This got me thinking,
what are Zerodha’s future plans, planning to acquire any discount broker to maintain strong hold in market share of brokers or any other plans ?
@nithin
Future plan is to continue doing what can help our customers do better with their money. The focus as I have mentioned in the post is to do this well :
While everyone focuses on adding more users, I think brokers who can find ways to retain existing customers by finding ways to reduce the money mistakes they commit will do better than their counterparts. This potentially means foregoing revenue in the short term. It is maybe finding the right product for the users and nudging customers away from higher-risk products, while this is the antithesis of popular business models in the industry. It may sound weird coming from me, but I believe that most Indians aren’t ready yet for equity as an asset class. Maybe the right product is a fixed income product where the risk is lower than equity but returns higher than bank fixed deposits. From there, equity can be introduced gradually as risk tolerance increases. Another approach might be building an advisory-first platform. These are things that I spend a lot of time thinking about.
No plans to acquire any other broker. Don’t see synergies with traditional platforms and the newer ones don’t really justify the valuations I think. Also in India, a broker acquiring another broker doesn’t mean a seamless transfer of customers. All customers have to do onboarding once again with the acquiring brokerage firm. Extremely cumbersome process and hence you haven’t seen any M&A in this space for a long time now.
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Why can’t you acquire another broker and run it as a subsidiary? You could put zerotha’s tech stack and appoint a COO.
I think, It would really help with the various per-member limits put by exchanges.
Using 1 or 2 year data, you could easily plan a client-distribution among your subsidaries.
Exchanges & SEBI should not have issues because each member meet their own deposit & networth requirements.
We already have a second membership, not a subsidiary but same promoters. Replicating everything at Zerodha in terms of tech isn’t as easy as it seems. Can’t really offer two different experiences. The only reason to do this would be for OI related issue, there is no point having another membership.
Within Zerodha all customers in terms of tech are divided between 4 different silos. So at the backend it is like running 4 brokerage firms.
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Thats great. But still OI limits are there. Last month USDINR over night orders were capped at 250 lots.
Is there a way customers/clients can ask zerodha to change in those 4 silos? Or is it automatic?
BTW, The member requirements in NSE shows a flat deposit and networth. If one broker goes too big with too many clients, those requirements should go up. right? If that goes up, the memberwise OI limits also should be adjusted. I mean, isnt it simple logic?
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Automatic.
Yeah, in derivatives this is an issue. Multiple memberships is a way around this, but kind of not in the spirit of regulation. And like I mentioned earlier, the tech isn’t easy to run multiple brokerage firms, while it might seem simple.
Running 10 silos for a single broker is different from running 2 silos for two different brokers. The latter is a much tougher tech problem due to the way underlying connectivity to exchanges and clearing corp works.
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Thank you for your time.
Few more questions…
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Do zerodha really have plans for a desktop trading platform?
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What happened to single/unified ledger? Is it in the future plans?
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Cross currency trading? Just curious.
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Is old/expired contracts intraday data possible in kite api for backtesting?
Thank you again.
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No
I am guessing you are referring to using the same funds across equity and commodity. Yeah, this is WIP. Requires a large change in the backend.
@MohammedFaisal what is the status on this?
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I saw Zerodha logo at reliable.co.in website>>>
Do you ‘really’ don’t have an plans for a desktop trading platform ?
Kindly enlighten us.
They are using Kite publisher for order executions. This can be done by anyone, we don’t have any other type of partnership with them.
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any plans for institutional broking firm? can someone use other institutional broker and get share credited to their zerodha demat account?
By institutional if you mean trading through a custodian, yeah that we offer already. Unlike institutional brokerage, no plans to build research or liquidity teams.
Yes, you can get shares credited to your trading account.
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Has zerodha implemented the market order protection system, where if the order is going to get executed at a price that is more than a certain % away from the LTP based on best 5 bid/ask, then the order will get rejected and the customer will get a nudge to place a limit order. You had written about this in a Zconnect article a while back.
Secondly, Since so many people put up their MTM screenshots on twitter, is it possible for zerodha to add a feature where one can click download on the positions page and zerodha generates a mtm page with positions but with a QR code and a watermark that can be validated if anyone scans the QR code, just like a lab report.
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Hope it’s available soon!
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Will Zerodha ever develop a comprehensive software package for trading like TC2000 or think or swim (ToS) ?.
Many users will be readily willing to subscribe / pay for it. I have tried Fox EOD version, its not so good.
There is always this crazy for the west offers. I have used some of the desktop platforms offered by brokerages in the US, I have a conflict of interest saying this, but I think Kite is better. 
Even in the US, active traders are shifting out of desktop to web/mobile apps. This is the reason why brokers like RH, Webull etc are becoming bigger. Web technologies have developed significantly over the last 10 years, today web trading platforms are as fast and reliable as compared to desktop platforms.
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means…never going to happen, leave it.
Atleast introduce 4HR timeframe on your kite platform.
Yet to see any professional trader dependent on web platforms.
Thanks.
do we have “link to excel” feature on web platforms ?
I am more concerned about the analysis part, what’s the use of having 7 watchlist when you cannot reliable save the analysis ?
Same is the case with proper trading view (premium version), all fancy indicators, but the chart saving and layout mechanism is crippled.