
Y not focus on making retail traders do profitable trade n do not blow thier account fast
Their risk management committe comprises of very old school proff who care shit about retail n just waiting to retire n get pensions
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@varun_g @velu @namitjain2890
How is the real time data offered by interactive brokers via API? Is there any delay or missing data?
I am mainly concerned with real-time data and not historical data.
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Works great, there is 100 ticker limit for free data.
Historical is great too, but a bit throttled and wont have expired contracts.
Occasionally around corporate actions in stocks, they mess with the contract intraday but usually that only affects historical i think ( not 100% sure as i use both IB and Z realtime data).
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